Date:07/08/2006 URL: http://www.thehindu.com/2006/08/07/stories/2006080705850100.htm

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New industrial estates on the cards

N. Ravi Kumar and Priscilla Jebaraj

Bid to stop Ambattur units from going to Tada in Andhra Pradesh

Gummidipoondi, Tiruchi, Tirupur and Dharmapuri identified
Forty units in Ambattur approached by Andhra Pradesh
Gummidipoondi, Tiruchi, Tirupur and Dharmapuri identified

Forty units in Ambattur approached by Andhra Pradesh

N. Ravi Kumar and

Priscilla Jebaraj

CHENNAI: The Small Industries Development Corporation of Tamil Nadu (SIDCO) is looking at establishing industrial estates across the State, including in Gummidipoondi, Tiruchi, Tirupur and Dharmapuri.

A highly-placed official confirmed the proposal. The move to set up an estate in Gummidipoondi is significant in the backdrop of 40 units in Ambattur, mostly in the auto components and engineering sectors, being approached recently by the Andhra Pradesh Government to come to Tada.

A couple of leaders of Ambattur Industrial Estate Manufacturers' Association, including its past president Shashidar Rao, said the SIDCO move is a kind of counter-offer to those units. Given the buoyancy in the economy, particularly in engineering and automobile sectors, the Tamil Nadu Government is keen on retaining and encouraging them to expand within the State.

On the location of the Gummidipoondi facility, Mr. Rao said land in at least four villages was being considered. The location was about 40 minutes drive from Ambattur, a factor that would help the entrepreneurs achieve synergy between their existing and Gummidipoondi facilities.

High land prices

"Convenience of Ambattur can never be got anywhere," he admitted. But with real estate prices ruling high in Ambattur — around Rs.40 lakh per ground according to Mr. Rao — it is not easy for many of the units to acquire additional land for expansion. The indication from the SIDCO comes at a time when progress on the Tada proposal, made some months ago, slowed down. The Andhra Pradesh authorities did not respond properly after showing initial interest, said a senior association leader.

According to the new association president, K Pichumani, Tada continued to be an option for the units. Some of the 40 units were planning a trip to the place. The key factors driving the units are the fiscal incentives that Andhra Pradesh is expected to offer and the promise of faster clearance.

Association sources say as per indications a Special Purpose Vehicle (company) is likely to be formed for the estate in Gummidipoondi.

The project will be implemented on the public-private partnership mode.