A strong lobby is at work to drive industries away from Kerala, Industries Minister P. Rajeeve said in the Assembly on Thursday. He also informed the House that the government is in talks with the Federation of Indian Chambers of Commerce and Industry (FICCI) to set up an FMCG Park in Palakkad district.
Replying to questions in the Assembly, Mr. Rajeeve said two discussions were held with FICCI representatives on the proposal to attract FMCG (Fast-moving consumer goods) companies to the State, Mr. Rajeeve said. The proposal involves establishing the park in 500 acres in Palakkad, he said.
''Now much of the manufacturing is done outside Kerala, especially in the north-east states. But the tax holiday given in the north-east states under a central policy will end soon. We have pointed out to the companies that the transportation costs would be a lot less if the units were in Kerala. Eighty per cent of the FMCG market is controlled by 20 companies,'' he said.
A strong lobby, the Industries Minister said, was trying to scare off industries from investing in the State, the Industries Minister said.
The state government has appointed a three-member committee to examine outdated laws governing industries. However, an earlier statement made by him in this regard in the House was being twisted in the social media to create the impression that the government encouraged outdated laws.
''This amounts to an attack on the rights of the Assembly and a deliberate attempt by certain groups to drive industries away from the State. The committee appointed by the government will submit its report in three months,'' he said.
