Even as industries in Tiruchi Engineering Cluster at Thuvakudi are grappling with pressure from banks for repayment of dues, their woes appear to be multiplying due to growing problem of material theft.
Aggrieved proprietors blame the situation on joblessness in ancillary industries caused by shortage of orders from Bharat Heavy Electricals Limited (BHEL). Four major boilers manufacturers have already closed down due to recovery proceedings by banks, throwing over 5,000 workers out of employment.
According to an estimate by the Tamil Nadu Boilers Association, nearly 75 units are facing action by banks. In another six months, 100 more industries are likely to fall sick.
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Association treasurer Rajappa Rajkumar, who is proprietor of Kumar Industries, says not less than 12,000 workers will have lost their jobs over the last two to three years due to dwindling orders from BHEL.
Until 2014, there were some 450 ancillary industries of BHEL, providing direct employment to 20,000 workers. Around the same size of labour force had indirect employment. Now, the number of functional industries is just one-third of it.
Most of the retrenched workers — residents of Thuvakkudi and surrounding areas — have not been able to find alternative jobs. Of late, instances of jobless workers breaking into industries and stealing materials are on the rise, Mr. Rajkumar said.
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According to sources in Thuvakkudi police station, the industries are facing the problem of theft of materials. In a case handled by the police station recently, a worker and anti-social accomplices were found to have stolen plates worth several thousands of rupees.
The police say the problem is prevalent due to the absence of CCTV cameras and compound walls for the units on the SIDCO Industrial Estate premises. Proprietors of the struggling industries contend they are unable to spend money on CCTV cameras.
However, they are still hopeful of a turnaround in the situation. But for that to happen, the banks have to stop taking physical possession of immovable assets for the purpose of auctioning them. The proprietors of sick units fear that in the absence of buyers, the machineries will get rusted and fetch only scrap value. They have sought a special package from RBI in the form of a revival programme citing positive signals in the market.
This year, BHEL has secured orders that could translate into fabrication of components to the extent of 3.65 lakh metric tonnes, which is more than three times the volume in the previous years. Also, the inclusion of Tiruchi in the defence corridor project has offered a ray of hope for the struggling industries.