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by Surekha Galagoda

The first five projects under the Gamata Karmantha (rural industrialisation) program launched by the Ministry of Industrial Development were approved last month.

The program was launched by the Minister of Industrial Development Kumar Welgama to give a boost to the 300 industries program under the Mahinda Chinthanaya of President Mahinda Rajapakse.

The Ministry of Industrial Development will provide incentives to local investors to attract them to the provinces which is one of the main objectives of the 300 industries program.

The five projects approved with an investment of Rs. 972 million will provide employment to over 1,000 persons, said Additional Secretary, Ministry of Industrial Development R. V. D. Piyatilake. He said the five projects include Pelwatte Dairy Products, Raigam Marketing Services, Cane Apparel, Hidallana Tea Factory and Union Apparel (Pvt) Ltd.

The Pelwatte Dairy Products are in keeping with the company's vision of making a contribution to the nation. In building and developing the local industry, Master Divers plans to set up an indigenous milk powder manufacturing unit in Pelwatte. The foundation stone for the factory will be laid tomorrow by Minister of Industrial Development Kumara Welgama.

Chairman, Master Divers, Marine and Underwater Services, Ariyaseela Wickremanayake said "This effort by Master Divers to promote the local agrarian economy will boost farmers, income in the area and go a long way in making Sri Lanka self-sufficient in milk production." Since some 84% of the country's milk requirement is currently imported, there is a clear need to develop the capacity for greater self-sufficiency in milk production. "About Rs. 12,500 million is spent annually to import milk powder.

If we can meet that requirement locally, then this will ease the unemployment problem and reduce the loss of foreign exchange," he said.

Wickremanayake's company, Master Divers is a shipowning and ship salvage company that has proved successful in the marine industry. Driven by his personal desire to contribute towards capacity building, he set up the Pelwatte Sugar factory a few years ago, which is thriving as a completely indigenous sugar production unit.

Wickremanayake has invested Rs. 780 million on the proposed milk powder production unit. Foreign consultants have been hired for operational training of local staff, but within six months of starting production, the local staff is expected to handle the unit independently. The construction of the manufacturing unit is due to be completed by the end of the year.

The state-of-the-art unit will also be involved in developing cattle feed in conjunction with veterinary surgeons and will enlist the support of about 25,000 farmers who will be trained and financially 'incentivised' to rear their cattle to generate the required quantity of milk. This endeavour would automatically boost the income levels of the farmers and promote a stronger agricultural economy in the Moneragala district.

Raigam Marketing Services (Pvt) Ltd will manufacture Hair Dye, Sanitary Napkins, Baby diapers investing Rs. 50 million.

The project will employ 300 persons and will be set up in the Milleniya secretariat division in the Kalutara district before the end of this month.

Cane Apparel (Pvt) Ltd will set up a washing plant in Wennappuwa next month investing Rs. 41 million. The project will provide employment to 225 persons.

The Hidallana Tea Factory which will provide employment to 300 persons will set up a factory to manufacture CTC teas in Kuruwita investing Rs. 42 million.

Meanwhile, Union Apparel too will set up a washing plant and Garment factory in Wennappuwa investing Rs. 60 million. The project will provide employment to over 200 persons and work will begin next month.

Piyatilake said that under the Gamata Karmantha program the ministry has received more than 200 applications and 50 - 60 proposals look eligible.

Once we assess the capabilities of a project it is submitted to an approval committee.

The approval committee members include officials from the Treasury, Department of Inland Revenue, Customs and infrastructure providing agencies such as CEB, RDA, NWS & DB and IDB.

Once the committee approves the project it should start commercial production within six-12 months.

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