The Hindu Business Line : Kerala draft industrial policy focuses on traditional sector

Helping hand
All industrial units with a capital investment of Rs 100 crore and above will be treated as mega projects.
Preference will be given to units that use environment-friendly technologies and offer employment to local people.

Thiruvananthapuram , Nov. 24

The draft industrial policy of the Kerala Government has laid emphasis on rejuvenating the traditional industries sector, which at present is caught in a vicious cycle of sub-standard quality, low wages and poor image.

The policy seeks to turn this sector into a vibrant one that rolls out value-added and branded products, supported by professional marketing, which includes cashing in on the emerging retail revolution.

The sector will be freed of the subsidy culture and equipped to face market forces.

The handloom sector will be revitalised through special economic, technical and managerial support projects. Private entrepreneurs will get special packages to set up handloom production units.

Efforts will be made to develop regional brands for high-quality handloom products to meet both domestic and international requirements. Also, the Government will see to it that facilities are created for the pre-loom processing, loom processing and post-loom processing needs of the sector.

The textile mills in the public and cooperative sectors will be re-engineered to make them self-sustainable. A special package of assistance for the development of technical textiles in the State is also on the anvil in view of the growing prospects for these textiles worldwide.

Brand image for coir

In the coir sector, steps will be taken to ensure that at least 50 per cent of the husk produced in the State is converted into fibre. Raw material and marketing consortiums of small-scale producers and cooperative societies will be set up under cluster development programmes. The draft policy envisages creation of a brand image for Kerala coir to tap the domestic and export markets. The National Coir Research and Management Institute will be strengthened for conducting basic research in coir fibre, processing, production and operation of modern techniques.

The Government will put in efforts to attract massive investments in the large-scale sector through private and public-private partnerships from within and outside the country. All industrial units with a capital investment of Rs 100 crore and above will be treated as mega projects.

Preference will be given to units that use environment-friendly technologies and offer employment to local people. It is also proposed to offer special packages of fiscal benefits in deserving cases for specific problems in existing large industries.

Drawing on strengths

The draft policy says that investments should come in due to the State's inherent strengths and not because of enticing subsidies. The Government will provide incentives for investments in supporting facilities such as pollution control, effluent treatment and establishment of common facility centres.

This will be up to 50 per cent of the cost, subject to a maximum of Rs 25 lakh and irrespective of small, medium or large industries.

Special incentives packages or facilities have been proposed for mega investments with an outlay of Rs 100 crore and above on a case-to-case basis to be decided by a high-level committee chaired by the Chief Secretary.

Price preference scheme for micro and small industries will be reintroduced as stipulated in the Micro, Small and Medium Enterprises Development Act.

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