Saturday, November 18, 2006: The Kerala Cabinet yesterday cleared the setting up of a company on the lines of Cochin International Airport Ltd, a model public-private partnership, to chanalise NRI remittances and investments. The state government would pick up equity in the proposed Infrastructure Kerala Ltd and remaining stakes would be open to private investors, mainly non-resident Keralites (NRK), Chief Minister V S Achuthanandan told reporters at the post-Cabinet briefing here yesterday.

The government share of the equity is learnt to be 26 per cent.

The Left government, which came to power six months ago, had promised a major scheme to tap NRK investments and Achuthanandan timed the Cabinet nod to coincide with his first six months in office.

Industry Minister Elamaram Kareem later told reporters that the company’s initial paid-up capital would be Rs1bn. Infrastructure, knowledge-based industries, education complex, city development and power are some of the focus areas for the new company.

NRKs have been hamstrung by a lack of credible avenues for investments or been wary of investing in stocks. The government feels that a company that has the official stamp will attract funds from NRKs. The intended return on investments is 10 per cent after three years.

Kerala has an estimated 15 million people working abroad, repatriating nearly Rs200bn every year.

Meanwhile, flanked by sprint queen P T Usha and ace footballer I M Vijayan, Achuthanandan yesterday launched ticket sales for a bumper sports lottery for mobilising Rs1bn to set up state-of-the-art training facilities for sportspersons. Tickets, priced at Rs100 each, would be available online outside the country. The prize carries Rs 20 million.

Source - http://www.thepeninsulaqatar.com