‘Political parties are conspiring to tarnish Kitex’s image’

It is not just Telangana; we are comparing and contrasting nine other States. These States have their own industrial and textile policies. In Andhra Pradesh, Telangana, Karnataka, Gujarat and Tamil Nadu, the industrial policy is a common general policy for any other industries.

Normally, for textiles and apparels, these States are given high importance because they are labour-intensive. This is the reason for giving prominence to garment units by giving additional benefits to the textile industry. For instance, corporate subsidy for general industries is 20 per cent, while for the textile sector it is 35-40 per cent for promotion of the textile industry and creation of jobs. Another advantage is that land price is cheaper by 50-70 per cent, especially in the top 10 industry-friendly States.

However, as far as Kerala is concerned, there is only a single industrial policy and, to my knowledge, there is no textile policy. Moreover, the investor has to pay a registration charge for the land at the rate of 12 per cent.

The industry tariff for power in Kerala is on the higher side, while other States give subsidies in the range of ₹2 to ₹3 per unit. Employers’ contribution to PF will be reimbursed by the government in other States and, in some, even 25 per cent of the worker’s salary is reimbursed in 5 to 10 years.

There is a green initiative for effluent treatment, in which 50-70 per cent of the subsidy will be provided. Moreover, a capital subsidy of 20-40 per cent of the total investments is available to investors in these States.

The net effect is that an investor, who makes an investment of ₹1,000 crore, is reimbursed 70-90 per cent of his money within a 10-year span.

This is the main attraction for scouting for investments not only in Telangana but in other States, while in Kerala, an investor has to make an additional 10 per cent for the investment for all unforeseen circumstances.

Thus, the investment cost will definitely come down and the profitability go up for investors, which will be significant as far as business ventures are concerned.

I do not want to comment on that. I have known him for the last 15 years and have a good relationship with him. He is our family friend and I respect him.

Yes. There is a political angle to the whole story. I think these are all led by local MLA Sreenijan. I have evidence on that and I am going to publish it within a few days.

Political parties cutting across party lines and government officials are conspiring against the company and tarnishing its image because of personal rivalry. There were several instances of political ire against the company from 1978 onwards.

At the moment, I have decided not to invest a single rupee in my home State. I have faced a lot of hostility and my conscience does not permit me to invest further.

They have to call me first. So far nobody has approached me with any offer. If Kerala wants to compete with other States, it should formulate industry friendly policies.

We have invested here with the sole intention of creating jobs and development of our native region Kizhakkambalam as part of my late father’s dream for the progress of his birth place. But we lost our earnings, time and money. If we had been in other States, our growth would have been 10 times more.

This is not a new report. It is old and I distributed the soft copy to mediapersons on June 29 when I announced my decision to withdraw from the ₹3,500-crore investments. It is just rubbish as it is baseless; it merely cites lack of drinking water and toilet facilities for workers.