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South Tamil Nadu is fast emerging as an attractive destination for investment. However, the development process is distressing on the ground as the many initiatives are on the verge of collapse due to the prevailing power scenario. The situation is unbearable for small scale industries that provide large scale employment, next only to agriculture. The State Government is engaged in an exercise to redeem the situation.

The native spirit of entrepreneurship has made the region home to many industries in the small scale sector in the fields of rubber, plastics, textiles, printing and packing, match manufacturing and a host of others. The modern Information technology and allied services have started taking roots, with Madurai and Tirunelveli tipped as tier-II cities for special attention. Around 60,000 persons are expected to get employed in the region, when the projects materialise.

Infrastructure projects

The centrally sponsored infrastructure projects in terms of air, port and rail, road connectivity and power have turned the region into an attractive destination for fresh investments. Investments to the tune of Rs.33,735 crore were in the pipeline in various public and private sector projects, the Confederation of Indian Industry (CII) noted a few years back in a ‘Report on Industrialisation of Southern Districts- The unexplored opportunity.’ The districts hold immense potential in manufacturing and service based activities, especially port-based activities like bulk storage, engineering design, biotechnology and mechatronics. The new industrial policy announcement by the State with a slew of subsidies for units started in the region has brightened the prospects and scope for an accelerated development.

The Madurai airport is being expanded and modernised. International air service from Madurai is expected to become effective during 2009. As on date, 11 flights are operated daily to different domestic destinations. The Tuticorin port has emerged as a top-performing port with capacity expansion in handling cargo. The golden quadrilateral road connectivity is nearing completion. Over 35 express trains criscross Madurai, the gateway to south. A nuclear power project is coming up at Koodangulam, near Tirunelveli. There are gas based power plants in Ramanathapuram, windmills in Kanyakumari and thermal stations in Tuticorin districts. A joint venture project of 1,000 MW capacity is also coming up in Tuticorin. More attractive are the cheap land and other operational costs in the region. A big ticket investment to take industrial process to further heights is awaited. South Tamil Nadu is made visible to prospective investors by the industry bodies through participation in trade and industry fairs, meeting foreign trade missions etc. The Sethusamudram Ship Channel Project, it is expected, would come through finally.

HR Development

Human resource development in the region is not lagging behind physical development. Skill development is consciously underway with many, like Ma Foi, Veta and HCL, in the fray. Industry and trade bodies like the CII and Tamilnadu Chamber of Commerce and Industry have come up with programmes starting from schools. Madurai District Tiny and Small Scale Industries Association has been signing MoUs with educational institutions to improve soft skills. According to industry estimates, around 15 to 20 per cent of manpower working in IT industry in metros is from south Tamil Nadu.

Entrepreneurship

The flowering entrepreneurship, with never say die spirit, is testified in the resurrection of an industrial estate at Uranganpatti that almost became defunct. Cluster approach to industrial activities is gaining ground. The CII has come up with a road map for development, entitled ‘Southern Prosperity through Enhanced Economic Development (SPEED)’. Of late, the hidden potentials of economic significance that can drive industrialisation and economic development of the region are being identified and given a thrust in the hospitality, health and tourism sectors. A new awareness is on the rage in this respect in the region.

While the evolving industrial climate is infusing more confidence in the region’s development as never before, the sudden deteriorating power situation has come as a bolt from the blue. What is at stake is the very survival of industrial units, especially the small ones. According to the affected industrialists, measures are needed to bail out the sector as was done in the case of farmers.

The industries in rural areas are the worst affected. They are unable to work even for a shift in a day with assured power supply. With the festival season around, the problem is getting compounded as bonus also is required to be paid. The rising cost of raw materials and finance apart, the engagement of labour without work is even more telling, the sources added.

R.S. Rangarajan

More Stories on : Infrastructure | Tamil Nadu

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