THIRUVANANTHAPURAM: Though the ‘Industrial and Commercial Policy 2011’ of the UDF Govt indicates that none of the PSU’s will be privatised, the move for public-private partnership (PPP) projects with Infrastructure Kerala Limited (Inkel) raises eyebrows on the ownership of land which will be handed over by the government institutions.Inkel submitted a proposal to the State Govt for PPP using the land bank of government institutions to be considered in the 100-day programme of the Govt.According to the project, Inkel will enter into a joint venture with other government agencies or PSUs and the land owned by these organisations will be utilised for the PPP. Sources said that it was proposed that in the PPP, the organisation which enter into a tie-up with Inkel will have to convert the price of the land as equity for the project.The rest of the amount for setting up the project will be shared by private investors.The government has to spend huge amount on the purchase of land or provide the land of PSUs for the project.However, the returns to the public institutions could be received only after a long period, whereas the private investors would get their profit as soon as they break even, sources said.The Industry Policy points out that the government will initiate steps to fully utilise the excess or unused land and other resources of the PSUs for industrial purposes through government agencies.Apart from the government stake, Inkel is a company where the other stakeholders are Non-Resident Keralites, general public and banks. Sources said that 75 acres of land owned by Kinfra near Kalamassery in Kochi is also proposed for a PPP for setting up an exhibition- cum-trade centre. Earlier in 2008, Kinfra entered into a joint venture with RMZ Realtors and sold the land at a cost `125 crore.As the project did not take off in two years, Kinfra has taken back the land after repaying the money. Now the estimated cost of the land is `250 crore and Inkel has proposed this land for the PPP project. Apart from Kinfra land, excess land of other PSUs are also being considered by the government for the PPP model. But it is yet to find a solution on the reverse fund flow to the PSUs.Kinfra managing director S Ramnath told Express that there were several models in which the proposals could be worked out. Even if the land is given for joint venture with Inkel, Kinfra will benefit in the long run. T Balakrishnan, Additional Chief Secretary, said that the profit/loss of the venture would be shared by the govt and private agencies on a proportionate manner.
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