The Hindu : SILK ties up with Chinese firm

Online edition of India's National Newspaper
Tuesday, Jan 07, 2003

Southern States

Southern States - Kerala

SILK ties up with Chinese firm

By Our Special Correspondent

THIRUVANANTHAPURAM Jan. 6. The State public sector Steel Industrials Kerala Ltd. (SILK) has entered into a tie-up with a Chinese firm, Hunan Chenzhou Electric International Development Corporation (HCIDC), for setting up a unit for manufacturing turbines and other equipment for small hydel projects.

The new joint venture, Sino-Indian Turbine Manufacturing Company (SITM), will have an investment of $ 2.9 million, according to the Industries Minister, P. K. Kunhalikutty. The SILK will have 30 per cent stakes in the company and the HCIDC, the remaining 70 per cent. Addressing a press conference here today, Mr. Kunhalikutty described the new company as the first joint venture industrial project having Chinese participation in the country. The Minister said the HCIDC would invest $ 2 million in the company by way of technology transfer and machinery.

The SILK's contribution is the land and machinery in its unit at Cherthala in Alappuzha district.

The Kerala State Electricity Board (KSEB) is currently working on 14 small hydel projects using Chinese technology. These projects are proposed to be allotted to the newly-formed SITM. Mr. Kunhalikutty said the expenses on the machinery for these projects would come down because of the savings on import customs duty.

The State would also gain by way of direct and indirect taxes on the turbines and equipment manufactured here.

The General Manager and Vice-Director of the HCIDC, Tan Xiang Ling, who is heading a six-member team from the company visiting the State for finalising the tie-up, said the new joint venture company would market its products in South Asian and African countries, in addition to other States in India.

Mr. Kunhalikutty said this deal should be seen as a good beginning, heralding a phase of fruitful cooperation with more Chinese companies.

He said that with the success of this joint venture, Kerala would be perceived in China as a place of big opportunities.

More Chinese investments, especially in Information Technology and electronics sectors, were expected in the days to come, he said.

Mr. Kunhalikutty said the initial discussions on setting up such a joint venture company with Chinese participation were conducted during the time of the LDF Government. The UDF Government had followed it up vigorously to bring it to fruition.

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