Prime Minister Atal Bihari Vajpayee has announced that the Central government will invest Rs 10,000 crore (Rs 100 billion) in Kerala to make the industry-starved state an economic powerhouse.

Inaugurating the two-day Global Investor Meet at Kochi on Saturday, Vajpayee declared that works on the multi-billion transshipment international terminal at Vallarpadam near Kochi will start very soon.

"The central government has cleared all the hurdles for the development of the Vallarpadom transshipment terminal at Kochi," Vajpayee told the global investors.

The terminal at Kochi port is expected to tremendously boost the economic development of the state.

The prime minister also committed huge funds for the upgradation of the National Thermal Power Corporation's power plant at Kayamkulam and for expansion of the Kochi Oil Refinery.

"The Centre commits Rs 10,000 crore for Kerala's all round economic development. Now I am sure that the Global Investor Meet will bring in considerable private investment to make Kerala an economic powerhouse," Vajpayee said.

He said in the next few years, he expects Kochi to be another Bangalore and Hyderabad in the field of information technology.

The prime minister said that Kerala has set the finest standards by setting up the country's first-ever private airport with sizeable investment from the Non-Resident Indians.

"Kerala has a fine Technopark. The National Association and Software and Services Companies has rated Kochi to the second best city for IT-enabled services. Other states in India are motivated by Kerala's huge success in tourism. My government stands by you in these moments of change and reforms," Vajpayee told the business delegates.

Nearly 1,500 business delegates from various countries including the United States, other European countries, Gulf nations and from various other states in India are participating in the Global Investor Meet being held at the International Convention Centre at Kochi.

Vajpayee said he has been an admirer of Kerala for many years. He said Kerala is one of the finest tourist spots that he has ever stayed in. The prime minister was on a week's holiday in the backwaters of Kumarakom in Kerala two years back.

But the prime minister said that all these years, resistance to change was the biggest problem that Kerala has been facing.

"Unemployment in Kerala is three times higher than the national level. The old generation refuses to change for the benefit of the new generation. Change your dogmas to catch up with the rest of the country and the world," the prime minister urged Kerala's politicians, who were present at large numbers at the Global Investor Meet.

During the function, the Prime Minister also inaugurated 10 CD-ROMs on Kerala tourism.

A number of union ministers, captains of Indian industry led by Reliance Group Chairman Mukesh Ambani and potential investors are participating in the investor meet, which Kerala believes will herald a new, resurgent state.

"A resurgent Kerala awaits you," Kerala Chief Minister A K Antony told the delegates. He said his government in less than two years has come out with a challenging vision for the betterment of every citizen of Kerala.

"I am convinced that reforms are inevitable in Kerala. The Kerala model of social and economic development is still relevant; but it has to go in tandem with massive reforms in growth sectors such as information technology, industrial infrastructure, tourism, health care and education," Antony said.

He said 2003-2004 will be the year of investment for Kerala. "We have set up a fast track system for speedily clearing investment proposals. Here at Global Investor Meet, we are showcasing a new Kerala as an attractive investment destination," the chief minister stated.