Achchuveli Industrial Estate

The Indian Government has provided Rs 235 million as a grant while the Sri Lanka Government has also provided Rs 45 million to support the establishment of the Achchuveli Industrial Estate in Jaffna, Traditional Industries and Small Enterprise Development Ministry Secretary, P. Sivagnanasothy told Daily News Business.

The Traditional Industries and Small Enterprise Development Ministry in collaboration with the Board of Investment (BOI) has planned to support four major companies, MAS Holdings, Orit Apparels Lanka, Timex and Shore to Shore (Pvt) Ltd., to set up factories in Jaffna’s Achchuveli Industrial Estate. He said the initial total investment of this project is Rs 280 million.

The investment will be utilized to develop the infrastructure facilities such as roads, water supply, sanitation, electricity and wastewater treatment plants in the Achchuveli Industrial Estate.

The Achchuveli Industrial Estate has 65 acres and in phase I of this project only 25 acres are being offered to set up these four factories while the balance 40 acres will be given to set up small and medium industries.

Nevertheless, MAS Holdings have requested more land in the Estate to further expand their businesses. There is a good demand for space in the estate and the Ministry is considering providing more land.

The Secretary said the Ministry is hoping to complete the phase one by the end of 2011 while promising that the Achchuvelie Industrial Estate will be fully operational by early 2012.

The commencement of the project will create employment for 2,000 to 3,000 people in the Jaffna peninsula.

The Achchuveli Industrial Estate was one of the best productive industrial estates with over 30 units operating before the war.

However, now the Ministry has had discussions with the past investors of the industrial estate and some of them have expressed their interest in re-establishing their factories.

The companies that have shown interest are into apparel and plastic manufacturing. The infrastructure development will be completed in an accelerated manner.

The project will also help the people to uplift their livelihoods and bring down the unemployment rate in the province, Sivagnanasothy said.

The discussions the Ministry and the BOI had with these companies were successful.

The investors are keen on setting up factories in the industrial estate and at present there are more inquiries from the industrialists.

The project will offer a great opportunity for people in the Northern province to contribute to the economic development of the country.

The Achchuveli Industrial Estate also benefits the companies to expand their business and to increase their workforce.

The Ministry expects that leading companies entering into the Northern province will encourage the rest of the industrialists to establish there as well.

Source:http://www.dailynews.lk/2010/12/27/bus01.asp