Kozhikode: The Sharjah-based Pravasi Bandhu Welfare Trust has requested the State Government to create a system for educating Non-Resident Keralites (NRK) and their dependents in the State on saving and productive investment for a better future.

In a memorandum to Finance Minister T.M. Thomas Isaac, trust chairman K.V. Shamsudeen asked the Government to introduce a project to utilise 10 per cent of the NRK remittance for the development of the State. If the State Government introduced some recurring investment plans such as Infrastructure Bonds for NRKs, with a return of 2 per cent or more than NRE deposits, it would generate sufficient fund for development of the State. Besides, the depositors would also get a regular income when they returned for permanent settlement, he said.

InKel welcomed

Mr. Shamsudeen said that NRKs welcomed the initiative of the Government to float a new company called Infrastructure Kerala Limited (InKel), to mobilise investments from NRKs with a paid up capital of Rs.1 million out of which 26 per cent stake would be held by the Government. However, prospective investors also had their apprehensions, he said.

NRKs had supported and invested in over a dozen companies in the State since 1976. Majority of them had a very bad experience after investing in these companies fully or jointly promoted by the Government.

The first company NRKs invested was Keltron Component Complex Limited in 1976. Keltron had paid its first and last dividend after 11 years, whereas Cochin International Airport Limited paid its maiden dividend after eight years. Many companies became defunct leaving the investors at a loss, he said.

In addition to that, 49 State-level public sector enterprises (SLPEs) incurred losses amounting to Rs.501.50 crore during 2004-2005.

So, NRKs who had a bitter experience in investing in the State would not invest in these companies again.

Mr. Shamsudeen said that majority of the investors in these companies were low and middle-income NRKs. Ninety-five per cent of NRKs from this segment do not have financial resources to for a regular income for their livelihood when they returned home. All of them had invested expecting a regular income from their investment.

A survey conducted by the trust among 10,100 middle-income NRKs in Gulf Cooperation Countries (GCC) revealed that expatriates were regularly remitting money back home and only 2 per cent was being saved from these remittances.

Another important finding of the survey was that only 5 per cent of the Gulf-returnees had the financial resources for a regular monthly income when they returned. The number of people returning to the State from GCC countries today was equal to the number of people who migrated about 15 to 20 years ago.

If a large number of emigrants returned from GCC countries without proper financial backing, it would create a big socio-economic problem in the State, he said.

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