Formation of the fabrication cluster in Dindigul district promoted by Bharat Heavy Electricals Limited Small Industries' Association (BHELSIA) is almost complete.
Faced with the challenge of fulfilling the ever-increasing orders from the BHEL, the Association commenced the initiative a year back. By August, 2010, the 19 companies in the cluster established on an expanse of 82 acres will have completed the registration formalities. The procedure of producing bank guarantee to be in a position to accept outsourcing orders from BHEL, according to BHELSIA president Rajappa Rajkumar will also be finished soon.
To begin with, the units in the cluster will be able to fabricate three to four thousand tonnes of components per month, and gradually increase capacity to reach the level of 6,000 tonnes. The industrial estate has enough space to accommodate 30 units, Mr. Rajkumar said.
The BHELSIA has identified three more spots along the Tiruchi-Thanjavur Highway for formation of similar clusters. “To ensure volume, we are identifying industrialists seeking to establish their units on plots of sizes ranging from five to 10 acres,” Mr. Rajkumar said, adding that two of these clusters are to come up at Pudukudi and Sengipatti. In each of these clusters, an output of over 3,000 tonnes of components every month has been envisaged.
The BHELSIA intends to train school dropouts and recruit students from Industrial Training Institutes to tide over manpower shortage arising from capacity expansion. The industries here have been bringing in workers from Uttar Pradesh and Bihar to address the shortage.
Meanwhile, the BHEL's insistence on formation of ‘product groups' in order to enhance productivity and quality has gone down well with the BHELSIA. “ We have requested the BHEL to give three-year contracts for the industries manufacturing specific products,” he said.