The Cabinet of the southern Indian state of Kerala Wednesday approved a comprehensive rehabilitation plan for the migrants returning from Saudi Arabia after the strict enforcement of Nitaqat (naturalization) law since Monday.

Under the plan, the state’s departments of industries, finance, agriculture, dairy, tourism, fisheries and labor will assist the returnees to set up small enterprises with capital investment of up to two million rupees and labor collectives catering to the local market.

“So far, there is no sudden influx of return migrants as feared and there’s no cause for worry,” Oommen Chandy, the state’s chief minister who also chaired a meeting of Norka-ROOTS, the implementing agency of the Non-Resident Indian Affairs (Norka) department, told reporters here. “Some 1300 have returned from the Kingdom since April.”

Besides technical assistance, the government agencies will arrange bank loans and extend 10 percent subsidy on the capital investment and five percent subsidy on the interest for the entire repayment period of up to 15 years with the federal assistance.

The government will also encourage formation of labor contract societies in the state where some two million migrants from other parts of India replace the Gulf-bound emigrants doing all kinds of labor.

The state, which heavily depends on overseas remittances for its economic sustenance, expects at least 1000 entrepreneurs to come up initially to start enterprises, especially in precision farming, animal husbandry and services.

It also hopes to send some of them back to other Gulf destinations with the help of the Gulf-based billionaire businessmen from the region. The job portals of Norka-ROOTS and Overseas Development and Employment Promotion Consultants (ODEPC) will accept registrations.

“The Kingdom has done a great favor by heeding our request not to ban them from working in other GCC countries. So they can find jobs elsewhere,” he said. “We will soon be holding a meeting of the Gulf-based entrepreneurs. Already, we have had one round of sitting with these business houses.”

The meeting that decided to implement the Norka Department Project for Return Emigrants (NDPRE) immediately also set apart Rs100mn for the project initially. The Canara Bank has agreed to cooperate with the project by extending long-term loans.

Small groups of returnees can also start rent-a-car services and cooperative societies for various businesses. Societies of five returnees each will get interest-free loans from Kerala Financial Corporation under the Kerala State Entrepreneurship Development Mission.

Kochi-based Cheraman Financial Services Corporation, India’s first Islamic non-banking finance company, will also offer interest-free loans for viable projects.

The state plans to convene a meeting of the State Level Bankers Committee to enlist the support of the commercial banks which are flush with NRI funds worth 755.8bn as of June 30.

Cooperatives will be formed for starting small shopping malls, restaurants, catering units and dry-wash units. Facilities will be made for those with special skills learned from the Gulf to use them in Kerala.

Chandy said that so far about 13,000 Malayalis had returned from Saudi Arabia. All Malayalis who are being forced to return are being provided free air tickets.

The state is giving free tickets to those who are stranded in the Kingdom for not being able to pay for their travel after applying for the exit pass. It plans to charter flights on Nov. 20 if more than 200 people are still remaining to be airlifted.