Kitex Group withdraws projects worth Rs 3,500 crore in Kerala; claims harassment by state govt officials

Kochi, July 01: In a major blow to the CPM-led Kerala government, the biggest private-sector employer Ketex announced the withdrawal of an Rs.3,500 crore investment project from the state alleging incessant harassment by officials of the state government.

 

Kitex MD and Chairman, Sabu Jacob announced that it is scrapping the planned projects to open an apparel park in Kochi and establish industry parks at Thiruvananthapuram, Kochi, and Palakkad.

 

He said, the decision to scrap the project has been taken as I am fed up with the continuous harassment at the hands of the authorities.

 

 

He alleged that three units - Departments of labor, factories, and boilers and even a team led by the district collector has been conducting searches on the premises citing drawbacks and thus tarnishing the company and demoralizing its employees.

 

He said, “On Tuesday, it was the turn of the pollution control board. Each team has 40 to 50 officers and searches every nook and corner of the company. They grill employees for hours but do not reveal what violations they have found. The Kitex factory has been functioning here for the past 26 years, and we have 11,000 employees. They arrive with a huge team violating Covid protocols and bring camera teams of online media.”

 

He further added that "Whoever invests in Kerala will lose peace of mind and will be driven to suicide," It should be noted that Kitex Garments, the world’s second-largest manufacturer of kids apparel.

 

Sabu further warned that if the situation continues, Kerala will turn into a graveyard of industries. "There are states that provide the PF and ESI share of the employees. Some states even offer Rs 5,000 salary for the employees for five years. We don't demand any benefits from the government. At least they can stop harassing us. If the situation continues, Kerala will turn into a graveyard of industries," Sabu Jacob stated. 

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