Controversy clouds two-day NRI investors meeting in Kerala

A controversial investors’ two-day meeting in Kochi, business capital of the southern Indian state of Kerala, to attract non-resident Indian (NRI) investment starts on Wednesday amidst much public criticism that some of the projects on the agenda of the ‘Emerging Kerala Meet 2012’ (EK 2012)  are covert moves to grab hundreds of hectares of fragile forest land or to sell public property to Gulf expatriates.

The state government has termed EK 2012 as an opportunity to explore and invest in businesses in Kerala.

Some of the high profile projects from ten sectors listed in the official website include industrial and manufacturing zones, transport and infrastructure projects, tourism resorts including mini airports, sea plane projects, educational institutions, a state airline, higher education projects like an IIT (Indian Institute of Technology) at Kottayam, hometown of  chief minister Ommen Chandy, a life science park and oceanarium project at Kochi and a petrochemical complex.

The original plan was to attract the huge amount of Rs 2000 billon in investment, but some of the mega projects have been withdrawn due to severe opposition from the public due to lack of transparency.

Participants at the investors meeting will face protest marches and demonstrations not only in Kochi but in other places in the state which is known for political radicalism. NRIs are engaged in heated debates about whether the present government has covert land grabbing plans as land is a scarce in the state and many ordinary NRIs find it difficult to buy a plot of land due to escalating prices.

Prime Minister Dr Manmohan Singh, who is currently embroiled in a major scandal over leasing of government owned coal mines to big private investors, will inaugurate the two-day ‘Emerging Kerala’ meeting.  A number of influential Gulf NRIs are attending the investors meet, as the organisers had conducted road shows and PR campaigns outside the state.  Some NRKs from the Gulf could not register online or get entry passes.

“EK 2012 is welcome step for any NRI interested in the development of the state. I don’t believe those who oppose EK are against development of the state, they only have reservation about the development model. There was genuine concern about public land being granted to private parties, but the government has already clarified its position. If development is to take place, the required land should be provided by the government and using government land for such projects is not a bad idea.  However, it should suit the environment and socio-economic conditions in the state. Without land, there is no development.  Such disputes should be discussed and resolved to encourage development,” said Ismail Rawther, Director, NORKA Roots and managing director of Fine Fair Group.

Some leading NRI investors are disappointed after the outcry in the media and social networking web sites about alleged covert plans to grab public land and take control of historical monuments like the Kovalam Palace and the land surrounding it  and leasing out entire beach areas for private parties.

Public properties set to be given to influential NRIs included a beach at Thalikkulam, Trichur, home to some influential NRIs,  and plans for a five-star night club with discotheques and cabaret theatres.

“Many of the controversial projects have been removed from the agenda of the investors meet and plan to lease out sports stadiums and clubs have also been revoked by the Kerala government. The opposition LDF coalition has decided to boycott EK 2012 in view of the controversial projects. Opposition leader V S Achuthananthan has already said the night club culture is a dignified form of prostitution to attract tourists which is alien to the culture of the state,” says Narayanan Veliyancode, a member of Dubai Art Lovers Association (Dala).

Some of the proposed projects in EK include revival of the Kerala airline project, promoted by the Cochin International Airport Ltd, on the initiative of prominent NRI investors form the UAE.

A section of the ruling Congress Party has come out in public against some of the projects, forcing the Kerala government to restructure the meet. The most controversial project, now removed from the meeting’s agenda, is a multi-billion rupee resort project in Nelliyampathi, a forested area.

“Following the world downturn, global investors are keenly looking to India. Such an initiative from the state government is timely provided  it is done in a transparent way. Investors will be looking at each project in detail before investing their money. Local issues will not be a hurdle for the genuine investors,” P K Sajith Kumar, CEO of JRG International and IBMC Group, which promotes NRI and foreign investors.

Due to the intervention of the leader of the opposition and some ruling party members, the ruling UDF government has dropped the most controversial projects from the website of EK – mega tourism projects in Nelliyampathy, Vagamon, Dharmadam, Devikulam, Ilaveezhapoonchira and Peerumedu.

Another controversial proposal, cancelled by the Kerala government under pressure from the public, is a plan to lease out the Chandrashekharan Nair Stadium, the main sports complex in the state capital, to private companies for 15 years.

The government had to scale down the land allotted to a major thermal power project in Kannur, from 1621 acres to just 200 acres after the media exposed an alleged covert move to give 2000 acres for a project that would need only 200 acres. A study by the Kerala government’s  chief secretary had said the project needs only 200 acres, not 1621 acres.

Projects like a botanical garden and a forest lodge at Nelliyamapthy in Palakkad district and an adventure sports arena at Vagamon, a scenic high-altitude area known for sprawling meadows and steep cliffs in Idukki district, are facing opposition. Land needed for the projects – 25 acres in Nelliyampathy and 50 acres in Vagamon – are in the hands of Kerala’s Department of Tourism.


 

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