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CDS study urges Kerala Govt to set up investment board

Our Bureau

THIRUVANANTHAPURAM, Aug. 15

A STUDY by the Centre for Development Studies (CDS) has urged the Kerala Government to set up a high-power investment board to clear investment proposals by non-resident Indians.

The study on Kerala emigrants in the United Arab Emirates, which was released by Mr M.M. Hassan, the Minister for Parliamentary Affairs, here on Tuesday, has said the proposed board should follow a single-window system for clearing the proposals.

The study says the Kerala Government should follow a policy to ensure that the State is investment-friendly and that it is keen to attract NRI investments. Also favourable policies may be pursued with regard to industrial development, credit, labour, inf rastructure, higher education, tourism and information technology to promote NRI investments.

The Department of Non-resident Keralite Affairs (Norka) should be given the responsibility to accept, process and grant permission for all NRI investment proposals and applications. The department may also be re-designated as Department of Non-resident K eralite Affairs and NRI Investments, says the study.

To promote NRI investments, the study has suggested three types of promotional methods. In the first instance, individuals and groups should be encouraged to start their own ventures by forming companies or other forms of organisations. The role of the G overnment here will be limited to giving necessary permissions to start a unit or a project.

In the second method, NRI investments may be attracted through collaboration with Government agencies such as those engaged in promotion of industries, information technology and tourism. In the third case, the Government may promote NRI investments thro ugh build-operate-transfer (BOT) type of agreements.

The study also calls upon the Government to formulate its own mutual funds or issue of bonds to attract the investments. Viable projects should be prepared with the help of consultants which could be posed for NRI investments, particularly in the fields of higher education, real estate, industry, tourism and infrastructure.