The Kerala government’s Global Investor Summit (GIM) held in the month of January this year had seen investment offers worth about Rs 26,000 crore. Concrete proposals in Kerala’s core sectors, including IT and tourism, had been the highlight of the GIM, besides the MoUs for public sector projects.

Kerala’s chief minister A K Antony had declared 2003-2004 as investment year. Setting an example for other states, the government also asserted that it would take proper follow-up action to see that the success rate of the implementation of MoUs is high. Normally, in Kerala the MoUs are valid for six months and in case further progress is not achieved within the six months, the MoU stands cancelled. If there is progress, the MoU is renewed.

The meet had seen a total of 96 MoUs being signed, having an estimated capital investment of Rs 11,159 crore. KSIDC (Kerala State Industrial Development Corporation Ltd.), the government agency for industrial promotion, financing and facilitating, had signed four MoUs with private promoters as far as tourism projects (worth around Rs 145 crore) were concerned.

Brief particulars on the tourism projects as they stand today:-

a) Heritage resort at Munnar - MoU was signed with E M Najeeb, director, Air Travel Enterprises Pvt Ltd, Trivandrum. Land has been purchased for this project and the designs have been completed. The project needs certain clearances and a proper approach road to the site. The cost is estimated at Rs 15 crore. The scheme will have independent cottages in the range of 40 to 50.

b) Resort complex at Vagamon - MoU was signed for a holistic tourism and education project. The cost was estimated at Rs 50 crore and MoU was signed with Inheritance India, Mumbai. KSIDC feels that further time may be required to take forward this proposal. In the meanwhile, they have taken steps for implementing another tourism resort at Vagamon having an estimated cost of Rs three crore, with a Kerala based entrepreneur.

c) Oceanarium at Kovalam - MoU was signed with Galfar Group. The group has already taken over an ITDC property at Kovalam and is renovating the property to start a five-star resort. The oceanarium is also planned in the same location. The project cost estimate is being finalised. The project might also need Coastal Regulation Zone (CRZ) clearance for taking up certain civil constructions at the beach.

d) Mahnami Hotels & Resorts Pvt Ltd - This Resort is to be set up at Nedumbassery, Cochin and the site is near the international airport. The promoter is an NRI, based in Bahrain and the project cost is estimated at Rs 60 crore. 24 acres of land have already been purchased for the resort and the designs have been completed.

All the above projects are resorts that are targeted at international tourists and the upper segment domestic tourists who view Kerala as an attractive destination. “Once completed, we are sure, these projects will attract more tourists to Kerala and will facilitate higher tourist traffic to the state,” says Thomas Kutty, deputy general manager (projects), KSIDC.

“We have been following the system of signing MoUs for new projects, once a prima-facie viability is known on the project proposal. The system of signing MoUs and working to achieve the desired target has been followed in our corporation since the last two decades. We also understand that many other states in the country also follow the same practice and it may be good as the system ensures setting a target and then working towards achieving it,” adds Kutty.