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Salem Steel Plant has 2500 acres of vacant land; but cannot spare for development of MSMEs

Updated: Oct 04, 2016 09:04:54am
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Salem Steel Plant has 2500 acres of vacant land; but cannot spare for development of MSMEs

Salem, Oct 4 (KNN) The Telangana Government’s decision to put a cap on the land allotted to the large industries to curb misuse of land can be a perfect example for other states too. The MSMEs set up around the Salem Steel Plant of SAIL have been asking the government to make use of 2500 acres of vacant land that the steel plant has for the benefit of industrial sector.

Apart from this, the downstream industry around the plant has been alleging that they have not bagged any orders from Salem Steel Plant since last 30-40 years.

Why the plant is not procuring 20% from MSEs in the district is still a big question for them.

“They don’t procure from the units set up around the plant for their development. They should do so for the development of the sector,” said an MSME entrepreneur from Salem.

The Salem District Small Scale and Tiny Industries Association (SADISSTIA) has written a letter to the Union Ministry of Steel and Mines to revive the Salem Steel Plant of Steel Authority of India Limited (SAIL), SADISSTIA President K Mariappan told KNN.

“The condition of the MSME units around the steel plant is not good. The MSMEs have not got any orders from the steel plant since last 30-40 years,” he said.

The entrepreneur highlighted that the plant has around 4,000 acres of land earmarked, of which about 2,500 acres has been kept vacant.

“The SADISSTIA urged the Ministry to set up an integral coach factory to exclusively manufacture stainless steel coaches, biometric toilets by utilising the stainless steel sheets that are being manufactured in the Salem Steel Plant,” he highlighted.

Meanwhile, SADISSTIA President highlighted that the Kerala Government has been not able to acquire the required land to set up the integral coach factory for which it got a sanction from Centre in 2008.

The industry body has asked the Tamil Nadu Government to put efforts to set up the project in the premises of Salem Steel Plant.

The move would not only utilize the vacant land of the steel plant but would also generate business for hundreds of downstream industry set up in the area.

Mariappan also revealed that there was a proposal to set up a Common Facility Centre in the premises for which the land allotment was refused to them.

“The steel plant is not giving its vacant land for the development of industry in Salem. Government should intervene and take measures,” Mariappan said.

Meanwhile, the Telangana Government has put a cap on land allotted to large industries and has decided to include the value of land and machinery in the amount of investor proposed by the investor.

The move aim to curb misuse of land allotted to the big industries. (KNN Bureau)

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