Naveen Patnaik at the inaugural ceremony. Picture by Sanjib Mukherjee

Bhubaneswar, Aug. 30: An industrial park would soon be set up at Choudwar for the promotion of small and medium industries in public-private partnership.

Laying the foundation stone of RSB Group’s auto-component complex at Choudwar, Patnaik said the Industrial Infrastructure Development Corporation Limited would set up the industrial park that would house several auto-component manufacturers at Choudwar area of Cuttack.

The chief minister added his government would soon announce a policy for development of small and medium industries.

RSB group, a leading engineering and components manufacturing company is setting up Rs 360cr multi-product automobile component manufacturing project near Choudwar over 300 acre.

The project, to be set up in phases over five to seven years, would consist of a forging unit, an iron-casting unit, aluminium die-casting unit, machine shop and assembling unit. The casting and forging unit is expected to generate an estimated annual turnover of Rs 1,600cr by the end of fifth year and would generate employment for 2,500 people by that time.

Group chairman R.K. Behera said the project would cater to the requirement of Tata Motors. “We have decided to invest in this plant in line with our strategic growth plans. Strategically this plant would provide a strong backward integration support to the group’s other units,” he said. The RSB group is a leading engineering and components manufacturing business house catering to a wide variety of automotive and off-highway equipment makers.

Naveen said the government would encourage downstream and ancillary industries in steel and aluminium industries. He added the state government has approved the setting up of three cement plants that would use the fly ash and blast furnace slag from steel projects as raw material. The three cement plants would see a total production of 7-million tonne annually. Ramakrishna Forgings, an Indian firm manufacturing auto components has expressed an interest to establish another plant near Chowdwar.

Ipicol officials estimate the likely investment in the sector to be more than Rs 2,000 crore. Ipicol is trying to lure more investment into the sector by highlighting the easy availability of good quality pig iron and steel ingots, good quality pure aluminum ingots, steel flat products (plates, sheets HR and CR) and rounds.