Pravasi trust calls for tapping NRI savings for Kerala’s growth
In its memorandum to Chief Minister V.D. Satheesan, the trust suggests raising funds from NRKs for the proposed high-speed railway between Thiruvananthapuram and Kasaragod through a secured, redeemable and tax-free non-convertible bond
The Pravasi Bandhu Welfare Trust, based in the UAE, has urged the Kerala government to utilize the savings, skills, and business networks of Non-Resident Keralites (NRKs) to boost economic growth and create jobs. Trust chairman K.V. Shamsudheen submitted a memorandum to Chief Minister V.D. Satheesan, proposing several measures to channel NRIs' financial resources into productive sectors.
Over ₹3 trillion is currently held as Non-Resident External (NRE) deposits in Kerala banks, earning less than 7% interest. The trust suggested leveraging part of these funds for investments that generate employment and stimulate economic activity. They proposed that the government-owned Cheraman Financial Services Ltd. (CFSL) launch professionally managed mutual fund schemes specifically for NRKs, allowing them to invest through systematic investment plans (SIPs) and receive regular income via systematic withdrawal plans (SWPs) upon retirement.
Shamsudheen also suggested funding the proposed high-speed railway between Thiruvananthapuram and Kasaragod through secured, redeemable, and tax-free non-convertible bonds, drawing inspiration from the Konkan Railway's successful use of tax-free bonds. He had promoted similar bonds among NRIs in the UAE and observed strong investor participation when the veteran technocrat E. Sreedharan oversaw the project.
The trust also recommended forming a public limited company, modeled after the CIAL (Namibia), to raise equity investments from NRKs and residents. They called for incentives to promote FMCG companies like Hindustan Unilever, Nestle, and Britannia in establishing manufacturing units in Kerala. The trust sought investments in processing and adding value to local products such as coconut, spices, rubber, mango, and jackfruit, aiming to tap into Gulf demand for these items.
Additionally, the trust proposed expanding Small and Medium Enterprises (SMEs) opportunities for Gulf returnees by leveraging their skills, experience, and business networks. They also advocated for developing tourism through improved infrastructure, hospitality services, safety measures, and visitor amenities. Shamsudheen suggested inviting renowned foreign universities and colleges to set up campuses in Kerala, which could attract foreign students and reduce brain drain.
Furthermore, the trust called for promoting Kerala's healthcare sector and traditional systems like Ayurveda, homeopathy, Siddha, and Unani to expand medical tourism. They urged the government to promote IT, artificial intelligence, digital services, advanced manufacturing, and precision manufacturing to generate employment for the younger generation.
Written by urgent.news from The Hindu's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
