The Hindu Business Line : Focus on NRK funds for infrastructure growth

`The Government should look at the substantial amount of funds available from the Centre under various programmes. Much of these funds come in the form of grants and more often than not they are not fully utilised.'

Thiruvananthapuram , Sept. 3

The State Government may lay greater emphasis on tapping non-resident Keralites (NRK) funds for infrastructure development in the State in the Eleventh Plan.

There had been discussions in the past on various schemes, including the setting up of a bank, for utilising the NRK funds for the purpose. But, the Government can start by directly tapping these funds through joint ventures, according to the draft approach paper for the State's Eleventh Plan.

The paper says that for infrastructure development, there have been several suggestions made ranging from public-private partnership to external funding. This is in the context of the question of resources with the State Government for taking up the projects.

But, before considering these options, the Government should look at the substantial amount of funds available from the Centre under various programmes. Much of these funds come in the form of grants and more often than not they are not fully utilised. The situation should change.

POWER SECTOR

The paper notes that the plan for the power sector, a key area of infrastructure, is treated as a separate component of the State plan and is entrusted with the Kerala State Electricity Board. But this has resulted in many options, such as small hydel projects and biomass-based power generation, not getting due attention in the scheme of things.

This has to change and the entire non-conventional energy sector requires closer examination and integration in the overall plan, says the paper.

RURAL INDUSTRIALISATION

Another important area that the paper lays emphasis on is rural industrialisation of the non-traditional kind, the potential of which has been demonstrated by the Township and Village Enterprises of China.

The State could also develop such enterprises what with a strong local self-government institution (LSGI) in place and with local level banks having substantial funds at their disposal for lending.

LSGIs should explore possibilities of setting up such units or encourage potential entrepreneurs to set up them singly or through their cooperatives.

SELF-EMPLOYMENT

The paper also highlights the importance of self-employment in the State. Given the magnitude and spread of purchasing power in the State's economy, mainly on account of substantial remittance inflows, there is plenty of scope for self-employment and for setting up small-scale units, it says.

The State Government can create the right entrepreneurial climate through a number of ways such as starting post-graduate programmes in areas like biotechnology and information technology and announcing competitions for identifying successful projects and profiling them as models.

"Kerala has to move forward along this path instead of following the `waiting-for-the-MNCs' and `waiting-for-the-corporates' path that has become fashionable in other States," says the paper.

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