TRIVANDRUM, 1 December 2002 — Kerala is set to make sweeping changes in laws relating to the labor and other sectors in a bid to attract investments to the cash-strapped state.

“It has been recommended that out of the 900 odd laws, 697 are no longer important and would be removed,” Law Minister K.M. Mani told reporters here.

Mani heads a committee that had been appointed by Chief Minister A.K. Antony to suggest changes in its laws.

Laws relating to the labor, town planning, health, education and several other sectors are to be amended “to make Kerala an investor friendly state”, he said.

“The committee has recommended 16 new bills, the amendment of nine and the repeal of one,” Mani said.

The committee presented its report to Antony yesterday. The Cabinet will study the recommendations before they are discussed at a special session of the Kerala Assembly.

Kerala is also hosting a Global Investment Meet at Cochin in January to position itself as an investment destination. Kerala has already opened up professional education to the private sector.

Four new medical colleges have begun their admission process, raising the number of seats in the state from 800 to 1,200.

Similarly, engineering seats will rise from 8,068 to 16,243 with 42 new engineering colleges being sanctioned.

Criticizing the recent strike by the leftist Students Federation of India against the new education policy, Parliamentary Minister M.M. Hassan termed it a politically motivated move that had the blessings of the Communist Party of India-Marxist (CPM).

The CPM had led the coalition that was ousted from power in assembly elections last May.

“While they were in power, they gave the sanction for starting new colleges in the cooperative sector. When we opened up further, they say that we have sold education to the private sector”, said Hassan.

Hassan pointed out that the state had been losing close to 20 billion rupees annually as students were forced to go to neighboring states for acquiring professional skills.

He accused the CPM of “acting as agents of colleges in neighboring states and that is why they are opposing the opening up of the professional education sector here”.

There are reports the government has drawn up plans to also open up the health, public works and transport sectors to private parties.