Industrial units in the State, which have been through harsh times during 2020 and 2021, look forward to a brighter 2022 as the Industries department has introduced many new measures to turn the State into a more investment-friendly destination.
Minister P. Rajeeve told The Hindu that 5,000 new micro, small and medium enterprises (MSMEs) had been launched during 2021, a considerable achievement. The launch of these units had taken place against the background of the COVID-19 restrictions. The department had also been able to bring about changes in regulations to provide speedy sanction to new units.
Mr. Rajeeve said a grievances settlement system with legal powers and licence for units with up to ₹50 crore investment in seven days were the other steps taken by the government.
President of the Kerala State Small Industries Association (KSSIA) M. Khalid said there was a drag on industries during 2021. One of the key reasons was the steep rise in the price of raw material. The impact of the COVID-19 lockdown and associate restrictions on production during the past two years had taken a toll on industrial units, he added.
Industrialist K.A. Joseph, general secretary of KSSIA, welcomed the steps taken by the department to turn Kerala into an investment-friendly destination. He said the government had amended several rules and regulations governing licencing of industrial units. While these steps were welcome ones, the association requested the government to consider the problems being faced by enterprises in operation now.
In a recent representation to the Minister, the association appealed for implementation of a land allotment policy announced in 1969. According to an order issued in April 1969, any industrialist who had paid up the money for the land under the hire-purchase agreement should be allotted the land and get the ownership of the plot, it said.
It also appealed to the government that the KSSI should have a representative in the statutory complaint redressal system being introduced by the government.
The public sector Fertilizers and Chemicals Travancore too has done well during the year. Company sources said FACT could considerably improve its over-all performance with a sales turnover of ₹3,258 crore and an operational profit of ₹352 crore during 2020-21. The company has also seen a net profit of ₹76.2 crore in 2021-22 first half-year. The restarting of caprolactam production operations after nine years is a milestone for FACT, company sources said.
The year also saw public sector companies such as Traco Cable and Travancore Cochin Chemicals putting up strong performances. Travancore Cochin Chemicals commissioned three new facilities, including a 75-tonne caustic soda plant, a floating jetty, and shifted to regassified natural gas early in December. These new facilities, commissioned at around ₹40 crore, will increase the profitability, company sources said.
Traco Cable Company Limited recorded profit of ₹1.5 crore during November even as the government raised the financial guarantee for the company from ₹51 crore to ₹100 crore on the basis of its performance. Company sources said Traco Cable expected a turnover of ₹190 crore during the current financial year and all the three units were in operating profit now.
