A day after the owner of Kitex Garments Ltd, a major textile manufacturing firm in Kerala, announced that they have decided to pull out Rs 3,500 crore worth investment project in the state due to alleged harassment by state government departments, Kerala Industries Minister P Rajeev has come out stating that the allegations raised by the firm will be looked at seriously. In a statement issued on Wednesday, Minister Rajeev however urged people to abstain from making public statements that would defame the state, before one tries for redressal.
This was clearly meant for Sabu M Jacob, chairman of the Kitex group, who on Tuesday June 29, alleged in a press meet that it had become very difficult to run industrial units in the state and that 10 inspections were held at Kitex units by various government departments in the past one month. He also announced that Kitex group has decided to pull out Rs 3,500 crore worth project that was signed at the 'Ascend Global Investors Meet' conducted by the state government last January.
In the statement, Industries Minister P Rajeev said that he had already intervened directly in the matter after he came to know about Sabu M Jacob’s allegations through social media. “Though we haven’t received any official complaints, on June 28 itself, details of the allegations were sought and it was known that the Industries Department did not hold any inspections, but it was done by some other departments and the sectoral magistrate. Secretary of Industries Department was asked to probe this and the inquiry report also stated that the department held no inspections in Kitex,” Minister Rajeev said.
The Minister also added the state government will give complete support to all entrepreneurs who want to start industries and entrepreneurial ventures lawfully. He also added that after he took charge as the Industries Minister (in May 2021), a meeting was held with the representatives of Confederation of Indian Industry and Federation of Indian Chambers of Commerce & Industry. Though representatives of Kitex took part in the meeting, they did not point out any complaints or issues.
The Minister also said that it is better to approach the government directly as there are redressal mechanisms. “A decision to form a legal mechanism to resolve industrial disputes, was taken in the first cabinet meeting of this government. Everyone should refrain from issuing public statements that are defamatory without using the possibilities of redressal,” the Minister added.
The factories of Kitex group are headquartered in Ernakulam district’s Kizhakkambalam gram panchayat for the past 26 years. Notably, Kitex group’s allegation comes days after Congress MLA PT Thomas came out raising pollution allegations against the firm. In a press meet held earlier this month, PT Thomas said a similar instance happened during 2012-13, when Kitex owner allegedly raised ‘threats’ saying he will take his company to Sri Lanka if he cannot run the company in Kerala, when allegations of pollution were raised. Fearing this, the then Chief Minister Oommen Chandy held discussions with the company, the MLA said.
Watch how Kitex group's CSR wing came to power in four gram panchayats in Kerala: