In a letter to Chief Minister MK Stalin, Shanmugam said office-bearers of the Kovalam Pasuvantharai Small-Scale Salt Producers Association had expressed strong opposition to the plan. While supporting industrial growth and the establishment of shipyards, he insisted it should not come at the cost of traditional salt workers.

Over 700 families have produced salt on 2,000 acres in Mullakadu for more than 90 years, generating about four lakh tonnes annually, he said. 1.5 lakh tonnes are exported overseas and 2.5 lakh tonnes are supplied to other States, the Left leader pointed out. This provides direct and indirect employment to around 15,000, including workers, transporters and allied trades, he said.

Shanmugam warned that locating the shipyard here would displace small-scale producers and lorry owners, affecting one lakh people.