THIRUVANANTHAPURAM: Anticipating large-scale ‘reverse migration’ from the Gulf in the wake of the global meltdown, Kerala’s Left Democratic Front (LDF) government has announced special schemes to support repatriates.
The budget 2009-10 that Finance Minister T.M. Thomas Isaac presented in the state assembly yesterday includes a Rs.1 billion (Rs.100 crores) special package to help Gulf returnees set up small and medium enterprises.
The budget also proposes to allocate Rs.100 million to the recently set up Pravasi Welfare Fund to help nonresident Malayalis who have not completed two years of employment abroad but are returning because of the economic crisis. A special arrangement would be made to register Gulf returnees.
“This is basically for those who have spent a lot of money to go abroad, and as the first step, we will have a registry of those returning and the money will be allocated after studying their needs,” said Isaac.
Funds would be made available for the returnees to set up SMEs through the state-owned Kerala Financial Corporation (KFC). “It has come to a stage where no business can be successful by taking loans at interest rates of 15-16 percent. KFC will work out suitable packages,” he said.
He said the government would also consider on how the loans that the returning Diaspora has already availed of will be treated. “It will be looked into with due consideration,” he told reporters after the budget presentation.
The budget proposes to provide all families below the poverty line the ration rice at two rupees a kilo. All persons above 65 years of age belonging to families below the poverty line will get an allowance amount, which is to be decided. Isaac’s fourth budget also proposes no new taxes.
Besides the welfare programs, Isaac announced a Rs.100 billion stimulus package to be spent directly by government and quasigovernment organizations for infrastructure development through loan or grant.
The most important component in this are the schemes for which new administrative sanction would be given in 2009-10 amounting to Rs.50 billion for water supply, irrigation and public works. Another Rs.50 billion would be through a housing scheme and direct investment through public sector organizations, promotion agencies for industries, IT and tourism and quasi-government organizations like KFC, Roads and Bridges Corporation and the Housing Board. A public investment of more than Rs.40 billion is envisaged for expansion and diversification of the state PSUs, joint ventures with the central government and direct investment of central PSUs.
It is targeted to achieve an investment of another Rs.100 billion in association with Kerala State Industrial development Corporation, Kerala Infrastructure Development Corporation (KINFRA) and IT Infrastructure Company and Housing Board. Of this, projects worth at least Rs50bn would be initiated within a year.
The government plans to approve private investment proposals to the tune of Rs.200 billion during the period. Projects worth Rs.15 billion have been declared for the northern Malabar region alone. The projects include 98 bridges, 108 buildings and 205 roads. “The important aspect of the Malabar package is to improve tourist centers. Importance is given to development of Kannur Airport and Beypore-Azheekkal ports,” the minister said.
The budget proposes a Venture Capital Fund of Rs1bn to support setting up of innovative small and medium industries. The fund will be open for subscription to nonresident Keralites as well. Professionally managed by a commercial bank, the fund will have Rs.100 million as the government equity.
