The Telegraph - Calcutta : Business

Orissa beckons auto ancillaries

PRABUDDHA S. JAGADEB

Bhubaneswar, May 20: Orissa is emerging as an auto component hub. Officials of the state government said the expected investment in the sector would be more than Rs 2,000 crore. Already two companies have signed MoUs with the state government, while two others are interested in setting up shop. UK-based CHK Plc, maker of fabricated steel components and autolegs — a product patented for use in heavy transport — is keen on a facility in the state. “Preliminary talks are on and we hope something concrete comes up in two to three months,” said A.K. Meena, managing director of the Industrial Investment Promotion Corporation of Orissa (Ipicol). Meena, who had been to the company’s headquarters in the UK last year, said a delegation had visited Orissa in February and inspected sites in Choudwar and Khurda. “They can set up a manufacturing unit of auto forging and autolegs,” he said. Ramakrishna Forgings (RFL) is also interested in Orissa. “RFL has a manufacturing facility in Gujarat and they have expressed an interest to establish a unit near Choudwar,” said B.N. Palei, general manager (outreach and promotion) of Ipicol. “We are in talks with RFL’s chairman M.P. Jalan and hope the group decides to invest here,” said Palei. Ipicol is trying to get more investment by highlighting the availability of quality iron and steel, aluminium and steel flat products and rounds. Institutes such as the Central Tool Room Training Institute, Central Institute for Plastic Engineering and Technology and Indian Institute of Foremen and Training can provide the manpower and R&D support to the industry. Officials said the automobile and auto-component industries would create more jobs than the steel industry. The Industrial Infrastructure Development Corporation is planning to set up a hub at Choudwar. The RSB group, an engineering and components manufacturing company, signed an MoU with the state government in December to set up a Rs 360crore multi-product facility at Choudwar. The company has started the process of acquiring 300 acres of land. The project, to be set up in phases, will have a forging unit, an iron casting unit, aluminium die casting unit, machine shop and assembling unit. RSB group chairman R.K. Behera said the unit would serve Tata Motors. “Absence of a ‘mother’ automobile plant in the neighbourhood is a difficulty,” Meena said. He said Ipicol is now targeting units in the small-scale sector. “Ipicol will try to hold a roadshow for prospective investors in Ludhiana. By projecting our strengths in metals and minerals, we can attract more manufacturers to set up base in Orissa.” he added.