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Ministry of Traditional Industries and Small Enterprise Development along with the Industrial Development Board (IDB) yesterday extended an open invitation to interested investors and industrialists to benefit from the new post-war opportunity at the Achuchuveli Industrial Zone (AIZ), which is funded with part assistance from the Indian Government with technical input from United Nations Office for Project Service (UNOPS).
“If smart industrialists and sectors are not selected, the estate will not be as vibrant as it ought to be after a certain period of time. To ensure that the businesses in the Achchuveli Industrial Estate remain sustainable it is important to carefully select the investors.
We are highly cautious in this regard and want only the high potential clusters to be selected. That is the priority at the moment,” Ministry of Traditional Industries and Small Enterprise Development Secretary V. Sivagnanasothy told a private sector forum to promote the AIZ.
Having noted that over 50 investors have already expressed interest in setting up ventures at the AIZ, Sivagnanasothy said the Ministry encourages local investors. However, if foreign investors are keen on being part of the Achchuveli Industrial Estate, they could do so in partnership with local businesses.
With 25 acres being developed under the first phase, the land is divided into 22 plots and will be offered on a 30-year lease to interested investors.
Depending on the success of the phase one development, the Indian Government expressed that it would consider a second phase development where it would work on another 25 acres of land.
The Achchuveli Industrial Estate is built with facilities such as 24-hour security at the entrance, fire protection, three-phase electricity, a post office, canteen and common service centres. The site also has a 30 ft wide main access road and many 20 ft wide sub roads.
Pointing out to the forum the businesses encouraged at the site, IDB Chairman Rajabdeen said possible production that could be initiated without delay at the site are fibreglass, footwear, solid tires, bicycles, food-based products, soap, cement, light metal, water storage tanks, furniture, and plastic products.
Promoting the industrial estate he said such industries are needed to take the industrial estate forward. “If you need peace there must be development in the country as these two go hand in hand. Therefore I request my members, especially the chambers to identify some best industrial development in the northern area.
“The Achchuveli Industrial Estate could be the best possible site for those interested in investing. Here is a good opportunity to make maximum use of the resources in an effective manner. The IDB will support in terms of technology and training of the people as we have the best experts in the organisation which is not tapped at all,” Rajabdeen told the audience.
He elaborated that the IDB will help identify the raw materials available in the region and will conduct feasibility studies for the investors to help them find backward linkages and potential markets.
With regard to funding businesses, he encouraged the idea of investing in joint ventures. “We have people in Jaffna who have the capacity and money but want the security for their investment. For this we must get the corporate sectors to come in. I am happy to note that few banks are now coming forward with a special interest rate scheme for small and medium sector investors. We have to support them.
“Where the IDB is concerned, we will give all the support required, but investors must also take the interest and must ensure that they have a positive market,” emphasised Rajabdeen.
The 65-acre AIZ was initially earmarked in the early 1970s and had about 36 industries operating at that time but failed to sustain itself due to the war.
In 2011, discussions to reactivate the industrial estate took place and soon after the Indian Government extended a grant of Rs. 220 million for the phase one development whereas the Sri Lankan Government contributed a sum of Rs. 50 million. Selected as the project consultant for the Achchuveli Industrial Estate development was the United Nations Office for Project Service (UNOPS).
