Kochi: Tamil Nadu has invited Kitex to the state after announcing its decision to withdraw from the Rs 3,500 crore investment project signed with the government. This was announced by Kitex MD Sabu M Jacob. The government has promised to provide facilities in Tamil Nadu. Sabu Jacob’s invitation to the Tamil Nadu government comes on the heels of comments that the withdrawal of a company with years of tradition like Kitex would be a major setback for the state’s industrial sector.
The company has been invited to implement a Rs 3,500 crore project in Tamil Nadu, which was to be implemented in Kerala. Sabu Jacob said he has been offered a number of benefits. Kitex decided to withdraw from the project in Kerala in protest of the company’s unnecessary inspections and resentment at the instigation of political leaders.
Announcing the decision, Sabu Jacob said that within a month, 11 inspections were carried out in Kitex by various departments. Kitex has decided to pull out of a Rs 3,500 crore contract that employs 35,000 people at the Global Investors Forum. The decision was taken on the understanding that Kerala is not an investment friendly state.
However, Industries Minister P Rajeev had said that the issues raised would be taken seriously and a high-level inquiry would be conducted with other departments. It is learned that no further discussions or other effective interventions have been launched in this regard.
The minister explained that there were no inspections led by the industries department in Kitex and some other departments and the sector magistrates were inspected.