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Singapore firm wants Kerala land cheaper

PTI | ByIndo-Asian News Service, Kochi
Jul 08, 2005 05:54 PM IST

Negotiations between the Kerala govt and a joint venture involving a Singapore firm have run into rough weather over the price of land.

Negotiations between the Kerala government and a joint venture involving a Singapore firm have run into rough weather over the price of land.

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The proposed Rs.3.5 billion ($80 million) joint venture is between Kochi-based Kitex group and Singapore's Ghim Li Fashions and seeks to set up a fashion city here.

Top officials from Ghim Li and Kitex held discussions with the Industries Minister V.K. Ebrahim Kunju last week.

"We had difference of opinion on nine points with the government out of which eight have been cleared. The present dispute is about the 100 acres of land we have asked for. The government is demanding Rs.5 million per acre and we are prepared to spend only Rs.2 million per acre," said Sabu M. Jacob of Kitex.

Once this is settled, fashion city, expected to create over 12,000 jobs, will be operational within one year.

"We have options to set up this venture in other countries as well. We are not being given any concession in the basic infrastructure. Moreover, the price of the land demanded by the government is too much," said Jacob.

He also denied Kerala Chief Minister Oommen Chandy's statement that the Singaporean delegation would return to have another discussion.

"Discussion will reopen only if the government agrees to provide land at Rs.2 million per acre. Kochi will lose the fashion city otherwise," said Jacob.

Ghim Li, operating worldwide in garments, has business relations with Kitex, which reported a turnover of Rs.1.5 billion from its garment wing.

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