Thoothukudi’s furniture park is still largely unoccupied three years after its launch

Of the three companies that chose to open a store in a furniture park, only one started operating. |Picture source: N. Rajesh

Since India’s first launch of the International Furniture Park in Thoothukudi, only three companies have chosen to build factories at the site. Investors cite infrastructure challenges and lack lukewarm response services.

The park covers approximately 1,150 acres within Sipcot in the Meelavittan area of ​​Thoothukudi. During the groundbreaking ceremony, the government said the site was expected to operate in full within eight to ten years, attracting up to Rs 45 billion and providing employment opportunities for an estimated 350,000 people.

Currently, three private companies and Tamil Nadu Industrial Development Corporation (TIDCO) choose to use the site. Together, the three private companies have acquired only 126 acres of the total park. Tidco has acquired approximately 10 acres of trade convenience and commercial centers.

Of these three units, among the three in Chennai, a company specializing in wooden boxed furniture, interior panels and wooden pallets has begun production, while other institutions are under construction.

The slow pace of park development has attracted the attention of investors. At the time of the announcement, the first phase of the park is expected to operate in full within five years, with investments of Rs 15 billion to Rs 18 billion and earning employment opportunities for about 150,000 people.

MV Venaktesan, managing director of Crest Lashing and Packaging Private Limited, acknowledged that the site requires more government promotions to attract a large number of potential investors. “Since we were the first to start production, the process of buying the power and water connection was tedious. So far, Sipcot has not provided drainage connections.”

He added that the government has invested heavily in roads and other facilities within the moratorium, but delays in promoting the site to support its overall development.

Prasad, a furniture importer of Thoothukudi, said: “We import more than export. So, in the long run, this is feasible for furniture institutions.” [to set up a unit] Due to costs, process and other challenges. “He added that the project initially caused a lot of excitement,” but as time goes by, that enthusiasm fades away. ”

P. Kathirvel, secretary of the National Organization of the Indian National Trade Union Congress (INTUC), said that the furniture park has not seen any significant development since the announcement. There are guarantees that the park will create large-scale jobs, but currently only 100 to 150 workers are running small companies on site.

He added: “Many furniture items are imported from China, Indonesia and other countries where the products are relatively less expensive than those produced in Tamil Nadu.”

Mr Kathirvel said the successful operation of Thoothukudi Furniture Park remains an uncertainty as the site lacks many of the basic facilities required for development.

“Take Steps”

However, when addressing these issues, Thoothukudi, an Sipcot official, said work is underway to strengthen electricity and water facilities.

He confirmed that 12 acres of land had been allocated to Tamil Nadu Generation and Distribution Company to build the substation and said the water facility would be completed within a few months. Officials added that the government is also taking various measures to promote furniture parks.