Achchuveli industrial estate to be revived

Chamikara WEERASINGHE

The development of the Jaffna Industrial Estate in Achchuveli, that has been defunct since 1986 due to LTTE terrorist activities in the North, will start next month with funds being granted by the Indian government for the site's much needed reconstruction.

The Indian Government has committed a grant of Rs. 178 million under its Small Industries Grants Assistance to the Sri Lankan Government. This is in support of its efforts to revive the Achchuveli Industrial Estate, Traditional Industries and Small Enterprises Development Ministry Secretary V Sivagnanasothi said yesterday.

A Steering Committee has been instituted with representatives from Indian High Commission, Finance Ministry and Traditional Industries and Small Enterprises, to oversee the development of the project, he said.

Achchuveli Industrial Estate is set to give a fillip to local job opportunities in the North.

It is expected to generate over 4,000 jobs for youth in the Province, he said.

The development will take place on a 24 acre land under the government's Northern revival plan, Wadakkin Wasanthai (The Uthuru Vasanthaya), a program unilaterally undertaken by Senior Presidential Advisor Basil Rajapaksa for the speedy development of the North in a post-war scenario.

Sivagnanasothi said, basic infrastructure facilities, such as water supply, access roads, electricity, factory building and an administrative building will be constructed at the site.

About 36 apparel and plastic industries will be launched in the facility, he said.

Big players in garments manufacture and exports, such as Brandix and MAS Holdings have shown their interest to start operations.

The effects of war have reduced buildings in the Achchuveli Industrial Estate which housed 36 small industries from its inception in 1971 into rubbles. It is now covered with dense vegetation. "We will soon start clearing the site," said Sivagnanasothi. Asked about the funds, he said funds are now with the Finance Ministry.

Indian High Commissioner Ashok K. Kantha has confirmed in a letter to the Ministry they have granted funds to Sri Lanka sequel to talks held between President Mahinda Rajapaksa and the Indian Government in India.

"He has expressed in the letter that the Memorandums of Understanding signed between Sri Lanka and India during President Mahinda Rajapaksa's recent visit to India has further strengthened relations between the two countries," he said.

India has also agreed to extend their support to revive Achchuveli Industrial Estate until the end of 2012, he said.

The aim of envisioned development is to bring youth in the North to the country's mainstream development, he concluded.

India has agreed to extend their support to revive the Achchuveli Industrial Estate for two years, he added.