The Hindu Business Line : Industry bodies to make joint bid for cluster project in Coimbatore

IN a decision that would hasten the sanctioning of the Centrally-assisted Industrial Infrastructure Upgradation Scheme (IIUS) for Coimbatore, three premier industrial associations — the Southern India Engineering Manufacturers' Association (Siema), the Coimbatore District Small Industries Association (Codissia) and Institute of Indian Foundrymen (IIF), Coimbatore, on Thursday decided to come together in bidding for the project sanction.

At a meeting attended by senior office-bearers of the three associations, it was decided to cooperate with each other to get the project sanctioned for Coimbatore at the earliest.

The industrial cluster project for Coimbatore has been hanging fire for nearly a year with both Codissia and Siema-IIF combine claiming their stake for implementing the project.

In fact, just before the BJP Government was ousted from power, the then Codissia President, Mr Tee. Narayanaswami, made an announcement that the Central Government has given its in-principle approval for the industrial cluster project submitted by his association at an outlay of Rs 66 crore but its implementation did not take off.

In August, Siema announced that it had made a joint proposal in association with IIF for an industrial cluster project involving a total expenditure of Rs 136 crore.

Speaking to Business Line here on Thursday, Mr J. Balu, President, Codissia, said the three associations had decided to come together and make a joint bid for the cluster project since the Centre wanted a unified proposal to be made and preferred the different associations to come together. He said this would help expedite the sanctioning of the cluster project for Coimbatore.

He said the small industrial units did not have the financial muscle to individually establish sand reclamation plants or tool room facilities in view of the cost involved. To them, establishment of common facilities would be a boon since it would provide a cost-effective alternative.

Mr C.R. Swaminathan, President, Siema, and Mr G. Rajendran, Convenor, Siema-IIF project, said the outlay for the project has been trimmed to Rs 67 crore now. According to the revised project estimates, the performance improvement segment is estimated to cost Rs 12.46 crore, sand reclamation plant Rs 23 crore, sewage water treatment and basic infrastructure development Rs 12.35 crore and pump and motor segment Rs 19.19 crore. It was expected that the Government would come out with a grant of Rs 50 crore and the balance amount would come as contribution from participating associations and as bank finance.

They said the member units participating in the project would be making a contribution according to their installed capacity. The project would be self-sustaining since the user-pays policy would be followed.

Mr Rajendran said he expected the Government approval to come in the next three months and it would take another 12-18 months for the project to be completed. He said the project would help to cut cost, upgrade technology and would lead to better environment.

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