Kerala’s nod for proposal on industrial zones in limbo

The budget for 2014-15 had sanctioned Rs 100 crore for the programme

Kochi: The proposal of Kinfra, the Kerala government agency which builds industrial infrastructure, to set up four industrial development zones (IDZs) across the state has been lying with the government for more than a year now.

“We have identified the land and sought government approval for its acquisition last year. The proposal is lying with the government,” Kinfra sources said.

Sources said Kinfra had proposed to set up four IDZs on 2,580 acres at a cost of Rs 1,598 crore to attract large scale investments in the manufacturing and export of value-added products.

The agency has proposed that it would develop the IDZs in Thiruvananthapuram (250 acres), Ernakulam (1,035 acres), Kozhikode (795 acres) and Kannur (500 acres).

It was envisaged that Kinfra would acquire land, develop land parcels and provide the basic infrastructure facilities comprising road, power, water, sanitation and would then lease them out to targeted industries with development potential on a long-term lease.

“Essentially, it is aimed at creating land pools to promote integrated development formats and provide world class physical and social infrastructure along with proximity to International Airports followed by Ports to offer low cost and efficient logistics services,” the sources said.

Kinfra had identified food–agro-based industries, engineering, gems and jewelry, IT & ITES electronic hardware and textiles as the sectors it will promote in the IDZs.

The government would have to provide grants in the form of promoter contribution, provide guarantee for financing and undertake to meet running cost.

The initial phase of the project was estimated to cost of Rs 1591.44 and Kinfra was to raise it through government aid (Rs 600 crore, internal accruals (Rs 391 crore) and debt (Rs 600 crore). The budget for 2014-15 had sanctioned Rs 100 crore for the programme.

( Source : dc correspondent )
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