The Hindu : Institute to lay base for auto industry

Online edition of India's National Newspaper
Wednesday, Jan 14, 2004

Andhra Pradesh

Andhra Pradesh

Institute to lay base for auto industry

By Ramesh Susarla

VISAKHAPATNAM, JAN. 13. The German car company, Volkswagen, has been contemplating to set up a factory here for the past couple of years, but the lack of a strong automobile component manufacturing base in the region has been one of the delaying factors -- the proverbial `egg or chicken first' conundrum.

But now, something concrete is coming up for auto majors to cheer about. The State Government with the help of the German Government and a Hyderabad-based NGO is setting up the Indo-German Institute of Advanced Technology, the first of its kind in the State, with Rs.15-crore investment at the Industrial Estate here.

To make a beginning the training-cum-production centre will set up a Rs.1-crore state-of-the-art technology computerised numerical control (CNC) machine to impart skills on manufacture of high precision tools for automobile, defence and other industries creating the right pool of technically-skilled personnel.

Training on the CNC machine was available only at five places in the country and this would be the sixth one, the District Industries Centre General Manager, L. Laxman, said on Tuesday.

A six-acre site along the National Highway No.5 in the heart of the city where the DIC's Visakhapatnam main office and its once regional testing laboratory existed was handed over to the Society for Indo-German Institute of Advanced Technology, headed by retired IAS officer, Kumaraswamy Reddy, as its vice-president.

The institute would produce 500 skilled personnel who could handle production of high precision measuring tools and automobile parts, Mr. Laxman said.

The Department of Industries became a part of the institution by providing basic infrastructure.

A survey, conducted a few months ago by German experts on the potential for setting up such an institute, showed tremendous demand in coastal districts.

This skill upgradation programme for workers in existing units would help entrepreneurs invest in product diversification for survival and in curbing sickness which was 38 per cent in Visakhapatnam district.

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