Due to lack of skilled labour to handle robotics machinery and AI-run systems, workers are brought from other States such as Karnataka. It jacks up production cost, say industrialists at Uranganpatti. | Photo Credit: R. ASHOK
Most of the roads in Kappalur estate are in a bad shape due to which crores-worth products being transported get damaged, say unit owners. | Photo Credit: G. MOORTHY
Industrial growth remains one of the yardsticks to gauge the development of a district or State. Though education, poverty, health and other parameters are also taken into account, industries play the catalytic factor in bringing various infrastructure to a place.
Madurai, however, is known more for its trading than industries and factories. But with industrial estates, both government and private, having come up here and there, the district has everything in its favour to become an industrial hub, it is felt.
The three industrial estates in Madurai district— SIDCO industrial estates in K. Pudur and Kappalur, and Madurai Hosiery Industries Association (MAHIA) at Uranganpatti — are known for their varied business ventures.
These industrial estates are many decades old and have not adapted themselves to cater to the present needs.
M.S. Sampath, former president of K. Pudur SIDCO Industrial Estate Association, says as most of the industrial estates are fully occupied, no more units can be accommodated there. New industrial estates must be opened in Madurai district.
“Also, changes in norms of Small Industries Development Corporation (SIDCO) in giving land to companies in the upcoming estates are required to attract new business establishments. “Now, unlike previous days, the land for development of units inside the estates is given on lease for a specific period, for which the lease amount almost equals the price of the land,” he says. So, companies cannot get bank loans with the land as collateral as the title deed will not be in their name. Only if the land is sold outright, the companies can stand to benefit.
As in China and other countries, the State government, through the corporation, could lend the land and buildings in the estates to companies at a low price, so that the companies can minimise their cost on investments and spend more on machineries, Mr. Sampath says.
“Though the initial amount the government gets through renting the land is less, in the long run, more revenue can be generated through more production and more employment opportunities,” he points out.
The State government should also consider increasing Madurai district’s industrial land area from 3% to 15% which will enable new businesses to use the available land easily without facing any problem in the land classification process.
At Uranganpatti
A major private industrial estate, MAHIA, at Uranganpatti, is located on a sprawling 70 acre, is known for its green cover and well-maintained campus. But it requires better connectivity. As women and men come for work from Madurai, which is 16 km away, frequent bus services will enable workers an easy and affordable travel option.
P. Surendran, secretary, MAHIA, says, “This private estate, developed in 1991, records an annual turnover of above ₹1,000 crore. But, in the recent days, we see a shortage of skilled hands to operate latest equipment in the wake of newer technologies coming in. To address this, Karnataka government, through Micro, Small and Medium Enterprises (MSME) Department, trains workers in new technologies and software. Likewise, Tamil Nadu government should set up training centres in industrial hubs through tie-ups with companies.”
“Since we lack skilled labour to handle robotics machinery, Artificial Intelligence (AI)-run systems, we bring workers from other States such as Karnataka by paying them heftily, which jacks up production cost,” he says.
Accommodation facility for the growing number of workers and a police outpost are needed at Urangapatti, Mr. Surendran says.
Kappalur’s needs
Another important industrial estate, the SIDCO at Kappalur lacks basic facilities such as water, good roads, streetlights, drainage facility and waste disposal.
Kappalur Industrial Association president P.N. Ragunatha Raja says most of the roads in the estate are in a bad shape due to which crores-worth products being transported get damaged.
“Waste disposal and streetlight facilities are poor. They are neither taken care of by SIDCO nor the district administration,” he says. An industrialist says since they have about 60 buses, they themselves filled the potholes on roads to prevent damage to the buses.
Shortage of labour also haunts every unit. So they depend on migrant labourers from north India. High power tariff has forced 10% to 15% of the units in the estate to shut down, Mr. Raja says.
Published - January 07, 2024 05:48 pm IST
