The Hindu : Kerala / Thiruvananthapuram News : Public sector and traditional industries to be revived

Online edition of India's National Newspaper
Saturday, Jun 17, 2006

Kerala

Kerala - Thiruvananthapuram

Public sector and traditional industries to be revived

Special Correspondent

THIRUVANANTHAPURAM: Governor R.L. Bhatia announced measures for reviving the traditional industries and strengthening the public sector in the address which he delivered to the Assembly on Friday.

He said that the public sector constituted the backbone of modern industry in Kerala. But most of the public sector units were facing severe crisis.

In contrast to the neo-liberal solution of privatisation, the Government was committed to reviving the public sector. Steps like extending one time assistance, technology upgradation, injection of fresh capital and improvement of the standards of corporate governance for reviving viable units would be adopted.

To improve professional management, the CEOs would be selected solely on the basis of merit and a selection committee constituted for the purpose.

The Government recognised the need for providing world class, state-of-the-art infrastructure as an essential condition for the rapid industrialisation of the State.

To spearhead this activity, the Government intended to immediately float a public limited company on the model of Cochin International Airport Ltd., (CIAL). The Government along with the KSIDC and KINFRA would have substantial percentage of share holding in the company.

The Government proposed to tap the vast potential of the NORKS across the world to raise the balance share capital. The company would build quality infrastructure required to attract hitech industries. The Government also proposed to set up a large food processing park in Wayanad district. Value addition would be done in the mineral sector. The plan was to consciously move up the value chain, instead of exporting raw and unprocessed mineral sand which fetched very low value.

Coming to the traditional industries, the Governor said that the coir industry would be reorganised by reviving the cooperatives, removing the middlemen, modernising and diversifying production, ensuring adequate supply of husk and fibre and strengthening marketing.

He also announced the Government's decision to conduct a census of coir establishments, equipment and workers.

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