The State Budget has strongly backed the public sector undertakings. The medium and large-scale units have been given an outlay of ₹468 crore. Of this, ₹109 crore is for the Kerala State Industrial Development Corporation (KSIDC) and ₹92 crore for the Kerala Industrial Infrastructure Development Corporation (Kinfra).
Public sector units in the State will be given loans worth ₹300 crore from the Kerala Financial Corporation and the State will pay the interest on the loan amount.
The Budget expressed enthusiasm about the “new vigour evident in Kerala’s industrial sector”. The share of industries in the State’s domestic revenue was 9.8% in 2014-15 and 13.2% in 2018-19, the Finance Minister said in his budget presentation. Adding to optimism is that in national factory production Kerala’s share rose to 1.6% from 1.2%.
The public sector Kerala Electrical and Allied Engineering Company (KEL), which looks to emerge as a major player in the electrical vehicles segment, has been allotted ₹21 crore. Managing Director Shaji M. Varghese said the money would go into the modernisation programme and electrical vehicles segment. During the coming financial year, KEL will modernise its Kasaragod plant.
Biju Mathew, managing director of Traco Cable, said the company had put up a proposal for ₹10 crore worth of projects. The Budget allotted a little over ₹9 crore for the public sector unit. The money will be deployed for purchasing new machinery for its Irumbanam and Thiruvalla units.
Transformers and Electricals Kerala Limited, a joint venture of the State government and the NTPC, has been allotted ₹10 crore. Managing Director B. Prasad said the company management had put up a proposal for buying a new generator and procuring new cranes as part of the plants’ modernisation.
Hi-tech corridor
The Budget has given due importance to the development of the Kochi-Palakkad hi-tech industrial corridor project. “The State government has allotted a substantial amount for acquiring 2,000 acres of land in Palakkad. The first phase of the project identified in Palakkad will attract an investment of ₹10,000 crore and generate jobs for 22,000 people,” said Alkesh Kumar Sharma, Principal Secretary (Industries).
The Kochi-Bengaluru industrial corridor seeks to stimulate investment in manufacturing, agro-processing, services and export-oriented units. Manufacturing clusters will come up along the corridor that will boost activities, including IT, biotechnology, life sciences.
The Special Purpose Vehicle for the project will have the participation of KSIDC and KINFRA.
