Kerala projects stillborn

Kochi: Kerala recorded a 315 percent growth in investment proposals in 2012-14 compared to 2009-11, but most of them remain nonstarters, says a study by Associated Chamber of Commerce and Industry of India (ASSOCHAM).

“Kerala had received industrial entrepreneurs’ memoranda (IEM) worth over Rs 17,600 crore during 2012-2014, just about one percent of Rs 15 lakh-crore IEMs received across India,” says the study titled Realising Economic Growth Potential in Kerala.

“Investments attracted by Kerala have grown at a compounded annual growth rate (CAGR) of over 13 percent during past decade between 2004-05 and 2014-15,” ASSOCHAM secretary general D.S. Rawat said while releasing the study.

About 54 percent of total investments attracted by the state, however, remained non-starters as of 2014-15. Services sector (other than financial) accounted for largest share of 54.5 percent in total outstanding investment attracted by the state.

Investments attracted by construction and real estate sector have recorded highest CAGR of about 44 percent followed by mining (20), irrigation (18), manufacturing (15), services (13) and electricity (4).

The study wants the state authorities to focus on improving physical infrastructure like access to roads and power supply to improve industrial productivity and competitiveness, especially in the marginal, small and medium enterprises which employ over 33 lakh people in the state.

“Kerala should create new employment opportunities by partnering with the private sector to realise the objective of robust economic growth,” suggested the study.

The state government should facilitate modernisation and technologically upgrade different segments to make them globally competitive and liberalise procedures to lure investors.

Ensuring timely implementation of projects by providing licence and clearance from concerned departments in a stipulated time and rehabilitation of sick industrial units are other suggestions.