Kitex backtracks from Rs 3,500 cr investment in Kerala

Kitex Garments backtracks from Rs 3,500 crore investment plans in Kerala alleging political revenge

An executive said that the group would be scrapping a memorandum of understanding signed with Kerala government

 Representative image. Credit: iStock Photo

Kitex Garments, a leading garment manufacturer based in Kerala, is backtracking from an Rs 3,500 crore investment proposal in Kerala alleging anti-industry conditions in the state.

Kitex Garments chairman and managing director Sabu M Jacob, who is also founder of Twenty20 forum that contested in the elections, said that at least eleven government agencies carried out raids at its units at Kizhakkambalam on the suburbs of Kochi over the last few weeks. He alleged that it was political revenge against Twenty20, which was initiated as part of the CSR activities of the Kitex group.

He said that the group would be scrapping an Rs. 3,500 crore investment plans in Kerala for which a memorandum of understanding was signed with the Kerala government in a global investor meet held last year. Apparel parks and industrial parks were part of the proposal and the company had also initiated land acquisition measures.

Jacob alleged that while many states were giving red carpet welcome to industrialists, in Kerala, industrialists were being considered as law offenders. The harassment of investors by government agencies would make Kerala a graveyard of industries, he alleged.

With the fresh development causing embarrassment to the state government, the government is likely to initiate discussions with Kitex Garments, said sources.

Congress MLA P T Thomas recently alleged that the Kitex group was causing severe pollution to the water bodies at Kizhakkambalam. Kitex Garments had moved a defamation notice against him.

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