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R. Balaji

The promoters who had earlier hoped to tie up for term loan of Rs 10 crore with SIDBI could not avail the facility and turned to TIIC, but here too the loan did not materialise.

CHENNAI, Dec. 9

THE promoters of the Tanflora Infrastucture Park Ltd, the infrastructure park for floriculture units, are yet to tie up funds, even though the private promoters were identified as far back as in 1997. The Tamil Nadu Industrial Development Corporation Ltd had mooted the project and identified the private promoters in 1997.

Meanwhile, according to industry sources, due to the delay, the International Finance Corporation is believed to be reconsidering its proposal to take an equity stake in the company. The promoters who had earlier hoped to tie up for term loan of Rs 10 crore with SIDBI could not avail of the facility and turned to TIIC, but here too the loan did not materialise.

The company now has made alternative arrangements, and hopes to implement the project in another 6-8 months. But the industry is also concerned that the project has been declared an Agri Export Zone and delay in implementation would hit the concept of promoting an agri export zone for floriculture units. The Tamil Nadu Government has entered into a MoU with the Agriculture and Processed Food Products Export Development Authority (APEDA) to set up the AEZ.

Tanflora was to act as the hub for the development of floriculture in the Hosur district.

When contacted by Business Line, the Managing Director of Tanflora Infrastructure Park Ltd, Mr Najeeb Ahmed, said the promoters were now likely to avail a part of the term loan from the National Bank for Agricultural and Rural Development (NABARD) under the co-financing scheme. A commercial bank has been identified to take up the balance at concessional rate of interest.

The company could not avail itself of Small Industries Development Bank of India's term loan sanction due to certain terms and conditions laid by it. Similarly, the Tamil Nadu Industrial Investment Corporation's term loan offer was 16 per cent, which was considered high, he said.

The promoters have urged IFC to "hold on" for some more time since they have taken concrete steps to implement the project. For instance, a central packing house is under construction with the funds available with the promoters and is likely to be completed in four months. Civil works are to be taken up soon and 12 units for setting up floriculture projects within the facility have been identified. A 3-hectare model unit that was to be put up has been scaled down to a 1 hectare unit, according to Mr Najeeb Ahmed.

Further, the demise of the chief co-promoter, Naseem Ahmed, in July last year had also adversely affected the project implementation, he said.

The project has been envisaged as a provider of infrastructure facility for floriculture units that are to come up in the zone. With readymade facilities available, the idea was that project cost could be reduced for individual growers who could use the common facilities. The cluster approach was to help generate economies of scale, quality upgradation and enhance competitiveness in the international markets.

Over 220 acres of land have been acquired and developed, and the park extends over 80 acres with common infrastructure facilities for the benefit of the 50 units expected to come up at the park.

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