TAGMA to set up CoE at Chakan with DHI

The Tool and Gauge Manufacturers Association of India (TAGMA) in association with the Department of Heavy Industries (DHI), Government of India, is setting up a TAGMA Centre of Excellence and Training at Chakan in Pune.

To be set up with an investment of Rs 50 crore, the centre will enhance the competitiveness of the Indian capital goods sector and support toolmakers around Pune. Several of these toolmakers supply tools that make the auto components for the automotive sector in the country.

In terms of funding, DHI is giving TAGMA a grant of Rs 26.27 crore that constitutes 80 percent of the machinery value, pegged at around Rs 32 crore. Rs 11 crore will be sourced from the bank as a term loan and the balance Rs 15 crore will be met through equity in which TAGMA would be holding a 51 percent stake. The remaining 50 percent will accrue from the industry.

TAGMA has already invested Rs 7.5 crore in the project and another Rs 7.5 crore will come from the industry of which Rs 2.5 crore has already been received but the challenge will be meeting the balance Rs 5 crore, according to A Dayanand Reddy, president TAGMA India. He was speaking at the second edition of the International Tooling Summit 2017 held at Delhi between February 9-10.

A 8,000 square metre land parcel at Chakan in the Maharashtra Industrial development Corp has been sanctioned and registered in the name of TAGMA CET. A special purpose vehicle has been floated in the private public partnership mode. The centre will house tooling machining services, tool try out and validation facilities. Focus on activities for stamping and moulding currently not available will be offered to small and medium enterprises here besides technical skill development and training.

The building construction work commenced from November 2016.

Also read: Quality and timelines more important than cost in tooling industry