Kerala Unit Seeks Central Aid
Kerala Hitech Industries has shown that it has the capability to produce strategic equipment and components for critical applications in space and defence programmes, she said after a recent meeting with Deve Gowda.
Gopalan represented to the Prime Minister that despite the state's budgetary problems, it has been supporting Kerala Hitech which is headed by Indian Space Research Organisation former chairman Udupi Ramachandra Rao. Kerala Hitech Industries' order book is quite satisfactory and by next year its turnover is expected to double to over Rs 200 million, she said in her note to the Prime Minister.
She said the overdue term loan liabilities have affected the financial stability of Kerala Hitech, in which the state government has put Rs 130 million in equity and the rest Rs 270 million has been raised as loans from financial institutions. The Kerala government has been financially supporting Kerala Hitech for the last three years, she said.
Kerala Hitech, established in 1989 with 300 skilled workers and engineers, was fully commissioned in 1994. It needed an outright grant of Rs 350 million to make it financially viable, said Gopalan. This can be paid to the state government or to Isro and Defence Research & Development Organisation (DRDO), she said.
Kerala Hitech managing director V Sudhakar said the major product range of the company included liquid rocket engines for space rockets, fuel tanks for the proposed geostationary space rockets, turbojet systems of aircraft engine for the light combat aircraft, rocket motor cases, nozzles, titanium gas bottles, control system components of satellite rockets and components for helicopters and radars.
Sudhakar said Kerala Hitech was started as a result of interaction with various organizations such as Isro, DRDO and the Kerala government. Isro wanted Kerala Hitech facility near its major centre with multidisciplinary capabilities, he said. Kerala Hitech has been getting constant technical support from Isro and DRDO.
Kerala Hitech has expertise such as the capability to make the whole liquid rocket engine named Vikas in assembled form. The first such engine manufactured by Kerala Hitech was delivered to Isro early this year. Three more engines are under production, Sudhakar said.
He said Kerala Hitech, being a high technology general engineering facility, has developed the capability to produce equipment for export. However, Kerala Hitech is presently geared to produce small batch quantity with high value addition, Sudhakar said. The probable areas where Kerala Hitech will be able to manufacture high quality products for exports include aircraft engine systems, aerospace engines and systems, reaction control thrusters of rockets, high pressure gas storage tanks for space applications and various control systems for components for strategic industries.
Sudhakar said Kerala Hitech was equipped with ultramodern manufacturing facilities supported by equally modern quality control facilities, including computerised numerically controlled machines. Its strengths are in sophisticated machining, electron beam welding, surface treatment and non-destructive testing and high precision measurements.
He said Kerala Hitech has evolved capability to handle a variety of super alloys. A very strong base has been established for manufacturing technology. With an investment of approximately $30 million toward facility augmentation in specified areas, Kerala Hitech can be converted into a world class facility, Sudhakar said.
K Vijayachandran, adviser to the state industry minister, told reporters the state government's immediate programme was to rejuvenate existing industries in Kerala by infusion of funds. Our first target is to turn around sick units, he said. As we do not not have enough money to strengthen and widen the scope of Kerala Hitech, we sought the central government's assistance, said the former engineer with the Bharat Heavy Engineering Ltd (Bhel).