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Kitex Receiving Offers From Several States But Kerala Govt Yet to Approach, Says Chairman

Kitex is the world’s second-largest manufacturer of kids apparel and was founded in 1968. Sabu M Jacob had said that the regular raids by the authorities prompted him to announce the withdrawal of investment from the state. This will come as a huge blow to Kerala which became the 8th State in the country to successfully undertake the “Ease of Doing Business” reform stipulated by the Department of Expenditure, Ministry of Finance in January 2021.

Apparel Company Kitex Withdraws Rs 3500-Crore Investment Plan in Kerala Citing Harrasment from Govt Authorities. (Source: Kitex Website)

New Delhi: Sabu Jacob, Chairman, Kitex Group on Saturday said that the Kerala government has not approached him to readdress his concerns while he had received unofficial communications from 10 states and an official offer from neighbouring Tamil Nadu to set up his company’s investment.

Jacob told PTI that ministers from states and high-ranking bureaucrats from different states have been calling him up after the kid’s apparel company withdrew from a Rs 3,500 crores investment in Kerala citing harassment from the authorities.

The Tamil Nadu government confirmed that a proposal had been sent to the Kitex Group.

“Proposal has been extended to the Kitex group, which is keen on investing Rs 3,500 crore in the textile sector,” a senior industries department official in Tamil Nadu told PTI.

The official added that the state will provide the company with land at 50 per cent of fair value and will offer additional incentives such as subsidised p[ower for five years and a 100 per cent GST waiver on capital investment assets.

Kerala Industry Ministry P Rajeev on June 30 had said that the government had not received any complaints from the Kitex group but assured that the complaints would be taken seriously.

He had also said that the industrial sector was on the path of revival and offered the government’s full support to genuine investors.

Jacob, chairman and managing director of the Kitex group, alleged that the authorities barged in with as many as 11 teams from various government departments in the past month. During their surprise visits, the state authorities violated Covid-19 norms and grilled their employees working in factories or boilers, for hours.

He also said that the authorities never informed him about the nature of the visit or the violations that his company had committed.

Under the Rs 3,500 crore investment plan, the company was going to create three industrial parks in Thiruvananthapuram, Kochi, and Palakkad and an apparel park in the state.

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The MoU for this investment was signed at the ‘Ascend Global Investors Meet’ in Kochi in January 2020.

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