Bharat Heavy Electricals Limited has one its largest units, manufacturing boiler pressure parts in Trichy. Hence Trichy has emerged as one of the largest fabrication clusters in Tamilnadu supporting the power sector of the country. With more than 1000 Small and Medium Enterprises (SMEs) engaged in engineering and fabrication industry, largely catering to the requirements of Bharat Heavy Electricals Limited (BHEL), the cluster has become a major hub for fabrication sector with a turnover crossing over Rs. 5000 crores and employing more than a lakh people
Over a period of time, these SME units have become vendors to BHEL for their outsourced production With BHEL’s boiler facilities at Trichy being expanded to 10,000 MW per annum by FY2012, large products which hitherto are manufactured by BHEL are likely to be fully outsourced thus creating a large potential for growth
Given the growth in the power / ancillary engineering sector, and also considering BHELs requirements and power sector requirements in future, SME units feel the need of common industrial infrastructure to cater to the specific demand. Most of the industries though have the capacities to grow bigger and have attractive growth prospects, lack of industrial infrastructure due to high capital expenditure is becoming a major impediment on their growth and industry.
A study carried out by UNIDO identifies lack of common infrastructure facilities, testing & calibration, design facilities & tool room as a major lacuna for development of this cluster which otherwise has the potential to grow up as the national hub for engineering fabrication. It had also identified a series of facilities to be provided, particularly in the area of training and capacity building to catapult Trichy as a global fabrication hub
In order to enhance the competitiveness of Trichy and attain higher growth, an SPV by name “Tiruchirapalli Engineering & Technology Cluster (TREAT)” has been formed by the leading entrepreneurs of Trichy, to catalyse the requirements of the industry. TREAT is a Section 25 Company registered under the Companies Act, 1956 and comprises of members from the existing industrial associations of Trichy, viz., BHELSSIA, Trichy Small Industry Association etc
TREAT, an SPV has been created with the aim of sustaining long term development in Trichy fabrication hub. It will be responsible for development and implementation of the project and will oversee the operation and maintenance of the same