TN Govt Cancels ₹500 Crore Textile Plant Expansion Near Bhavani River After Farmer Protests

In a major win for environmental and agricultural advocates, the Tamil Nadu government has officially cancelled the approval granted for the expansion of a textile washing plant on the banks of the Bhavani River in Erode district. The decision comes after months of sustained protests by local farmers, concerned about the potential ecological and agricultural damage the project might cause.

Farmers Rally Against Pollution Threat

The ₹500 crore project, proposed by Sri Bhavani Textiles Processors Private Limited, aimed to set up a large-scale textile washing and dyeing plant in Akkaraikodiveri village, near Kodiveri Dam. The company had planned the expansion based on the license of a now-defunct dyeing unit that had operated at the site since 1984.

Farmers in the area raised alarm bells, fearing the plant would discharge pollutants into the Bhavani River, a critical water source for irrigation. The river feeds thousands of acres of farmland in the Erode region and is considered vital for the region’s agricultural livelihood.

Government Response and Cancellation Order

Despite initial approval for the plant's expansion from the Tamil Nadu Environment and Climate Change Department in November 2024, farmers refused to back down. Representatives met with Chief Minister M.K. Stalin and key ministers Thangam Thennarasu and S. Muthusamy in March 2025, urging them to reconsider the project.

Following the meeting, the state government formed a review committee to reassess the proposal.

On June 10, 2025, Supriya Sahu, Secretary of Environment and Climate Change, issued an official cancellation order:

“In the circumstances stated by the Tamil Nadu Pollution Control Board (TNPCB) Chairperson, the orders issued in the G.O. (dated November 26, 2024) are hereby cancelled.”

Farmers and Environmentalists Welcome the Move

The decision was met with relief and celebration by farming communities. Subi Thalapathi, President of the Kodiveri Dam–Bhavani River Irrigation Farmers Association, expressed gratitude:

“The state government has now cancelled permission given to Sri Bhavani Textiles Processors Pvt Ltd. We thank the government and Gobichettipalayam MLA K.A. Sengottaiyan for supporting the farmers.”

Thalapathi further explained that the original plant, which ceased operations decades ago due to non-compliance, had no justification for being used as a pretext for a massive industrial expansion.

Context: Environmental Risks and Legal Loopholes

This case sheds light on how outdated licenses and regulatory gaps are sometimes used by private firms to propose new industrial activities under the guise of "expansion." In this instance, activists claimed that the original plant was demolished, and its license void, making the new proposal both environmentally and legally questionable.

A Victory for Sustainable Development

The cancellation of this project sets an important precedent for prioritizing environmental and agricultural concerns over unchecked industrial growth. It also demonstrates the power of grassroots advocacy in influencing government decisions and ensuring ecological sustainability in Tamil Nadu.