Thiruvananthapuram, Nov 17 (IANS) The Kerala government Friday gave the nod for setting up a state-owned company, Infrastructure Kerala Ltd, to step up efforts to channel the remittances and investments of Keralites abroad.
'The state government will have a stake of 26 percent in the new company and the rest of the equity will be offered to private investors, mainly non-resident Keralites (NRK),' Chief Minister V.S. Achuthanandan told reporters after a cabinet meeting here.
Kerala Industries Minister Elamram Kareem told IANS that the initial paid up capital of the new company formed on the lines of the Cochin International Airport Ltd would be Rs.1 billion.
'The company would set up the basic infrastructure and would be a facilitating agency for setting up knowledge industries, education complex, city development and even power,' said an official associated with the new company.
'Once the paid up capital is raised we would seek the help of small investors, particularly the NRKs who today block their money in building residential homes which give no return. We expect contributions from all NRKs because the company would enable them to get a minimum of 10 percent return after three years,' said the official.
According to a study done by the Centre for Development Studies here, Kerala has a record two million people working abroad who send home about Rs.200 billion every year.