textit{Clustering problems} often arise in the fields like data mining, machine learning etc. to group a collection of objects into similar groups with respect to a similarity (or dissimilarity) measure. Among the clustering problems, specifically textit{$k$-means} clustering has got much attention from the researchers. Despite the fact that $k$-means is a very well studied problem its status in the plane is still an open problem. In particular, it is unknown whether it admits a PTAS in the plane. The best known approximation bound in polynomial time is $9+eps$. In this paper, we consider the following variant of $k$-means. Given a set $C$ of points in $mathcal{R}^d$ and a real $f > 0$, find a finite set $F$ of points in $mathcal{R}^d$ that minimizes the quantity $f*|F|+sum_{pin C} min_{q in F} {||p-q||}^2$. For any fixed dimension $d$, we design a local search PTAS for this problem. We also give a bi-criterion local search algorithm for $k$-means which uses $(1+eps)k$ centers and yields a solution whose cost is at most $(1+eps)$ times the cost of an optimal $k$-means solution. The algorithm runs in polynomial time for any fixed dimension. The contribution of this paper is two fold. On the one hand, we are being able to handle the square of distances in an elegant manner, which yields near optimal approximation bound. This leads us towards a better understanding of the $k$-means problem. On the other hand, our analysis of local search might also be useful for other geometric problems. This is important considering that very little is known about the local search method for geometric approximation.
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