The Hindu : Kerala / Thiruvananthapuram News : Economic zone to be set up for NRIs

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Saturday, Feb 11, 2006

Kerala

Kerala - Thiruvananthapuram

Economic zone to be set up for NRIs

Special Correspondent

NRI Clubs will be constituted in Thiruvananthapuram, Kochi and Kozhikode

THIRUVANANTHAPURAM : Finance Minister Vakkom Purushothamn has announced the Government's move to set up an exclusive economic zone for enabling the NRI entrepreneurs to divert their resources to productive economic activities.

Delivering the Budget speech in the Assembly on Friday, he said NRI clubs would be constituted in Thiruvananthapuram, Kochi and Kozhikode with the help of Non-Resident Indians. He set apart Rs.2.5 crores for the functioning of the Non-Resident Keralites Affairs Department.

He contended that the sustained efforts of the Government was paying rich dividends in the field of Information Technology. Kerala had become an investment hub of major IT companies. IT majors like Infosys, TCS, Wipro, ACS, OPI, Allianz Cornhill and RM Educaiton had started their operation in Kerala during the last two years. Since Kerala was emerging as one of the major technology hubs, more space was needed for accommodating the IT companies. For that, 500 acres of land near Pallipuram in Thiruvananthapuram would be developed as a Techno City. A special economic zone of 186 acres of land would be developed during the next years as part of the second and third phases of development of the Technopark. The steps for setting up the Smart City in 300 acres of land at Kakkanad in Kochi as a joint venture with the Dubai Internet City authorities was progressing fast. The project would provide around 33,000 jobs directly and one lakh indirectly.

Successful e-governance projects such as FRIENDS, e-Pay and Citizens Call Centre would be made broadbased with more services being brought under these schemes. The Kerala State Wide Area Network (K-SWAN) would be implemented during the next year by connecting Government offices, educational institutions and other service delivery institutions. The Akshaya computer education programmes which were successfully implemented in Malappuram district would be extended to six more districts. A permanent campus would be established for the Indian Institute of Information Technology Management, Kerala for which he set apart Rs.1 crore. Telemedicine and teleeducation would be introduced with the assistance of the ISRO. The services rendered through the FRIENDS functioning in the district centres would be extended through the 1,300 Akshaya Kendras opened in seven districts.

Coming to the conventional industries, he said the Government proposed to start 90 smallscale units in five industrial parks and two industrial estates through SIDCO. They would provide direct employment to 300 and indirect employment to 2,000 persons. The Prathyasa programme being implemented for the promotion of SSIs would be strengthened. He asked the profit-making public sector undertakings to set apart a portion of their Budget proportionate to their investment for product diversification. As part of its efforts to promote industrial parks, the KSIDC would extend financial assistance to projects costing even below Rs.1 crore if they were set up in the identified industrial parks. Around 900 acres of land would be acquired in Kakkanad, Kochi for port-based special economic zone, LNG project and International Container Transhipment Terminal among other things and 100 acres of land at Kazhakoottam in Tahiruvananthapuram for setting up industrial units. The KINFRA would provide land in Kasaragod and Palakkad districts for setting up textile parks under the Scheme for Integrated Textile Parks. The Union Government would provide 40 per cent of the project cost as equity contribution.

In the handloom sector of the traditional industries, the Minister announced the earmarking of Rs.85 lakhs for setting up mini pro-loom process centres for handloom weaving cooperative societies with production centres, Rs.21.50 lakhs for the implementation of technology upgradation and transfer of new technologies to handloom weavers through the Textile Project Development Centre at Balaramapuram and Rs.3 crores for clearing the rebate claim arrears of the primary handloom weavers cooperative societies. In the cashew industry, the Government proposed to give 300 days' work during 2006-07 in the place of 207 during the current year. Raw nuts would be procured with the help of the STC. Value-added products would be introduced with the help of the CFTRI, Mysore.

The setting up of a modern facilitation centre of international standards and modernisation of the CAPEX factories were on the cards. He provided Rs.2 crores for a safety net programme for the welfare of cashew workers.

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