Asset Management Company will also have the brief to negotiate and utilise loans with financial bodies
The Kerala government is readying an Asset Management Company (AMC) which counts on steering in a
good chunk of Rs 1,17,349-crore NRI inflows for infrastructure development.
Kerala has enormous infrastructure needs, and land acquisition for the National Highway alone would need at least Rs 35,000-crore.
“The proposed AMC has got all clearances, including Sebi sanction,” says KM Chandrasekhar, former central cabinet secretary and current vice-chairman, Kerala State Planning Board. “This would be a worthwhile option for NRIs to park their funds in the AMC because it would not only have assured returns, but would also cater to the long-term infrastructure needs of their home-state,” he said.
The AMC would also have the brief to negotiate and utilise loans with financial bodies. The company will categorise projects to short-term, medium-term and long -term. The state is also scouting for a finance expert with sound experience to run the AMC.
“Since Kerala has willfully decided not to compromise on inclusive growth and environmental security, the planners are not particularly worried about the state getting low rank in “Ease of Doing Business Index”,” says G Vijayaraghavan, member, state planning board and founder of India’s first IT park. Kerala had gone as low as 18 among Indian states in the World Bank-assisted study on “Ease of Doing Business” index.
“Our priorities are different. Easy clearances on real estate and environmentally polluting industries are not the be-all of industrialisation. The state’s growth rate is pegged on the start-up revolution and buoyancy in the MSME (medium, small and micro enterprises) segment, since this would ensure inclusive growth that’s light on ecological resources, as well,” he adds.
Three major cities in Kerala, Thiruvananthapuram, Kochi and Kozhikode, are set to have free wi-fi by December.
This is expected to boost internet use and IT-skill sets of the younger population.
An institutional framework will be formed to raise funds for long term investments through Alternate Investment Fund and Infrastructure Investment Trust or Infrastructure Development Fund. The state is likely to take technical assistance from SBI Caps to form sustainable processes for fund raising and management.