Kerala Gets A MoUe On

Vyas Sivanand - Bangalore

Four Agreements Worth Over Rs 125 Crore Signed

The Kerala government’s efforts at attracting hospitality investment appears to have paid off. Four Memorandum of Understandings (MoU) valued around Rs 125 crore have been signed since chief minister A K Anthony launched his ‘investment year’ through a summit earlier this year. One of Anthony’s key focus area is hospitality.

On behalf of the government, the Kerala State Industrial Development Corporation Ltd (KSIDC), the state agency responsible for industrial promotion, financing and facilitating signed the four MoUs with private promoters. “Once completed, we are sure, the projects will attract more tourists to Kerala and will facilitate higher tourist traffic to the state,” says Thomas Kutty, deputy general manager (projects), KSIDC.

It is believed that the four projects may be positioned to cater to the upper segment of domestic and international travellers. The current status of the projects is as follows:

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

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

3) Oceanarium at Kovalam - MoU was signed with Galfar Group which has already taken over an ITDC property at Kovalam. That property is currently being renovated to be positioned as a five-star resort. The oceanarium is also planned at 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 construction at the beach.

4) Resort at Nedumbassery - MoU signed with Mahnami Hotels & Resorts Pvt Ltd for a resort to be set up at Nedumbassery, Kochi. The site is near the international airport. The promoter is an NRI, based in Bahrain. Twenty four acres have already been purchased for the resort and the design has been completed. Project cost is estimated at Rs 60 crore.

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. Commented Kutty on the hospitality MoUs signed, “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 for the last two decades since it ensures setting a target and then working towards achieving it.”.

In all, Kerala has signed 96 MoU’s estimated at Rs 11,159 crore.