TECHNO ECONOMIC SURVEY REPORT OF NAGAPATTINAM DISTRICT

CHAPTER I   Profile

Nagapattinam District was carved out of erstwhile Thanjavur District on October 18, 1991. Subsequently it was bifurcated in the year 1997. The district has 147 kms long coastline. The old port city of Kaveripoompattinam presently called as "Poompuhar" is an important tourist centre of the district. Apart from this, other places of interest are Velankanni, Nagore and Point Calimers bird sanctuary. The "Basilica of our Lady of Health" at Velankanni, the Nagore Darga, "Markandeyar" Temple at Thirukadaiyur and fort at Tharangampadi are the proof of ancient art and architecture. Vedaranyam, the town where the Father of the Nation, Mahatma Gandhi, initiated the Salt Satyagraha, is located in this district and also an important centre for salt production.

The district is bounded by the Bay of Bengal in the east, Palk Strait in the south, Tiruvarur and Thanjavur districts in the west and Cuddalore district in the south. The district is spread over 2715.83 sq. kms.

Nagapattinam District at a glance vis-à-vis State

1. Physical & Geographical Features

The district is primarily agrarian in nature and throws open good scope for development of industries based on agricultural inputs such as extraction of rice bran oil, straw board, cultivation and extraction of palm oil, cultivation and processing of horticultural products and floriculture. After the setting up of a refinery at Panangudi near Narimanam, there is good scope for gas based industries and petrochemical based downstream industries. Apart from these, the district offers good scope for tourism, handicrafts etc. and marine based industries with 147 kms long coastline.

During the survey, it was reported that though there is enough skill and literacy in the district, there is a need for motivating the large army of unemployed youth in the district. The non-functioning of the Nagapattinam port has put to lot of hardship, as the goods are brought to Chennai Port by road/train, thereby adding to the cost and time apart from adding to the congestion at Chennai Port. Hence the revival of Nagapattinam Port as before will certainly accelerate the pace of industrialisation in the District. Yet another problem reported was that the power tariff per unit presently levied by TNEB is much higher than that of the prevailing rate in the neighbouring Karaikal, a part of Pondicherry Union Territory. Further the existing roads have to be widened to ease the traffic and speedy conversion of the existing metre gauge line to broad gauge line will go a long way in facilitating tourism and industrialisation, thereby helping movement of food grains etc. With the district accounting for good amount of agricultural products, there is a strong need for more regulated markets. In addition to this there is a general feeling that the bankers should be responsive to the needs of the entrepreneur. There is a strong need for establishment of professional colleges such as engineering, medical etc. and also few more polytechnics and ITIs. Above all these, it is generally felt that the Government should create awareness and facilities for the industrialisation of the district so that a few more large scales Industries can come up, atleast one or two per block in order to motivate the entrepreneurs.

Government to offer subsidies / incentives for setting up Marine Products, port - ship building/breaking etc.
Tourism to be promoted - Velankanni, Poompuhar etc.
Additional schemes by banks to SSI's to motivate industrial growth.

CHAPTER III   Analysis of Resources

1. Human Resources

As per 1991 Census the population of the district has been put at 1377601 as against 55858996 of Tamil Nadu which works out to 2.46% of the State population . Of this male population account for 6.91 lakhs and female population the rest, i.e. 6.86 lakhs. SC/ST population was 7.15 lakhs. The density of population was 507 per sq.km. as against the State average of 429 per sq.km.

2. Occupational Pattern

Of the total working population of 5.13 lakhs, 3,66,652 persons i.e. 71.5% are depending upon agriculture. Around 75,000 persons are engaged in construction, transport etc., next comes people doing business numbering 24100 and the people working in industry and related activities stood at 15,580 which works out to a meagre 1% of the total population whereas agriculture and allied activities occupies a dominant position.

3. Agricultural Resources

Major crops cultivated in the District are Paddy, pulses (Blackgram and Greengram), Ground nut, sugar cane, cotton etc. 0f the total geographical area of 2,71,583 hectares, gross cropped area account for 214035 hectares. 0ut of the gross cropped area of 214035 hectares, area under paddy cultivation account for 151961 hectares during 1997-98 with a total production of 5.234 lakh tonnes at an average yield of 8255 kg/hec. Blackgram and greengram was cultivated in 72300 hec. during 1997-98 and the production and yield during the period has been put at 49,700 MT and 687kg/hec respectively. Sugarcane was cultivated in 4500 hect. with a production of 49,900 tonnes with an average yield of 110 T/hec. Groundnut was cultivated in 4900 T/hec. Cotton was cultivated in 1379 hectares with a production of 3400 tonnes with an average yield of 2.46 t/hec. Gingely was cultivated in 950 hectares and the production was put at 400 Tonnes with an average yield of 481 kg/hec.

After meeting the local consumption, 29575 tonnes of paddy is available for commercial exploitation and 77 tonnes of blackgram and 82 tonnes of green gram are available for commercial exploitation. 0ther surplus cash crops available in the District are sugarcane, cotton, groundnut, tapioca, cashew, gingely, banana and soya beans. Profitable ventures can be set up utilising the above crops in the District.

4. Livestock Resources

The District being well irrigated agrarian economy, is endowed with 2.20 lakh cows, 65000 buffaloes, 3.15 lakh goat and 4.60 lakh poultry birds. Given the grazing land/irrigational facilities available, this district can flourish in a big way in dairy development. A Dairy farm with a high breed variety can be set up near Thalainayiru.

5. Marine Resources

This District is well endowed with marine resources with a coastline of 147 kms. from Thirumullaivasal to Vedaranyam. The fish catch from the district during 1997-98 was 70000 tonnes. Apart from this another 5300 tonnes fish catch is available from inland water resources. Fishing is the mainstay for people in 6 blocks out of 11 blocks in the District and fish landing is taking place in 47 places. 65340 people are engaged in fishing activities in the District. Further prawn cultivation is taking place in a big way in 30000 hecs. with 100% export orientation. So there is good scope for starting industries based on this.

6. Mineral Resources

Silica sand available in the Vedaranyam coast is best suited for manufacturing sodium silicate. Annually 20000 tonnes of silica sand is exploited mainly by 10 sodium silicate units located in Karaikal region. Yet another resource struck in a big way in many areas of the district is oil and natural gas, (7.56 lakh cub.m is produced daily in the oil wells). An 0il Refinery with a capacity of 0.5 million tonnes/year is functioning in the district. Power generation offers good scope with gas struck in oil wells. Some mini power plants can be started in and around oil wells at Kovil Kalappal, Kuttalam etc. Salt is one of main mineral resources in the district with salt production in the coastal area of Sirkazhi and vedaranyam. This salt can be exploited for industrial purposes. Sea shells and lime are available to the tune of 1500 tonnes in and around Thirumullaivasal area. So far this has not been utilised.

CHAPTER IV   Existing Industries

This District has got 9 large / medium scale industries, with an investment of Rs.1745.86 lakhs, offering employment to 2500 persons. Some of the products manufactured in the above units are rice, cotton thread spinning, sugar, rice bran oil, liquid bromide, liquid alkaline bromide, iodised salt, liquid petroleum gas, naphtha, high speed diesel, high purity kerosene, low sulphur housedock etc. Apart from the above 9 industries, 3 more large/medium units are in different stages of implementation. The proposed items in these are industrial alcohol, power generation.

Medium and Large Scale Industries in Nagai District

Year	No. of SSI Units	Cumulative Total	Percentage of Cumulative Growth	Annual Growth Trend
1991-92	91	91	-	-
1992-93	224	315	246	146
1993-94	246	561	78	9
1994-95	213	774	38	(-) 13
1995-96	211	985	27	(-)0.9
1996-97	214	1199	22	1.4

S.No.	Product Code	Product Group	No. of SSI Units
			1995-96	1996-97	1997-98
1.	20-21	Food &Food Products	36	43	60
2.	22	Beverages	1	2	5
3.	23	Cotton &Textiles	2	-	-
4.	24	Wool, Silk and Synthetic Fibre	-	-	-
5.	25	Jute, Hemp and Mesta Products	-	-	-
6.	26	Hosiery and Readymade Garments	18	19	39
7.	27	Wood and Wooden Products	14	13	17
8.	28	Paper & Paper Products	8	12	17
9.	29	Leather & Leather Products	20	1	1
10.	30	Rubber & Rubber Products	8	14	14
11.	31	Chemicals and Chemical products	8	3	9
12.	32	Non-Metallic/Mineral Products	2	9	12
13.	33	Basic Metal Products	2		7
14.	34	Metal Products & Parts	10	11	6
15.	35	Machinery parts except electrical	15	8	13
16.	36	Electrical Machinery & Apparatus		8	8
17.	37	Transport Equipment	2	1	1
18.	38	Other manufacturing industries	37	40	90
19	97	Servicing & repairing	28	30	60
		Total	211	214	359

LEGEND: Servicing & repairing Other manufacturing industries Metal Products & Parts Basic Metal Products Non-Metallic/Mineral Products Rubber & Rubber Products Paper & Paper Products Wood & Wooden Products Hosiery & Readymade Garments Food & Food Products

STATUS OF SSI IN NAGAPPATTINAM DISTRICT AS ON 31.03.1998

Apart from SSI units, 6 industrial Co-operative Societies are functioning in the District offering employment to 182 persons producing goods worth Rs.13.14 lakhs annually.

Further 221 cottage industries registered with DIC Nagapattinam are functioning in the District with an investment of Rs.11,03,000 producing goods worth Rs.4,42,000 per annum,employing 412 persons.

CHAPTER V   Infrastructural Facilities

1. Electricity

Though presently only a small quantity of electricity is generated in the District through gas turbine to the tune of 53,81 million units, the future seems to be bright with good scope for more such gas turbines commissioning as more and more wells are struck in various parts of the District. But the district at present is fully dependent upon the supply from the power grid in the State. The demand for electricity is growing @ 10% p.a. whereas the supply is either stagnant or shows a marginal growth. During 1997-98, the consumption of electricity by all categories stood at 99.359 mu. 0ut of this, industrial consumption accounts for 10.878 M.U., which works out to just 11% of the total consumption. However, with the proposed power plants in different parts of the State, the power position is expected to be comfortable in a few years, no major crisis could be visualised to stand as an impediment to the setting up of ventures in the District.

2. Water

Because of the absence of perennial river, much of the water requirement is met by ground water apart from rivers such as Cauvery and Vennar , which are by nature seasonal ones. Except in some coastal blocks such as Vedaranyam and Nagapattinam, there is no major problem for water.

3. Factory accommodation

The only Industrial Estate existing in this District is the one at Nagapattinam developed by SIDCO. There are 10 sheds in this Estate. Units manufacturing steel trunks, pencils and wirenails are situated in this estate. Another 16 acres of land is available for industrial purpose. Another 2000 acres of land identified for setting up a growth centre at Panangudi for which the State Government had given provisional sanction but it has not yet taken off. This needs to be expedited by the concerned authorities. The proposed growth Centre will include a big industrial complex with all infrastructures such as power, water, road etc. It is meant for ancillary and downstream industries based on MRL’s product as well as its requirements.

4. Railways

The District headquarter Nagapattinam is well connected with Tiruvarur, Thiruthuraipoondi and Chennai by meter gauge to the tune of 40 Kms. But considering the future development especially Nagapattinam Port and the proposed Refinery and its downstream industries, there is an urgent need for converting the present MG line to BG line so as to ensure speedy movement of goods and services.

5. Roads

Almost all the villages are connected by road either surfaced/unsurfaced.

If road is said to be sine qua non for industrial development then Nagapattinam District stands in good stead. 358.80 Km major district roads and 87.285 KMs of other District roads are existing in the District. For every 1000 population, the length of road is just above 1 Km as against 2.2 Km. per 1000 population in the state.

6. Sea Port

Though there is a seaport at Nagappattinam it has not been utilised to its full potential and it is looking in utter neglect. Because of this most of the goods and services are brought to Chennai Port by Road and then sent by ship. This causes heavy burden on the economy and also on consumers. In view of its strategic location and to improve the economic activity in the District, there is a strong and urgent need for improving the present port and to bring back its lost glory.

7. Post & Telegraph

The District possess 326 post 0fficers serving the people with 1 H.P.0 and 35 S.P.0s and rest are all extra department Post 0ffices. 25511 people are served by a post 0ffice in the District as against 4650 per Post 0ffice in the State.

8. Financial Institutions

There are 113 bank branches spread throughout the length and breadth of the district of which 71 branches are functioning in rural areas as against 42 branches in the semi urban areas. The total deposits and advances in the district as on 31.3.98 stood at Rs.39.39 lakhs and Rs.28.43 lakhs respectively.

9. Training facilities

There are not many training institutions in the District. But an I.T.I and a Polytechnic each is functioning at Nagapattinam, Mayiladuthurai and Sirkazhi. But there are not many facilities for professional education in the district.

10. Regulated Markets

There are two main regulated markets in the district at Kadampadi (Nagapattinam) and Mayiladuthurai respectively. Some of the principal crops marketed are paddy, rice, blackgram and greengram. During 1997-98, 1286.4 tonnes of paddy arrived in these regulated markets as against 1445.5 tonnes during 1996-97. Similarly 1671.1 tonnes of rice arrived during 1997-98 as against 1773 tonnes during 1996-97. 776 tonnes of black gram arrived during 1996-97. Similarly 824 tonnes of green gram arrived during 1997-98 as against 512 tonnes during 1996-97. Apart from these, weekly markets are located in a number of places in the district where mostly vegetables, fish and groceries are marketed.

CHAPTER VI   New Industrial Possibilities

As far as the present industrial scenario in the District is concerned, there are 3010 registered SSI units in the district as on 31.3.98 with a total investment of Rs.3548.68 lakhs and offering employment to 9105 persons and the production has been estimated at Rs.2740.09 lakhs. As far as the composition of SSIs are concerned, servicing and repairing occupies the top place (994 units) accounting for 33% of the registered SSI units and also in terms of investment in plan as well as employment. A look at the concentration of industries reveals lopsided development with Mayiladuthurai block accounting for 548 units followed closely by Vedaranyam block with 502 units. Keezhaiyur and Keezhvelur blocks are lying at the bottom of the table by struggling to attain three digit figures.

I. Agro based industries

Nagapattinam District being a predominantly agrarian one with 214035 hectares of the 271583 hec. land area under cultivation and out of which 151961 hec. accounting for paddy cultivation with a production of 5.234 lakh tonnes during 1997-98 offers good scope for agro based industries. Next to paddy, blackgram and greengram are cultivated in 72300 hec. and the production during 1997-98 was 49700 MT and sugarcane cultivation accounting for just 4500 hec. and the production was 49900 MT during 1997-98. Viewed in this background there is no doubt that agro based industry is at the Centre stage of economic development of the district.

1. Oil Palm cultivation cum processing

With a good amount of area found suitable for oil palm cultivation and in addition to this the Government offering subsidy of Rs. 10000 per acre, Oil palm can be cultivated as a cash crop which will fetch good income if the crop is harvested and processed within 24 hrs. Apart from providing good income to the farmers this will reduce burden on imports once the area under cultivation is substantially increased to meet the local demand. So, it is the best available choice for import substitution. In this district another 100 hec. of land will be brought under oil palm cultivation and farmers are going to be trained in cultivating this by taking them to National oil Palm Research Centre, Eluru, A.P. Extensive Publicity and propaganda were being given about Oil palm cultivation. At present 395 ha. of land have been brought under Oil Palm cultivation in this District. Cauvery delta belt soil is suitable for this.

2. Straw Board

Paddy is the major crop both in terms of area under cultivation as well as production. At present the paddy straw available, after harvesting, is mostly used as a cattle feed and a small quantity is transported to other districts after making it into very small pieces for mushroom cultivation. 0therwise, a good amount of straw is left for converting it into value added item. In this direction, strawboard can be manufactured and thereby it can be exploited as an income generation activity. During normal monsoon year, there is good amount of surplus straw, which can be utilised for straw-board.

3. Bio-fertilizer

It is a well known fact that too much use of chemical fertilisers has reduced the fertility of the soil to a great extent. In order to rectify this trend and to bring back the original fertility of the soil, bio-fertiliser can be produced in good quantity and thereby the quality of fruits and vegetables can be improved and side effects can be reduced to a great extent. In this connection, some plants like neem and agricultural waste, such as coir fibre, husk pith can be utilised by spraying citric acid present in the lemon over the husk and then mixing it evenly and soaking it for some time will decompose itself which can be utilised as a manure to the soil.

4. Mini Power Plant based on Paddy husk :

Paddy husk, which is available in plenty in Tiruvarur district, can be utilised for power generation. Paddy husk which has a caloric value of 3000 k Cal / kg, is capable of high-efficiency combustion. Therefore, it can serve as the fuel for mini power plants of 1 to 2 MW capacity that can be set up in rural area. The rice husk ash, obtained as a by product by burning it, can generate power in the process. The cost of establishing and maintaining the mini power plant can be easily made good by exporting RHA, which can fetch a price of $50 a tonne.

Husk based mini power plant can be set up in the co-operative sector making the farmers in and around rice mills as the share holders of such ventures ushering in a movement parallel to ‘Operation Flood’ witnessed in dairy development.

A single MW plant using rice husk as fuel can yield 70.08 lakh units of electricity at 80% Plant Load Factor. At the rate of 100 lakh units of per capita consumption applicable to rural area, the plant can meet the requirements of 87600 persons. Assuming an average of 2000 population per village, the power needs of 44 villages can be met. In terms of agricultural pumpsets, it can activate 2300 pumpsets at the rate of 3800 units a year.

For operating such a plant, the total requirement of paddy husk in a year would be around 4670 tonnes, which can be derived from 23350 tonnes of paddy. Considering the paddy production of around 523400 tonnes in Nagapattinam District, the paddy husk availability is around 104700 tonnes, which can support 22 plants in the district.

With a 20 percent ash content, rice husk can yield 934 tonnes of ash guaranteeing an export earning of $ 46,700 (Rs. 19.61 lakhs).

The aspiring entrepreneurs can approach ‘The DIRECTOR, INSTITUTE OF SOLID WASTE RESEARCH AND ECOLOGOCAL BALANCE (INSWAREB), VISAKHAPATNAM, ANDHRA PRADESH’, for technical support and related information.

II. Petro chemical industry

Petro chemical industry has carved itself a niche and emerged as the most vibrant segment of our industrial structure. The growth of petro chemical industry hinges on availability of feedstock. At present, there are 12 oil refineries in our country with a total refining capacity of 52 million tonnes. With the installation of 3 new refineries in Assam, Karnal (Haryana) and Mangalore(Karnataka), the refining capacity is likely to go up to 62.6 million tonnes.

The feedstock produced by these refineries are Naphtha, kerosene, LPG and Natural gas. 0f this naphtha which is obtained by distilling crude oil is the major feedstock. Naphtha cracking produces the building blocks namely Ethylene, propylene and butadiene which go to produce down stream petro-chemical products.

Growth of petro-chemical industries have been mainly around oil refineries or location of availability of crude oil/gas.

All along, the growth of petrochemical downstream industries was confined to Maharashtra-Gujarat Belt and Assam. With the bright prospect of oil reserves in newer areas, coupled with expansion of existing refineries and more importantly laying HBJ pipeline "Gas Grid", growth of petrochemical based projects has gained momentum.

Growth of petrochemical industry in Tamil Nadu have been guided by MRL and recent oil/gas finds in Cauvery onshore/offshore basin. The total gas production in Cauvery onshore has been estimated at 196 thousand million cu. mtrs./day and offshore 560 thousand million cu. mtrs./day.

Some of the petrochemical products that could be manufactured with the available feed stocks in the Cauvery offshore/onshore projects are:

• Benzaldehyde: This can be manufactured from the Toubene and suggested capacity is 600 TPA. The Approximate cost of the project is Rs.3 crores.
1. Petroleum Jelly: The raw material required for this is petroleum lubricant, fraction from MRL, Propane, Caustic Soda. The approximate investment would be Rs.5 crores. Suggested capacity is 3000 TPA.
2. Cholorobenzene: The raw material required for this is benzene and chlorine. The approximate investment would be Rs.4.5 crores and suggested capacity is 3000 TPA.
3. Acetamilide: The raw material required for this is aniline and acetic acid and also molasses. The approximate investment would be Rs.2 crores. Suggested capacity is 1000 TPA.
4. Isopropyl Alcohol: The raw material required for this is propylene. The approximate investment is Rs.3 crores. Suggested capacity is 5000 tonnes per annum.
5. Ethylene Oxide Condensates(EOC):It is also known as ethoxylasion or exhanoxylasion. There are 25 units manufacturing EOC. Hico Products Ltd., Dai Ichi Karkaria (P) Ltd. and Alurra Chemical Products (P) Ltd. accounts for more than 60% of the installed capacity.
6. Precipitated Silica: It is used as reinforcing fillers in rubber products both translucent and coloured product, mechanical goods and shoe soling. Apart from this. special grades are used in agriculture, food and cosmetics. The demand is estimated at 20000 MT per annum in the year 2000-2001. At present about 4000 MT/year of PP Silica is imported. At present there are 30 units in Gujarat and Maharashtra. To meet the growing demand a good number of units can be started in and around Nagappattinam.
7. Containerized Tanks: (For liquid transportation): Chemical, Petrochemical and Pharmaceutical Industries require a variety of liquid raw materials for subsequent processing which needs proper container for transportation. The present tanks are rigidly fastened with the vehicle chassis and this is a major limitation while filling and emptying at receiving and dispensing centre. Hence a new concept of building a tank and putting in a "ISO type freight container frame" is proposed.

At present, there are over 10 large fabricators. In addition to these, there are over 40 small scale fabricators for takers. Apart from this, there are 6 units manufacturing marine freight containers with an installed capacity of 14000 nos. The total volume of business for containerised liquid tanks can be put at Rs.14000 lakhs per year. This industry is registering an annual growth of 20% which is very good compared to any other product. In view of this, there is excellent scope for this industry. The total investment required for the project with a capacity of 300 tanks of various capacities worth Rs.600 lakhs is estimated at Rs.160 lakhs.

8. Ferochrome Lignosulphanates (FCLS): Lignosulphonate thinners are the most versatile and important chemicals used in water based drilling. It is an effective deflocculant in most water based muds in the oil well drilling operations. It is a critical and expensive mud chemical mainly used by ONGC and IOL. The estimated demand of ONGC for FCLs is learnt to be around 7500 tonnes per annum. The technology for this can be obtained from Petroleum Research Institute, Dehradun (UP). The project cost for a plant with a capacity of 1000 MT/year is estimated at Rs.200 lakhs.

CHAPTER VII   Khadi & Village Industries

The Khadi & Village Industries Board, Tamil Nadu, has been serving this sector for the last 40 years through their following network/schemes.

1. Khadi Weaving Centres
2. Village Industries Centres
3. Co-operative Societies
4. Special Programmes
5. Village Artisans Financial Assistance Scheme
6. Marketing Centres

Tamil Nadu Handloom Development Corporation (Poompuhar) strives to protect the interest of village artisans and protects such village industries from the sickness problem by imparting training to the younger generation from the traditional artisan families. It helps in marketing their products through its sales outlet (Poompuhar) in every district and also exports good amount of such items and thereby earning a sizeable amount of foreign exchange.

At the Central level, this industry is taken care of by the Khadi & Village Industries Commission (KVIC) through its Office in Chennai. Apart from framing policies, KVIC is spending crores of Rupees for the development of this sector through KVIB which is a State Government agency.

As far as Nagapattinam is concerned, its strength lies in palm products and cane products. Kollidam in the northern most corner of this district stands top in the production of mats and cane furnitures.

It is reported that six Industrial Co-operative Societies are functioning in this district and provides employment to 200 persons and production from the above units was Rs.13.14 lakhs during 1997-98. Apart from this, it is reported that 221 cottage industries have been registered with the DIC, Nagappattinam and offer employment to 412 persons with an investment of Rs.13.75 lakhs and the production during 1997-98 was Rs.7,44,000/-.

Further Khadicraft Sales Centres are functioning at 5 places i.e. Mayiladuthurai, Sirkazhi, Sembanarkoil, Nagapattinam and Vedaranyam. Sales from the above centres have gone up from Rs.33.39 lakhs in 1996-97 to Rs.62.92 lakhs.

Rural Textile Centres are functioning in 8 places viz. Kuttalam, Keelvelur, Manjakollai, Panangudi, Sembanarkoil, Vedaranyam and Vettaikaraniruppu. Production from these units during 1996-97 was Rs.9.38 lakhs. These units provide employment to 101 persons. Apart from this, a Nepali Loom Centre has been functioning at Kodakkaramootai with a production worth Rs.8,000 during 1997-98 as against Rs.1,000/- during 1996-97 and offers employment to four persons. A Footwear Manufacturing Unit has been functioning at Sembanarkoil and the production during 1996-97 was worth Rs.14,000/- and Rs.35,000/- in 1997-98 and provides employment to 3 persons.

A handmade paper unit has been functioning at Thirumailady. The production from this during 1996-97 was Rs.1.12 lakhs and during 1997-98 it was Rs.75,000/-. It offers employment to 4 persons.

1. Keezhaiyur Block

It is spread over 182.44 sq,kms. With 1/5^th of the people available for entrepreneurial activities and proximity to Nagapattinam it offers good scope for meeting the requirements of the town and also tourism based activities. Some of them are: burnt lime, powdered salt, engineering services, automobile repairing and servicing, pickles, papad, groundnut oil extraction etc.

2. Keezhvelur Block

It is spread over 160.52 sq.kms. Keezhvelur Block is located in Nagapattinam - Tiruvarur Highway with the maximum area under paddy cultivation. 18% of the total population in the block is available for entrepreneurial activities. It is felt that some of the rich landlords and well off people can venture into this area to create a congenial atmosphere. Some of the industries suggested are: agarbatti, scented vibhuti, repairing of pumpsets, wooden furniture, wood plaining, coil rewinding, sodium silicate, ammonia, straw board, handmade paper, pond fish cultivation, poultry farm and cattle feed.

3. Kollidam Block

It is spread over 231.54 sq.kms. Kollidam block is situated on the northern most corner of the district bordering Cuddalore District. 76% of the people are engaged in agriculture. Rest are engaged in other activities. Surplus agriculture labourer can be diverted to take up some lucrative ventures. Thirumullaivasal where fishing activity is taking place in good amount offers good scope for marine based items such as fish processing, ice candy, fish pickle, nylon nets. Apart from this, there is scope for activities on fly ash bricks, readymade garments, modern rice mill, oil palm cultivation, electronic toys, repairing and servicing of motor boats etc. Korai mat weaving and cane furniture for which Kollidam and its surrounding villages are known for can expand their activities so as to cater to the needs of other states apart from their local market. Embroidery, tyre carts, mosaic tiles, repairing and servicing of automobiles offer good scope. Further as this area is very fertile and well irrigated, horticulture product cultivation farm cum processing centres can be set up in and around Kollidam. In addition to tobacco cultivation and floriculture, especially jasmine can be cultivated in good area as this soil is good for that. An industry for extracting jasmine oil can be set up after bringing substantial area under cultivation.

4. Kuttalam Block

It is spread over 198.31 sq,kms. This block is located in the Mayiladuthurai-Kumbakonam Highway. This block, being Cauvery basin irrigated, with 95% of population engaged in agriculture and allied activities. It is well connected by both rail and road. Some of the items that can be produced here are pappad, straw board, curled and rubberised coir, coir products, cement hollow block, lime powder, cycle seat covers, tyre retreading, roller bushes, groundnut oil extraction. With the recent oil find, there is good scope for power generation, LPG bottling plant and downstream industries.

5. Mayiladuthurai Block

It is spread over 251.41sq kms. This block just like other blocks in the district is primarily agriculture oriented with 80% depending on agriculture. But with proper training and motivation good number of entrepreneurs can be groomed. There is enough skill available here. Some of the items suggested here are: paper board, burnt lime, iodised salt, coconut fibre extraction and coir products Acid slurry, galvanising, calcium, zinc steroid, gas based industries etc..

6. Nagapattinam Block

It is spread over 122.43 sq.kms. 20% of the population can be motivated to start some ventures. This block stands as a symbol of National unity with Darga at Nagoor, Saneeswara Temple at Thirunallar and Basilica of Shrine Velankanni at Velankanni offers good scope for tourism and related industry. If Nagapattinam port is returned to its glorious past, it will facilitate trade and industry in a big way. There is good scope for marine based industries such as fish processing, PVC net floats, repairing and servicing of motor boat engine. A training centre for improving the skill in this area is strongly felt. Some of the items suggested are steel rerolling mill, steel furniture, cattle feed, fish meal, power loom, mixed fertilizer insecticides, urea, ammonia, polythene. MRL Mini refinery at Panangudi offers petrochemical based downstream industries.

7. Sembanarkoil Block

It is spread over 273.90 sq.kms. It is a fertile agricultural area and located strategically linking tourist centres such as Poompuhar, Thirukadaiyur, Thirunallar, Nagoor and Velankanni. 95% of the population depends upon agriculture and allied activities and the rest in industries & tertiary sector. Considering the above, repairing and servicing of two/four wheelers, cool drinks, hotels, chamber bricks, ice, furniture, banana powder, tapioca based products, appalam, fish meal, cattle feed, mixed fertilizer, bio-fertilizer, cotton ginning, aluminium utensil, engineering and fabrication, bakery, electrical equipments, motor servicing, repairing and coil rewinding are suitable for this block.

8. Sirkazhi Block

It is spread over 210.42 sq.kms. Sirkazhi Block is also just similar to the previous one in resource endowments. Considering the long coast line salting can be established and thereby salt based industries can flourish here. Poompuhar can be developed as a fishing harbour by deepening the sea periodically for facilitating deep sea fishing. An industrial estate can be established near Poompuhar to stimulate the industrial growth in the area. Government can start a large scale agro based industry to give a much needed start towards progress. Some of the industries/products suitable to this area are fabrication of steam boilers, cold storage, nylon fishnet, float, Ice candy, paper from sugar cane bagasee, cashewnut shell oil, straw board, iodised salt, Plaster of Paris, desiccated coconut powder, neem oil extraction, bakery, cement pipes, cool drink bar, Radio & TV servicing and repairing, laser printing etc.

9. Thalainayiru Block

It is spread over 257.06 sq,kms. This block is also predominantly agrarian oriented with just 2% of people engaged in trade, Commerce and Industry. Nagapattinam, Tiruvarur and Thiruthuraipoondi being the adjacent towns, cater to the needs of this area. Through training and motivation campaigns, the unemployed youth in this area can be motivated to start some ventures. Being land locked area at present, breeding of cows & buffaloes remains an integral part of the society. To give thrust to this sector, a dairy farm with high breed varieties is suggested for this area. Apart from this, cattle feed, fish meal, ground nut oil extraction, powdered salt, packaging, palm products, oil palm cultivation, tapioca products and tobacco find good scope in this area.

10. Thirumarugal Block

It is spread over 183.48 sq.kms. This block is very fortunate enough to have oil rich Narimanam area and near to Karaikal, a fast growing industrial area. This area is going to occupy a dominant position in the industrial field in the years to come but necessary motivation and thrust is lacking among the youth to take up some profitable self-employment ventures. The proposal for a Industrial Estate has to be expedited to create a congenial atmosphere for speedy industrialisation of the area. Some of the industries suggested for this area are readymade garments, silica from sand, wire cables, electrical equipments, steel furniture, playing aids in the SSI sector, Drugs and Pharmaceuticals, tyre retreading, bi-cycle parts, Petro-chemical down stream industries and a fertiliser factory in the large scale sector. Apart from this, bakery, repairing and servicing of TV, Radio etc., chamber bricks, confectionery are suggested as demand based industries.

11. Vedaranyam Block

It is spread over 630.32 sq. kms. This block is known for its salt but next only to Tuticorin. This area offers good scope for marine based industries because of its long coast line. 85% of the people are agriculturists, and 8.5% of the population depends on commerce and transport sector and the rest depends on industry and service sector. Modernisation of this fishing area is very much essential for the speedy development of this area. With the available salt, sodium chloride(Industrial grade), potassium Chloride, Sodium sulphate, magnesium Chloride, bromine can be manufactured. SIPCOT can take the initiative to establish an Industrial area by taking the people who can invest in good measure . In the small scale sector, iodised salt, tobacco, brushes from palm fibre, oil extraction and engineering workshop are suitable to this area. By widening the existing roads, and converting the existing MG line to BG will give a boost to industrial and commercial activities in this area and also more facilities can be created in Tourism area for bird watching in the famous Bird sanctuary at Vedaranyam.

LIST OF INDUSTRIALLY MOST BACKWARD AND BACKWARD BLOCKS IN NAGAPATTINAM DISTRICT

Annexure - III

FACILITIES AND CONCESSIONS FOR SMALL SCALE INDUSTRIES IN
TAMILNADU TO ATTRACT THE NEW INVESTORS

• Backward and Most Backward area capital subsidy
• Capital subsidy on plant and machinery
• Special investment subsidy for thrust industries
• Women Employment Subsidy
• Interest-free Sales Tax Deferral Scheme
• Sales Tax Waiver Scheme
• Concessional power tariff
• Generator subsidy
• Creation of venture capital fund
• Creation of Technology development fund
• Effluent treatment plant subsidy

Incentives offered by the Government of Tamil Nadu towards industrial development in the state are comparable to the best in the country. These incentives have been proposed to enhance the competitiveness of the state and also to speed up the pace of industrialization. Capital subsidies, power tariff concessions and sales tax waiver/deferral are the major incentives offered by Government of Tamilnadu, to new industries/existing industries undergoing substantial expansion/diversification. The following table gives a comprehensive list of concessions and incentives offered by the State to encourage investment and promote industrial activity.

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