The recently elected Oomen Chandy government in Kerala, which came to power with a wafer-thin majority after the elections held earlier this year, is now opening up the state for private sector investment in key manufacturing and infrastructure sectors.
Consumer goods manufacturers Videocon and Bajaj Electricals, as also power sector company Reliance Power are in talks with the state government to acquire land for setting up manufacturing facilities and a power plant in the state, respectively, chief minister Oommen Chandy told HT.
The talks between these industrial groups and the state government were held on the on the sidelines of India Economic Summit of World Economic Forum (WEF) in Mumbai.
Chandy, who heads the United Democratic Front (UDF) alliance, led by the Congress, defeated the communist led Left Democratic Front (LDF).
Primarily an agrarian economy, the state has largely missed the industrialisation bus, and has a nominal presence of the IT and ITES sectors. Its agricultural income has also declined over the past six years, while the share of agriculture in the gross state domestic product (GSDP) has fallen to 11.54% in 2009-10, from 17.48% in 2004-05.
The state government will hold an investor meet 'Emerging Kerala' in September 2012 to showcase investment potential of the state. A top official in the state government said Chandi held talks with 14 industrial groups on the sidelines of WEF.