After Kitex Garments pulled out from the ₹3,500- crore project from Kerala due to harassment by the Communist government, the state of Telangana has gone one step further by sending a special flight to Kerala to bring the company leadership to Hyderabad just days after receiving a formal invitation from the Tamil Nadu government to invest in the State.
The Tamil Nadu government in order to get the project in their state had arranged a meeting with the minister and assured of providing many incentives and ease of business, however, the Telangana government sent a special flight to ferry KITEX Managing Director Sabu Jacob and top executives of the company to Hyderabad on Friday (9 July).
“We have already had one round of discussions with Telangana Industry Minister K T Rama Rao. They have offered excellent facilities and support for the ₹3,500-crore project, which we have abandoned in Kerala. Telangana has invited us following our announcement to cancel the apparel project in Kerala,” KITEX Managing Director Sabu Jacob was quoted saying in a media report.
“We have no plan to make further investment in Kerala. It is already difficult for us to run the existing garment unit in Ernakulam. Then, how can we plan new investments? We have already spent Rs 200 crore for the proposed project, which would have given employment to 30,000 people, apart from developing 600 small-scale ventures in the sector,” he responded to comments by ruling CPM and opposition Congress which called him a traitor.
Ketix, the world’s second-largest kids apparel maker pulling out Kerala only proves why Kerala languishes at the bottom of the table in attracting investments and ranks 28th in the ‘ease of doing business index due to the 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.
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