Kerala indebted to non-resident Keralites; committed to rehabilitate returnees

Kerala Chief Minister Pinarayi Vijayan.- Picture retrieved from Twitter

Kerala is indebted to the enormous contributions of non-resident Indians in meeting its social and economic development goals, and the government remains committed to uphold their interests as a top priority, the state's chief minister said.

Supplied photo
Kerala Chief Minister Pinarayi Vijayan, during an exclusive interview with Khaleej Times at the Kerala House in New Delhi before embarking on a three-day visit to the UAE, said non-resident Keralites (NRKs) spread across the globe, particularly in the Gulf, have been playing a significant role in propping up the state's economy through their sizeable remittances and also as a key facilitator of the state in its drive for social equality and prosperity.
"We must recognize and admire them also for their varied contributions by way of professional expertise, rich experience, advise and ideas in our momentous mission of rebuilding the state after two devastating floods. I am going to the UAE on a twin-assignment: to reassure NRKs that the government will stand by them to safeguard their interests, and to drum up their support and passionate involvement for a landmark investment platform tailor made to ensure their crucial role in development," the chief minister said.
The Kerala chief, who will be formally launching the new 'Overseas Keralites Investment and Holding Ltd' company in Dubai, said the investments of the NRKs would have full governmental guarantee. The umbrella NRK investment company will pool funds exclusively from NRKs and carry out projects through special purpose vehicles or subsidiaries. Projects to be undertaken include NRI townships and those in other sectors, especially in infrastructure development, he explained.
The chief minister also assured that the government would take more effective initiatives to protect the interests of all existing and prospective investors. One proposal under its serious consideration is to hold special adalats at regular intervals of three to six months to redress investors' complaints and address bureaucratic snags. The proposed high-power redressal mechanism, directly under the chief minister, will involve ministers and bureaucrats to ensure swift one-stop solutions to all slow-moving projects or those facing delays due to various procedural or policy reasons, Vijayan said.
The stalwart Communist party leader, who has been in power for more than three years, said his government is also aware of the severity of the impact of the global slowdown on job prospects of non-resident Indians across the globe, and pledged to draw up an urgent action plan to rehabilitate those returning home due to job losses. "We are really concerned about the ramifications of the global slowdown on NRKs and are determined to streamline a mechanism to ensure hassle-free rehabilitation of the returnees."
In a free-wheeling and candid conversation, the pragmatic Communist leader dwelt on his governments performance track record, stringent clamp down on corruption at all levels, steps to curb police custodial atrocities, the proposed Kerala Airline's feasibility study, NRK pension scheme, the impending launch of eagerly-awaited Kerala Bank through the merger of cooperative banks, controversies surrounding auditing at KIIFB (Kerala Infrastructure Investment Fund Board), the game-changing Lok Kerala Sabha initiative, Pravasi Chitty and welfare initiatives in the offing.
Appearing confident and relaxed in the wake of a resounding vote of confidence on his administration by capturing an opposition stronghold in a recent assembly by-election, Vijayan said the victory in Pala is not by default as his detractors are trying to portray but signals the emerging ground realty. "It is a clear verdict --- just as in the case of two other previous by-elections --- from the electorate on the performance of the ruling Left Democratic Front, which has been unfailingly delivering on all its promises. In three and half years, we could fulfill 550 out of 600 tasks we had committed in our election manifesto. By the fourth year, we will surpass all those goals and will have to come up with new welfare and development targets."
On the humiliating drubbing the LFD received in the recent Lok Sabha by just scoring one out of 20 seats, Vijayan said it was not a verdict on his government's performance but a consolidation of votes in favour of a possible secular alternative government at the centre to replace the BJP rule.
"Congress leaders projected Rahul Gandhi, who contested from Wayanad, as the future prime minister.  Hence, there was a feeling among voters who oppose BJP's divisive policies that the need of the hour was to strengthen the Congress Party.  The UDF benefitted from this feeling. I must say, now the political situation has totally changed."  
He said the Supreme Court's order for the demolition of four residential buildings built in violation of Coastal Regulation Zone norms in Kochi's Maradu area should serve as a warning to those property developers who flout the law. "The government is empathetic to the plight of the hapless flat owners and will do all within its capacity to help them."
Excerpts from the interview that dealt at length on a wide range of consequential issues and topics relevant to NRIs are as follows:
Khaleej Times: Every government promises the moon to the NRIs, but nothing seems to happen on the ground. In the light of the thousands of Malayalis returning home after losing jobs in the Middle East, what has your government done to help them rebuild life?
The Chief Minister: The whole of Kerala is indebted to the immeasurable contributions of non-resident Indians to the state's social and economic development. Therefore, the government remains firmly committed to uphold the interests of Non-Resident Keralites as a top priority. For the past several decades, NRKs from across the globe, particularly from the Gulf, have been playing a significant role by propping up the state's economy through their sizeable remittances and also as facilitators and accelerators of social equality and prosperity. It will be a glaring omission if we do not duly recognize their varied contributions by way of professional expertise, rich experience, advise and ideas in our momentous mission of rebuilding the state after two devastating floods.
I am going to the UAE on a twin-assignment: to reassure NRKs that the government will stand by them to safeguard their interests, and to drum up their support and passionate involvement for a landmark investment platform tailormade to facilitate their crucial role in development.
We are also determined to address the issue of unemployment among the returning migrants by setting up cooperatives. The LDF government has demonstrated its commitment and concern to NRKs welfare.  As soon as the LFD government assumed office, we enhanced the monthly pension sum of NRKs to Rs2,000 from Rs500.  Pravasi Chitty is yet another pragmatic initiative to channelize NRKs savings towards the development of the state.  In the light of an expected wave of reverse migration, the government has put in place a scheme to rehabilitate returnees, mainly those from the Gulf countries. We will be providing interest subsidy for returning migrants who borrow from banks to set up small ventures.
A new dividend scheme devised for NRKs is another welfare measure.  Kerala Pravasi Welfare Fund Board has initiated this scheme and the government has approved it.  Those who deposit their savings in this scheme will get 10 per cent monthly dividend after three years.  We will be launching this scheme soon.
Khaleej Times: Kerala's new investment vehicle, the Kerala Infrastructure Investment Fund Board (KIIFB), seems to be a runaway success. Can you explain its performance so far?
The Chief Minister:  I must say the KIIFB is a prudent mechanism of the Government of Kerala to source funds outside of the state's budget.  A small state like Kerala, which remains industrially backward, has financial constraints to meet its development agenda and aspirations of its people through its annual budget.  Under the normal norms, the state is permitted to borrow only three per cent of the state's GDP.  When Kerala was hit by the flood havoc in 2018, the government requested the Federal Government to raise the limit of borrowing to three per cent as part of its drive to mobile resources for rebuilding the state.    However, the Federal Government did not heed the request. In the given situation, the KIIFB is a practical solution to the development challenges of Kerala and, I must admit that it has now emerged as significant source of funds for Kerala's economic development.
Our target is to implement infrastructure projects worth Rs500 billion during the government's five-year tenure.  As of now, the KIIFB has approved projects worth Rs460 billion.  Work of projects worth Rs100 billion has begun.  Of the 460 billion worth of projects already approved, 558 projects worth Rs3400 billion are for infrastructure development.  Besides, 140 billion has been set aside exclusively for industrial infrastructure. The KIIFB has also approved projects worth Rs23 billion for public education. Under this initiative, schools are being upgraded to international standards. 
Khaleej Times: Why has your government taken an adamant stance against an audit of the KIIFB accounts by the Comptroller and Auditor General (CAG)?
The Chief Minister: The allegation of the opposition parties that the government is not allowing the audit of the KIIFB accounts by the CAG is totally baseless and contrary to facts that the media can verify.  As per CAG Act 14 (1) the KIIFB accounts (all receipts and expenditure) are being audited by the CAG.  It is a comprehensive auditing.  CAG has done it in 2018 and 2019.  The CAG has been accessible to files pertaining to its income and expenditure.  To my knowledge, the CAG has not made any such complaints.  The CAG is free to do its audit as per the norms.   
I can assure you that the KIIFB has been functioning in very transparent manner. All the projects undertaken by it are either approved by the Cabinet or announced in the Legislative Assembly.  Its source of funds is from Indian and international agencies. As most premier rating agencies have given high rating for the KIIFB, there are no constraints to source funds.  Its listing in the London Stock Exchange is an international recognition for its transparent and efficient functioning.
Though the KIIFB is being controlled by the state government, it has seven independent members on the Board of Directors, who enjoy international reputation in the field of finance.  Two of them are former deputy governors of the Reserve Bank of India. A former CAG of India, Vinod Rai, is also on the board.
As you may be aware, the main opposition party, Congress, was quite skeptical about the KIIFB's performance in the beginning.  However, I believe all their doubts have now been cleared and all allegations have been disproved.  Congress leaders have even described KIIFB's strategy as utopian. Their only concern now is that KIIFB's borrowing from financial agencies would be a burden to the state in the future.  I must say, the KIIFB could easily repay all its borrowings in a time-bound manner using the state's government's contribution. We are allocating a certain percentage of Motor Vehicle Tax as well as a levy on petrol to the KIIFB annually.  These two contributions will be enough to meet its liabilities.  What is most significant is that we could speed up development projects in a time-bound manner without any fiscal constraints.
Khaleej Times: What is the objective of your latest visit to the UAE?  Can NRKs expect more initiatives for their welfare from your government?
The Chief Minister: I am going to the UAE on a twin-assignment-to reassure NRKs that the government will stand by them to safeguard their interests, and to drum up their support for, and passionate involvement in a landmark investment platform tailormade to facilitate their crucial role in development.
Tomorrow, we will formally launch the new 'Overseas Keralites Investment and Holding Ltd' company in Dubai. The umbrella investment company will pool funds exclusively from NRKs and carry out projects through special purpose vehicles or subsidiaries. Projects to be undertaken include NRI townships and those in other sectors, especially in infrastructure development. All investments of the NRKs will have full governmental guarantee.
The formation of Overseas Keralites Investment and Holding Ltd is in the wake of a proposal by Lok Kerala Sabha, a fist of its kind initiative of the government to channelize the expertise, experience and savings of NRKs for Kerala's economic development. LKS is a platform for expatriates to articulate their views and ideas on the state's development.   The forum also serves as a platform to discuss their grievances.  In the first LKS held in Thiruvananthapurm in January 2018, seven standing committees on various topics were constituted.  And the government received various valuable suggestions.  One of the suggestions was to set up a holding company to harness investments from expatriates for development projects. The Overseas Keralites Investment and Holding Company has been formed as per the suggestions.  The company will take up infrastructure projects with the participation of NRKs.
As you know, the Federal Government has given its nod for extending Chennai-Bangalore Industrial Corridor to Kochi via Coimbatore. It will be a great opportunity for investors for setting up manufacturing units along the corridor between Kochi and Palakkad.
My visit is to meet Keralites with an appeal to earnestly participate in the new venture in which NRKs will have majority stake as government intends to restrict its stake to 26 per cent.
Khaleej Times: There are several instances of NRK investors facing hurdles and delays with their projects. There have been instances of committing suicide by hapless investors who have been left in the lurch with their projects stalled halfway due to bureaucratic snags and time-consuming procedures. How is your government addressing this perennial issue and reinfuse confidence in investors?
The Chief Minister: I can assure you that the government is determined to be more liberal in its policies by introducing several investor-friendly reforms to protect the interests of all existing and prospective investors. One proposal under our serious consideration is to hold special adalats at regular intervals of three to six months to redress investors' complaints and address bureaucratic snags. The proposed high-power redressal mechanism, directly under the chief minister, will involve ministers and bureaucrats to ensure swift one-stop solutions to all slow-moving or delayed projects.
Khaleej Times: You have always maintained any by-election is a verdict on the incumbent government. If the recent victory in the Pala constituency is on one such example, so should be the humiliating defeat in the last parliament elections. Your opinion. Pala is a constituency that had returned a Kerala Congress stalwart for over 50 years. Why do you think people had a rethink this time? What does the Pala victory signify?
The Chief Minister: Our victory in Pala is not by default as the opposition UDF is trying to portray but signals the emerging ground realty. It is a clear verdict --- just as in the case of two other previous by-elections --- from the electorate on the sterling performance of the ruling LDF, which has been unfailingly delivering on all its promises.  I have amply made it clear my view that if the polls are for Assembly, people would judge the incumbent government's performance.  No doubt about it.  And if the poll is for the Parliament, the voters will take into account the national situation and national politics.  In the case of Pala by-election, people evaluated the LDF government's performance.  While our campaign focused on the government's achievements, opposition parties, including the BJP, sought vote against the government.  Naturally, people assessed the government's performance and voted for its performance.  The victory will be a great confident-booster for the government as it gets ready to face the coming by-polls in five other constituencies.
To answer the second part of your question on LDF's defeat in the Lok Sabha polls, I must emphasize that it is not at all a verdict the LDF government's performance but a consolidation of votes in favour of a possible secular alternative government at the centre to replace the BJP rule.
Congress leaders projected Rahul Gandhi, who contested from Wayanad, as the future prime minister.  Hence, there was feeling among voters who oppose BJP's divisive policies that the need of the hour was to strengthen Congress Party.  The UDF benefitted from this feeling. I must say, now the political situation has totally changed.  Those people, who supported the Congress-led front, now feel that they were hoodwinked by the UDF propaganda.  In many states senior Congress leaders and legislators are fleeing the party to join the BJP.  You are aware what happened in Karnataka, our neighbouring state, where Congress was in power. Congress MLAs crossed to BJP fold, paving way for that party to form a government. This trend is visible in other states too.
Khaleej Times: A bridge that becomes useless within three years after its construction. Hundreds of apartment blocks that flout environmental rules. Roads that become useless after every monsoon. Why is corruption so endemic in Kerala society? Do you sincerely see a cure for the malady?
The Chief Minister: I agree, corruption was rampant during the rule of the UDF government.  I need not elaborate.  In fact, 2016 Assembly result was a verdict against corruption.  Corruption was rampant across all high levels during the UDF regime, and ministers were no exception.  As you rightly pointed out, the Palarivattom flyover was a monumental example of corruption.  After the LDF assumed office in 2016, we have taken stringent measures to contain corruption.  I can assert that corruption at ministers' level has stopped. The media, most of them are fond of blindly attacking the government, could not even raise any allegation against any of our ministers during last three-and-a-half years. We are making all efforts to eradicate corruption at lower strata too.
Khaleej Times: The police force under you has faced serious allegations, including custodial deaths. Why are police still so inhuman?
The Chief Minister: The government has taken stringent action against the culprits whenever custodial deaths happened.  There are two cases of custodial deaths during the last three-and-a-half years. In both cases the police registered murder cases against the accused under 302 IPC.  In one such case, we have handed over the enquiry to the CBI as per the request from the victim's family.  In another case, the High Court declined the plea for a CBI inquiry, expressing satisfaction about the state police investigation.
I want to categorically state that we don't tolerate third-degree method of interrogation whatever be the crime.  You can compare our action with the previous Congress governments.  Cases should be proved with scientific legal methods.  In fact, the government has given a free hand to the investigating agency to detect and prove crimes scientifically.  Generally, incidents of third-degree method of interrogation have been reduced drastically thanks to the government's strong stance.
Khaleej Times: In the light of the last two floods and landslides, allegations galore that Kerala still has not learned its lessons. Rampant quarrying is seen as one of the main reasons for the disasters. Why does the state turn a blind eye to unchecked mining? Can you explain Kerala's environmental action plan to stop a repeatof apocalyptic floods and landslides?
The Chief Minister: The government has a crystal-clear policy on the protection of our environment. We have designed the Rebuild Kerala Development Programme only after taking into account all environmental issues and studying its impact on climate change.  In wake of the recent severe floods and landslides, the government has decided to conduct a scientific study on our eco-system in ecologically fragile areas and our land utilization.  An expert committee has been constituted for the study and we expect the report in three months.  The committee will hear views of experts in the country and outside in field of ecology and climate change.  Your apprehension on quarrying also will be addressed by the expert committee.
Room for River is a Dutch concept and it has been successfully implemented in the Netherlands, a country lying below the sea-level. The Room for River focuses on measures preventing floods by creating more space for rainwater.  We have to protect and increase the depth and width of our rivers to contain floods.  Also, we have to create more channels for the free flow of water and protect flood plains. Low-lying Kuttanad areas in Kerala have many similarities with the Netherlands.  We have already decided to carry out flood prevention measures emulating the Netherlands model.  The government is planning such measures throughout Kerala to ward off flood disasters.  We know that most of natural rainwater drains in our rural areas have been disappeared for various reasons.  We must reclaim such drains and channels.
The Supreme Court's order for the demolition of four residential buildings built in violation of Coastal Regulation Zone norms in Kochi's Maradu area must serve as a warning to those property developers who flouted the law. However, the government is empathetic to the plight of the hapless flat owners and will do all it can to help them.
Khaleej Times: What is the progress of Kerala Bank? How is it going to be different from others?
The Chief Minister: The process of constituting the proposed Kerala Bank through the merger of District Cooperative Banks and the State Cooperative Bank is a laborious task involving so many clearances from different agencies, mainly from the RBI.  It is now in the final stage, and I hope that we will be able to formally launch Kerala Bank in a couple of months.  The bank is expected to play a pivotal role in Kerala's economic growth. 
Khaleej Times: Is the Kerala Airline dream a closed chapter?
The Chief Minister:  We have to make an in-depth study about its viability before taking a final decision.
Khaleej Times: After nearly three and a half years in power, how do you rate your administration-excellent, good or average? How do you justify?
The Chief Minister:  It is up to the people to rate our performance. What I can confirm to you is that we have implemented most of the promises we made in our manifesto.  While, most political parties after getting elected to power ignore or discard their manifestos, the LDF government has been earnest in implementing all its pledges in letter and spirit.  For the first time in the state, we presented a progress report before the people on completion of every year. There were 600 promises in the LDF manifesto, and we implemented more than 500 of them during the last three years. We are confident that the remaining promises also will be met in the coming months.  What is import is that we have implemented many things that did not include in the manifesto during the last three years.
 issacjohn@khaleejtimes.com
 

• India

Issac John

issacjohn@khaleejtimes.com