The anti-Sterlite agitation and the Thoothukudi firing have cast a shadow on the industrial prospects of the State, particularly in southern districts.
The latest developments have taken place at a time when the State is bracing itself for the second edition of the Global Investors’ Meet to be held in seven months.
Besides, the State government has been implementing, as part of its industrial policy, measures to promote and accelerate industrialisation in the south. What has not gone unnoticed among politicians, policy makers, and industrialists is that the disruptions have happened at a time when the southern belt is going through a lean phase in terms of economic activity.
Due to a combination of factors, Sivakasi, a hub for the fireworks industry, has virtually become a “dead city,” says K.E. Raghunathan, national president of the All India Manufacturers’ Organisation. Granite mining in and around Madurai and mining of beach sand minerals in Tirunelveli, Thoothukudi and Kanniyakumari districts have also been banned. “Better regulations and severe enforcement of rules and regulations are the need of the hour, not a total ban on the economic activities per se,” says a former Ramanathapuram District Collector.
S. Rethinavelu, senior vice-president of the Tamil Chamber of Commerce and Industry, concedes that the latest events will have an adverse bearing on the process of industrialisation. However, R.B. Udhayakumar, Revenue Minister, who represents Thirumangalam (in Madurai district) in the Assembly, does not see any adverse impact on industrialisation (in southern districts) as the government is taking enough steps.
Southern region’s woes
Mr. Rethinavelu feels that in the area of infrastructure development, the southern region has not been given “due attention.” He goes on to explain how his chamber, among others, had to struggle to make the Madurai airport, including its cargo operations, international. “Yet, in the area of passenger traffic, only limited services are available, despite a growing demand for greater connectivity,” he says.
It is not that the State government has neglected the region. Apart from the industrial policy, an industrial corridor connecting Madurai and Thoothukudi has been proposed under Vision 2023. That is only one of many projects that have been conceived. But, Mr. Rethinavelu says the government should come forward to facilitate an automobile manufacturing unit in the region. “This can spur ancillary units,” he hopes.
“Such a move would be beneficial for the entire State as we are losing the grip on the sector with many companies are moving to Gujarat,” Mr. Mr. Rethinavelu said.
