An IIPM Initiative
Tuesday, October 20, 2026
 
 

Industrialisation #1. Tamil Nadu

Southern surprise

 

The state's development of industrial township at Gangaikondan village in Tirunelveli districts is scripting a new future for Tamil Nadu,
PERACHI KANAN | Issue Dated: February 12, 2012, New Delhi
Tags : |
 

Most of India is undergoing rapid industrialisation, however, nowhere is it as visible and vibrant as in Tamil Nadu. Like Gujarat, the state has emerged as the most favoured destination for domestic and foreign investors. In fact, Tamil Nadu today, boasts of being the fifth most important driver of industrialisation among Indian states.  

Traditionally, most of the investments in the state were made in its more prosperous northern region. For the last two decades, however, the map has shifted. From Chennai, where automobile and IT companies have set up base to the region stretching between Madurai to Tirunelveli, the industrial scale and scope of projects stands testimony to the fast industrialisation that is sweeping across the state. The industrial estate that has sprung up on the vast dry lands of Gangaikondan is one of them. 
 
Just 20 years ago this area was notorious for caste clashes that led to bloodshed and bad blood. Unemployment was high and youth was vulnerable to violence. There had been a call for setting up industry in the region, but for a long time it was ignored. But as the state climbed on the industrial bandwagon, the region got its due.  
 
In 1999 the State Industries Promotion Corporation of Tamil Nadu (SIPCOT) set up an industrial complex at Gangaikondan but it was only after 2004 that companies started to shift their operations here. “Companies started coming after the infrastructure was put into place. Currently, 1,600 acres of land have been earmarked for industries and 400 acres has been earmarked for development of basic amenities such as transport etc,” a government official said.  
 
Currently, an SEZ stretching over 255 acres specialising in transport engineering goods is being developed here. An Israel-based Alliance Tyre company has already set up its $ 400 million plant at this SEZ, occupying nearly 115 acres of land. South India Bottling company that produces Coca Cola also has its production unit here. As do many cotton exporting companies.  
 
There are also a number of calcium producing companies. Industrially produced calcium is an alloying agent used in production of aluminium and making of cement and mortar. “In all 14 such companies have set up their base  here. Another 11, are developing the necessary infrastructure to start their operations. Roughly, 3,500 people have benefited by gaining employment in these companies,” an official told TSI. Adding that, ''Tirunelveli district headquarters and Gangaikondan are well-connected by train. The port at Tuticorin is just 45 km away. So it is advantageous to set up an industry here. Many MNCs have come and seen the place. As of now 800 acres of land is occupied and another 800 acres is waiting to be occupied in this industrial complex. We expect the companies to generate job for the locals.”  
 
Arunmozhi, the panchayat president of Gangaikondan also expects more jobs for the villagers living around the industrial estste. According to him, the visible development hasn't translated into job for the youth. “The immediate development received here is due to the sudden boom in the real estate. We expect companies to come forward and give us employment” he told TSI.  
 
Arunmozhi's expectations may come true if the renewed industrial thrust in this region is anything to go by. Recently, the Electronic Corporation of Tamil Nadu (ELCOT) leased 500 acres of land for a special IT SEZ. In this 50,000 sq feet of space has been earmarked to build an IT park. According to information available, ELCOT is planning to invest Rs 180 crore with the help of 'public and private partnership' (PPP) model. This project is expected to create employment for some 30,000 skilled and unskilled workers.  
 
Clearly, the government is keen to script a new life for Gangaikondan. The beginning has been made.
Rate this article:
Bad Good    
Current Rating 2.5
 
 
Post CommentsPost Comments




Issue Dated: Feb 5, 2017