The objective of the Project is to assist the “Tiruchirapalli Engineering & Technology Cluster (TREAT)”, a Section 25 Company registered under the Companies Act, 1956, in enabling the Trichy fabrication cluster to sustain long-term competitive advantage in the global market. Specific interventions have been identified to achieve collective efficiencies and gain access to organized domestic and international markets in fabrication sector. The underlying objective will be an initiative to position SMEs on a level playing field with large players while retaining their character as individual businesses.
The Project envisages setting up of a CFC for technology up-gradation in the cluster. It will provide technical assistance and job work related services in the critical areas of Heat Treatment, Testing, Decoiling, Shearing and other allied activities as well as provide key infrastructure for material handling and uninterrupted oxygen supply. The proposed facility will introduce state-of-the-art technology to the cluster enterprises to enable it to develop fabrication capabilities to serve all types of clients and activities.
TREAT will operate and manage the CFC and other value added services. The CFC will function as a service provider to assist cluster firms in producing value added products, enhance productivity and meet international norms in fabrication activity.
The Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce & Industries (MoCI), Government of India (GoI) has introduced the Industrial Infrastructure Up-gradation Scheme (IIUS) with an objective to enhance international competitiveness of domestic industry by providing quality infrastructure through Public Private Partnership (PPP) in the clusters which have greater potential to become globally competitive. The TREAT intends to seek approval for funding under the scheme.
The Scheme provides for financial assistance in the form of a grant up to 75% of the project cost, with a ceiling of Rs. 60 crores. The GoI contribution under this scheme is restricted to creation of durable assets. No central shall be provided for land, land development, preliminary and pre-operative expenses and working capital.
The Scheme requires a minimum of 15% contribution from promoter industries in form of SPV contribution and the remaining funding is to be financed by financials means such as debt. The SPV formed by the industrial association shall be responsible for proposal preparation, project development and implementation of projects selected under the scheme.
The TREAT has appointed IL&FS Cluster Development Initiative (IL&FS CDI) for the preparation of Detailed Project Report for seeking funding under the proposed scheme.