After scrapping its Rs. 3,500 crore expansion plan in Kerala due to the continuous harassment by officials, Kitex Garments has received calls from 6 states including Tamil Nadu and Telangana to invest there.
Sabu M. Jacob, Chairman of the world’s second largest kidswear manufacturing, said, “Six states in India have already invited us and I received calls from Chief Ministers, Industries Ministers and Principal Secretaries of these states. However, not even a clerk called me from Kerala even after we announced that we are backing out from a mammoth investment of Rs 3,500 crore.”
The Group is yet to decide whether it would shift its operations to Tamil Nadu or not.
Tamil Nadu Government has offered many facilities to attract Kitex Garments to invest in the state.
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As per Sabu, Tamil Nadu has offered the company 40 per cent subsidy on the total investment and land at half the price, full waiver on the stamp duty, 5 per cent interest subvention for the initial six years, 25 per cent subsidy on environmental protection facility and 50 per cent subsidy on intellectual property rights protection and 20 per cent of the employee cost for up to 10 years to be borne by the state.
The company is also being offered electricity at subsidised rate for five years, 100 per cent waiver on state GST charges on capital assets, Rs. 4,000 each for employee training and Rs. 6,000 each for training of employees from SC/ST communities, and 50 per cent subsidy for quality assurance certification charges.
If there are any further demands from the Kitex Group that will also be considered.
Gaurav Daga, Associate Vice President of Guidance Tamil Nadu, the industrial promotional arm of the Tamil Nadu has sent a document to the company in this regard. Soon a meeting of Sabu and Tamil Nadu’s official can take place.
“The offer given by Tamil Nadu is irresistible and I came to know that many facilities are being provided by our neighbouring state. However, a decision to shift from Kerala has to be taken after a lot of consultations with our team, our management… it will not happen in a day but we are seriously contemplating it,” said Sabu.
He said that Kerala was not even providing any subsidy including for power, noting that it was all profit for the State Government but even after this, there is no professional interest being envisaged by it.
Kerala Chamber of Commerce and Industry has already come out against the treatment meted out to Sabu and had called upon stringent action against the victimisation of industries and industrial groups.