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Patna,(BiharTimes): All the three bicycle firms, which announced sometimes back to set up their plants in Bihar have now decided to pull out. This is notwithstanding the fact that about 13 lakh cycles are sold every year in the state.
All the three Punjab-based firms have backed off from the project because they failed to get land as per their demand.
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The projects of Avon and TI Cycles even got the approval of the Bihar State Investment Promotion Board.
Last year Hero announced to invest Rs 100 crore to set up a plant in the state. In this regard the Managing Director of the firm, Pankaj Munjal, even held talks with the industry department officials. The firm demanded land near the vicinity of Patna but the state could not offer it.
About 4,000 Hero cycles are sold every day in Bihar.
Similar is the story of Avon Cycles. The state government offered land in Hajipur, but the company did not like the plot. The plan was to set up an assembling plant at the total investment of Rs eight crore. The target was to produce 1,500 cycles daily.
The third firm, the TI Cycles also sought land in the neighbourhood of Patna. The land offered to it by the industry department was not liked by the firm management. It had a plan to produce 12 lakh cycles annually and was planning to invest Rs 45 crore.
These firms took keen interest in setting up plants in Bihar after the introduction of Chief Minister Cycle Scheme for girls and boys of Class-IX. In all 12 lakh cycles are distributed all over Bihar. Besides, one lakh cycles are sold in the market.
With 90 per cent of country’s production Punjab still has the monopoly over the cycle industry.
After giving up its project in Bihar the Hero Cycles last month came up with a plant worth Rs 21 crore at Ghaziabad in UP.
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