R ARIVANANTHAM
CHENNAI, JULY 3
The Tamil Nadu government has officially invited the Kerala-based apparel manufacturing company, Kitex Garments, to start their new project in the state. The government has come out with several offers, including hefty subsidies to the company.
The invitation has been extended to the Group after the company withdrew its Rs 3,500-crore new project investment from Kerala.
Kitex Group Managing Director Sabu M Jacob had alleged that the Kerala government has been carrying out numerous inspections in the company within a month and hence they are withdrawing their new investment in that state.
#KITEX Group withdraws 35 core project from Kerala; MD Sabu M Jacob alleges harassment by govt officials in name of inspection; Kerala Industries Minister P Rajeev says he spoke to KITEX management & assured action @kitaab31 @OommenRickson
Full Show: https://t.co/135clQ2WkW pic.twitter.com/Hj9btCPZGj
— India Ahead News (@IndiaAheadNews) July 1, 2021
Shortly after his announcement, the Tamil Nadu government invited the group with attractive offers. The Guidance Bureau, the nodal agency of the Tamil Nadu government under the dynamic Industries Minister Thangam Thennarasu shoot out a letter to Sabu Jacob.
Sabu Jacob revealed said that Tamil Nadu offered him a 40 percent subsidy, land at half the market value, 100 percent relaxation on stamp duty, 5 percent tax reduction for 6 years, 25 percent subsidy for environmental protection infrastructure, 50 percent subsidy for intellectual property, Rs 4,000 per month for the training of each employee for six months, electricity subsidy, and several other freebies.
However, the Kitex Group is yet to take a decision on this.
Sabu Jacob, 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.”
Jacob alleged that Kerala government does not provide any help to industrialists but at the same time keep on harassing, which affects the normal functioning of the business.
In industrialisation, Kerala is at 28th position, if this kind of attitude of the government continues, it will come down further, he added.
