Allegations of large-scale irregularities have surfaced over land allotted for a proposed textile park at Jagir Ammapalayam in Salem. The complaint claims the site contains significant deposits of rare minerals such as magnesite and dunite, raising questions over why it was earmarked for an industrial park.
According to the allegations, SIPCOT leased 110.53 acres to a private firm for 99 years at about Rs 201 per sq ft, for a total consideration of Rs 97 crore. Critics point out that nearby parcels were allotted to various government departments at around Rs 1,005 per sq ft, and claim the lower rate led to an estimated revenue loss of Rs 474 crore.
The issue gained traction after the Mines Department conducted an inspection. A report sent by the Mines Commissioner to the Industries Secretary on September 7, 2022, reportedly stated that the land held about 67 lakh tonnes of magnesite and dunite valued at Rs 3,860.85 crore, and recommended providing an alternative site for the textile park.
However, the Salem District Revenue Officer later submitted a report to the government on September 30, 2023, stating there were no minerals at the site, following which work on the project began. Local residents have also opposed the project, citing fears that dyeing units could affect water resources.
Rajendran, head of the Salem Water Resources Protection Movement, alleged that the company earlier named “Salem Yarn Coloring Park Private Limited” was renamed “Salem Integrated Textile Park Private Limited” through a government order dated July 22, and questioned whether the public was being misled. When asked, Mines Minister Prabhu said the matter had come to his attention and that appropriate action would be taken after discussions with officials.
