After the state of Telangana sent a private plane to ferry KITEX Managing Director Sabu Jacob and a five-member team, on Friday (9 July), it has now been confirmed that the company would invest ₹1000 crore in the state.
KITEX was Kerala’s largest private employer but due to the constant harassment by the State’s communist government it has cancelled the MoU it signed with the state government and is now investing its money in Telangana.
The company team that flew to Telangna made announced its investment after meeting state Industries and Commerce Minister KT Rama Rao. It would invest ₹1000 crore to set up its factories at the Kakatiya Mega Textile Park in the Warangal district.
“Delighted to announce the entry of KITEX group, world’s 2nd largest manufacturer of kids apparel into Telangana with an initial investment of Rs 1,000 crore. They’ve chosen KMTP, Warangal for their factories. My gratitude to Mr. Sabu M. Jacob, MD of KITEX group on a quick decision,” minister KT Rama Rao tweeted.
“In principle, the Kitex Group has agreed upon a Phase- I investment of 1,000 crores within a span of two years in the textile industry for the project ‘Textile Apparel’ in the Kakatiya Mega Textile Park in Warangal,” Kitex MD Jacob said.
“This investment will generate an employment of 4,000 jobs in the state of Telangana,” he added.
Kitex Garments is the world’s second-largest manufacturer of kids apparel made news when it announced that it is scrapping plans to open an apparel park in Kochi and other areas in Kerala due to constant harassment by officials of the CPM-led government.
“Almost every day, officials of the government department descend on the premises of the company and make inquiries as if we committed a big fraud. I am fed up with continuous harassment. The government treats us like bourgeoises, exploitative capitalists and land encroachers. Enough is enough,” Kitex chairman Sabu M Jacob said.
“If the situation continues like this, the State will turn into a graveyard of industries. While neighbouring states roll out red carpets for industries, we are hounding them out. No doubt, the existing climate will drive entrepreneurs to suicide,” he said, adding that the latest to inspect his premises were officials from the pollution control board.
“Whoever invests in Kerala will lose peace of mind and will be driven to suicide,” Sabu Jacob added.
Earlier, there were talks of the company investing in Tamil Nadu. Discussions were reportedly held with the Minister for Industries and Principal Secretary (Industries) of Tamil Nadu government and the government is said to have offered many incentives like 40% subsidy on investment, land at half the market rate, exemption on stamp duty, five% interest rebate for six years, tax concessions, etc.
However, the company seems to have not shown interest in Tamil Nadu. Many Tamil netizens and Opposition political parties at a dig at Chief Minister Stalin pointing his inability to attract a potential investor.
BJP Tamil Nadu spokesperson SG Suryah said that for all the big talk, CM Stalin couldn’t manage to bring Kitex to Tamil Nadu with which the neighbouring state shares close affinity and called it an absolute shame.
Responding to Suryah’s tweet, one user on Twitter pointed out that the Kitex Group must have seen Tamil Nadu Finance Minister’s must have got frightened to invest in the state after seeing his recent speeches..
Another user said taking a jibe at DMK Electricity Minister Senthil Balaji said that if squirrels can manage to cut power, it won’t take a minute to tear away the textiles.
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