Here's a few things that I would cut out and change for starts:
-lose the marquee tag
-get a better logo image than a man with his head in a backpack. Surely Karaikal is full of distinct, unique temples and buildings?
-scale the header title up, and the header ad down. I need to know at a glance where I am. You could also use a better subtitle - "Your search ends here" just sounds like a parked domain. Using your title tag "Welcome to Karaikal" would be a start.
-I would say that you should change the color scheme, but I guess it's for folks in India, and they might have different color sensibilities. They also might have different sensibilities for text crowding, but I doubt it
-you don't need to identify the "today's news in brief" section. News headlines are usually pretty self-evident. (Although "Karaikal news" might have some SEO benefit) This leads me to the next point:
-clear up the clutter in the news brief section by removing the text excerpts, and replacing them with catchy headlines
-add more vertical padding between the news stories/their images.
-your ads are throwing the balance of the page way off. You'll either need to tone down all the ads, or bolster up your content with clearer borders, color, size, etc.
-below the fold, get rid of the pdf downloads, and the buy classified ad space.
-what is the front page for? If it's just a portal for the rest of the site, then design it as such. If you want breaking news, then just have that. If you want an introduction to the city, then use that. I don't think you can use
p.s.: on your under construction page - this:
http://www.karaikalinfo.com/images/uc2.gif
is a bit 1996.