In a major embarrassment to the Kerala government, state-based Kitex Garments began formal talks with the Telangana government on Rs 3,500 crore investment plans.
The move came after Kitex decided to backtrack from the investment plan in Kerala alleging harassment by government agencies. Several other states had also invited Kitex.
Before boarding the special flight sent by the Telangana government, Kitex Garments managing director Sabu M. Jacob told reporters that he was not going to Telangana at his own will but being chased away from Kerala. He also said the Kerala government's attitudes towards industries should change.
Telangana industries minister K T Rama Rao invited Kitex group after Jacob recently announced that Kitex was backtracking from the investment plan proposed in Kerala owing to harassment by government agencies.
A series of inspections by various government agencies at its units in Kochi was alleged to be the provocation. Jacob, who heads the Twenty20 forum that contested in the elections, was even suspecting that the inspections were politically motivated.
Meanwhile, Kerala industries minister P Rajeeve told reporters that the state government did not do anything wrong against Kitex.
He also added that many international firms would be soon commencing units in Kerala.
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