The department has introduced new measures to turn the state into a more investment-friendly destination.
Industrial units in the state, which have gone through tough times during 2020 and 2021, look forward to a brighter 2022 as the industries department has introduced several new measures to transform the state into a more investment-friendly destination.
Minister P. Rajiv told Hindu That 5,000 new Micro, Small and Medium Enterprises (MSMEs) were started during 2021, which is a significant achievement. The launch of these units took place against the backdrop of the COVID-19 restrictions. The department has also been able to bring changes in the regulations for speedy approval of new units.
Shri Rajiv said that a grievance redressal system with legal powers and licenses for units with an investment of up to ₹50 crore in seven days were other steps taken by the government.
Kerala State Small Industries Association (KSSIA) President M. Khalid said there was pressure on industries during 2021. One of the major reasons was the steep rise in the price of raw materials. He said that during the last two years, the COVID-19 lockdown and allied restrictions on production have had an impact on the industrial units.
Industrialist KA Joseph, General Secretary, KSSIA, welcomed the steps taken by the department to transform Kerala into an investment-friendly destination. He said that the government has amended several rules and regulations governing the licensing of industrial units. While these steps were welcome, the association requested the government to now consider the problems faced by the enterprises in operation.
In a recent representation to the Minister, the Association appealed for the implementation of the land allotment policy announced in 1969. As per an order issued in April 1969, any industrialist who had paid money for the land under a hire-purchase agreement, should have allotted the land and obtained ownership of the plot, it said.
It also appealed to the government that KSSI should have a representative in the statutory grievance redressal system being introduced by the government.
Public Sector Fertilizers and Chemicals Travancore also performed well during the year. Company sources said FACT is likely to significantly improve its overall performance during 2020-21 with a sales turnover of ₹3,258 crore and operating profit of ₹352 crore. The company has also seen a net profit of ₹76.2 crore in the first half of 2021-22. Company sources said the resumption of caprolactam production operations after nine years is a milestone for FACT.
Public sector companies such as Traco Cable and Travancore Cochin Chemicals also performed strongly this year. Travancore Cochin Chemicals commissioned three new facilities including a 75-tonne caustic soda plant, a floating jetty, and moved to re-gasify natural gas in early December. Company sources said these new facilities, starting at around ₹40 crore, will increase profitability.
Traco Cable Company Limited reported a profit of ₹1.5 crore during November, while the government increased the financial guarantee from ₹51 crore to ₹100 crore depending on the company’s performance. Company sources said Traco Cable was expecting a turnover of Rs 190 crore during the current fiscal and all three units were now operating profit.