Are we creating yet anonther white elephant?

THIRUVANANTHAPURAM: As if there is severe dearth of industrial promotion agencies in the state, Kerala Government has announced the plan to set up yet another with an authorized capital of Rs1000 crore.

The Finance Minister of Kerala, KN Balagopal, announced the plan during his budget speech on February 5. He said the new company will be formed with the cooperation of Kerala State Financial Enterprises (KSFE) and non-resident Keralites under the Aegis of Kerala Financial Corporation (KFC).

“A special company will be set up to identify and agglomerate parcels of land available in Kerala suitable for industries and distribute the same among the 146 entrepreneurs for basic infrastructure development to give a boost to the economy and aiming infrastructure development,” Balagopal elaborated his plan.

In fact, Kerala has umpteen number of industrial promotion agencies with Kerala Industrial Infrastructure Development Corporation (KINFRA) being such an agency specifically meant to take up the jobs earmarked for the newly announced entity by the FM.

The list of industrial promotion agencies currently functioning in Kerala include Kerala Industrial Infrastructure Development Corporation (KIIDC), Kerala Industrial Infrastructure Development Corporation (KINFRA), Kerala State Industrial Development Corporation (KSIDC), Kerala Land Development Corporation (KLDC), Kerala Small Industries Development Corporation (SIDCO) and Kerala Financial Corporation (KFC).

Talking to myfinpoint, Dr M P Sukumaran Nair, the former chairman of Public Sector Restructuring and Internal Audit Board (RIAB) of Government of Kerala, said Kerala doesn’t require this large number of industries promotion agencies.

“No other states, including those with much larger industrial activities have more than two or three such institutions. Such companies will remain as money guzzlers and can’t offer anything extra to our industrial growth,” he added..

Already the state-run public utility services companies such as KSRTC, KSEBL, Kerala Water Authority (KWA) etc have become a financial burden to the state, though the fact remains that these are indispensable for the running of a state.

Distributing salary and pension to the present and former KSRTC employees has been posing tough challenge to the government for some years now.

There are reports doing rounds that the pension payment to the retired KSEB employees also started giving sleepless nights to the KSEB management and government.

Moreover, KSEB is sitting on a huge debt pile to the tune of Rs16,000 crore and a whopping negative net worth of Rs33,170 crore as of September 30, 2023.