Kerala gets Rs.1 trillion investment proposals at

INVESTMENT

Kerala gets Rs.1 trillion investment proposals at Ascend 2020

The largest commitment was by Abu Dhabi Investment Authority, which committed around 66 percent of the total investment at the meet

Mr. Pinarayi Vijayan, Chief Minister of Kerala, inaugurating ASCEND 2020 at Kochi. Mr.E.P. Jayarajan, Minister for Industries & Commerce, Kerala, Mr. Tom Jose IAS, Cheif Secretary, Mr. M. A. Yusuf Ali, Mr. Ravi Pillai and Dr. K. Elangovan IAS, Principal Secretary, Industries, are also seen

ASCEND 2020 Global Investors Meet was able to garner Rs.98,708 crore as direct promise, Mr. Pinarayi Vijayan, Chief Minister, said at the concluding session of the event on January 10, 2020. He said that “a couple of entrepreneurs whom we happened to miss” at the event but have expressed their willingness to invest. The largest commitment was by Abu Dhabi Investment Authority, which committed around 66 percent of the total investment.

The state has received 164 investment proposals. Across the sessions at ASCEND 2020 came in promises worth Rs.32,008crore and towards the end, the Kerala Infrastructure Management Ltd vowed Rs.8,110 crore, while the Abu Dhabi Investment Authority promised investments of Rs.66,900 crore.

DP World will be investing around Rs.500 crore for a logistic park.

The government plans to meet the prospective investors individually. A team led by Dr. K Ellangovan, Principal Secretary (Industries), has been entrusted with this task, the Chief Minister said.

He said that the government will seriously consider complaints against top officers who are indifferent or negative in their response to industrial investments. A meeting will be convened to sort out the matter by facilitating interaction between top bureaucrats and representatives of the investors. There would not be any intermediaries between prospective entrepreneurs looking for investment in Kerala and the authorities.

“One can apply directly at several levels starting from the village office to the CMO,” the Chief Minister said. Noting that the government will accord priority to completing the projects proposed in ASCEND 2020, he emphasised the need for skilled labour across sectors. The government is in talks with various universities to improve the standards of Kerala’s courses in skills, Mr. Vijayan said. Special consideration will be given to the investment proposals from MSMEs at the ASCEND, though it will stay away from projects with negative ecological impact.

During the inauguration of the event on January 9, 2020, the Chief Minister asserted that the investment ecosystem prevailing in Kerala is one of the best in the country. He also unveiled a set of path-breaking initiatives that will further enhance the ease of doing business including a wage subsidy scheme for the first five years for new ventures being registered from April 1, 2020.

Mr. Vijayan said the government was committed to carry on with its policy initiatives to simplify investment procedures.

“The investment climate prevailing in the state is most conducive. This is especially significant at a time when certain parts of the country and the world are in the grip of tension and anxiety. Here is an ideal destination where investment can be made in diverse sectors without having any tension or anxiety,” the Chief Minister said.

Recalling a string of legislative and procedural initiatives put in place by the state government, the Chief Minister said many more such measures are on the anvil to enable a

“The investment climate prevailing in the state is most conducive. This is especially significant at a time when certain parts of the country and the world are in the grip of tension and anxiety. Here is an ideal destination where investment can be made in diverse sectors without having any tension or anxiety.”

fast, transparent and corruption-free investment regime.

A proposal to subsidise part of the wage commitment of newly set up industries for the first five years is planned. “This is a scheme under consideration. I don’t want to go into its details. This benefit will be available only to those units which provide ESI and PF benefits to workers. I also want to say at this stage that women employees will get at least Rs.2,000 more than their men counterparts under the proposed scheme. An estimated 37 lakh people will benefit,” he said.

Seeking to remove the land constraints faced by big units, the 15-acre ceiling on the land to be held by them will be relaxed. The units investing more that Rs.250 crore and providing over 1,000 jobs will be entitled to this concession. Necessary changes will be made in the land legislation act to enable this. The bar on women factory workers being put on night shift will be lifted. It will be the responsibility of the employer to ensure their safety, he said.

The ceiling for financial aid from Kerala Industrial Development Corporation (KSIDC) will be raised from the current Rs.35 crore to Rs.100 crore. In certain cases, KSIDC can also provide higher amount, the Chief Minister said.

Measures will also be taken to ensure greater involvement of local bodies in industrial promotion and job generation, he said. Steps are also afoot to improve labour relations to ensure the smooth functioning of units right from the start and improve technical capabilities and skilled workforce, Mr. Vijayan said.

“Though a small state, we have several inherent strengths that make us different, including our natural assets and highly qualified human resource. Now is the time to properly leverage them to bring in substantial investment, which is essential to generate income and employment for the present and future generations,” the Chief Minster maintained.

Lauding the contributions of the Malayali diaspora in expediting the economic development of the state, Mr. Vijayan said a proposal to convene a global meet to attract foreign investment is on the cards. He said the visits of delegations led by him to Japan, Korea and the UAE had generated keen interest in Kerala.

Presiding over the inaugural session, Mr. E.P Jayarajan, Industries Minister, said the government had diligently followed up the suggestions and proposals thrown up by the first