Gurgaon-Manesar losing prime auto hub status

By admin March 14, 2013 12:58 pm IST

Apprehending that the Gurgaon-Manesar belt may lose its “status” of fast-emerging auto hub conceding the advantage to the Southern-Western states, ASSOCHAM has suggested the Haryana Government to intervene effectively to ensure that the labour-related issues are sorted out at the plants level only.
Expressing concern at the renewed labour trouble in the area, this time at the facility of another group, the chamber said the conflicts in the plants would result in making the existing units unviable while no new investment will flow in the belt to a great detriment of the local population. “The Haryana Government must intervene so that the peaceful industrial relations in this belt of Haryana don’t suffer which ultimately will be a hit to the state economy,” said D. S. Rawat, Secretary General, ASSOCHAM, in a statement.      After a conflict at one of the units at Manesar, the problems are simmering again in this belt which was otherwise attracting large investments and creating job opportunities. The area has emerged as one of the major automobile hubs of the country, thanks mainly to Maruti-Suzuki and Hero Group’s plants. A large number of ancillaries have come up in the area and some of them have scaled up their status from ancillary to medium and large units.

“There should be a fast realisation amongst the workers and the government that the industry has to survive in highly cut-throat-global competition,” said the secretary general.
As many as 300-400 large to mid-size component units have come up in the region on an investment of $ 5 billion. The turnover of the industry is estimated at least $15 billion per annum, and it provides employment to 8,00,000 – 10,00,000 people, estimates the chamber.