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The deal

SIDCO and

ITI will also work together on other projects such as office automation and modernisation of Government departments.

The two

organisations initially hope to implement such projects in the health, transport and police departments.

Thiruvananthapuram, Oct. 20

Kerala Small Industries Development Corporation Ltd (SIDCO) and Indian Telephone Industries, Bangalore (ITI) have signed a memorandum of understanding (MoU) to explore various business possibilities in Kerala.

Speaking at the signing of the MoU, the Kerala Industries Minister, Mr Elamaram Kareem, said the partnership would strengthen SIDCO and enable it to leverage ITI's expertise in telecommunications and IT. The immediate objective of the two organisations is to work together to set up a `telecom park' in Kerala.

ITI will support SIDCO in this venture, which is expected to involve an investment of Rs 300 crore, he added.

SIDCO and ITI will also work together on other projects such as office automation and modernisation of Government departments. The two organisations initially hope to implement such projects in the health, transport and police departments.

manufacturing unit

Commenting on a proposal for the Indian Railways to set up a wagon-manufacturing unit in Kerala, the Minister said he had held discussions with a high-level team from the Railways. The team from the Railways was positive about the project, and has said it will further examine the proposal to set up the wagon production unit in association with the State-owned Autokast Ltd and Steel Industrials Kerala Ltd.

The Railways is expected to announce its decision on this venture in about two weeks, he added.

The State's Industries Department is also working on creating partnerships between several other State Government-owned companies and Central public sector units and Central organisations, Mr Kareem pointed out. For instance, the Indian Space Research Organisation is looking at working with companies such as Kerala Hi-tech Industries Ltd and Kerala State Electronics Development Corporation Ltd.

The Industries Department is also examining whether State-owned companies can work with the Union Defence Department, he added.

(This article was published in the Business Line print edition dated October 21, 2006)
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