KOCHI/CHENNAI: Just days after announcing the decision to scrap a Rs 3,500-crore project, Kitex group chairman and managing director Sabu Jacob received an official invite from Tamil Nadu offering a bunch of incentives to choose the State for investment.According to Sabu, the Tamil Nadu Industries Department Guidance Wing’s Associate Vice-President Gaurav Daga sent an invitation stating that Tamil Nadu is ready to provide additional benefits should Kitex implement the project in the State.
The department also has requested a personal meeting to discuss the offer. The letter follows discussions held by the State’s Industries Minister and Principal Secretary earlier this week. When contacted, sources from the Tamil Nadu Industries Department confirmed that the state government had reached out to Kitex. It is learnt that apart from Tamil Nadu, Telangana and one other State are also in the race. “The negotiations are in the preliminary stages,” a source told TNIE.
According to Sabu, Tamil Nadu has offered a 49% subsidy on investment, land at 50% of fair value, 10% waiver on stamp duty, loan at five% lower interest rate for five years, 25% subsidy for environment-friendly waste treatment system, 50% subsidy for patent expenses, Rs 4,000 stipend for six months for employee training, 50% subsidy for product quality certification, power at subsidised rate for five years, 100% GST waiver for capital investment assets, and 20% government contribution towards employees’ salary for 10 years. The stipend for employees will be `6,000 for SC/ST candidates.
“Though I announced my decision to scrap the project four days ago, not even a clerk representing the Kerala government has contacted me to understand my grievances. But I have received offers from five State governments and they are showering me with incentives. This explains the difference in attitude. I have not responded to the offer made by Tamil Nadu. I will take a call after analysing the offers made by other States,” Sabu told TNIE.