The AIADA’s commitment to industrial development is transforming Adityapur into a preferred destination for investors.
The Adityapur Industrial Area Development Authority’s office.
THIRTY-FIVE years ago, Adityapur, now in Saraikela-Kharsawan district of Jharkhand, was just another industrial zone in the country. The Adityapur Industrial Area Development Authority (AIADA) was established in 1972 by the Government of Bihar for the purpose of promoting industrial growth. There were 50 industrial units at the time. Adityapur is today witnessing rapid industrialisation with about 800 units operating in the zone. This success story is chiefly the result of AIADA’s vision, its unrelenting commitment to industrial development and its meticulous planning to transform the region into a preferred destination for investors.
Located some 8 kilometres from the steel city of Jamshedpur, the industrial area stretches up to 12 km along the Jamshedpur Saraikela-Kharsawan State Highway. Developed plots with necessary infrastructure facilities, such as well-laid road network, drainage system, uninterrupted power supply and sufficient water supply, are available in all the seven phases of the industrial area. In order to meet the requirements of various entrepreneurial scales and types, plot sizes ranging from 5,000 sq feet to 45,000 sq feet are offered. Larger plots are available for entrepreneurs wanting to set up large-scale units.
The industrial area houses 791 units – including 11 large-scale, 64 medium-scale, 550 small-scale, and 166 tiny industries. The number of export-oriented units in Adityapur has also been increasing rapidly. There are 20 industrial units exporting their products to over 20 countries, including the United States, Australia, Singapore, Malaysia, China, Switzerland, South Africa, the United Kingdom, Canada and Germany and West Asian countries. The total investment in the production units in the zone is approximately Rs.3,000 crore and the average annual turnover is about Rs.3,500 crore. The area provides direct employment to over 27,500 people – including the tribal and local populations.
The industrial area houses 480 light engineering works, 41 mineral-based units, 49 plastic and rubber units, 53 chemical industries, 21 food and beverages plants, four pharmaceutical companies, and 21 electrical, four sponge iron and two liquid petroleum gas bottling units.
There are 25 automobile body-building and automobile service centres, 56 ferrous induction casting units and 35 forging businesses in the region. Under the AIADA’s direction, a special economic zone for automobile and auto components, with a mall and an Urban Haat, is being set up.
WATER IS SUPPLIED to the industries at the rate of five million gallons a day.
Keeping in mind the basic infrastructure requirements of the existing industrialists and investors, the authority is constructing plain cement concrete roads and widening the existing roads in a 40-km stretch within the industrial area. In order to make the area environment-friendly, the authority has undertaken a tree plantation project. This year, more than 10,000 trees are proposed to be planted in the area.
Uninterrupted power supply to these units comes from the 140-MW grid sub-station of the Jharkhand State Electricity Board. Power Grid Corporation of India Ltd has installed a 400/220 kv substation with a transformer capacity of 315 X 52 MVA, keeping in mind the future requirements. Four substations with 33/11 kv capacity have also been set up to meet the power needs of the zone. The private sector is expected to participate in the supply and distribution of power in the region.
Water is fed to the industries from the Sitarampur natural reservoir, which has a capacity of five million gallons a day. The State government has taken up various projects to augment this capacity to 25 MGD by 2020. The IL&FS Infrastructure Development Corporation, New Delhi, is the project consultant for the scheme. A special purpose company, Adityapur Utilities Ltd, has been registered to undertake the responsibility of rehabilitating and augmenting the present system over a period of 15 years on the basis of public-private partnership.
The AIADA’s proximity to Ranchi affords certain advantages. A network of highways and railways connects it to metropolitan cities and other important regions of the country. There is a proposal to construct an airport at Adityapur. In order to meet the demand for high-speed Internet connectivity and cellular phone services, leading service providers such as Bharat Sanchar Nigam Limited, Reliance, Tata Indicom and Airtel are operating in the region. Adityapur also has an independent telephone exchange.
The authority has earmarked 200 acres (80 hectares) of land for an integrated state-of-the-art housing colony for the entrepreneurs and employees within its area of operation. A training centre has been set up to upgrade the skills and improve the quality of the employees. Seminars and conferences on topics ranging from industrial safety to rainwater harvesting and energy conservation are organised regularly at the centre. Institutions such as the National Metallurgical Laboratory, the Indo-Danish Tool Room & Training Centre, the Xavier Labour Relations Institute and a number of private training centres offer vocational courses.
In its effort to improve quality, the AIADA has undertaken a unique programme called “Quality Month” celebration. This programme, designed to bring about quality awareness among industrialists and workers, lasts a month during which various training programmes and visits to big industrial houses such as Tata Steel and Usha Martin are organised. The event culminates in a quality audit of the participating units.
The authority has also set up a Knowledge Centre, which has a collection of 2,500 books on management and technical subjects. The centre has an air-conditioned reading hall, an Internet hall and an information centre for investors. To showcase Jharkhand’s rich tradition of art, culture and handicraft, the authority has set up a Heritage Hall.
ome important industries operate in the Adityapur industrial area. The $5-million Usha Martin Group set up a steel plant with a wire rod rolling mill in Jamshedpur in 1979 in order to ensure a steady supply of steel for the manufacture of value-added products such as wire ropes, steel wires, speciality wires, conveyor cords, wire rods, bright bars, round bars, hexagonal bars, wire drawing and cable machinery. Today, the plant has an integrated facility that manufactures 3.6 lakh tonnes of speciality steel a year. Of this, more than 35 per cent is consumed internally at its plant located in Ranchi. The plant manufactures wire ropes of sizes ranging from 3mm to 115 mm with a coil weight of up to 85 tonnes. The steel plant is the first of its kind in the country to have received the TPM Excellence Award from JIPM, Japan.
Usha Martin has been quite active in fulfilling its social responsibility. The Krishi Gram Vikas Kendra, a non-governmental organisation established by the company, undertakes social and community projects in the Chotanagpur belt to make the impoverished villages more self-reliant.
Anjaneya Ispat Ltd
Anjaneya Ispat is a pioneer in the production of small-size blast furnaces in the country. The technology adopted by the company to produce pig iron from a small blast furnace was first applied in 2002 in the industrial area. After some initial problems, the small blast furnaces of 50 tonne per day capacity proved to be economical and efficient. The technology was well received by small entrepreneurs owing to the low investment it required. The company is also developing blast furnaces with higher capacities.
Anjaneya Ispat’s furnaces are capable of using 100 per cent low-grade iron ore and indigenous coke to produce foundry and steel-grade iron. The method of operating the furnaces is so simple that even non-skilled and semi-skilled workers can use them.
The RSB Group is a leading engineering and components manufacturing business house. Set up in Jamshedpur in 1975 under the name International Auto Ltd, it has become one of the largest engineering and automotive components manufacturing companies in the country, with a turnover of $150 million. The group’s core capabilities range from design to manufacturing of aggregates and systems related to commercial vehicles, passenger cars, construction equipment, farm and off-highway equipment.