Kochi | Senior CPI(M) leader P Rajeev on Friday alleged that Chief Minister V D Satheesan's claim that the Tata Group would invest Rs 10,000 crore in a shipbuilding venture in Kerala has affected the state's credibility, accusing him of making premature announcements and claiming credit for projects initiated by the previous LDF government.
Rajeev's remarks came after the Kerala government clarified that Satheesan's recent statement regarding the Tata Group setting up a shipbuilding venture in the state reflected the government's long-term maritime development vision under 'Mission Samudra' and was not intended to suggest that a single investment proposal had already been finalised with the company.
Speaking at a programme in Thiruvananthapuram on Wednesday, Satheesan had said the Tata Group would set up its first shipbuilding venture in Kerala and that ship maintenance facilities would also come up in the state.
Addressing reporters here, Rajeev said the chief minister's first announcement had generated widespread optimism.
"What needs to be seen is that all of us expected a new investment of Rs 10,000 crore from Tata in Kerala. When we heard that Tata had shown interest in Kerala after Satheesan became the Chief Minister, it gave everyone hope. We all felt that when the project was implemented, it should receive all possible support," he said.
Rajeev said he had personally held discussions with the Tata Group during his tenure as Industries Minister.
"When I was the Industries Minister, I had met the Tata Chairman along with the entire team. We held discussions for nearly two hours on the projects that could be brought to Kerala and had moved forward very clearly at that time," he said.
Referring to the clarification issued by the Chief Minister's Office (CMO), Rajeev questioned which version reflected the government's official stand.
“Whose credibility is at stake? It is not merely the Chief Minister's. Kerala's credibility is being lost. For the first time in Tata's history, the company has had to state that what a Chief Minister said was incorrect. Shouldn't there be at least a little honesty now?" Rajeev alleged.
He also accused the government of "attempting to take credit" for a project initiated during the previous LDF administration.
Referring to the CMO statement that cited the joint venture between Malabar Cements Ltd and Artson Engineering Ltd, a company in the Tata Projects ecosystem, Rajeev said the memorandum of understanding was signed during the Invest Kerala Global Summit held under the previous LDF government.
"Shouldn't there be at least a little honesty while presenting it? The previous government started this project. The present government should have said it would take it forward instead of creating the impression that everything happened during the past two months," he said.
Rajeev said the land now being readied for the project had been leased by Malabar Cements over a decade ago for a project that did not materialise.
During the previous LDF government's tenure, a proposal was prepared to utilise the unutilised land of public sector undertakings through joint ventures, he claimed.
He said Artson Engineering, a Tata Group subsidiary, had joined the project as the technology provider, while another company, ECHT, would make the investment, and the MoU was signed for an initial investment of Rs 500 crore.
He claimed that permission was granted to Malabar Cements in February this year to proceed with the project and that the present work on the land was a continuation of decisions taken earlier.
"This is not a permission generated in just these two months. Shouldn't he show at least a little honesty in this?" he asked.
Rajeev also alleged that the announcement had harmed Kerala's image among investors.
"Now that such an announcement has been made regarding Tata, the credibility that is actually lost belongs to Kerala. From what I understand, calls are coming to Tata from all over the world. Even if an investment is likely to come, a Chief Minister should not jump the gun and announce it because every state is competing for such investments," he said.
