Kitex withdraws from Rs 3,500 crore investment plan signed with govt; industry facing difficulties in name of constant inspections, says Sabu Jacob

KOCHI: Kitex has informed to withdraw from Rs 3,500 crore investment plan in protest against constant inspections. Kitex MD Sabu Jacob said they were withdrawing from the MoU signed with the government. The agreement was to start an apparel park and three industrial parks.

Many inspections were conducted in various departments in Kitex for the past one month. Eleven inspections were carried out by various departments. However, nothing illegal was found. The situation in the state is such that the industry is facing hardships by such continuous inspections. Kitex MD said they are not moving ahead with the development plan for these reasons.

Kitex signed a memorandum of understanding with the state government at the Global Investment Summit held in Kochi in 2020. The MoU signed then was a new investment of Rs 3,500 crore. An investment of Rs one lakh crore was signed at the global investment meeting that day. The biggest of these projects was that of Kitex.