NRKs hesitant to invest in Kerala

Kozhikode, Mar 12 (UNI) The Non-Resident Keralites (NRKs) are hesitant to invest in the state because of the unattractive and delayed returns offered by the government.

''We have a very bad experience in the past as the returns from the previous investments are very unattractive and pro-longed'' said Pravasi Bandhu Welfare Trust (PBWT) Chairman K V Shamsuddeen in a letter addressed to Kerala Finance Minister T M Thomas Issac.

Mr Shamsuddeen said though the NRKs were glad that the state government had floated a new company called Infrastructure Kerala Limited (InKel), to channelise investments from them with a paid up capital of Rs one billion, majority of them would not respond positively to the offer this time.

The NRKs had invested in more than two dozen companies fully or jointly supported by the government since 1976.

One of the firms, the Keltron Component Complex Ltd, paid its first and last dividend in 1987, 11 years after it was launched, he said.

Another company, Cochin International Airport Ltd announced its maiden dividend only after eight years, he said.

''We were shocked to find that many companies, in which low and middle income group NRKs had invested, had disappeared,'' he said.

Ninety five per cent of NRKs from this segment lack financial resources to get a regular income for their livelihood after they return for permanent settlement, he said.

''These people had invested in these firms expecting a regular income after returning home,'' he said.

In addition to that 49 State-level Public Sector Enterprises incurred loss amounting to Rs 501.50 crore during the 2004-2005, showcasing a gloomy financial position of the state, he said.

However, he said, the NRKs would consider investing if the government proposed to raise fund through bonds, which would assure returns for their investments.

UNI