This paper deals with the problems faced by small scale industries in Sivakasi and some mitigation techniques to avoid the problems in the small scale industries in India. This paper also suggests some technological changes made in the industrial development in Sivakasi. Recent developments in the industries in Sivakasi were also discussed. Sivakasi was famous for many ancient mysterious temples and monuments. Sivakasi was also called as Odai Maa Nagar at ancient times. A big river crossed near the ancient Sivan temple in Sivakasi. That river was called as Odai River or Kiruthumal Odai. Many temples were located on the banks of River Odai in Sivakasi. That river was mainly encroached by many people of Sivakasi at the olden days itself. That river was one of the main branches of River Arjuna and Vaippar. This river made Sivakasi a prosperous one in the ancient time. But, now the river was encroached and destroyed by the people of Sivakasi. So, there was a dramatic water scarcity in Sivakasi. Hence, the people of Sivakasi should save the oldest river.