The Kerala Government plans to set up a first-of-its-kind Industrial Park for the manufacture of rubber products. This was announced by state Finance Minister Thomas Isaac while presenting the state Budget for 2019-20.
The Minister said a company will be registered this year itself on the pattern of Cochin International Airport Ltd (CIAL), the first airport built in the country with private participation. A detailed project report has been prepared by Kerala State Industrial Development Corporation (KSIDC). 26% of shares in the proposed company will be held by the state government and the rest by private investors.
Kerala Industrial Infrastructure Development Corporation(KINFRA) has been asked to identify 200 acres of land in Kottayam district, the rubber belt of Kerala, for the project.
Stating that the crisis in the rubber sector can be mitigated only by encouraging value addition to rubber, the Minister said the proposed park will manufacture all rubber products raging from balloon to tyre. Common processing facility for small rubber farmers also will be available in the park.
The Minister said a leading tyre company will be the major investor in the project. He however did not disclose the name of the company.
The Budget also allocated a sum of Rs5 billion towards providing subsidy to rubber farmers to compensate for the fall in rubber prices below Rs150 a kg.