The Kerala government will promote private investment, including foreign direct investment, to develop world-class infrastructure facilities in the state. It will also encourage private players to form special purpose vehicles/joint ventures with Kerala State Industrial Development Corporation (KSIDC) and Kerala Industrial Infrastructure Development Corporation (Kinfra).
Releasing the draft industrial and commercial policy, industries and IT minister PK Kunjalikkutty said the final policy would be announced in 100 days after consultation with various stakeholders and experts in IT, commerce and industrial sectors.
The policy also stresses on formation of new special economic zones (SEZs). A separate SEZ policy, in line with the Centre's, will be formed soon. It also provides thrust on converting the state into an entrepreneurial society from a wage-earning society. Creating and nurturing SMEs would be the path to make Kerala a growth-oriented enterprising society, the draft paper said.
In the large-scale industry segment, the government will encourage non-polluting, environmental-friendly and employment-oriented industries. It will also adopt a line to shift the existing polluting industries to other places from inside the city/municipal limit/metropolitan areas as done in the national capital.
| MAJOR HIGHLIGHTS • New scheme for providing equity assistance to new units in place of state investment subsidy and margin money loan scheme. • Scheme for rehabilitation/revival of sick MSMEs. • Common branding and promotion of MSME products to be encouraged. • Government to design and develop services-led growth strategy focusing on health, education, IT, tourism, ayurveda, logistics, transport, financial services, communication, retail and knowledge-based industries. • Cluster development programme in food processing sector to be encouraged. • Mining of rare earth will be allowed only in the public sector and strictly for value-added products. |
Multistoried industrial estates in all districts with priority allotment for MSEs will be established. It also assures protection from power tariff hikes for new micro and small industrial units for a period of three years from the commencement of commercial production.
An easy exit scheme for MSMEs will also be introduced. A data bank of skilled workers will be formed in order to ensure adequate supply of workers to industrial units.
As part of investment promotion, a high-level council will be formed to arrive at a consensus among the political parties and civil society leaders to facilitate investments in mega projects. The single window clearance system will be revamped and made more effective by including all enterprises. An online system will be introduced to expedite clearances in a time bound manner.
On the public sector, the draft policy enures that no PSU will be privatised. The government will strengthen PSUs through comprehensive enterprise specific modernisation/diversification/expansion packages and re-structuring. Productivity and profit-linked incentive schemes will be implemented.
The Kerala Public Enterprise Selection Board will be constituted to select CEOs and directors in state PSUs.
