The Hindu Business Line : Minister hands over grant for Coimbatore engg cluster

The Union Minister of State for Commerce and Industry, Mr E.V.K.S. EIangovan, unveiling the plaque to mark the launch of the industrial infrastructure upgradation scheme for the pump, motor and foundry cluster in Coimbatore. — M. Periasamy

Coimbatore , May 15

THE Union Minister of State for Commerce and Industry, Mr E.V.K.S. Elangovan on Saturday handed over the first instalment of Central grant of Rs 8 crore sanctioned by his Ministry to the Coimbatore Industrial Infrastructure Association (Coindia).

Coindia is a special purpose agency instituted for development of infrastructure for the pump, motor and foundry industry cluster. He presented the cheque to Mr G. Rajendran, President, Coindia.

This is part of the Rs 39-crore grant sanctioned by the Union Commerce and Industry Ministry for the Coimbatore engineering cluster being developed under the industrial infrastructure upgradation scheme (IIUS) of the Ministry.

Coindia has been promoted by the Southern India Engineering Manufacturers Association (SIEMA) in support of the other engineering industry bodies like Indian Institute of Foundrymen, Coimbatore, Coimbatore Foundry and Industry Owners Association, Small Industries Testing and Research Centre, Coimbatore Tiny and Small Foundry Owners Association (Cosmafan) and Siruthuli (an NGO for preservation of Coimbatore water bodies).

The Coindia's IIUS for the pump, motor and foundry industry cluster is set to be implemented at an outlay of Rs 67 crore which comprises 25 per cent contribution by the promoting industries and the balance as Central Government grant. The IIUS for Coimbatore engineering cluster will have four components - setting up infrastructure and common facility for relocating small foundries outside the Coimbatore city, sand recycling facility for the foundries, product development facilities for motor, pumpset and foundry industry and sewage treatment for Coimbatore city.

Launching the IIUS, the Union Minister said the Centre had set a target of raising the manufacturing sector's export share in the world market to three per cent by 2009 from the present one per cent.

To give momentum to this growth path, the government-sponsored catalytic schemes such as the industrial infrastructure upgradation scheme (IIUS) for specific industrial clusters are expected to play a key role.

Mr Elangovan regretted that the traditionally strong textile industry in Coimbatore had to see a decline partly because the promoters failed to plough back the profits they earned in their heydays, especially into research and development. The technological obsolescence had to be squarely fought by ploughing back profits into R and D if the companies wanted to remain globally competitive.

Cautioning the Coimbatore-based industry and entrepreneurs not to miss out another opportunity on the industrial front, he suggested working on promoting special economic zone in the Coimbatore region which would go a long way to stem the declining industrial fortune of the area.

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