Sterling Generators, which manufactures diesel generators, plans to have a contract manufacturing facility at Hosur to reduce transportation cost and meet demands of clients in the South.

It also plans to set up similar facilities in the East and the North, said its President Nagendra M Singh.

The company’s only manufacturing facility is located at Silvasa, Dadra and Nagar Haveli, with an annual capacity of around 7,500 generators ranging from 10 to 3,000 KVA. The cost of transporting these generators to various parts of the country is quite high, he told newspersons.

Typically, a DG set weighs two-three tonnes. The transportation cost to move a unit from Silvasa to Madurai is nearly ₹35,000.

This can be reduced to nearly ₹5,000, if the facility comes up in Hosur.

Typically, transportation cost should be about 2 per cent of the unit cost but it is nearly 4 per cent, he said. In Tamil Nadu, the company has installed nearly 7,000 DG sets, he said.

All the three new plants are expected to be commissioned during the current financial year, he said.

Singh said Sterling Generators, which is part of the Shapoorji Pallonji group, has commissioned 2X3000 KVA generators in Andaman & Nicobar Island to provide uninterrupted power supply in the island.

The Joint Electricity Regulatory Commission appointed the company to undertake the ₹12-crore project after implementing a similar project in Lakshadweep, he said.

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