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| Tough challenge |
Calcutta, May 6: TIL Ltd’s (Tractors India) experience of its Kharagpur projects has been mixed. The construction equipment maker is looking to commence operations at the Vidyasagar Industrial Park by April 2013, but land issues continue to hamper its second project at Changaul, a small village near Kharagpur.
“We will start operations at the Vidyasagar Industrial Park by April next year,” said Sumit Mazumdar, vice-chairman and managing director of TIL.
The company plans to produce reach stackers and forklifts in collaboration with American equipment major Hyster.
TIL is also planning to invest about Rs 100 crore to set up a crane manufacturing facility at the park.
“The facility could also help us to manufacture more rough-terrain and all-terrain cranes, which are in demand but continues to be imported,” Mazumdar said, adding that indigenous production can help bring down the costs.
At present, TIL has a market share of over 60 per cent in the 30-tonne-plus market for cranes.
However, the expansion activities at Changual are still uncertain. TIL had originally planned to set up manufacturing units at Changual, where the company was looking to acquire about 200 acres.
The plant was intended to reduce load on TIL’s Kamarhati unit, which is running at full capacity and has completed 50 years.
But, in the aftermath of the land acquisition issues arising from the agitation at Singur and Nandigram, the company was asked to acquire land directly by the erstwhile Left Front government. The Mamata Banerjee-led government has also asked the company to acquire land at Changual on its own.
The company was also provided 104 acres at Vidyasagar Park to split its project and start its expansion activities. While TIL has been able to secure about 165 acres (at Changual), according to Mazumdar “it is not consolidated”.
“We continue to face land acquisition problems at Changual, but we are hoping it could be sorted out soon.”
Mazumdar said the infrastructure business was facing slow growth, and the trend was likely to continue in this fiscal year as well.
