Central government discretion, the anchor investor should not take more than 25 per cent equity
Kerala industrial infrastructure development corporation home page
THIRUVANANTHAPURAM: It is industries principal secretary P.H. Kurien who should get the credit for bringing three mega projects to Kerala. Apart from the already announced defence park under the ‘Make in Kerala’ project which was approved by the Central government on Friday, the other two are Mega Food Park (MFP) at Palakkad and Electronic Manufacturing Cluster (EMC) unit in Kakkanad in Kochi. Though Kerala industrial infrastructure development corporation (KINFRA) had prepared the project report for all these projects, it was Mr Kurien who was instrumental in clinching the deals for the state.
Union ministry of food processing industries has already given in principle sanction for the implementation of MFP near Kanjikode on Palakkad on a 73 acre campus. Also, in another 2-3 weeks time, the 30 acre EMC unit project would be getting sanction.
Government sources told DC that this was the first time the state was getting a major boost especially for KINFRA which was witnessing a change under the leadership of Chairman and chief secretary Jiji Thomson and P. H. Kurien. KINFRA managing director G.C. Gopala Pillai told DC that Infrastructure Leasing & Financial Services Limited (IL&FS), one of India's leading infrastructure development and finance companies had been identified as the project consultant after the union Government conducted a direct process.
“IL&FS themselves would market MFP at the 73 acre campus which would be developed by KINFRA where 25 per cent of the unit will be set up very soon as sanction has been received in principle. Regarding the EMC unit, KIINFRA will hold 49 per cent stake where the land will be owned by us. As per the guidelines, there should be seven companies which should have 51 percent equity,” said Mr Pillai.
But as per Central government discretion, the anchor investor should not take more than 25 per cent equity and the remaining companies can have stakes between 1-24 per cent. They have already agreed to Rs 40 crore as grant towards setting up the EMC unit.
( Source : deccan chronicle )
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