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Kerala: Big blow for ‘Hub and Spoke’, CAG calls it a failure

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Thiruvananthapuram: The much publicised ‘hub and spoke’ Kerala model for IT development has turned a cropper, a report of the Comptroller and Auditor General (CAG) has said.

It was learnt from the report, which was tabled in Kerala assembly on Monday (June 29) and made available on Thursday, that 80.76 percent of the built up area at seven locations remained unallocated as the land acquired was mainly in remote localities and not suitable for IT purposes.

Speaking to IANS on Thursday, Kerala IT secretary P.H. Kurian said that they are doing their best to showcase these locations to prospective investors.

n6 hub and spoke
The CAG audit reports pointed out that it was as per the IT Policy 2007 that envisaged creation of a ‘hub and spoke model’ of IT development with two large IT parks at Thiruvananthapuram and Kochi functioning as the hub for smaller IT parks in other parts of the state.

The CAG report said that KSITL acquired 402.65 acres of land at seven different places in the state to set up the ‘hub and spoke’ model for IT development.

The IT Policy 2007 came when V.S. Achuthanandan-ruled Left government was in office from 2006-11.

Incidentally, it was the state-owned Kerala State Information Technology Infrastructure Limited (KSITL), which was responsible for the development of IT cities in the public private partnership model and had set up these new IT parks under the ‘hub and spoke’ model.

“The land acquired was mainly in remote localities and was not suitable for IT purpose. As a result 320.66 acres of land was not allotted till-November 2014,” said the CAG report.

Incidentally, the state government incurred a cost of Rs.229.88 crore for acquisition of land and for developing infrastructure facilities in these seven locations.

The seven locations include Kundara (Kollam district),Ambalappuzha and Cherthala (both in Alappuzha district), Koratty (Ernakulam), Kozhikode, Kannur and Kasargod.

Of these, at Amabalapuzha, Kannur and Kasargod, the land has been acquired, while at the other places, the percentage of idling of land was as high as 77.34 percent.

(IANS)

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A Chit Fund Scheme By KSFE Will Be Inaugurated By CM In UAE Next Month

Programme enables person who joins to complete every process online

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A Chit Fund Scheme By KSFE Will Be Inaugurated By CM In UAE Next Month
A Chit Fund Scheme By KSFE Will Be Inaugurated By CM In UAE Next Month, flickr

The Kerala government’s dream programme to raise money from its diaspora through “chitties”, or a chit fund scheme launched by state-run Kerala State Financial Enterprise (KSFE), will be inaugurated by Chief Minister Pinarayi Vijayan in UAE next month, Finance Minister Thomas Issac said on Monday.

In an interaction with editors of the Kerala media, he said all the requisite permissions have been obtained from all authorities.

“This programme was initiated by the previous UDF government and the permission to go ahead came at its fag end. After we came to power, we took this forward and all permissions and sanctions are ready and all those diaspora who wish to participate in it can join,” said Issac.

“On June 12, Vijayan will launch the registration process and all those who wish to enter the scheme can register in the KSFE site. Once Vijayan launches the programme in UAE, next month, the chitty scheme will be open,” he added.

Coins
Coins, Pixabay

KSFE Chairman Philipose Thomas said to start with, those who wish to participate can contribute monthly as low as Rs 3,000 to a high of Rs 25,000.

“The duration of the chitty given the nature of the job scenario in the Middle East is kept from a minimum of 30 months to a maximum of 60 months. Once a diaspora member joins he can pay the monthly contribution through his non-resident ordinary account and at the end of the chitty term, the payment will be made to his non-resident ordinary account,” he said.

“The programme enables each person who joins the chitty to complete every process online, which includes even bidding, and at the end of the period, the money will be credited into their bank account. Every aspect of the online process has been tested,” said Unni Krishnan who heads the technology division of the chitty scheme.

The entire programme is being handled by the Kerala Infrastructure Investment Fund Board, a government-owned financial institution meant to mobilize funds for infrastructure development outside state revenue.

Its Chief Executive K.M. Abraham, who is a former state Chief Secretary, said that no one needs to donate anything, but only to join a chitty where the money collected will be deposited in bonds and used for the state’s development needs.

“At the end of the chitty, it’s a win-win situation for both the person who joined the chitty and for the state government,” he added.

Kerala CM, Pinarayi Vijayan with PM Narendra Modi
Kerala CM, Pinarayi Vijayan with PM Narendra Modi, flickr

Also read: Reliance home finance celebrates 46 growth in income

According to the latest study report on the diaspora, 90 per cent of 23.63 lakh Keralites aboard are in the various Middle East countries, of which UAE accounts for 38.7 per cent, followed by Saudi Arabia with 25.2 per cent. (IANS)