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Friday, 11 May 2012 00:01 - - {{hitsCtrl.values.hits}}
By Uditha Jayasinghe
In a bid to promote regional level industrial development, Cabinet has approved applications from 52 local companies to establish factories in 25 zones around the country including two in Mannar, a top Minister said yesterday.
Acting Cabinet Spokesman and Deputy Economic Minister Lakshman Yapa Abeywardana told media that the initiative had been undertaken by the Industry and Commerce Ministry and would result in at least Rs. 2.04 billion in investment and 3,000 new job opportunities.
The Cabinet paper submitted by Industry and Commerce Minister Rishad Bathiudeen states that under the Regional Industrial Estates Development programme, 52 companies out of a total of 60 applicants have been selected to be allowed land allocation in 25 industrial zones spread out around the country.
Initially 38 proposals will be given land under a 35-year lease; the projects have to be begun within six months of the allocation or the Government will withdraw their land. The bulk of the companies will be engaged in import substitution, according to the Minister, with the lists for the 38 companies showing a range of products from sporting goods to washing powder.
The rentals of the land will be decided by the Government Chief Valuer and commencement of projects would be immediate.
The most number of projects have been allocated to the Nalanda Ellawala Industrial Estate, which will have 12 new factories, with the Galigamuwa and Kalutara zones getting four each.
Among the notable companies that will be moving to Mannar to set up garment factories are Timex and Fergasam Garment Industries, with a total investment of Rs. 200 million each, that will give employment to 1,000 people and take up six acres. They are among the top investors with the highest being bagged by Melwire Lanka, which is investing Rs. 250 million on a plant that will make steel products and employ 210 people.
Cargills Quality Confectionaries is also building a factory in the Nalanda Ellawala Industrial Estate while Keells Food Products has procured land in the Makandura West zone. Both these companies were handed their slots after other companies failed to meet the requirements demanded by the Government.
