Industrialists see room for improvement in investment ecosystem in State

The investment atmosphere in the State is getting better through a number of measures initiated by the State government such as the Kerala Single Window Interface for Fast and Transparent Clearance (K-SWIFT), greater transparency and speed in issuing licences for industrial units, say industrialists who interacted with The Hindu here on Thursday on the sidelines of ‘Vyapar 2022’, a business-to-business meet organised by the Industries department to bring MSMEs in the State face to face with potential buyers across the country.

A food processing unit owner in Kochi said there was visible improvement in the way industries are being allowed to start operations, but there was a need for a change in the bureaucratic mindset. He said that despite initiatives by the government, local bodies sometimes issued stop memos, though these memos were withdrawn following interventions by industries’ associations and higher officials in the State government.

M. Khalid, president of the Kerala State Small Industries Association, said the investment ecosystem in the State was getting better and the government was committed to encouraging more businesses to establish their roots in the State.

Some of the outstanding issues include the transfer of land titles to unit owners in industrial estates like Edayar, Aluva and Angamaly. Around 2,000 to 2,500 industrial unit owners are unable to either transfer the land on which their units are located to their heirs, to expand business or to avail loans because the ownership of these plots had not been transferred to them, said one of the industrialists.

N.V. Ashraf, who owns a wood processing unit, said the State government must help wood processing and plywood industries in a big way as it directly employed at least 25,000 people. He added that there was a severe shortage of raw materials even as the number of rubber plantations were coming down. The government can take up the plantation of softwood trees that can be harvested within about eight years as raw materials. The step would be a great support for the industry, he added.

There is also a threat of import of plywood from countries like Indonesia even as the industries in the State are facing a sharp rise in the price of raw materials, including urea.

A food processing unit owner in Kozhikode said there was need for changes in the administrative setup and speeding up clearances from agencies like the Pollution Control Board. At the same time, agencies like the Kerala Financial Corporation had become more active providing loans to enterprises. There is definitely a change in the ecosystem for investors, he added.