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‘Kerala is an ideal place for investment’

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  • V.S. Achuthanandan, Chief Minister, Kerala
    Two years ago, when the Left Democratic Front government took over in Kerala, the state was reeling under a host of problems, most of them a result of the market-driven economic and political ideology adopted by the previous government. We know that the people of Kerala, who gave us an unprecedented majority, have a lot of expectations from us. We have been trying to meet this with and in the coming three years, the government will try its best to fulfill the promises we made two years ago. I am sure that this government’s initiatives will help the LDF continue in office in the future too, like in West Bengal and Tripura where Left Front governments have been at the helm for several years now.

    The pressure from the capital market had forced the previous government to move away from welfare measures. This had a very bad impact on Kerala’s society and its economy. Food security was threatened. Agrarian crisis was at its worst. Incidents of farmer suicides were increasing. The law and order situation was beyond the government’s control. Crime against women had increased. And, a senior minister in the UDF ministry had to resign following allegations of rape. Our first attempt has been to set the farming sector right. We understood that a majority of the farmers, especially in the districts of Wayanad, Palakkad and Kasargode, were not being able to repay their loans. Among the many reasons, one was that agriculture wasn’t paying them enough. Due to the unrealistic import policy proposed by the Centre, products like coffee, pepper and coconut could not fetch even the production cost. To address this issue, other than declaring a moratorium on repaying loans and waiving off the amount taken by the farmers who committed suicide, we took two significant measures. The most important was the setting up of the Agriculture Debt Relief Commission.

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    The Commission is negotiating with institutional credit agencies for debt relief to peasants. It is also arbitrating on a case-by-case basis on the debt owed to private moneylenders. The government will, in the case of poor farmers, take over such debts as recommended by the Commission. We hope the Centre and other state governments see such initiatives and help farmers facing similar problems in other parts of the country.

    We also ensured that farmers get a minimum support price for their products. As part of the Food Security Mission, we will ensure that paddy cultivation is extended to at least 10,000 acres next year. In this background, I think it is worth mentioning that the government has wiped out the tendency of suicide among farmers in the state. Earlier, three districts from the state were included in the list of 36 districts in the country that were hit by farmer suicides. Now the Centre has removed these three districts from its list.

    The law and order situation has also improved with the strengthening of community policing. The low crime rate makes Kerala an ideal place for investment. There were allegations that the state is not a good place for investment. This is part of a propaganda unleashed by a section of the media and some reactionary forces. Successive governments in Kerala, both the LDF and the UDF, had to bear the brunt of this malicious campaign. This has affected industrialisation in the state.

    Facts, however, are different. Kerala lost the least number of working days due to labour issues, say statistics from Delhi. Yes, the labourers in Kerala are aware of their duties and responsibilities. No industry can survive in Kerala by exploiting the workforce. This is not just because workers have organisations but because their political awareness gives them the power to bargain. The same awareness makes them a good, sensible and cultured workforce, an exceptional team in the country. Enthusiastic entrepreneurs are always welcome to invest here.

    Density of population is high in Kerala. So land for development is a problem for the government and investors. To make land available for genuine industrialists, we are trying to put an end to the land mafia that has been working in the state for some time now.

    Strict legislations are in the pipeline to control this mafia. An example was the Munnar operation, where we acquired thousands of acres of illegally occupied land. This process will continue. While the Centre is closing and divesting public sector industries, in Kerala, we reopened many of the closed PSUs. Fifteen loss-making industries have seen a turnaround.

    Information Technology is another sector that the government is working on. Given the talent of the Kerala youth, we believe we can do more. In the last two years, 41 new IT companies have come to Kerala. Kochi and Thiruvananthapuram are being developed as the foremost IT locations in the region. About two lakh jobs will be provided in the next three years in the IT sector. The Smart City project is a major achievement of this government. More IT parks are coming up in Thrissur, Kollam and Alappuzha. The state’s software exports crossed Rs 1,200 crore this year.

    We are also working on improving basic infrastructure in the state. Work on the Vizhinjam ship container will begin soon. The government has entrusted a consortium led by Hyderabad-based Lanco Kondapalli Power Pvt Ltd with the Rs 5,348 crore project. The Vallarpadom project is also moving fast after obtaining the environmental clearance. With these projects, Kerala will be a destination for international trade and commerce, thanks to our natural ports.

    Development of the national waterway between Thiruvananthapuram and Kasargode has taken off. The Kollam-Kottappuram waterway, a part of the national Waterway-3, has already been commissioned. Work on a third international airport at Kannur has also begun.

    Our government is working towards providing each family with land, home, drinking water and electricity. The EMS Total Housing Scheme that we started envisages making Kerala a ‘total housing’ state in the next three years. The ‘Complete Electrification Programme’ has already been completed in three constituencies.

    We also expect the Centre to be more realistic while deciding projects for Kerala. The state has already achieved almost all “first generation” necessities in the field of health, education and family welfare. Kerala stands as a model even for the Western countries in areas like health and primary education. Now we need to protect this and develop the “second generation” infrastructure for more growth and development. For this, the Centre should revise its development strategy for the state.

    The first Communist government in the country and the state, the EMS Namboodiripad government sworn in on 1957, stands as the model for our initiatives. Our focus is the poor and downtrodden and our mission is their welfare. We have the mandate for it.

    Investment In KeralaBy: Rada Nair | 06-Dec-2008 Reply | Forward kerala is not investment friendly state, after Ashapura Minechem Ltd, clay factory attack, if you study the case anybody can understand the attack cant justify in any ground, company lost about 40 Crs and delayed their production and planing. First Govt should teach local public about the need of new investment
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