SIPCOT plan dropped, but official reply rekindles fears in Erode

Dispelling fears among farmers and residents that the proposal to establish a SIPCOT industrial park in Bhavanisagar block in the district is still alive, officials have said that the project was shelved in 2022 following strong objections over the large-scale destruction of fertile agricultural land and sustained public resistance.

The State government had proposed setting up the industrial park on 1,078 acres spanning the villages of Sungakaranpalayam (80 acres), Panayampalli (304 acres) and Kurumbapalayam (694 acres). Of this, more than 450 acres comprised groundwater-irrigated farmland, while the remaining area was rain-fed. The Bhavanisagar Dam is situated barely five kilometres from Sungakaranpalayam, and the Vilamundi Reserve Forest lies about 500 metres away. Two lakes, Pungampalli and Nallur, recharged under the Athikadavu–Avinashi project, are also located in close proximity to these villages.

Political parties, farmers, traders and residents had mounted strong opposition to the proposal, citing large-scale groundwater contamination around the SIPCOT industrial estate in Perundurai. Alarmed by the prospect of irreversible environmental damage and groundwater pollution, stakeholders strongly resisted the move, eventually forcing the government to shelve the project.

However, unrest resurfaced after a recent reply from the SIPCOT management to a farmer, stating that establishing industrial parks across districts is a policy decision of the State government and that inspections had been carried out in Sungakaranpalayam and Kurumbapalayam villages. This triggered anxiety among farmers and residents.

T. Subbu, district secretary of the Tamilaga Vivasayigal Sangam, said groundwater in over 40 villages surrounding Perundurai SIPCOT had been contaminated and the damage was irreversible. “We believed the project was dropped due to stiff opposition and we fear the industrial park will contaminate groundwater across the entire region,” he said.

Farmer P. Ravi of Panayampalli echoed the concern, pointing out that the Tamil Nadu Water Supply and Drainage Board had declared 38 water sources across four panchayats in the Chennimalai Panchayat Union unfit for drinking due to contamination. “The district already has a SIPCOT at Perundurai, and establishing another here will affect the dam water,” said resident R. Ramesh. While apprehensions were also raised about possible contamination of water in Bhavanisagar Dam, some locals noted that the three villages are located downstream of the dam, making such contamination unlikely.

The Communist Party of India (CPI) Erode North district secretary S. Mohan Kumar said air, water and soil around Perundurai SIPCOT had been severely polluted and that there was no assurance a similar situation would not recur in Bhavanisagar. He noted that many farmers had planned to dig wells after the two lakes were refilled under the Athikadavu–Avinashi project.

Former Bhavanisagar MLA P.L. Sundaram said an all-party meeting would be convened on January 5 at Punjai Puliyampatti to pass a resolution demanding that the project be permanently scrapped. “A signature campaign will also be launched in all villages to raise awareness,” he said, adding that under the land bank scheme, the government first identifies land and later proceeds with acquisition.

When contacted, a SIPCOT official told The Hindu that the project had indeed been dropped in 2022 after concerns were raised over the land acquisition. The official also clarified that while the land was inspected at that time, no recent survey or inspection activities had been undertaken.