Economy

Karnataka plans tyre factory at Sullia taluk

Our Bureau Mandekolu village (Dakshina Kannada Dt) | Updated on November 15, 2017 Published on April 10, 2012

sullia   -  Business Line





The Karnataka Government has shown interest in starting a rubber tyre factory in Sullia taluk of Dakshina Kannada district.

The Chief Minister, Mr D.V. Sadananda Gowda, discussed the feasibility of setting up the factory with the officials of the Infrastructure Development Department at Mandekolu village on Tuesday.

He said Dakshina Kannada and the surrounding districts contribute 8,000 tonnes of rubber a year from 20,000 hectares of land under cultivation. Of this, Karnataka Forest Development Corporation (KFDC) owns around 4,400 hectares of rubber plantations.

public-private partnership model

He said that the project will be taken up under the public-private partnership (PPP) model. Availability of power, water and land will not be a problem for the project.

Around 100 acres of land belonging to various government agencies are available at Ajjavara village in Sullia taluk.

Dr Raj Kumar Khatri, Secretary, Infrastructure Development Department, said that Infrastructure Development Corporation Karnataka (IDECK) has prepared the pre-feasibility report on the project.

A detailed technical feasibility study and environmental impact of the project should be done, he said.

Feasibility study

After that the Government should hold consultations with the tyre manufacturers to discuss the findings of the technical feasibility study. Based on its outcome, letters of intent or proposals for setting up of a tyre factory in Sullia may be invited, he said.

Mr Gowda asked the officials concerned to speed up the matter.

Later, Mr Gowda told newspersons that the proposed project would attract investments of around Rs 400 crore in the region. Nearly 80 per cent of the jobs in the proposed plant will be earmarked for the local people.

A presentation by IDECK, which prepared the pre-feasibility report on the project, mentioned that a few tyre manufacturers have expressed their willingness to set up a tyre manufacturing plant in Sullia.

They are seeking the support from the Government in the form of even and vacant land of at least 50 acres.

They are also seeking tax exemption for at least the first 10 years of commercial operations, it said.

> vinayakaj@thehindu.co.in

Published on April 10, 2012
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