Changes in norms mandatory to encourage new entrepreneurs, say industrialists

Madurai district is transforming into an industrial district with industrial estates, both government and private, coming up. Changes in norms and increased land area are needed to attract businesses and provide employment opportunities.

Industrial establishments in a district or a state remain one of the deciding factors in determining the development of that place. Though other factors like education, poverty, health, among others are also taken into account, industries play a major role in developing various infrastructure facilities in that locality. 

Madurai district, however, considered a business hub, is less known for its industries and factories. But, with the industrial estates, both government and private, coming up here and there, the district could be well turned into an industrial district, say industrialists in Madurai district. 

The existing three industrial estates in Madurai — SIDCO industrial estates in K. Pudur and Kappalur and Madurai Hosiery Industries Association (MHIA) at Uranganpatti — are known for their varied business.  

As most of them have crossed over a few decades since their inception, many things must be changed and upgraded to fit into the current world.  

M.S. Sampath, former president of the K. Pudur SIDCO Industrial Estate Association, said, as most of the industrial estates have reached their maximum capacity, no more business units could be accommodated there, which brings in the need to open new industrial estates in the district. 

“Also, changes in the norms of the Small Industries Development Corporation (SIDCO) in availing land to the companies in the upcoming estates is required to encourage new business establishments. “Now, unlike previous days, the land for the development of companies inside the estates is given on lease for a specific period, for which the lease amount almost equals the price of that piece of land,” he added.  

This would be a disadvantage to the companies as they could not avail themselves of any loans from banks, keeping the land as collateral as the land would not be in their name, said Mr. Sampath. Instead, he suggested that the corporation could sell the land to the company which would also benefit them of having land of their own.