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More IT majors likely to set up operating centres in Keralanews
Jays Jacob
28 May 2003

Thiruvananthapuram: Kerala Industries Minister P K Kunhalikutty says more IT majors are weighing the option of setting up their operating centres in Kerala. "Top executives of Satyam Computers will be reaching here for discussions with the government."

"As you know, Infosys has already announced its decision to come to Kerala. Another top company, Wipro, has agreed to have at least a small presence here, while Tata Consultancy Services has launched a major expansion of its training centre at the Technopark. Companies like McKinsey and Ernest & Young too have opened their offices at the Technopark," he says.

Kunhalikutty says this is not a small achievement considering the fact that it has come at a time when the IT industry worldwide is still facing recession. "You should remember that this is 2003 and not 1998 [when the IT industry was on the boom]."

Kerala had unfortunately missed the bus during the IT boom period. "However, with sustained effort, the state is trying to make up the lost ground. We are beginning to succeed in this. The arrival of companies like Infosys will definitely help our campaign further," he says. Referring to the immediate plans for IT infrastructure development, he says the foundation stone for the Technopark in Kochi will be laid shortly.

Projects having a total outlay of Rs 78 crore processed through the Global Investor Meet (GIM) are now ready for commissioning, he says. "More GIM projects, worth an investment of Rs 1,080 crore, have reached a stage where the civil works could be launched. Certain other projects that would bring nearly Rs 2,000 crore more of investment to the state too are in the pipeline."

The central investment promised by Prime Minister A B Vajpayee, while inaugurating the GIM, too have started materialising through the big expansion programme announced by the National Thermal Power Corporation for its Kayamkulam station.

On the government's programme for public sector restructuring, Kunhalikutty says the proposals submitted by the Enterprises Reforms Committee (ERC) on 15 more units under the industries department are under the active consideration of the government. The cabinet had, a few months ago, approved the ERC proposals for 12 companies.

About the criticism against the ERC proposals levelled by the UDF sub-committee chaired by A V Thamarakshan, he says: "I do not want to join issue on this topic. Certainly, political views too will be taken into consideration by the government."

"There are several constraints in Kerala. Any change in the traditional way of handling things invites severe resistance here. The process of public sector restructuring can take place only step by step, after convincing all sections about the inevitability of the change and the good intentions of the government," he adds.

Kunhalikutty says the employees of the ailing public sector companies are only too aware that changes are inevitable for the companies' and their own survival. "The workers are now receptive to suggestions."

He refuses to join issue with Congress leader V M Sudheeran, who is spearheading an agitation against the government's move to exploit the mineral sand resources in the coastal Alappuzha district with private sector participation.

Without naming Sudheeran, Kunhalikutty says: "The objection to this project stems from ignorance. Our state is rich in mineral resources. If every other state can tap such resources for generating wealth and employment, why not Kerala? Ecological concerns [which Sudheeran has raised] will not be neglected by the government. Also, resistance to the project can serve only to help the people who are engaged in large-scale smuggling of mineral sands from the area to feed the industrial units located in Tamil Nadu."

 


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More IT majors likely to set up operating centres in Kerala