The Hindu Business Line : BEML to set up unit to make defence equipment in Palakkad

Palakkad, Jan 17 BEML is setting up a Rs 266-crore manufacturing complex at Kanjikode in Palakkad district, said Mr V.R.S. Natarajan, CMD of the leading public sector company.

He told a press conference here on Saturday that Kerala Chief Minister Mr V.S. Achuthanandan will on Sunday lay the foundation stone for the unit, which will manufacture defence equipment including Mil Wagons, bridges, parts and aggregate for rail and metro cars.

Mr Natarajan said production would commence within 24 months at the unit located on1,000 acres allotted by KINFRA. It will provide direct employment to 500-700 people and indirect employment to over 1,000 people.

According to Mr Natarajan, the company also plans to expand its operations in Palakkad after three years. The new unit will also help increase exports as it is close to Kochi Port.

The Rs 2,700-crore company targets a turnover of Rs 3,000 crore in the year ending March 31. Of this, Rs 300 crore will come from exports. BEML’s five-year vision envisages a turnover of Rs 5,000 crore by 2013-14, coinciding with its golden jubilee year. The company’s order-book position currently stands at Rs 4,000 crore, which is set to increase further, he added.

He said the current economic slowdown had not impacted the company so far. Its turnover is mainly derived from mining equipment, which is unaffected by the slowdown.

The mining sector is growing at 35 per cent within the country and outside, and the country’s coal requirement is expected to touch 750 million tonnes in the 11th five year plan period against the 450 million tonnes at present, he said.

The Kanjikode unit will also be an exclusive base for the manufacture of indigenously developed aluminium and stainless steel 100-tonne freight wagons and other products in the second phase of expansion, he said. The company has already signed an MoU with SAIL and NALCO in this regard, he added.

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