Plans to revive MSMEs in Trichy through railway and shipping work orders | The Financial Express

Plans to revive MSMEs in Trichy through railway and shipping work orders

Ease of Doing Business for MSMEs: The project has got support from the Tamil Nadu Industrial Development Corporation and Tamil Nadu Industrial Investment Corporation.

Plans to revive MSMEs in Trichy through railway and shipping work orders
Formed 12 years ago, TREAT is a section 8 company created with the grant from the Government of India under Industrial Infrastructure Upgradation Scheme.

Ease of Doing Business for MSMEs: To promote the small businesses in the state, the Expert Committee for Revival of MSMEs in Tamil Nadu has suggested leasing the siding facility at the Small Industries Development Corporation (SIDCO) Industrial estate located in Thiruverumbur, Tamil Nadu to Trichy Engineering and Technology Cluster (TREAT). 

According to the report in The Hindu, the rationale is to provide a new lease of life to the fabrication units in the area to fabricate rail bogies. From the 450 units, 36 enterprises have shut shop between 2014 to 2019 and 52 enterprises have been declared NPA. From the 52 stressed firms, 13 firms have already closed their operations. 

Railway Board has approved the TREAT cluster to fabricate Railway bogies. 

The expert committee has recommended that the facilities involved in siding that are not in use could be leased to TREAT due to the high demand for 30,000 metric tonnes requirement in rail wagons which is not being fully met by Golden Rock Workshop. Fabricating rail bogies can be taken up by existing fabrication companies as they are experts in fabrication, machining and integration. 

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The project has got support from the Tamil Nadu Industrial Development Corporation and Tamil Nadu Industrial Investment Corporation who are keen to help meet the financial requirements once they contract from Railways is confirmed. 

The expert committee has also created a technical advisory team of ten members led by TIDCO’s project director B.Krishnamoorthy to revive the fabrication hub. In one of the recent meetings, he has assured that TIDCO will support the TREAT cluster to obtain orders from railways and shipping industries. 

Other organisations that the fabrication industries could work for, as recommended by the MSME expert committee are: Bharat Earth Movers, Integral Coach Factory, Ordnance Factory – Medak, Nuclear Power Corporation, Vizag Ship Yard, BHEL, Indian Space Research Organisation, Heavy Vehicles Factory, CONCOR, Brahmos and municipalities in the government sector.

From private sector companies such as Larsen and Toubro, JSW, private transport companies, petroleum corporations and TAFE and other agri equipment manufacturers can also be leveraged. 

Formed 12 years ago, TREAT is a section 8 company created with the grant from the Government of India under Industrial Infrastructure Upgradation Scheme and an equity of Rs 10 crores from TIDCO. 

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