Over 42,000 MSMEs registered in Kerala in Q1 FY23: Industries minister

As many as 42,300 micro, small and medium enterprises got registered in Kerala during the first quarter of the current financial year, prompting the government to re-estimate its target from one lakh to 1.5 lakh MSMEs by the end of 2022-23, Industries Minister P Rajeeve said on Saturday.

Inaugurating a new facility of IT firm Innovature inside Infopark Phase-2 SEZ at Kakkanad near here, Rajeeve said Kerala had only 17,300 MSMEs registered in the last financial year.

Addressing the employees of the 2005-founded software firm, Rajeeve said the government encourages industrial projects requiring less land.

He said the government has decided to give non-IT startups all the exemptions their IT counterparts enjoy.

"The government has decided to provide certain discounts even to non-IT businesses with 10 acres of land, along with a grant of Rs 3 crore," he said.

To further improve ease of doing business, firms with an investment of up to Rs 50 crore need to secure licence only within six months of commencing operations, Rajeeve said, adding that, for firms above Rs 50 crore investment, licence will be given within seven days of application.

The minister said now there are grievance redressal forums at both district and state levels and their decisions are binding on all departments of the government.

"We are a state with the fragile Western Ghats on one side and a coast with (Coastal) Regulation Zones Act on the other. In between, we have eco-sensitive zones. These imply we can go only vertically. The government encourages industrial projects requiring less land," Rajeeve said.

Kerala IT Parks CEO John M Thomas, in his keynote address, said global digital commerce was expected to be worth USD 4,00,000 crore by 2030.

"IT firms like Innovature are trying to make best use of this opportunity," he said.

Focused on Japanese clients, Innovature, with 500 employees and a working space of 20,000 square feet, is targeting a growth of 2,000 employees by 2025.