The BHEL Small Industries' Association (BHELSIA) is in the process of acquiring 200-acres of land along the Tiruchi-Thanjavur Highway for establishing an industrial estate with 40 units.

“We may take Small Industries Development Corporation along (to develop the industrial estate),” BHELSIA president Rajappa Rajkumar said. The capacity enhancement has been necessitated by the expanding outsourcing requirements of the Bharat Heavy Electricals Limited, Tiruchi.

The SIDCO will also function as a nodal agency to develop infrastructure in the Thuvakkudi Industrial Estate. Though the Rs. 50-crore project formulated three years ago by BHELSIA could not materialise, the SIDCO will see through strengthening of roads, drainage and lighting facilities in the industrial estate under the revised ‘Industry Infrastructure Upgradation Scheme.'

Infrastructure upgradation will initially take place in the portions in the 290-acre industrial estate that were developed in the first and second phases, Mr. Rajappa Rajkumar said, exuding confidence that the project (proposal) will be cleared in July and the works can be completed within six months thereafter.

Of the project cost, sixty per cent will constitute subsidy by the Central Government. The State Government has agreed in principle to meet 20 per cent of the cost. The remaining investment will be by stake-holders. The prospects for laying concrete roads and constructing a compound wall for the industrial estate will also be explored through the project, he said, adding that BHELSIA members will serve in the Committee that will oversee the project execution.

Likewise, the BHELSIA was confident that the Cluster Development Programme with Rs. 15 crore support from the Ministry of Micro, Small and Medium Industries will also be executed in this fiscal.

Project clearance will take six months. The BHELSIA has earmarked a 15-acre site in the estate for establishment of the common service centre.

The facility will be vital for BHELSIA to meet BHEL's outsourcing target of seven lakh tonnes in 2011-12, Mr. Rajappa said.