Kerala - Thrissur   

Government to form company for developing infrastructure

Staff Reporter

Rs.100-crore company will be registered next month: Minister

THRISSUR: Industries Minister Elamaram Karim said here on Friday that the State Government would form a company at a cost of Rs. 100 crore to develop basic infrastructure for private enterprises.

Addressing a press conference during a visit to Steel and Industrial Forgings Ltd. at Athani, Mr. Karim said the company would be registered next month.

"The State Government will spend Rs. 26 crore to set up the company. The rest of the amount will be raised through a public issue and contributions by non-resident Indians. The Government is not looking for private participation in public sector enterprises."

The Minister said the Government did not approve of setting up industries or Special Economic Zones by displacing farmers.

"The Singur issue is different. There is a lot of land in West Bengal, unlike in Kerala. The Centre plans major changes in SEZ rules. Kerala has received applications for SEZs from six small-scale private entrepreneurs. These applications will be forwarded to the Centre after the norms are amended."

The Minister said 2007-2008 would witness rapid modernisation of public sector units in Kerala.

"Of the 57 PSUs in the State, only 12 were running profitably in 2005-2006. Sick companies are being revived. Marketing problems, rise in production costs and scarcity of raw material have affected the functioning of many PSUs," he said.

Asked to comment on the Express Highway project, the Minister said improving transport facilities would pave the way for industrial development.

"Major companies will invest in the State only if transport facilities improve. We need a network of wide, well-maintained roads. The name of the road is insignificant."

The Minister said the Government would study a proposal submitted by the Kerala Industrial and Technical Consultancy Organisation (KITCO) for a Rs. 13.5-crore project to develop Steel and Industrial Forgings Ltd. "By 2020, Steel and Industrial Forgings is expected to be a major unit at the international level."

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