Kitex Group signs MoU with Telangana government

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Kochi: Kitex group has signed a Memorandum of Understanding (MoU) with the Telangana government for two major investment projects there, the company said on Friday.

The Kitex group in a release said it had signed an MoU for two mega projects at Warangal mega textile park and the industrial park at Hyderabad.

“Telangana Industries department Principal secretary Jayesh Ranjan and Kitex group MD Sabu M Jacob signed the MoU,” the company said in a release.

The release said the MoU was signed after a meeting with Industries Minister KT Rama Rao.

The company said an official declaration will be made on Saturday and the package offered by the Telangana government for the Kitex group will be announced tomorrow.

“The Telangana government has offered many subsidies for the Kitex group. All the details will be announced tomorrow,” the company said in the release.

Jacob had on July 12 said the Telangana state government has offered a wide range of incentives and facilities for his venture and has also assured that it won’t trouble any industry with “inspections” and raids will be held only “after informing the industries well in advance.”

The Telangana government had also arranged a special flight to bring the Kitex delegation to the state in July. The Kitex team was taken to the textile park in Warangal in a chopper to have a look at the facilities there.

Jacob had also said that the Telangana state government has offered land, water and electricity at cheaper rates for investors.

“We pointed out the 11 raids that took place in 30 days. They (Telangana government) said no official will trouble any industry in the name of inspection. Inspections will be held only once every two or three years and that too with the knowledge of the Principal Secretary or the minister concerned. Even that will be informed well in advance, get our permission and as per our convenience only, “Jacob had earlier said.

He had said that even if any lapses were found during the inspection, steps would be taken to rectify it at the governmental level and would not publish it to “defame and let the business run into losses”.

The Left government has been probing the complaints of four Congress MLAs and inspections were a result of the various complaints to the National Human Rights Commission (NHRC), Kerala High Court and other authorities against the company.

Alleging harassment by the Kerala government officials, Jacob had in June said his group was withdrawing its Rs 3,500 crore project from the state.

The Kerala government has said that it has an “open approach” towards issues raised by the Kitex group.