Decision-makers in Kerala stuck with the frog-in-the-well perspective: Kitex MD
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Neighbouring States made irresistible gives and incentives, says Sabu M. Jacob
Decision-makers in Kerala, who had been stuck with the proverbial frog-in-the-well perspective, should be taught from neighbouring States, replace themselves, and usher in reforms in order to draw investments, mentioned Sabu M. Jacob, the managing director of Kitex Garments, at Kizhakkambalam close to Kochi on Monday.
Speaking to mediapersons a day after stating that he wouldn’t make investments a penny in the State any extra, Mr. Jacob mentioned he determined to deal with investments exterior of Kerala with lots of ache. It got here as a shocker that officers of various departments in Kerala knew little of how traders had been wooed in different States. “The share value of Kitex rose by ₹200 crore within an hour of me boarding a flight to Telengana and this does not bode well for investor confidence in Kerala,” he mentioned.
“Stakeholders in Kerala still harp on and take pride in concepts like single-window clearance, something that investor-friendly States began trying out a quarter century ago and is now outdated. Still, the Industries Department claims Kerala is among the most investor-friendly of States. They seem unaware that most NRIs who invested in Kerala are either debt-ridden or on the verge of suicide due to the investor climate in the State,” mentioned Mr. Jacob.
“Kitex could have grown 20 times and provided jobs to as many people had we set up enterprises outside Kerala all through the past 53 years. We do not have any more time to waste and hence decided to look beyond the State’s borders. We hope the revenue loss during the 53 years can be recouped in the forthcoming decade. The same detailed project report that KPMG readied for us to invest ₹3,500 crore in Kerala following the Ascend Kerala 2020 summit was placed before the Telengana government. Their approach was very different,” he mentioned.
“The ₹1,000-crore investment is only the first phase of investment in that State. Mothers’ Units planned by Kitex too will be established in Telengana. We may invest in other States in the neighbourhood too, since they all have made a host of irresistible offers and incentives which will considerably even out the capital investment,” he added.
In addition, Mr. Jacob mentioned, Kitex was assured that officers wouldn’t perform undesirable inspections in the manufacturing unit, and in addition that they might assist rectify lacuna, if any was found throughout inspections.
Elaborating on the gives he received, Mr. Jacob mentioned the Telengana authorities had assured him of all fundamental infrastructure help reminiscent of correct street accessibility and round-the-clock water and energy provide at concessional charges. Moreover, the worth of land there was solely 10% of that in Kerala. The sole drawback there was the absence of a port close by, to export 15 to twenty container a great deal of items on daily basis. The Telangana authorities had agreed to bear the further transportation value, he mentioned.
“They also offered to bear the cost of treating pollutants, although we said Kitex adopts a modern two-tier treatment system which equals the quality of effluents to that of bottled drinking water,” added Mr. Jacob.
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