CHENNAI: Speaking at the Blue Economy conference in Chennai on Thursday EV Velu, Tamil Nadu Minister of Public Works, Highways and Minor Ports said that the coastal economy will play a critical role in Tamil Nadu’s $1 trillion economy goal and urged port developers to expand facilities and promote industries for economic growth.
The summit included panel discussions and insights shared on topics like port infrastructure, coastal tourism, fisheries, ship building and ship repair.
Experts shared their views at the conference.
While India’s GDP growth is 6-7%, Tamil Nadu’s GDP is 11.2%.
The event saw participation from prominent industry experts like, DN Sengottaiyan, Managing Director, Tamil Nadu Maritime Board, Vairavan , Regional Chairman, Federation of Indian Export Organisations (FIEO) and various other stakeholders.
Meanwhile, Sunil Paliwal, Chairperson, Chennai Port Authority sadi Chennai port is seeing a cargo handling growth of around 9.7 per cent this year.
Paliwal mentioned that the growth is being driven by improved containerisation and discount metrics along with overall manufacturing growth in the state and country. There could be a few shocks but we will find compensatory measures, he added.
In FY25, the ports of Chennai and Kamarajar (formerly Ennore port) achieved a combined cargo handling growth rate of 6.7 per cent, as against the national average of 4.3 per cent.
Of late, there has been a growing buzz around the blue economy in Tamil Nadu power corridors. The phrase implies economic activities associated with the ocean, seas and coastal regions, which includes shipbuilding, processing and exporting of seafood, and coastal tourism. Tamil Nadu boasts of having the second longest coastline in India (after Gujarat). But the resource hasn’t been tapped to a satisfactory extent. And that is something the TN govt is out to fix.
As Tamil Nadu charts its course towards the ambition of a $1 trillion economy, the Blue Economy presents some of the most exciting opportunities. Despite having the second longest coastline in India, the State’s coast is still underutilized from an economic standpoint.
Tamil Nadu looks at the Blue Economy as a powerful tool to bring sustainable prosperity to our coastal districts, through investments that create large job opportunities for both skilled and semi-skilled talents.
The state’s approach is strategic and focused on three key areas – shipbuilding, seafood processing and coastal tourism.
Each of these has the potential to dramatically transform livelihoods and local economies.
The key strategy is maximizing the potential of TN’s long coastline. Besides the focus areas, we could tap the state’s port facilities spread across its coast. Shipbuilding is an area that has drawn the attention of the Centre as well. The Centre has ambitious plans to be part of the top five shipbuilding nations by 2047.
Tamil Nadu is also working on a Marine Transport policy which could be out in a month, and this could generate a lot of economic opportunities, according to Darez Ahamed, MD & CEO, Guidance Tamil Nadu.
To understand the potential offered by shipbuilding – consider that just one anchor investor can unlock an entire value chain of MSMEs in welding, precision engineering, logistics and marine services. The state has already initiated talks with global players to set up shipbuilding facilities in TN. As per sources, the order books of these international operators are packed till 2032. On its part, the state must provide the infrastructure needed to help them to establish their units here. For every job created inside the shopfloor of a shipbuilding company, seven jobs will be created outside. That’s the potential it offers, say stakeholders.
In the seafood sector, TN is no longer content with being just a supplier of raw catch. The game plan now is to build end-to-end infrastructure for seafood processing, cold chains and export-quality packaging, ensuring that value addition happens right here in the state’s fishing hamlets, creating better incomes and sustainable livelihoods for the coastal communities.
Infrastructure, especially roads connecting the coastal belt, cold chains along the TN coast, availability of power for these cold chains, mapping the wasteland on the coast, utilizing it adequately for growth of marine food and processing industries, are some of the key areas TN should focus on, said a leading consultant for the marine food industry, on condition of anonymity.
“We will be addressing all the issues that have been holding back the growth of the seafood industry in Tamil Nadu, vis-a-vis neighbouring states including Andhra Pradesh, which accounts for Rs 26,000 crore worth seafood exports as against TN’s Rs 8,000 crore. We would soon match the best performing states in this sector,” a TN govt official said.
Coastal tourism is a major plus point. Tamil Nadu’s coast is beautiful, diverse and rich in culture, but it remains largely unexplored. The state is developing a blueprint to unlock this through sustainable, community-led tourism, which will entail eco-friendly resorts, avenues for water-based recreational activities and support for local entrepreneurship. The aim is to make the coast a world-class destination; while keeping it rooted in tradition.
