Guindy Industrial Estate upgradation to kick off in Feb

A public-private partnership project to completely revamp the infrastructure in Chennai's Guindy Industrial Estate and convert it into a developed estate is all set to take off by the end of February or March.

Guindy Industrial Estate Infrastructure Upgradation Company, a special purpose vehicle (SPV) floated for the Rs 12.5-crore project to improve the infrastructure in the Thiru-Vi-Ka Industrial Estate, Guindy, one of the oldest industrial estates in the country, is expected to open 'price bids' in the next couple of days.

The SPV, which floated tenders during December 2005, has completed the pre-qualification process.

The work is expected to commence by February-end or March, and would be completed in nine months, K Gopalakrishnan, president of the Industrial Estate Manufacturers' Association, Guindy, told Business Standard.

The upgradation work includes widening and strengthening of existing roads of about 21.50 km within the industrial estate, construction of cross drainage works and storm water drains, and street lighting.

"We will convert the estate into a modern industrial estate with ample parking space, controlled traffic and better storm water drains and drainage facilities," Gopalakrishnan said, adding that the sewage work would be done by Sewage Board of Metro Water.

"We have also clearly emphasised that the contractor should maintain the improved facility for a period of five years," said Gopalakrishnan, who is also on the board of SPV, which is led by the managing director of the Tamil Nadu Small Industries Development Corporation.

Of the Rs 12.5 crore to be spent for this integrated infrastructure development programme, the central and state governments will provide Rs 2 crore each while the unit holders will provide Rs.3.5 crore. The Chennai Corporation has committed to provide Rs 1 crore. Additional funds will be raised through loans at low interests from financial institutions that have earmarked an 'infrastructure development fund'.

Tamil Nadu Road Development Company Ltd (TNRDC), a joint venture between the Tamil Nadu Industrial Development Corporation Ltd and Infrastructure Leasing & Financial Services (ILFS), will be the consultants and nodal agency for this project.

The 420-acre Guindy Industrial Estate was conceived in the late 1950s as a cluster for small-scale engineering units. The infrastructure in the estate deteriorated over a period of time and the estate was seen as a neglected area. It has been grappling with encroachments, bad roads and garbage strewn at many places.

There are about 700 units in various sectors that include engineering, leather, garments, plastics and glass among others

Lots of small units, which have either closed down or moved out, have given way for IT and ITeS companies.

A NEW START

Guindy Industrial Estate Infrastructure Upgradation Company, a special purpose vehicle is expected to open price bids in the next couple of days.

The work is expected to commence by February-end or March, and would be completed in nine months

Of the Rs 12.5 crore to be spent for the integrated infrastructure development programme, the central and state governments will provide Rs 2 crore each

TNRDC will be the consultants and nodal agency for the project