Thoothukudi faces economic decline as key industries shut down

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Nearly 1,000 people in Thoothukudi are said to have participated in a protest on Friday morning focused on the rising unemployment crisis in the port town due to the closure of key industries, including Sterlite. “The shutdown of the port, textile mills, thermal power plants, Food Corporation of India warehouses, salt pans, and small and large industries, including Sterlite, has led to job losses,” the INTUC, which organised the protest, said in a release.

The protest was addressed by a leader of the INTUC P Kathirvel and Thiyagarajan of the Thoothukudi Contractors Association, says a release.

The district has not seen any economic progress; things have only deteriorated with people losing jobs, and most new jobs they get are with much lower salaries. Many families are moving out of the district looking for jobs or are split, with the men going to other areas to find employment. Many businesses have closed as they do not have industries that can hire their services.

The closure of the Sterlite plant has forced many truck owners to sell their trucks because they are unable to repay loans. This closure directly displaced over 1,500 workers and indirectly disrupted the livelihoods of approximately 40,000 individuals who depended on it. The halt in other industries has rendered nearly one million daily wage labourers unemployed.

Reopening the plant

INTUC emphasised that the Sterlite closure has crippled Thoothukudi’s once-thriving economy. Addressing past challenges and reopening the plant could generate employment opportunities for approximately 3,000 trucks engaged in raw material transport and over 4,000 daily wage labourers per shift in material handling and create new roles for port workers.

The closure of the Sterlite plant was driven by opposition, competition, or disputes, and many locals viewed it as unjust. Around 400+ downstream industries have been severely impacted and rely on the operations of the Sterlite plant for revival.

The INTUC demanded the government’s accountability in reviving local industry while urging the Tamil Nadu government to reopen the plant to ease the tension of employment crunch, the release said.

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