Tamil Nadu   

Special purpose vehicle formed for engineering cluster at Ranipet

RANIPET: Following the identification of the State Industries Promotion Corporation of Tamil Nadu (SIPCOT) industrial complex in Ranipet by the Union Government for the development of an engineering cluster, a Special Purpose Vehicle (SPV) — Vellore Energy Technologist Company (VETC) Private Limited — has been formed for the purpose.

There are about 200 engineering units in the Small Industries Development Corporation (SIDCO) industrial estate in Ranipet as well as other areas in and around Ranipet, most of whom are ancillary units manufacturing components required by the Bharat Heavy Electricals Limited (BHEL).

With more and more small scale industrial units being started in and around the town, the competition had intensified, with the result the units were generally able to utilise only 50 per cent of their capacity for making components for BHEL, while the remaining 50 per cent of the capacity remained idle.

With this limited capacity utilisation, the units were unable to thrive. The engineering cluster was mooted to enable the units to diversify into the manufacture of windmill equipment, taking into account the increasing requirements in the non-conventional energy sector, and undertake structure fabrication for major industries such as the Integral Coach Factory, Perambur, Bharat Earth Movers Limited, Bangalore and organisations such as the Southern Railway. This was expected to facilitate greater capacity utilisation and increased business.

R. Amirthakatesan, promoter of VETC (P) Ltd. said that one of the important features of the proposed engineering cluster is the setting up of a Common Facility Centre (CFC), which would have the machinery required for industrial and precision fabrication to cater to various sectors such as energy (windmills), railways, bus body building, chemical industries and space research.

The CFC would also have a material testing centre. The other activities envisaged under the engineering cluster include diagnostic study and development of alternative growth strategies, development of raw materials bank, development of strategic management skills for the entrepreneurs, identification of new marketing sources, training to the workers and development of an export market under a common brand.

The promoter said that a proposal for establishing the engineering cluster at a cost of Rs.18 crore has been sent to the Government of India through the Vellore District Collector.

The Centre has posted an officer exclusively to coordinate the work in Vellore district.

The detailed project report is under preparation. Fortynine entrepreneurs connected with the existing units would become shareholders. The project is to be implemented with 80 per cent Central Government subsidy and 20 per cent shareholders’ contribution.

In the case of micro enterprises, it would be 70 per cent Central subsidy, 20 per cent State subsidy, five per cent shareholders’ contribution and five per cent loan from the Small Industries Development Bank of India.

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