TREAT Proposes Raw Material Hub for MSMEs at BHEL Trichy

By Margvi Aggarwal --
Thursday, 23 May, 2024

The Tiruchirappalli Engineering and Technology Cluster (TREAT), an industrial cluster approved by the state and Union governments, has submitted a proposal to establish a raw materials pre-processing centre within the BHEL Trichy complex. This initiative aims to benefit around 100 micro, small, and medium enterprises (MSMEs) in the region.An official from TIDCO, the industrial development agency of the Tamil Nadu government, also stated that the proposal, if approved, would prevent MSMEs in Trichy from turning sick.

TREAT has requested approximately 25 acres of land near BHEL Trichy's raw materials yard for a period of five years. If approved, MSMEs entrusted with executing work orders for BHEL could procure raw materials from this centre quickly, at lower transportation costs, and ensure timely delivery of finished components back to BHEL.

With BHEL securing orders worth over Rs. 1 lakh crore in a competitive environment, the company relies heavily on the support of ancillary units to produce components and complete these orders. The proposed pre-processing centre would procure steel coils in bulk and supply them to local MSMEs for producing components for BHEL. According to V. Shankar, CEO of TREAT, "Procurement cost of steel for MSMEs will be reduced significantly through our proposal. MSMEs will perform better, and eventually, BHEL Trichy will reap the benefits."

TREAT has also suggested that raw materials could be mobilized through the rail network, streamlining the logistics process. "Instead of an open tender, BHEL can allocate bulk work orders for about 25,000 MT of steel in capacity per annum to our cluster," Shankar added.

Additionally, TREAT has sought to rent 'Building 79,' a decommissioned property inside the BHEL campus, to develop a design and detailing centre for producing components in the thermal power generation sector.

TREAT has simultaneously expressed interest in taking over the decommissioned property of the Tamil Nadu Small Industries Corporation Limited (TANSI) at Thiruverumbur to develop a rail wagon manufacturing unit.

This initiative by TREAT aims to create a supportive ecosystem for MSMEs in the region, enabling them to access raw materials at competitive prices and streamline their operations. By collaborating with BHEL Trichy, these small enterprises can contribute to the larger supply chain and support the company's growth while strengthening their own businesses.

TREAT Proposes Raw Material Hub for MSMEs at BHEL Trichy. The Tiruchirappalli Engineering and Technology Cluster (TREAT), an industrial cluster approved by the state and Union governments, has submitted a proposal to establish a raw materials pre-processing centre within the BHEL Trichy complex. This initiative aims to benefit around 100 micro, small, and medium enterprises (MSMEs) in the region.An official from TIDCO, the industrial development agency of the Tamil Nadu government, also stated that the proposal, if approved, would prevent MSMEs in Trichy from turning sick.

TREAT has requested approximately 25 acres of land near BHEL Trichy's raw materials yard for a period of five years. If approved, MSMEs entrusted with executing work orders for BHEL could procure raw materials from this centre quickly, at lower transportation costs, and ensure timely delivery of finished components back to BHEL.

With BHEL securing orders worth over Rs. 1 lakh crore in a competitive environment, the company relies heavily on the support of ancillary units to produce components and complete these orders. The proposed pre-processing centre would procure steel coils in bulk and supply them to local MSMEs for producing components for BHEL. According to V. Shankar, CEO of TREAT, "Procurement cost of steel for MSMEs will be reduced significantly through our proposal. MSMEs will perform better, and eventually, BHEL Trichy will reap the benefits."

TREAT has also suggested that raw materials could be mobilized through the rail network, streamlining the logistics process. "Instead of an open tender, BHEL can allocate bulk work orders for about 25,000 MT of steel in capacity per annum to our cluster," Shankar added.

Additionally, TREAT has sought to rent 'Building 79,' a decommissioned property inside the BHEL campus, to develop a design and detailing centre for producing components in the thermal power generation sector.

TREAT has simultaneously expressed interest in taking over the decommissioned property of the Tamil Nadu Small Industries Corporation Limited (TANSI) at Thiruverumbur to develop a rail wagon manufacturing unit.

This initiative by TREAT aims to create a supportive ecosystem for MSMEs in the region, enabling them to access raw materials at competitive prices and streamline their operations. By collaborating with BHEL Trichy, these small enterprises can contribute to the larger supply chain and support the company's growth while strengthening their own businesses.