NRI Investors Fuel Industrialisation Drive in Kerala

A joint working committee will be set up by the governments of Kerala and the United
Arab Emirates to explore investment
opportunities in Kerala. A delegation from the state has been on an 11 day tour of the UAE to impress NRI investors, UAE government officials and funding bodies on the investment climate in Kerala.

NRI investors in the Gulf, individual investors, and the UAE
government have expressed their desire to invest in infrastructure
and heavy industry in Kerala.

NRI investors alone have committed
a figure of Rs. 1.42 billion for investment in Infrastructure
Kerala Limited (InKel)
Industrialisation in Kerala is picking up with the establishment
of a Knowledge Park by the Aditya Birla Group, an Industrial
Park by Malaysian investors, a Biotechnology Park and Hardware
park in Kochi and the Spices Park in Idukki
The Kerala Industries Minister stated that Rs. 100 billion worth
of investments have already been received by his department in
its industrialization drive.

Of these, NRI businessman P.N.C.Menon
of the Sobha Group has committed to a 400 acre hi-tech city in
the state
T. Balakrishnan, Principal Secretary, and John Mathai, former
Chief Secretary and Managing Director of InKel have been appointed
by the Kerala Government to the proposed working committee. Representatives
from the UAE are yet to be appointed.

The discussions between Maqbool bin Ali Sultan, the Minister
of State for Commerce and Industry, Oman, and the Kerala Industries
Minister, Elamaram Kareem have been encouraging, with several
companies in the Sultanate eager to invest in oil refineries,
petrochemicals, ports and ship building in Kerala.

UAE has displayed an eagerness to invest in power and petrochemical
projects. Oman and Kuwait are open to investment in the petrochemical
complex in Kasaragod.

The investment in this project would exceed
Rs. 20 billion.
The Kerala government is eager to restart the Kannur power project
in time for the LNG terminal which would be operational by 2009,
and has proposed the same for investment to UAE officials.

The powerful Emirates Investment Group is also seeking to play
an active role in Kerala with large-scale investments in tourism,
property and other commercial sectors
The Kerala Government would soon start identifying other plausible
areas of investment and projects in the state and propose these
to the working committee for deliberation.

The creation of new
industries in Kerala would add Rs. 50 billion to the exchequer
and generate employment for 75,000 persons.