20 years on, Nanguneri SEZ yet to flourish

A pet project of Murasoli Maran, it has hardly seen any notable progress and is nowhere on the industrial map of Tamil Nadu

Over two decades ago, the M. Karunanidhi government laid the foundation for the 2,518-acre Nanguneri Special Economic Zone (SEZ) in Tirunelveli. It was one of the pet projects of the then Union Minister for Industry and Commerce Murasoli Maran. Politicians in the region saw in the venture promises of more business and jobs for the southern districts.

Cut to the present, the SEZ has hardly seen any notable progress and is no where on the industrial map of Tamil Nadu. A change in government soon after the foundation was laid put paid to the plans of development. Though in 2009, M.K. Stalin, as Deputy Chief Minister, spoke of its revival, the project did not get adequate attention during the decade-long AIADMK rule (2011-21).

It is not just politics that derailed the venture. Infrastructure development around the SEZ was inadequate and therefore industries did not see any incentive to operate out of the zone.

Financial closure

Besides, the U.S.-based INFAC Management Corporation, one of the promoters of the venture, could not achieve financial closure. Efforts to bring in Kolkata-based SREI, too, failed.

Eventually, the INFAC jointly promoted the SEZ with the Tamil Nadu Industrial Development Corporation (TIDCO) through a special purpose vehicle — Advanced Technologies Manufacturing and Assembly (ATMAC). Later, AMRL took over the land and it was decided to develop the SEZ with a domestic tariff area and a free-trade and warehousing zone.

Currently, the SEZ houses only 13 operational units that manufacture pumps, utensils and HVAC ducts, among others. Around 300 people per shift are employed and the cumulative exports by the units established on 135 acres are only about ₹750 crore.