Amid the ongoing row of Kitex group, a major textile manufacturing firm in Kerala, announcing its withdrawal from a Rs 3,500 crore investment project in the state citing alleged harassment from government departments, Chief Minister Pinarayi Vijayan said that Kerala is one of most investor friendly states in India. The CM said this while thanking business tycoon Harsh Goenka, chairman of the RPG group, who said in a tweet that the Kerala government is ‘very supportive’ of employers.
On July 1, economist Shamika Ravi while tweeting the news about Kitex pulling out from the multi-crore investment project, had said that it should be treated as a case study for the looming unemployment problem in Kerala. Reacting to this, Harsh Goenka tweeted saying, “We are the largest employers in Kerala. We find the local government very supportive.”
On Sunday, July 4, CM Pinarayi Vijayan retweeted Harsh Goenka’s tweet, expressing gratitude. The CM tweeted, “Thank you @hvgoenka for allaying the apprehensions over Kerala’s EoDB (ease of doing business). Your honesty is much appreciated. Kerala has been one of the most investor friendly states in India and will continue to be so. The LDF Govt. ensures that sustainable and innovative industries thrive here.”
Kitex group’s decision to withdraw from the multi-crore investment project has led to a controversy in the state. The firm’s owner Sabu M Jacob alleged that over the past one month, the company’s units were raided 10 times by various departments, allegedly without giving any reasons. He also said that following the withdrawal, various other state governments have invited the firm to shift base to their states.
Thank you @hvgoenka for allaying the apprehensions over Kerala's EoDB. Your honesty is much appreciated. Kerala has been one of the most investor friendly States in India and will continue to be so. The LDF Govt. ensures that sustainable and innovative industries thrive here. https://t.co/6zQO0AUFIG
— Pinarayi Vijayan (@vijayanpinarayi) July 4, 2021
After the Kitex group made the announcement, Kerala Industries Minister P Rajeev stated that he has intervened in the issue and that it should be resolved through the grievance mechanisms in place instead of defaming the state. Kerala’s well-known NRI (non-resident Indian) business tycoon Yusuff Ali urged the company not to leave the state.
Meanwhile, PT Thomas, Congress leader and MLA of Thrikkakara constituency where Kitex group is based, had alleged that the firm’s owner has in the past too threatened to shift base from Kerala after allegations of pollution were levelled against the company.
Read here how Kitex's Corporate Social Responsibility wing entered electoral politics and now governs four panchayats in Kerala.