Machine tool park awaits Centre nod

The Indian machine tool industry is hoping that it would get funds during the 11th Plan period to realise its long-standing dream of setting up a machine tool park.

The industry, led by Indian Machine Tool Manufacturers' Association (IMTMA), is presently waiting for final approval from the Union Ministry of Heavy Industry for its proposal to set up the park for an initial investment of Rs 200 crore. A special purpose vehicle will be set up to implement the project shortly, C P Rangachar, former president, IMTMA said.

"The ministry has given us a positive indication that an initial financial assistance of Rs 200 crore would be sanctioned in the 11th Plan period for the machine tool park. Further, an equal amount will have to be pooled in by the users of the park to establish the park. It will be a one-stop shop for start-up firms in the machine tool and cutting tool sector and act as an incubation center for firms with innovative business ideas. They can use the common facility here and once they grow big they can move out," he said.

Talking to Business Standard after announcing the 10th edition of cutting tools exhibition, Tooltech 2008, here today, he said the association has approached the state government for providing 200 acres land and two locations have been identified near Bangalore for the proposed park. The two locations are near Tumkur and Mysore road. But it is yet to be finalised, he said.

Rangachar said IMTMA is also in talks with Infrastructure Leasing and Financial Services Ltd (IL&FS) for the joint development of machine tool park.

"IL&FS has expressed their willingness to partner with us in developing this park on a 50:50 joint venture. We will work out the details once the government gives final approval," he said.

He said IMTMA is very keen to develop this park as many of the small and medium enterprises can not afford to buy land on their own to set up their units.

To begin with the park will provide land to over 50 small and medium companies to set up their shop. Common facilities like a tool room, power plant, effluent treatment plant, training center, design center, centralised banking facility, conference hall, guest house and administration block will be provided to companies setting up shop in this park, said P J Mohanram, senior advisor, technology, IMTMA said.

He said the proposed park is being modelled on the similar parks in Taiwan and Israel.

"We will replicate the success of this park in other cities like Rajkot and Ludhiana, where the machine tool sector is concentrated in a big way," he said.