Closure of industries triggers migration in Srikakulam

April 27, 2016 12:00 am | Updated 05:49 am IST - SRIKAKULAM:

At a time when the government is trying to set up more industries by offering incentives, several industries have closed their operations in Srikakulam district.

The closure of industries is likely to lead to migration of more number of people from the district, which is known for exodus of workers and labourers to several parts of the country.

The East Coast Energy Private Limited (ECEPL) has halted construction activity, as the company is reportedly facing financial troubles with the lack of loan facility from bankers for its proposed thermal project at Kakarapalli of Santabommali mandal. About 5,000 employees used to work in the plant, but the company has retained only 120 persons for its important needs such as fire and security. The company removed outsourcing staff and has not paid salaries for regular employees for the last two months. The company which started its construction activity in 2009-10 could achieve lot of progress in the last six years. It won the hearts of locals, but bankers are reportedly unwilling to extend loans. The company reportedly invested around Rs. 2,000 crore of Rs.15, 000 crore for the construction of thermal plant in two phases.

“The State government should come forward for the completion of the project since it is keen on rapid industrial progress. Power is essential for the development. The same thing has been explained to top officials,” said a senior executive of the company.

Trimex Sands Private Limited (TSPL), located in Vatsavalasa of Gara mandal, stopped its operations with the legal tangle over the mining area. As many as 4,000 employees of the company are agitating for resumption of work saying that people with vested interests creating trouble. The employees have launched relay hunger strike at 7 Road junction seeking the government’s intervention for continuation of mining activity. “The State government organises partnership summits to attract more investments. But it is not interested to extend support to existing industries. It should come to their rescue in the interest of locals. Otherwise, many people will be forced to migrate to other areas,” said a senior employee of the company.

Several jute factories in Rajam and Srikakulam have cut down production with the stiff competition from Bangladesh jute products. A sugar factory in Amdalavalasa was closed down long ago. NCC has withdrawn its proposal of constructing thermal plant in Sompeta following stiff resistance from local people.

The government organises partnership summit to attract investments but is not interested in extending support

to existing units

Trimex employee

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