Rubber Park ties up funds

KOCHI, APR 22: The Rubber Park India Ltd, the 50:50 joint venture promoted by Rubber Board and the state-run industrial logistics develop...

KOCHI, APR 22: The Rubber Park India Ltd, the 50:50 joint venture promoted by Rubber Board and the state-run industrial logistics developer, Kerala Industrial Infrastructure Development Corporation Kinfra, has tied up funds for the first integrated rubber and rubber products processing park in the country, coming up at Perumbavoor, near here.

The company has also pared down the project cost by reworking its power plans. Rubber Park India will invite bids for land development for the project next month.

Rubber Park India managing director George Joseph said that the company had pared down the project cost from the original Rs 36 crore to Rs 32.8 crore by reworking its power plan. The company was earlier planning to provide generator power to the units to be set up in the park. However, following some structural difficulties the company abandoned this proposal and instead decided to go for a 110-kv dedicated sub-station for drawing power from the Kerala State Electricity Board. The company, which requires far less power decided to go for the 110-kv substation, following its lower rupture rate.

George Joseph said Rubber Park India had got commitment from a State Bank of India-led consortium for financing the Rs 12.8-crore debt portion of the Rs 32.8-crore project. Of the Rs 20 crore equity, both Rubber Board and Kinfra hold Rs 10 crore equity each. The project is structured on a debt-equity ratio of 1:1.

The company has already acquired 60 acres of land for setting up the first industrial park for rubber products in the country. Acquisition works for another 50 acres are in an advanced stage. The management hoped to complete the procedures by next month, the Rubber Park MD said. The basic design of the project was prepared by the New Delhi-based CP Kukreja and Associates.

The park will host around 60-80 units producing value-added rubber and rubber products. The average cost of the units is estimated to be around Rs 2-3 crore. The project is slated to go on stream in May 2000.

The company is planning to bring in water for the project either through harnessing locally or a 15-km canal or pipeline. The Centre for Earth Sciences Studies has been appointed as consultant for finalising the water supply scheme.

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The idea of a industrial park for producing value-added rubber products was mooted, following drastic fall in rubber prices. The Central Government had announced the setting up of a rubber park in October last as a long-term measure to stem the falling rubber prices. The Rs 32.8 crore venture was conceived as an integrated complex to develop forward linkages in the rubber sector in the State. The Government had also plans to set up a similar venture in Nagercoil in Tamil Nadu.