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Engineering cluster to seek help from Industries Department

Staff Reporter

Faces uphill task in establishing common facility centre and acquiring land

KOCHI: The Ernakulam General Engineering Cluster, facing an uphill task in establishing its common facility centre and acquiring sufficient land for its facilities, is likely to appeal to the Industries Department for a helping hand.

Formed more than a year ago, the two consortiums under the cluster — the Paravoor Iron and Steel Consortium and the Cochin Engineering Products Consortium — are likely to seek Government help in realising its potential through initial supports ranging from price preference to re-establishment of concessions available to small industrial units.

One of the urgent demands of the consortiums is allocation of land for a common facility centre.

According to industry sources, the cluster had submitted its application for land allocation. However, the situation demands that land be allocated to the cluster at the earliest at the steel industrial estate or at any developmental areas.

What the cluster is now seeking is out-of-turn priority for it, considering that there are several members in the cluster programme.

While the engineering units that have formed the cluster are facing tough competition, the cluster promoters are also likely to seek preference in work allotment by Government or quasi-Government organisations.

One of the suggestions that had come forward among the members is that engineering works under KEL can be carried out by the engineering clusters.

The cluster promoters have also sought, as demanded earlier by small industrial units, that the engineering cluster be given exemption from earnest money and security deposits and be granted 15 per cent price preference. Exemption from cash deposit is another likely demand by the cluster members.

While the promoters of the cluster are facing an uphill task in establishing it in the market, they have also demanded that awareness be created about the cluster development programme.

Awareness campaign

So, an awareness campaign was needed among agencies such as the Kerala State Electricity Board, the Kerala Industrial Infrastructure Development Corporation, the Small Industries Development Corporation, agencies such as the Kerala Finance Corporation and banks and financing agencies.

It is learnt that while the concept of cluster development to promote small-scale industrial units have forged ahead, banks, financial institutions and other support agencies are still not aware of the importance being accorded to the concept of industrial cluster development.

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