Finance Minister K.N. Balagopal began his Budget speech painting a rosy picture of Kerala, which according to him is on the cusp of becoming a ‘sunrise’ economy with futuristic strides in technology, an exponential rise in demand and the resultant economic development. As far as the Industries sector is concerned, the Budget’s focus is on maintaining continuity with the Left Democratic Front (LDF) government’s recent initiatives to change long held negative perceptions about the investment climate in the State.
Holding up the achievements under the entrepreneurship year scheme, under which 1,40,000 Medium, Small and Micro Enterprises (MSMEs) were started, the opening of branches of multinational firms as well as new private industrial parks, and the proposals under the Make in Kerala initiative, he made a pitch for a turnaround in the industries sector. A total amount of ₹1,729.13 crore is earmarked for Industry, IT and Minerals Sector, out of which ₹773.09 will be for medium and large industries.
An amount of ₹127.50 crore is earmarked for the Kerala State Industrial Development Corporation (KSIDC) with the objective of promoting industries and facilitating investments, while another ₹6 crore is earmarked for the Innovation Acceleration Scheme for the startup support initiatives. An amount of ₹58.50 crore is earmarked for Entrepreneur Support Scheme integrating all self-employment schemes. An amount of ₹43 crore is allocated to facilitate the setting up of new enterprises across the State with 20% of the beneficiaries under this scheme being women.
Mr.Balagopal expressed hope that the government will be able to provide permits to around 25 new private industrial parks in the coming year, in addition to the 16 already issued and 8 under consideration. As a support mechanism for the entrepreneurship year scheme, an amount of ₹18.02 crore is earmarked for the special package for providing assistance to functional MSMEs and for scaling up of existing enterprises from micro to small and from small to medium. A package will be implemented for the rejuvenation and revival of public sector units. An amount of ₹ 279.10 crore is set apart for the completion of ongoing projects.
The IT sector’s allocation, included in the allocation for the Industries sector, is ₹ 507.14 crore. An amount of ₹117.18 crore is earmarked for the various activities of Kerala State Information Technology Mission (KSITM), which executes the KFON Internet project. An amount of ₹90.52 crore is set apart for the various activities of the Kerala Startup Mission, said Mr.Balagopal while highlighting the growth in the startup sector.
He said that the ‘Work Near Home’ initiative announced in the previous Budget, offering co-working spaces, has become operational, with several such spaces opening up in small towns and villages. An amount of ₹10 crore is earmarked for the project of extending such centres all over the State. The State government, which has formulated a policy to attract new entrepreneurs in the fields of digital entertainment including Animation, Visual effects, Gaming, and Comics, will provide assistance to entrepreneurs in this sector.
An amount of ₹46.10 crore has already been invested through the Fund of Funds system formulated by the State Government to accelerate startup investments in Kerala. The investment value has grown 3.9 times as per the current market value, said Mr.Balagopal. Considering the potential of this type of investment, ₹20 crore is earmarked as Fund of Funds.
The proposal for land pooling in the State Budget for 2024-25 will fuel the growth of Kerala’s industrial sector, Industries Minister P.Rajeeve has said. The Budget envisages expediting the granting of long leases and land clearances to address the issue of delay in obtaining clearances for land for industrial purposes.
The land pooling system will ensure better land prices and well as profit from the projects for private individuals, he said. Mr.Rajeeve said that the allocations in the Budget are an indication of the State government’s commitment to the traditional industries. The Budget announcements will strengthen Kerala’s investment-friendly status as well as the traditional and public sectors despite the Union government’s discriminatory attitude towards the State, he said.
