The Hindu Business Line : New foundry complexes to bring fresh investment

Relocation benefits
Cleaner environment within the city
Additional investment of about Rs 200 crore
Access to better marketing opportunities

Coimbatore , Sept. 11

The relocation of a large number of foundries from within the city to the three new foundry complexes being established outside Coimbatore will provide not only a cleaner environment within the city but will bring in additional investment of about Rs 200 crore which will help create a substantial number of new jobs.

These foundries, which now have an annual turnover of between Rs 20 lakh and Rs 3 crore, would also benefit from modernisation and better marketing opportunities, according to Mr G. Rajendran, President, Coimbatore Industrial Infrastructure Association (COINDIA), which is implementing the Pump, Motor and Foundry Cluster Project (Coimbatore Cluster Project) at an estimated cost of about Rs 58 crore. Speaking to presspersons in Coimbatore, Mr Rajendran said among the cluster projects sanctioned in 2005 under the Industrial Infrastructure Upgradataion Scheme, Coimbatore cluster project was the first to have received the second instalment because of the progress made in the implementation of the project.

The Centre has released the second instalment of Rs 13 crore taking its total sanction to Rs 26 crore.

He said that while the Centre would provide a total grant of Rs 40 crore for the cluster scheme, the rest would come from the participating member organisations and by way of bank finance.

Already, around 40 per cent of the work has been completed and he was confident of completing the balance work by April next.

Expenditure

The COINDIA President said about Rs 21 crore had been spent on the project work mainly relating to the creation of physical infrastructure and upgradation of testing facilities to benefit the small and medium foundries and general engineering units in the region. The scheme envisaged establishment of sewage water treatment plant at Valankulam in association with Coimbatore Corporation and Siruthuli.

A sand reclamation plant would be established that would help the small and medium foundries to recycle 75 per cent of sand that would help reduce the process expenses by more than 20 per cent. Establishment of testing and training centres and rapid prototyping facility were part of the project.

Relocation

He said three foundry complexes coming up at Arasur, Kallapalayam and Manickampalayam could accommodate about 200 units. He expected that at least 75 per cent of the foundry units that were located within Coimbatore to shift to the new location. While the relocation would be important from an environmental angle, this was not its only advantage. By using common facilities, these small units would be able to improve quality.

They would also be able to get export orders and the employees would be provided with training. Many of the small foundries used technology that was labour intensive and these would be able to upgrade themselves by going for automation that would help improve productivity and quality.

Investment

Mr Rajendran estimated the new investment to be made by the units in the three complexes to be around Rs 200 crore. There would be 20,000 additional jobs created in the next five years in the foundry complexes coming up. He expected the cluster project to be ready by April 2007.

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