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The issue of possible social and environmental impacts of the shipping canal proposed for the Palk Bay and Palk Strait area is a much debated topic. Therefore it is necessary to explore the general features of the said area to assess such impacts when formulating the development and management programmes relevant to the area. This paper discussed the general features of the area, its environmental and ecological condition and the fisheries potential in detail so as to give some insight to the reader on this important topic. This article is based on the data collected from earlier field visits and other published information relevant to the subject.

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