The State government initiative to lure entrepreneurs for setting up private industrial estates seems to have evoked a positive response.
Consortium of micro, small and medium enterprises (MSMEs) are understood to have evinced interest in setting up estates in Kozhikode, Ernakulam and Muvattupuzha. More others are likely to clinch the government offer, sources said.
As per the policy aimed at empowering private entities, permit for setting up an estate would be issued to a developer, who would be responsible for executing the project as per stipulations.
Errant entities will be taken over
On failing to honour the commitments given for securing permit, Kinfra (Kerala Industrial Infrastructure Development Corporation) would take over the management, but only on failing to rectify the lapses within a prescribed time. Entities owning and possessing 50 acres or more land could take up the project. It could be companies, cooperatives, charitable societies or MSME consortium.
But the proposed site should not figure in coastal regulation zones (CRZs) or ecologically sensitive areas (ESAs). A Secretary-level panel would thoroughly scrutinise the applications, mainly the financial and technical capability to execute the project in two years.
The Industries Department would issue development permit only for the applications cleared by the committee.
The government would take the lead to provide basic amenities such as roads, power and water supply and may invest up to ₹2 crore for carting power up to the boundary of the estate.
The land on RPT on an estate should be allotted only for industrial units, warehouses, other logistics services and depots. Shopping malls, showrooms and retail outlets would not be permitted on the estates.
Each estate should have at least five equally sized unrelated units.
Development permits would have specific timeline for setting up various facilities and the developer would be held responsible for lapses in honouring the commitment.
On failing to materialise the project within two years, the permit would be cancelled.
According to Public Sector Undertakings Restructuring and Internal Audit Board chairman M.P. Sukumaran Nair, the project holds great prospects for the future.
The concept failed to take off as expected earlier but is bound to succeed in the evolving industrial milieu where MSMEs have a crucial role.
The project would catalyse the State’s industrial development since the development land cannot be diverted for other purposes, he says.
