CHAPTER III  
INDUSTRIAL INFRASTRUCTURE

Infrastructure plays a vital role in the industrial development. Erode District is having a good infrastructural base in financial institutions, transport, communication, technical manpower etc.

BANKING

Sound banking net work available is one of the factors, which has constituted to the present industrial activity in this district. Bank branches have spread throughout the district. Even remote and backward places have also been provided with banking facilities.

Canara Bank functions as the Lead Bank in this district. There are 204 Commercial Bank branches besides 32 branches of Erode Central Coop bank, 12 branches of TNPARD Bank and 10 branches of Urban Cooperative bank, as on March 1999. There are 228 Primary Agriculture Cooperative Societies also functioning under Erode Central Cooperative Bank Number of bank branches per lakh population is 8.02 which is higher than the state average of 7.82 Nos. The numbers of Commercial bank branches in the district have increased from 193 as on March 95 to 204 as on March 1999. There are 3 specialised branches are functioning to cater the need of Small Scale Industries. Nearly 80% of the banks are located in rural and semi urban areas.

Deposit mobilisation has registered a growth of 17.59% and 20.54% during the years 1998-99 and 1999-2000 respectively, where as advances registered a growth 0f 3.39% and 13.14% in the same period. The Credit Deposit ratio (CD) registers a declining trend since 1997 where it was 90%, during March 1998 it was 80% and declined to 75% as on March 1999. Now the CD ratio stood at 70% as on March 2000. Though the CD ratio is well above the RBI norms at 60% it is much below the State average. The Annual Credit Plan for the year 2000-01, envisages an allocation of Rs.832.49 crores, out of this 316.29 crores has been allocated for the Small Scale Sector.

Credit Flow to SSI Sector

The advance to Small Scale Sector is increasing every year. It was Rs.93.74 Crores during the year 1994-95 and Rs.303.29 Crores during 1999-2000, which shows an increase of 224%. Also the banks are achieving the target allotted to SSI Sector every year except during 1997-98. During the year 1999-2000 a sum of Rs 303.29 Crores has been advanced to SSI sector, accounting 26.4% of the total advances.

Credit flow to SSI Sector over the years

Nearly 38.5% of the priority sector lending has been allocated to the SSI Sector in 1999-2000 as against the minimum of 20% recommended by the Nayak Committee. The recovery performance of the SSI Sector is shown below.

Recovery Performance - SSI Sector

Recovery of dues from the SSI sector was fluctuating between 65% to 67%. It was 66.92% during 1998, and it was 65.69% & 65.47% during 1997 & 1999 respectively. It is noticed that recovery under SSI is comparatively lesser than the recovery under overall priority sector. It is due to the general recession prevailed the world over in all economic activity and particularly in textile sector.

POWER

The role of electric power in the industrial as well as economic development need not be over emphasised. In Erode District there are 4 Hydel Power Stations.

POWER GENERATION IN ERODE DISTRICT

The total power generation stood at 351.827 MUs in 1999-2000, the total power consumption was 503.882 MUs, excluding the Agriculture consumption, which is un metered services. Power generation in the district meets around 70% of the total demand and the rest is being met from the state grid.

Power Consumption Pattern

Power consumption by the industrial sector is 30.22%, 21.53% of the total power consumption respectively during the years 1998-99 & 1999-2000. Sector wise power consumption in this district is given below.

Power Consumption - Sector wise during 1998-2000

Substations

Rural Electrification

Note : All the villages and Hamlets are electrified in Erode District.

Peak Hour Demand during 1999-2000

Transport System

Better transport facilities are the back bone of industrial development. Roads provide access to remote market. Transporting the products to the markets in a shorter duration with low cost is necessary for the industries. As far as Erode District is concerned, the district head quarters is directly linked with the State Capital as well as other important places throughout the country by rail and road.

Surface Transport

Erode District has a well developed surface transport system. There is a good motorable road linking Erode with State Capital, National Capital and all other district headquarters. The total surface road length of the district is 9459.133 Kms as on 31.3.2000.

Surface Roads in Erode District - category wise (as on 31.3.2000)

List of National Highways in Erode District

There is a good system of motor transport operated by private bus owners and the public sector - Tamil Nadu State Transport Corporation , formerly known as Jeeva Transport Corporation. Direct bus service to all district headquarters and important centres is available including the important tourist places Mysore, Bangalore in the neighboring State of Karnataka.

Availability of Commercial and Non Commercial vehicles

RAIL TRANSPORT

The district is served with 11 railway stations of which Erode is major station. It is well connected with state headquarter and all the places of the country. A route length of 90 kms in broad gauge is covered in this district. There is no container handling facilities available in this district, however the same facility is available in the nearby Coimbatore District at Tirupur about 50 kms away from Erode, but it is very near to the borders of Erode District.

Details of Railway routes from Erode

1. Erode to Chennai, Bangalore, Bombay, New Delhi ( to Northern parts)
2. Erode to Trivandram, Mangalore (Kerala & Konkan Railway)
3. Erode to Trichy, Tuticorin, Nagerkoil (Southern parts of Tamil Nadu)

AIR TRANSPORT

The district is not having the facility of Air Transport. The nearest operational airport is at Coimbatore, which is 90 kms away from Erode. Coimbatore Airport is a medium sized domestic airport with passenger & transport facilities.

TECHNICAL SKILL

Availability of skilled labour is an important prerequisite of industrial development. This district is having four Engineering Colleges and eight Polytechnics beside eight Industrial Training Institutes. Since most of the places in Erode District are well connected to Coimbatore and the availability of very good technical education facilities at Coimbatore, the students of Erode District are opting Coimbatore Institutions also. Details of technical educational facilities available are given below.

Technical Institutions in Erode District 1999-2000

COMMUNICATION & INFORMATION TECHNOLOGY

Economic development depends on quick communication facilities for updating knowledge on latest technology and market information. All the villages in this district have been provided with telecommunication facilities.

There are 95 telephone exchanges with 141918 personal telephones and 3120 public call offices in use as on March 2000. There are 443 post offices of which 135 provide telegraph services also.

Post & Telegraph

Telephones 1999-2000

The National Informatics Centre functioning at the Collectorate is connected with every district headquarters as well as state headquarters through NICNET for information retrieval. With the falling prices of personal computers and the easy availability of Internet connections with lower cost through VSNL and other private Internet Service Providers, the use of personal computers and internet connections have considerably increased. This has resulted in quick communication with any corner of the world, which is uttermost requirement of successful business today.

INDUSTRIAL ESTATES

Availability of factory accommodation with necessary infrastructure according to the requirement of factories act becomes a problem in a district where the cost of land is very high. Further, new units that may come up may find it difficult to secure amenities such as power, assured water supply, good roads etc. Industrial estates provide all such facilities in one place, thereby encouraging investment opportunities.

There are 5 industrial estates in this district promoted by official agencies.

EXISTING INDUSTRIAL ESTATE

SIPCOT INDUSTRIAL GROWTH CENTRE, PERUNDURAI

SIPCOT Industrial Growth Centre aims at meeting the infrastructure needs of Textile Processing, Engineering and other industries. The centre with its accessibility to industrial towns like Tirupur and Coimbatore, is planned for medium and large scale industries and has separate parks for Textile Processing, Food Processing Industries etc.

Infrastructure

Common Effluent

INCENTIVES

1. Cash subsidy at 15% of fixed assets with a maximum limit of Rs.15.00 lakhs for eligible industries. Leather / Electronics units are eligible for 20% on fixed assets with maximum of Rs.20.00 lakhs.
2. Generator subsidy at 15% of Genset cost with a maximum of Rs.15.00 lakhs to eligible units

With 72 Industrial units having been established, the Perundurai Industrial Growth Centre promoted by the State Industries Promotion Corporation of Tamil Nadu (SIPCOT), is doing well. Among the industries that had come up in the complex were those engaged in chemical, plastic, turmeric and general trade. A common effluent treatment plant (CETP) was being constructed for the processing industries and was expected to be commissioned by May 2000.

Since Erode District is having a lot of textile units, especially textile processing units, the facilities available at SIPCOT will solve the problems of processing units. Also the centre is very near to Tirupur, Coimbatore District, there is a good scope for development of knitwear and readymade garments, especially for expert oriented units.

Proposed Industrial Estate (Under Development)

Industrial Testing Facilities

Powerloom Service Centre, Erode is the only testing Centre functioning in this district.

This centre has got a Physical & Chemical testing laboratory for testing various quality parameters of yarn and fabric and this lab had been upgraded with an investment of Rs.1.2 Crores. Now the lab has equipped with all modern computer based testing machines to provide accurate test results to the textile industry, to improve the quality of the product both for domestic and export purposes.

The number of tests conducted are as given below.

It is found that there is no testing facilities / training facilities available for food products though this district is having more numbers of food products industries.

Major Market Centres

Regulated Markets

There are 24 Regulated Markets functioning in this district. These are functioning at the following places: Anthiyur, Alangiyam, Avalpoondurai, Bhavani, Bhoothapadi, Chithode, Dharapuram, Erode, Gobichettipalayam, Kavundapadi, Kunnathur, Kangayam, kodumudi, Moolanur, Mylambady, Nambiyur, Perundurai, Punjai Puliampatti, Sathyamangalam, Sivagiri, Thalavady, Vellankoil, Vellakoil and Muthur. These markets have transacted 173368 tonnes of commodities of value Rs.28851.20 lakhs during 1999-2000. The arrivals of different commodities during the year 1997 - 98 to 1999 - 2000 are given in the table.

Arrivals of Commodities in the Regulated Markets during 1997 to 2000
Periyar market Committee

The main commodities transacted at these markets are Sugarcane Gur, Turmeric, Cotton, Gingelly, Paddy, Groundnut, Coconut etc. Among them, arrivals of Turmeric is of main interest, since Erode is the one and only market in Tamil Nadu. Turmeric is arrived not only from Erode District but also from the other parts of Tamil Nadu and adjoining district like Mysore in Karnataka State.

Arrival of Turmeric in Regulated Markets of Erode District

Apart from the Regulated markets, there are a lot of private marketing centres are functioning at Erode Town.

TEXTILE MARKET AT ERODE

Erode is well known for marketing of textiles products of Handloom, Powerloom and Readymade Garments. Handloom and Powerloom products like Cotton Sarees, Bed Spreads, Carpets, Lungies, Printed Fabrics, Towels, Dhotis are marketed here in bulk. The products of Erode District and adjoining districts like Salem, Namakkal, Coimbatore, Karur and Dindigul districts are also arriving in this market. The textile manufacturers marketing their of these products in the weekly marketing place (Shandy) on every Tuesday at Erode. Textile merchants from all over the country are directly visiting this markets and purchase their requirements. Average turnover in this weekly shandy is around Rs.5.0 Crores. Taking advantages of this, large number of textile based Industries are coming up in Erode District and there is a good scope for development of readymade garments sector.