THIRUVANANTHAPURAM: The State would require a whopping Rs 9 lakh crore in the next 15-odd years to achieve the economic and living standards of Nordic countries like Denmark, Finland, Iceland, Norway and Sweden.
The indicative figure on investment required has been derived using sectoral incremental capital output ratios (ICORs) from national level data pertaining to the State.
To acquire the per capita income enjoyed by Nordic folks by 2030 is the mission of the Kerala Perspective Plan 2030. The source of this huge investment, according to the Planning Board, should be domestic resources.
The strategy seems sensible considering that the household financial savings in 2012-13 was Rs 10.97 lakh crore, more than the targeted investment.
Transforming the State into a global knowledge hub is the biggest thrust of the perspective plan. “The knowledge hub will be a self-sustaining development paradigm. It will create its own resources”, said Dr Santhosh V., a senior official of the board.
The massive inflow of remittances, too, would come in handy. “We are preparing a set of plans to tap this treasure. We would require political consensus for this”, Dr Santhosh said.
The Board is also banking heavily on two new financial instruments introduced by the Centre: real estate investment trusts (REITs) and Infrastructure Investment Trusts (InvITs).
REITs are specialised real estate investment vehicles and are income-generating, professionally-managed trusts that own and operate commercial real estate assets such as shopping complexes, offices and warehouses.
“The aim of REIT is to provide predictable regular income to investors with an after-tax return similar to that of direct investment in property,” said C.J. Suresh Kumar of the Planning Board.
InvITs are modified REIT-type structure for infrastructure projects. It invests in infra projects either directly, or thorough SPV. In case of PPP projects such investments shall only be through an SPV.
Listing is also mandatory for InvITs units. “These instruments will be useful for the State to find extra-budgetary resource needs of the state,” Dr Santhosh said.
