The Hindu Business Line : LG, BMW among foreign firms interested in Kerala

THE German car major BMW and LG group of South Korea are among the foreign companies that have expressed interest in investing in Kerala, according to the Industries Minister, Mr V.K. Ibrahim Kunju.

Replying to questions in the State Assembly on Wednesday, he said that following the global investors meet in Kochi in 2002, the Kerala State Industries Development Corporation (KSIDC) had held several rounds of talks with BMW, LG group and Liberty group of Italy and they had expressed interest in investing in the State. Besides, Dubai Internet City had also come forward to start operations in Kochi.

The Minister said that the LG group wanted the central sales tax to be reduced to one per cent, while the Liberty group sought 100 acres of land free of cost.

BMW, on its part, demanded free land, concessions in tax and power tariff and basic infrastructure on lease basis.

The Government is considering giving away 100 acres of land at Kakkanad in Kochi to the Liberty group at 50 per cent of the cost to set up a "fashion village".

For LG group, it is willing to allot lands in the possession of KSIDC and also willing to consider reducing central sales tax to one per cent.

In the case of BMW, the Government has offered to develop basic facilities on 25 acres of HMT land under the Kerala Industrial Infrastructure Development Corporation and give it on lease.

It is also willing to provide subsidy on power tariff for five years in a tapering manner from 50 per cent to 10 per cent.

The Minister informed the House that the companies had not as yet informed the Government of their final decision on starting the ventures in the State. The Government, however, was hopeful of getting the investments, he added.

He said the foreign firms were seeking special zones for setting up their units. The Government would also think about allowing joint ventures with the participation of foreign firms. Besides, it would consider foreign investments in tea industry.

In reply to another question, he said that the district industries centres had established "Business Promotion Cells" and "Proficiency Interface Cells" to help small-scale entrepreneurs by providing technical training, imparting management skills and disseminating market information.

Since the current Government assumed office and till January 31 this year, as many as 39,656 units had been registered with various district industries centres and all the units had started operations, the Minister said.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page