Kerala government mulls ending 'stop memos' to industries

The state will bring in a new regulation ending the practice of issuing ‘stop memos’ to factories and business establishments, in a move to improve the state’s business climate.

Published: 22nd July 2017 01:30 AM  |   Last Updated: 22nd July 2017 08:12 AM   |  A+A-

By Express News Service

KOCHI: The government, under its new industrial policy, will bring in a regulation ending the practice of issuing ‘stop memos’ to factories and business establishments, in a move to improve the state’s business climate.

At a meeting with businessmen and other stakeholders to discuss the draft industrial policy here, KSIDC MD M Beena said stop memos - orders issued to shut down a business following complaints/irregularities - will now be used only under extreme situations, and after detailed study by the authorities concerned. 

“The government is looking to ease the proceedings related to issuing the ‘stop memos’ to industries. If any allegation is raised against any factory, the department dealing with the issue has to carry out a probe in detail before issuing the stop memo. Currently, stop memos are issued first before carrying out an inquiry into the matter,” she said.

Another highlight of the new policy is its ambitious plan to turn employment-seekers into employment- providers, Beena said. Similarly, licences will be cleared within 90 days. The licence period of the industries will be extended up to five years. The government will introduce a single-window system for giving licences and other clearances for industries in the state. The KSIDC will start an Investment Promotion and Facilitation Centre which will help people start industries with investment above Rs 10 crore. The government will introduce ‘industries gala’ in each district.

The government will initiate infrastructure development by partnering with local self-governing bodies, under the new policy. Also, the government will be transparent in land allocation to industries. As a water conservation initiative, harvesting systems will be installed in factories. 
The government is looking to start private industrial estates across Kerala.

Land for the private industrial estates will be procured by private companies, while the government will develop infrastructures like electricity, water and road connectivity to these parks. The government will promote farming-related industries, garment industries, electronic industries, Biotechnology and Nanotechnology-related establishments in the state. 

KSIDC chairman Christy Fernandez said the government is drafting a policy that would favour industries in Kerala. “We are looking to develop an eco-system for industrial growth in Kerala,” he said. 

Additional Chief Secretary (Industries & Commerce) Paul Antony concluded the session after hearing suggestions on the draft industrial policy from the business community.

stop memos


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