55 Acres Allotted For Furniture Cluster, Real Estate News, ET RealEstate

July 9, 2023

INDORE: After a long wait, micro, small and medium enterprises (MSME) department has allotted 55 acre for proposed furniture cluster at Betma Khurd, where 40 industries will be allotted plots for setting up factories.

The discussions for furniture cluster were initiated in September 2020 and the project was scheduled to be implemented by early 2022, according to Special Purpose Vehicle formed for developing the cluster.

The SPV had collected more than Rs 5 crore from 110 industrialists willing to take up land in the furniture cluster but later more than 60 players took their money back due to the delay in allocation of land.

District Industries Trade Centre (DITC) Indore general manager SS Mandloi said, “Around 40 industries are expected to come up in the furniture cluster for which the MSME department has allotted 55 acre. The SPV will do the development of the cluster and upon its development, the MSME will do registered lease deed with industries for 99 years for the plots in the cluster.”

The industries are expected to invest around Rs 250 crore in the proposed furniture cluster.

Association of Furniture Manufacturers and Trades, Indore secretary Harish Nagar said, “The state government has given us 55 acre land for the furniture cluster and has assured to allot more land in future. The SPV had demanded 450 acre from the MSME department against which 55 acre has been allotted to us.”

According to industries, around 5-10 per cent area of the allotted land will have to be left unused due to uneven land that cannot be used for development.

The development plan for the cluster will also undergo a change due to the small size of the land and common utility areas like training center, laboratory and lunges will be taken off the plan.

Indore is home for many large, medium and small furniture manufacturers with an estimated annual turnover of over close to Rs 1,200 crore.

  • Published On Jul 9, 2023 at 03:00 PM IST

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