âI am fed up with Kerala and its administration,â Kitex’s Sabu Jacob said of the decision to pull out of the Rs 3,500 crore project.
The government of Tamil Nadu is trying to rally one of the major Kerala-based garment manufacturing companies which, after a major row with the government of its home state, is considering a base change. One of Kerala’s largest industrial groups, Kitex, which announced the cancellation of its 3,500 crore investment in the state, said it received a red carpet from the government of Tamil Nadu. Kitex chairman Sabu Jacob told a news channel that after announcing on June 29 that the company wanted to withdraw certain projects from Kerala, he had received calls from 6 states.
The nodal investment promotion agency of Tamil Nadu’s Department of Industries, called Guidance Tamil Nadu, sent a letter to Kitex on behalf of the state’s department of industries. The associate vice president of guidance, Gaurav Daga, said in the letter that Sabu Jacob had discussions with the Minister of Industries of Tamil Nadu and that the letter was written after that.
Sabu Jacob revealed that Tamil Nadu offered him 40 percent subsidy, land at half market value, 100 percent stamp duty relief, 5 percent tax cut for 6 years, 25 percent subsidy for environmental protection infrastructure, 50 percent subsidy of one hundred for intellectual property, Rs 4,000 per month for training each employee for six months, electricity subsidy and several other gifts.
However, the group has not yet decided whether or not to transfer its operations to Tamil Nadu. According to reports, even Telangana approached Kitex.
Kitex Garments, the second largest manufacturer of children’s clothing in the world, announced the abandonment of the 3,500 crore rupee project for which it had signed a memorandum with the government of Kerala during the “Ascend Global Investors Meet” in Kochi in January 2020. The project consisted of opening a clothing park in Kochi and establishing industrial parks in Thiruvananthapuram, Kochi and Palakkad.
Sabu Jacob, said: âSix states from India have already invited us and I have received calls from chief ministers, ministers of industry and senior secretaries from these states. However, even an employee from Kerala did not call me, even after we announced our support from a colossal investment of Rs 3,500 crore. “
âThe offer made by the government of Tamil Nadu is irresistible and I have learned that many facilities are provided by our neighboring state. However, the decision to leave Kerala must be taken after much consultation with our team, our management. … it won’t happen overnight but we are seriously considering it. “
“The government of Tamil Nadu has also said it is ready to provide anything in addition to these offers.”
The famous industrialist said that Tamil Nadu’s offer is too good and that it has lifted its morale to its lowest level following “victimization” by the Kerala government.
He said Kerala does not even provide any subsidies, including for electricity, noting that it was all a profit for the state government, but even after that, there is no professional interest envisaged by it. -this.
“The attitude of the government of Kerala is very important … I am not saying that the current government, even the current opposition, when they were in power, also had a similar attitude. When it comes to industries, we are at the mercy of local political party leaders and even a top division clerk can scuttle an industrialist’s prospects. Kerala lags behind in industrial growth and the attitude of rulers and bureaucracy is the reason. “
Kitex is a company that got into politics a few years ago and started a political group called “Twenty 20”, which was previously registered as a non-profit organization, and which took power in the panchayat of Kizhakkambalam.
In the recent parliamentary elections, Twenty 20 contested six seats but failed to win any.
Jacob said: “I am fed up with Kerala and its administration … 11 teams of officers from various departments raided the company in the past month. The Ministry of Labor, Factories and Boilers researched. Pollution Control Board agents also reached our factory premises and searched every nook and cranny of the factory and roasted our employees for hours. “
“We have been operating here for 26 years and employ 11,000 people. The government of Kerala is totally anti-industrial and treats us like bourgeois, exploiters, invaders … even treated like criminals and we are humiliated in public.”
The Kerala Chamber of Commerce and Industry has already spoken out against Jacob’s treatment and called for tough action against the victimization of industries and industry groups.
Kerala’s Minister of Industries, P. Rajeev, reacted to the controversy two days ago and said the government was in talks with Kitex. However, he also said people shouldn’t defame the state without discussing it first.