The Hindu : Kerala / Thiruvananthapuram News : Industrial climate has improved: Karim

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Friday, May 18, 2007
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Kerala

Kerala - Thiruvananthapuram

Industrial climate has improved: Karim

Special Correspondent

THIRUVANANTHAPURAM: The industrial environment in the State witnessed a visible change during the first year of the Left Democratic Front (LDF) Government, with the investors showing a higher level of enthusiasm than before and the production sector showing a newfound vibrancy, according to Industries Minister Elamaram Karim.

The overall growth in the economy of the State and also the country as a whole had had its reflection on this happy trend, Mr. Karim observed during a press conference convened in connection with the first anniversary of the Government.

The Government, on its part, had moved with a clear vision not only on reviving the ailing production sectors but also in bringing new investors to the State.

Mr. Karim said the State had firmed up private investments worth at least Rs.10,000 crore during the year gone by. The biggest of the offers was the one from Shobha Group, which had already acquired the land required for a `Techno-city' in Kochi. The company expected to invest Rs.5,000 crore on the project providing employment to around 75,000 people.

The Aditya Birla Group is getting ready the project plan for a `Knowledge City' at Mavoor, where the Birla Group earlier had its rayon factory. The project is expected to be ready within a couple of months. Another project in the pipeline is a park for new generation industries, which the Construction Industry Development Board of Malaysia is keen on setting up in Kozhikode, Mr. Karim said.

He said the Government had initiated steps to set up an `electronic hub' each in Kochi and Thiruvananthapuram. The Kerala State Industries Development Corporation had already identified the land for these hubs. Infrastructures Kerala Limited (Inkel), which this Government has set up along the lines of the company running the affairs of the Nedumbasserry airport, is taking up a project for a `digital city' at Kakkanad in Kochi. Kerala Infrastructure Development Corporation too has two `knowledge cities' in the pipeline, one in Thrissur and the other in Kozhikode. The Government is expecting private entrepreneurs in both places.

Mr. Karim said the `sickness' of public sector companies had been a problem plaguing the State for a long time. Pulling them out of the red and converting them into a perennial source of revenue to the State exchequer was a challenge this Government was boldly taking up.

Of the 42 companies under the Industries Department, 22 brought profits in 2006-07. The number was just 13 the previous year.

Expansion and modernisation of the production processes in some of the major companies would be the focus during the current year, he said.

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