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Current Affairs

Kitex group and Kerala government tussle

Date: 14 July 2021 Tags: Miscellaneous

Issue

Kitex group chairman Sabu M Jacob has pledged to invest Rs 1,000 crore in a Textile Park in Warangal, Telangana.

 

Background

Recently, the Kitex group had withdrawn Rs 3,000 crore investments from Kerala citing vendetta by the state government against them.

 

Details

The Kitex group is the largest kids’ apparel manufacturer domestically. It has the potential to create more than 35,000 jobs through its garments units.

 

Start of issue

  • The issue started when MD Sabu Jacob said that government agencies such as labour department and pollution control department raided their units to harass him.

  • He also said that it was due to vendetta politics by some of the politicians. They are alleged to have keen on closing his plants using silly reasons.

 

Government stand

  • The Kerala government has claimed that the raids were conducted based on instructions of Kerala High Court, as pleas were filed.

  • The complaints on the Kitex group include mistreatment of labourers and causing pollution by discharging waste into the river.

 

Post inspections

  • The Kitex group had committed Rs 3,000 crore investment in the state during the ASCEND summit in January 2020.

  • Under the project, industrial and apparel parks would have been set up in Palakkad, Thiruvananthapuram and Kochi.

  • Jacob has blamed the government for his decision and said he was forced to take back the investment as the state lacked business conductive atmosphere.

 

Political reasons

  • The Kitex group had formed the Twenty-20 political group that had contested elections in several parts of Kuttanad.

  • The outfit failed to win any seats in assembly polls but dented prospects of many candidates from UDF and LDF. This may have been a reason for animosity.