Government of Ministry of MSME

Carried out by MSME – Development Institute, P.O., Kanjani Road, – 680003 Email: [email protected] Website: www.msmsedithrissur.gov.in Phone: 0487-2360536, Fax: 0487-2360216 State Industrial Profile, 2016-17

GOVERNMENT OF INDIA MINISTRY OF MSME

STATE PROFILE OF KERALA 2016 - 17

Carried out by भारत सरकार सूक्ष्म, लघु एवं म鵍यम उधम मंत्रालय Ministry of Micro, Small & Medium Enterprises एम एस एम ई – ववकास संथान MSME – Development Institute कंजाणी रोड, अययांथोल डाकघर Kanjani Road, Ayyanthole P.O., त्रत्र�शूर – 680003 – केरल Thrissur, Kerala – 680003 Email: [email protected] Website: www.msmsedithrissur.gov.in Phone: 0487-2360536, Fax: 0487-2360216

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State Industrial Profile, 2016-17

FOREWORD

MSME-Development Institute, Ministry of MSME, Government of India, Thrissur, Kerala has prepared the updated edition of the State Profile as a part of MSME-DO action plan for the year 2016-17. The report provides an insight in to the various aspects of the State like General Characteristics, Resources including material or human resources, Infrastructure available etc. The findings of a study on the Status of Traditional, Small, Medium and Large scale industries in Kerala also have been incorporated. Other areas included in the report are the functions & services rendered by various State and Central government Institutions /Agencies engaged in the Industrial Development of the State, Schemes and Incentives for MSME sector, different policies of in respect to industrial environment, statutory formalities, a gist of important key economic parameters etc. A list of industrial items having scope in this state has also been suggested in the report. I take this opportunity to express my sincere thanks to all Central and State Govt. agencies and NGOs specially the Directorate of Industries & Commerce, State Planning Board for their valuable advice and assistance rendered in the preparation of this Report. I take this opportunity to record my sincere appreciation for the efforts put in by Smt. Kathreenamma Sebastian, Deputy Director (EI), Shri. S.C. Meena, Asst. Director (EI) and Smt. Lachithamol U.C., Asst. Director (EI). I hope the report would be a useful reference to the planners and investors who are interested in the industrial development of Kerala.

Place: Thrissur Date : 31.03.2017

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CONTENTS CHAPTER TOPICS PAGE NO. 1 GENERAL CHARACTERISTICS OF THE STATE 5 – 19 1.1 INTRODUCTION 5 – 7 2 RESOURCES 7 – 19 2.1 POPULATION 20 – 49 2.2 LABOUR FORCE 20 – 29 2.3 LAND USE PATTERN 29 – 33 2.4 AGRICULTURE 33 – 36 2.5 LIVE STOCK 36 – 38 2.6 FISHERIES RESOURCES 38 – 41 2.7 FOREST 41 – 44 2.8 MINING AND MINERALS 44 – 45 2.9 SERICULTURE 45 – 46 2.10 TOURISM 46 – 47 3 SOCIO-ECONOMIC STATUS 47 – 49 3.1 EDUCATION 50 – 55 3.2 HEALTH 50 3.3 HOUSING STATUS 50 – 51 3.4 POVERTY ERADICATION 51 – 52 3.5 STATE INCOME 52 – 54 4 INDUSTRY 54 – 55 4.1 INTRODUCTION 56 – 115 4.2 INDUSTRIAL GROWTH 56 4.3 INDEX OF INDUSTRIAL PRODUCTION (IIP) 57 4.4 COMMODITY EXPORT 58 4.5 STATE LEVEL PUBLIC SECTOR ENTERPRISES 59 – 60 4.6 MICRO SMALL AND MEDIUM ENTERPRISES (MSMES) 60 – 64 PRIME MINISTER’S EMPLOYMENT GENERATION 4.7 64 – 69 PROGRAMME (PMEGP) 4.8 INDUSTRIAL CO-OPERATIVE SOCIETIES 70 4.9 BANK CREDIT TO MSME SECTOR. 70 – 71 4.10 FOOD PROCESSING 71 – 72 4.11 HANDLOOM INDUSTRY 72 – 76 4.12 Textile Sector 76 – 82 4.13 Power loom 82 – 83 4.14 Handicrafts 83 – 86 4.15 BAMBOO INDUSTRY 86 – 87 4.16 Coir Industry 87 – 88 4.17 Khadi & Village Industries 88 – 96 4.18 Cashew Industry 96 – 97 4.19 Beedi Industry 97 – 100 4.20 Industrial Promotion 101 4.21 Industrial Financing 101 4.22 Small Industries Development Bank of India (SIDBI) 102 – 104 Kerala State Industrial Development Corporation 4.23 104 – 105 (KSIDC) 4.24 Industrial Infrastructure 105 – 107 MSME-Development Institute, Thrissur 3

State Industrial Profile, 2016-17

4.25 Industrial Development Plots/Areas 107 Kerala Small Industries Development Corporation 4.26 108 – 110 (SIDCO) 4.27 Centres for Management Development (CMD) 110 – 112 4.28 Special Economic Zone 112 – 113 4.29 Cochin Special Economic Zone (CSEZ) 113 5 INFRASTRUCTURE 114 – 115 5.1 INTRODUCTION 116 – 150 THE 12TH FIVE YEAR PLAN APPROACHES TO 5.2 116 INFRASTRUCTURE. 5.3 ROAD 116 – 118 5.4 RAILWAYS 118 – 123 5.5 PORTS 124 – 125 5.6 INLAND WATER TRANSPORT 125 – 127 5.7 AIRPORTS 127 – 128 5.8 COMMUNICATIONS 129 – 132 5.9 POSTAL SERVICE 132 5.10 TELECOMMUNICATION 132 – 133 5.11 PASSPORT AND EMIGRATION 134 – 135 5.12 ENERGY 135 – 136 5.13 MSME Sector 136 – 141 5.14 Labour 141 – 146 5.15 Skill Development 146 – 147 5.16 Information technology 147 – 148 5.17 Science and Technology 148 – 149 5.18 Non-Resident Keralites 149 – 150 6 INSTITUTIONAL SUPPORT AND INCENTIVES 150 CENTRAL GOVERNMENT ORGANISATIONS AND THEIR 6.1 151 – 174 FUNCTIONS 6.2 MSME-Development Institute, Thrissur 151 NATIONAL SMALL INDUSTRIES CORPORATION 6.3 151 – 155 LIMITED 6.4 OTHER SIDO OFFICES AND THEIR FUNCTIONS 155 – 156 6.5 OTHER INSTITUTIONS 156 – 157 STATE INDUSTRIES DEPARTMENT AND OTHER 6.6 157 – 162 ORGANISATIONS INCENTIVES AND ASSISTANCE FROM STATE 6.7 162 – 169 INDUSTRIES DEPARTMENT 7 INDUSTRIAL POTENTIALITY IN THE STATE 169 – 175 7.1 INTRODUCTION 176 – 195 7.2 POTENTIAL INDUSTRIES 176 7.3 LIST OF ITEMS HAVING SCOPE IN KERALA 176 – 177 8 WHOM TO CONTACT AND FOR WHAT 177 – 180 181 – 195

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State Industrial Profile, 2016-17

CHAPTER-1 GENERAL CHARACTERISTICS OF THE STATE Kerala – at a glance S. No. Item Units 2015-16 1 Geographical Area 000 Sq. Km. 38863 Administrative Setup 2 Revenue Division 21 3 Districts 14 4 Talukas 75 5 Villages 1664 6 Towns 520 Population as per Census 2011 7 Total in 000s 33406.06 8 Males 16027.41 9 Females 17378.65 10 Rural 17471 11 Urban 15935 12 SC 3040 13 ST 485 14 Density of Population per Sq.Km 860 15 rate Percentage 94 16 Sex ratio over 000 Male 1084 17 Urban Population Percentage 47.7 GSDP - at constant prices 2015-16 18 GSDP Rs. Crore 467243.1 19 Primary Sector 49206.31 20 Secondary Sector 111177.2 21 Tertiary Sector 264407.6 22 Per Capita Income Rs. 136811 Agriculture 2015-16 23 Net Area Sown 000Ha. 1973 24 Gross Cropped Area 2627.5 25 Gross Irrigated Area 483.6 26 % to GCA Percentage 18.4 Gross Area under Principal Cropes 2015-16 27 Paddy 000Ha. 196.8 28 All Pulses 3.76 29 Rubber 550.8 30 Tea 30.2 31 790.22 32 Arecanut 99.1 33 Groundnut NA 34 Papper 85.94 35 Cardemom 39.73

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State Industrial Profile, 2016-17

36 Ginger 4.99 Production of Principal crops 2015-16 37 Paddy 000 tonnes 549.28 38 All Pulses 4.26 39 Rubber 438.63 40 Tea 57.8 41 Coconut 587.3 42 Arecanut 132.45 43 Groundnut 44 Papper 42.13 45 Cardemom 19.5 46 Ginger 22.04 Live Stock Census 2012 47 Total Livestock in lakh 27.35 48 Total Poultry 242.82 Forestry 2015-16 49 Forest Area 000Ha. 1924 Factories 2016 50 Working Factories Nos. 22834 51 Employees 702129 52 Employees per lakh Population 2029 Electricity 2015-16 53 Total Generation Mu 6797.77 54 Total Consumption 19325.1 55 Industrial Consumption 5209.23 56 Agricultural consumption 279.48 57 Domestic consumption 9943.5 Education 2015-16 58 Primary School 9861 59 Enrolment 2398 60 High Schools 3021 61 Enrolment 1365 Health 2015-16 62 Hospitals Nos. 1463 63 No. of Beds 56943 Vital Statistics 64 Birthh Rate/000Popn. 14.8 65 Death Rate 7 66 Infant Mortality rate 13 Transport 2015-16 67 Railway Route length Kms 1538 68 Total Road Length 205511 69 Motor Vehicles 000s 10171813 Local Bodies 2015-16 70 Zila Parishad 14

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71 Gram panchayats 941 72 Block Panchayats 152 73 Muncipalities 87 74 Corporations 6

1.1 INTRODUCTION Kerala has been an enigma to the Economists and Social Scientists being known for a long for its human development, success in the literacy and educational field, economic prosperity and standard of living. While the Economy has moved from the almost stagnant situation in the 1960s and 70's to the slow growth in the Nineties, the State has been in the forefront of social development indicators in India. Though, post liberalisation phase has seen significant growth in secondary and territory sectors like IT, Tourism, entertainment, internet and mobile services, airlines, banking, insurance etc. the growth has not been commensurate with social development indicators. A fairly high density of population, close settlements in the low lands and coastal plains and the increasing movement towards service sector employment has seen Kerala urbanize rapidly. Urbanization has brought to the fore many daunting challenges before the State. Rapid urbanization calls for greater investment in transportation, housing, sewage drinking water and waste management Kerala is a small state, tucked away in the south west corner of India. It represents only 1.18 percent of the total area of India but has 2.76% of the total population of the country which was 3.10 percent during the 2001 census. It is separated from the rest of the peninsula by natural geographic boundaries. Kerala may be divided into three geographical regions (1) high land (2) mid land and (3) low land. The high lands slope down from the Western Ghats, which rise to an average height of 900m, with a number of peaks over 1,800 m in height. This is the area of major plantations like tea, coffee, rubber, and other species. The mid land lies between the mountains and the low lands. It is made up of undulating hills and valleys. This is an area of intensive cultivation - cashew, coconut, areca nut, cassava, banana, rice, ginger, pepper, sugarcane and vegetables of different varieties are grown in this area.

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State Industrial Profile, 2016-17

The 'Western Ghats' with their rich primeval forests having a high degree of rainfall, form the eastern boundary and extend from the north to Kanyakumari in the south. The entire western border is caressed by the Arabian Sea. Between these natural boundaries lies the narrow strip of land extending from Kasargode in the north to Parasala in the south.

Fig.1: District Map of Kerala Located at north latitude between 8o 18` and 12o 48` and east longitude between 74o 52` and 77o 22`, with an area of 388863 sq. km lying between the Arabian Sea on the West and Western Ghats on the East, Kerala has the following to its credit: • Highest literacy rate in India. • Highly skilled human resources with low operating cost. • at par with the West. • Ranked best in India in terms of Physical Quality of life Index. • An efficient public transport system. • Information Technology becoming a key area of economic excellence. • Best Public Health care system in India. MSME-Development Institute, Thrissur 8

State Industrial Profile, 2016-17

• Tourism has grown to be a front line industry with Government support and private management. However the fact that Higher Economic Growth is necessary not only to generate higher tax revenue, but also to sustain the advances made in social sector and in order to allocate more resources by the State to the welfare activities for the poor and needy has yet to be widely acknowledged in the State. In order to generate higher economic growth, investments are required for creating high quality infrastructure, skilled human capital, technology up-gradation and enterprise promotion. The Micro and Small Enterprises play an important role in the balanced and holistic industrial development of the State. It generates employment and value to products and services through utilizing available resources in the State. Kerala is one of India’s most globalized states, with a high dependence on exports, and tourism. The recession in the Euro zone, the weak pace of expansion of the United States and the slowing growth in all emerging countries has dampened Kerala’s exports and reduced tourist flows. Fluctuating global commodity prices cause uncertainty for Kerala’s exporters. Food and fuel prices have remained high, resulting in cost push inflationary conditions. Saudi Arabia’s Nitaquat policy has resulted in uncertainty, regarding further opportunities for nonresident Keralities working abroad, and concern over further widening of . Kerala, being a sub-sovereign entity, is affected by developments in the rest of the country. India has been beset with low growth; fall in infrastructure investment, weak business confidence, high interest rates, wide current account deficit, high domestic inflation, rapidly depreciating currency and inability to manage the fiscal deficit within targeted limits. These factors have a deep impact in Kerala, as the state is dependent on other states for much of its consumption requirements, including essentials like food grains, electricity and other basic goods. Inflationary conditions and supply side bottlenecks have a greater impact in Kerala due to the fact that Kerala is situated far away from major production centres and logistics are weak.

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State Industrial Profile, 2016-17

Various efforts made by the Government to improve the welfare of the people include continued emphasis on decentralized governance, special packages for vulnerable communities, minorities and people in backward regions, substantial allocation for education and health, and a focused effort at skill up gradation. All sectors, agriculture, industry, infrastructure and services have been given due priority through a variety of initiatives. Implementation difficulties, primarily in large infrastructure projects, have been mainly on account of inability to acquire land, issues relating to resettlement and rehabilitation of project affected people, and capacity constraints, including skilled manpower shortage, in various Implementing Agencies. Efforts have been made to capture difficulties in implementation through real-time monitoring and taking appropriate corrective action. As per the quick estimates, the Gross State Domestic Product at constant (2011- 12) prices in 2015-16 was found to be Rs. 46724313 as against a provisional estimate of Rs.43223674 in 2014-15, GSDP registered a growth rate of 8.10 per cent in 2015-16. At current prices, GSDP estimated Rs.58833659 in 2015-16 as compared to Rs.52600230 in 2014-15 with a growth rate of 11.85 per cent.

10

8 8.1 6 7.31 4 3.89 2

0 2013-14 2014-15 2015-16

Fig.: 2 Growth Rate of GSDP at Constant (2011-12) Prices, Kerala, in per cent As per the quick estimates, the per capita Gross State Domestic Product at constant (2011-12) prices in 2015-16 was Rs.136811 as against a provisional estimate of Rs.127187 in 2014-15, recording a increasing growth rate of 7.57 per cent in 2015-16. At

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State Industrial Profile, 2016-17 current prices, the per capita GSDP in 2015-16 was found to be Rs. 157268 with a growth rate of 11.30 per cent over the previous year’s estimate of Rs.154778 in 2013-14. The best indicator of per capita state income is NSDP divided by the population. At constant (2011-12) prices, the quick estimates of per capita Net State Domestic Product in 2015-16 was found to be Rs.124773 as against provisional estimate of 2014-15 was Rs.115484, recording a growth rate of 7.70 per cent in 2015-16. During 2015-16, the contribution of primary, secondary and tertiary sectors to the GSVA at constant prices (2011-12) was 11.58 per cent, 26.17 per cent and 62.24 per cent respectively. At current prices, the primary, secondary and tertiary sectors contributed 12.07 per cent, 24.27 per cent and 63.66 per cent respectively to the GSVA during the year 2015-16. The State Government enacted the Kerala Fiscal Responsibility Act in 2003 to ensure prudence in fiscal management and fiscal stability by the progressive elimination of revenue deficit. In the years that followed the enactment of the Kerala Fiscal Responsibility Act in 2003 improvement has been witnessed in key fiscal indicators of the State. The revenue deficit which was 4.37 per cent of GSDP in 2002-03 came down to 1.36 per cent in 2010-11. State’s fiscal consolidation largely relied on revenue receipts. Deterioration in the buoyancy in revenue receipts due to multiple reasons in recent years has adversely affected State’s fiscal performance in achieving the fiscal consolidation targets. In pursuant to the State’s commitment towards fiscal consolidation, the Budget Estimates 2015-16 envisaged a Revenue Deficit target of 1.65 per cent of GSDP. However, severe domestic challenges and external compulsions had an adverse impact on the buoyancy of State revenues and government could not adhere to fiscal consolidation targets set in the budget. In 2015-16, revenue deficit was 1.65 per cent of GSDP against 2.78 per cent of 2014-15. Fiscal deficit during 2014-15 at 3.75 per cent has shown a slight improvement compared to 3.94 per cent during 2013-14. Earnest efforts are being taken for enhanced revenue generation to have better fiscal consolidation, including rationalization of expenditure to achieve the fiscal targets. A long term fiscal

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State Industrial Profile, 2016-17 policy would be necessary to rationalize the expenditure without compromising the quality of spending. The level of prices of essential commodities and services determines the well being of the people. A modest increase in the price level is acceptable, sometimes even desirable. Kerala being a consumer state faces high volatility in commodity prices as a result of heavy dependence on neighboring states for consumption goods. Due to the cost-push and demand-pull factors, the economy has very high inflation, which adversely affects the welfare of the people, especially the vulnerable communities. One of the major problems that exist in Kerala is unemployment. There is an increase in labour supply due to the increase in the number of women work seekers in various sectors from the decade of 1970’s, which resulted in rapid rise in . Further the growth of educated manpower has increased the demand for white-collared jobs. As there is a lack of job opportunities in our state, which ensure high wages, many are immigrating especially to Gulf countries. Migration of people to foreign countries results in inflow of remittances into the state, which is one of the important drivers of our economy. However, emigration also has several drawbacks and adverse impacts on the domestic economy. The nature of growth in the state has widely been perceived as being vulnerable as consumption led growth is subject to internal and external dynamics. Low value addition, poor infrastructure, high unemployment, inequality and various environmental challenges are the major hindrances to pushing up growth in the State. Rising urbanisation has brought to forefront many daunting challenges before the State. The changes in the funding pattern for CSS have brought about a change in the resource availability in the State. The State needs to improve the quality of its expenditure and also enhance the availability of financial resources to fill the critical gaps observed in the development process. Planning, prioritisation and performance is the key. The Perspective Plan 2030 charts out the vision and development strategy for the State. Prioritisation of expenditure and effective implementation of the strategies will be instrumental in leveraging the advantage of the state, addressing the challenges and

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State Industrial Profile, 2016-17 transforming the State to knowledge based economy as envisaged in the Perspective Plan. The Kerala State Self Entrepreneurship Development Mission (KSSEDM) aims at inculcating entrepreneurial confidence among the youth of the State through a process of selecting persons with aptitude and earnestness, training them meticulously and enabling them to avail of finance on easy terms from Banks/Financial Institutions. The youth will be given opportunities in the agriculture and IT sectors. In a Panchayat-level scheme aimed at educated unemployed youth, KSSEDM providing training and soft loans to 10 select entrepreneurs in each Panchayat up to Rs. 20 lakh to start an enterprise. One of the major problems that exist in Kerala is unemployment. There is an increase in labour supply due to the increase in the number of women job seekers in various sectors since the 1970’s, has resulted in a rapid rise in unemployment in Kerala. Further the growth of educated manpower has increased the demand for white-collared jobs. As there is a lack of job opportunities in our State, which ensure high wages, many are immigrating especially to Gulf countries. Migration of people to foreign countries results in an inflow of remittances into the State, which is one of the important drivers of our economy. However, emigration also has several drawbacks and adverse impacts on the domestic economy. Persons aged 15-29 years are considered as youth and in Kerala the youth accounted for about 23 per cent of the total population. It is seen that during 2011-12 the unemployment rate among the youth in Kerala is much higher as compared to that in the overall population. The UR of the youth is 21.7 per cent for rural areas and 18.0 per cent for urban areas. Further the UR among the female youths is much higher than that of the male youth. For instance, in rural Kerala the female UR is 47.4 per cent as against the male UR of 9.7 per cent. Within the public sector employment as on December 2015, 45 per cent are employed in State Government and 10 per cent are in Central Government, 24 per cent are in state quasi, 5 per cent in LSGI and 16 per cent are in Central quasi institutions.

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State Industrial Profile, 2016-17

The agriculture sector in Kerala is facing a serious crisis of growth. According to data from the Directorate of Economics and Statistics (DES), over the base year 2011-12, agriculture and allied sector recorded a growth of 1.43 per cent in the first year (2012-13) of the 12th Five year plan. However, the sector witnessed a negative growth rate during the following three years with the growth of -6.31, -1.09 and -2.90 per cent during the year 2013-14, 2014-15 and 2015-16, respectively. Egg production in the State increased from 119.39 crores at the end of the tenth plan (2006-07) to 170.48 crores during the year 2011-12. The egg production during 2014-15 and 2015-16 was found 250.36 and 244.25 crores respectively, with an annual growth rate of 1.08 and -2.44 per cent respectively. Meat production in the State increased from the level of 1.98 lakh MT at the end of the tenth plan (2006-07) to 4.26 lakh MT during the year 2011-12. The meat production during 2014-15 and 2015-16 was 4.46 & 4.66 lakh MT respectively, with an annual growth rate of 7.16 and 4.48 per cent respectively. Growth of egg production during 2015-16 in the State is far below the national level while for meat, the growth percentage during 2015-16 is almost the same as that at national level. During 2015-16 Kerala contributed 2.95 per cent and 6.64 per cent of the annual egg and meat production respectively, of the country. During 2015-16, a total of 5929 lakh litres of milk was procured by the dairy co- operative societies in the State of which 3795 lakh litres were sent to the dairies and 2134 lakh litres were marketed locally by the societies. The average milk procured per day by APCOS during the year 2015-16 was 1109 MT against the previous year average of 1026 MT. The procurement/day/society during 2015-16 was fond to be increased by 380 litres from 348 litres in 2014-15. The procurement of milk by Kerala Co-operative Milk Marketing Federation (KCMMF) increased to 4334.81 lakh litres against the sale of 4624.51 lakh litres during 2015-16. The sales of milk exceeded the procurement in all dairies except in , Wayanad and Dairy. Industrial development is crucial for the economic growth of any nation. It is also linked to the modernization of agriculture, development of science and technology, entrepreneurship, self-reliance in defence production, success in international trade,

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State Industrial Profile, 2016-17 efficient utilization of natural resources, alleviation of poverty and unemployment and increase in per capita income and standard of living of the people. One of the key findings of UNIDO’s Industrial Development Report 2016 is that developing domestic technological capabilities is one of the most important to sustain growth. The report also underlines that the share of manufacturing in value addition and employment tends to increase as developing countries starts growing. India has emerged as one of the fastest growing major economies of the world as per CSO and the IMF (International Monetary Fund). Government of India has taken policy measures such as ‘’ for creating a conducive environment for industrial growth in the country. According to the Index of Industrial Production (IIP), the mining, manufacturing and electricity sectors in India registered growth of -0.2, -1.00 and 4.6 per cent respectively during April to October 2016 over the corresponding period of 2015. The income from manufacturing sector in Kerala which registered 12.47 per cent growth in 2012-13 witnessed a decline during 2013-14 (-4.65 per cent) and recorded a moderate growth of 2.46 per cent during 2014-15 and a moderate growth of 12.65 per cent during 2015-16. The contribution of Mining and Quarrying sector to Gross Value Added at constant prices is estimated at Rs.507958 lakh during 2015-16, thus registering a growth of 6.21 percent compared to the previous year. The share of the sector in GSVA at constant prices stood at 1.20 percent during 2015-16. Mining and quarrying sector in the state registered negative growth during 2012-13 and witnessed a high positive growth of 50.13 per cent during 2013-14 and declined to 39.13 per cent in 2014- 15 and 6.21 per cent in 2015-16. During 2015-16, 408.01 lakh tonnes of major and minor minerals were produced in Kerala. Among major minerals, Bauxite/laterite tops the list with 16.90 lakh tonnes followed by limestone (6.26lakh tonnes) and china clay (5.86 lakh tonnes). Among minor minerals highest production is Graphite Building Stone (298.75 lakh tonnes) followed by Ordinary Earth (55.08 lakh tonnes) and Ordinary Sand (13.31 lakh tonnes). During 2015-16 an amount of Rs.119.51 crore was received as royalty from minerals, of

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State Industrial Profile, 2016-17 which Rs.28.00 crore was from major minerals and Rs. 91.51 crore from minor minerals. The highest royalty among major minerals was found from Bauxite/laterite (Rs.16.22 crore) followed by limestone (Rs. 5.01crore), china clay (Rs. 2.34 crore), Silica Sand (Rs. 1.59 crores) and ilmenite (Rs. 1.15 crore). Among minor minerals granite building stone stands first by contributing Rs. 71.70 crore as royalty followed by ordinary earth (Rs.11.01 crore) and Ordinary Sand (Rs. 5.32 crore) during 2015-16. Adequate and affordable capital is critical for development of the economy. Kerala boasts of a well-developed banking infrastructure. Commercial, Nationalised, Co-operative banks and a large number of grameen banks have sprung up within the state. In terms of number of branches, while Kerala has the largest number of bank branches among the semi urban areas in the country, has the largest number of bank branches in rural and urban areas. Kerala has a total of 6166 bank branches as on March 2016 which accounts for 4.65 per cent of the total as against 5981 as on March 2015. During the period 2015-16, 185 new branches were opened in the State. The total number of bank branches increased to 6208 by the end of June 2016. Despite Kerala’s small land area, it has large number of bank branches, indicating the spread of the financial system in the state. The Micro, Small and Medium Enterprises (MSME) sector is fast emerging into a major income generating and employment providing sector in Kerala with relatively lower investment. Kerala is one of the main centres of MSMEs in the country. As per the MSME 4th Census 5.62 per cent of all India share of MSME enterprise is in Kerala. MSME sector can lead the State economy by increasing exports through quality production techniques and products. Government provides various schemes in MSME sector, targeting various social groups as SC, ST, Women, Youth, and Physically Handicapped etc. In Kerala, Government and banks are providing lots of facilities for MSME Sector. Within the MSME Sector there is a significant increase of Micro Enterprises, both in terms of working enterprises and employment. There are over 6000 various MSME products ranging from traditional to high-tech items which are manufactured in this sector.

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State Industrial Profile, 2016-17

MSMEs play a critical role in innovation, and have ability to experiment with new technologies on small scales. However, they often suffer from funds, lack of entrepreneurial spirit, inability to take technology development risks and face the difficulty of attracting skilled manpower. The industries coming under this sector are handicrafts, handloom, khadi, food processing industries, garment making and textile industries, industries related to coir/wood/bamboo/plastic/rubber/ leather/ clay products etc. The number of new enterprises filed Memorandum Under MSMED Part II in the State during the year 2015-16 up to September 17, 2015 was 7705. Out of these 301 (3.90%) MSMEs were registered by entrepreneurs belonging to the SC community, 31 (0.4%) by ST and 1805 (23.42%) by women. Investment in the sector during the period was found to Rs.129356.95 lakh while employment generated and the value of goods and services produced were 45407 nos and Rs.338001.36 lakh respectively. In Kerala, shortage of power is the prime obstacle in starting new industrial units. Kerala generates power from four sources - hydro power, thermal power, wind power and solar power. Of these, hydel and thermal power generations account for the bulk whereas wind and solar power generations make only marginal additions. Monsoon is essential to sustain the hydropower base in the State and the deficit in rainfall usually creates a power crisis. Yet hydel energy is the most reliable and dependable source of energy in Kerala. The main challenges faced by the energy sector in the State are i) Inadequate capacity addition over the years leading to massive in house demand supply gap ii) Hydel power dominated supply scenario iii) Negligible share of renewable energy in the energy mix iv) Gap between energy conservation potential and its realization v) Limited presence of Independent Power Producers (IPP) and Co-Generating Stations (CGS) and vi) Limited penetration of star labelled products. Total installed capacity of power in the State as on March 2016 is 2880.20 MW. Hydel contributed the major share of 2104.3 MW (73.06%) to total and 718.46 MW was contributed by thermal projects including National Thermal Power Corporation (NTPC)

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State Industrial Profile, 2016-17 at (Kerala’s dedicated thermal station), 43.27 MW from wind and 14.15 MW from Solar. Additional capacity added during 2015-16 from all sources was 44.5 MW. The development experience of Kerala has always invoked long and interesting discussions about the links between economic and social development in the context of third world countries. Kerala’s achievements in human development indicators are often considered unparalleled in the whole developing World and is often compared with the development indices of advanced countries. Kerala’s particular development experience of high human development achievements against low per capita income level was mainly attributed to the State’s public intervention in health and education sectors. Literacy and education are important indicators in a society and play a central role in human development. As regards literacy, Kerala ranks first in the country with literacy rate of 93.91% closely followed by (92.28%) and Mizoram (91.58%) (Census of India, 2011). Kerala’s literacy rate, which was only 47.18 % in 1951, has almost doubled by 2011. The male, female literacy gap which was 22% in 1951 has narrowed down to 4.41% in 2011. Kerala holds the first place in the country in female literacy with 92% and Rajasthan records the lowest female literacy rate (52.66%) (Census of India, 2011). Variation in literacy rate among the districts of Kerala is low. While district (96.93%) reports the highest literacy rate in the State followed by (96.4%) and (96.26%), has the lowest literacy rate in the State (88.49%). The low rate of literacy of Palakkad district may be due to the prevalence of substantial percentage of Scheduled Caste (SC) and Scheduled Tribe (ST) population in the district. 11.01% of the ST population in the State reporting an average literacy of 74.44% is residing in the district. (The share of ST population in the district population is 1.67%). The share of SC population in the district population is the highest in the State. Annual Plan (2015-16) of the State is formulated based on specific guidelines. While formulating the plan, critical review of the performance of ongoing schemes

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State Industrial Profile, 2016-17 during 2013-14 was held. The recommendations of the respective Working Groups were also considered for formulating new schemes. In order to avoid proliferation of schemes, attempts have been made to reduce the number of schemes and wherever possible, schemes having similar nomenclature have been proposed under a single head as an ‘umbrella’ scheme. Care has also been taken to drop unproductive schemes. Likewise, as a step towards Gender Responsive Budgeting, efforts were made to categorise specific need based programmes to address the concern of women/girls. With subdued growth at global and national levels, there is little room for optimism regarding Kerala’s own growth prospects in the short run. Nevertheless, both GSDP growth and per capita income growth in Kerala are at levels higher than that of All India as a whole. However, high inequality between regions and communities within Kerala and the lack of adequate land, labour and quality infrastructure continue to be a problem giving rise to social tensions, inflationary trends and rampant unemployment. Though not debt stressed, the State finances are not enough to provide relief to all those sections of the society, who need welfare measures. After accounting for committed expenditure in the form of salaries, pensions and interest payments, the Government is forced to rely on borrowed funds for public expenditure. Since there are legal limits on the amount that can be borrowed, there appears to be no option but to reduce unproductive expenditure, reduce evasion and administrative costs in revenue collection and encourage the private sector to provide some services at a regulated cost and quality of service. It would be in the interest of the National Government to provide adequate assistance to Kerala to face various second-generation challenges such as preserving the environment, ageing population, high educated unemployment, mounting life style diseases and migration related concerns. This is the challenges faced by Kerala today and the efforts made to mitigate them will serve as a model for other states, who are likely to face similar problems in coming years.

* * * * * * *

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CHAPTER-2 RESOURCES

2.1 POPULATION

Administrative Units: During Census 2011, there were 14 districts, 63 taluks, 520 towns and 1018 villages in the State of Kerala. The corresponding figures for Census 2001 were 14 district, 63 taluks, 159 towns and 1364 villages. There was an increase of 361 towns and a decline of 346 villages in Census 2011 as compared to Census 2001. The administrative units were frozen as on 31.12.2009 for the purpose of Census taking. Population : The total population of Kerala as per Census 2011 is 3,34,06,061 with 1,60,27,412 males and 1,73,78,649 females. The most populated district in Kerala is (Population: 41,12,920) and the least populated district is Wayanad (Population: 8,17,420). Among the States of India; Kerala stands at 12th position in terms of population. Growth Rate: The decadal rate of growth of population in Kerala during 2001- 2011 has been worked out as 4.91%. Decadal rate of growth of population during 1991- 2001 was 9.43%. is reported to have the highest growth rate of 13.45% and the lowest as well as negative growth rate is reported in (-2.97%). also has a negative growth of population (-1.79%). Twelve taluks in the Central area, spanning in four districts, have shown fall in population. Households and Household Size: The total number of households in Kerala as per Census 2011 is 78,53,754. The average household size is 4.3 persons per household whereas, in 2001 the same was 4.7. Malappuram district with 5.2 as average household size is at the top while Pathanamthitta district with 3.7 has the lowest household size.

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Table 2.1.1 Population and Decadal Change by residence: 2011 (PERSONS) State Percentage Decadal Population 2011 / Change Distr State/District Tota Rura Urba ict Total Rural Urban l l n Code 1 2 3 4 5 6 7 8 32 Kerala 3,34,06,061 1,74,71,135 1,59,34,926 4.9 -25.9 92.8 01 13,07,375 7,98,328 5,09,047 8.6 -17.7 117.8 02 25,23,003 8,82,017 16,40,986 4.7 -26.3 35.3 03 Wayanad 8,17,420 7,85,840 31,580 4.7 4.6 6.6 04 30,86,293 10,13,721 20,72,572 7.2 -43.0 88.2 05 Malappuram 41,12,920 22,95,709 18,17211 13.4 -29.8 410.2 06 Palakkad 28,098,934 21,33,124 6,76,810 7.4 -5.7 89.8 07 Thrissur 31,21,200 10,24,794 20,96,406 4.9 -52.0 149.7 08 32,82,388 10,48,025 22,34,363 5.7 -35.7 51.3 09 Idukki 11,08,974 10,56,929 52,045 -1.8 -1.4 -9.6 10 Kottayam 19,74,551 14,09,158 5,65,393 1.1 -14.8 88.6 11 Alappuzha 21,27,789 9,79,643 11,48,146 0.9 -34.2 84.8 12 Pathanamthitta 11,97,412 10,65,799 1,31,613 -3.0 -4.0 6.3 13 26,35,375 14,48,217 11,87,158 1.9 -31.7 154.8 14 33,01,427 15,29,831 17,71,596 2.1 -28.6 62.3 Source: Census 2011.

Density of Population (persons per sq. km.): Density of population of Kerala is 860 persons per sq. km as per Census 2011 whereas that of India is 368. In 2001 the density of Kerala was 819. The district of Thiruvananthapuram with 1508 persons per sq. km is reported to have the highest density and the district of Idukki with 255 persons per sq. km is having the lowest density. Table 2.1.2 Density of Population (per Sq.Km.) by residence: 2001-2011 State/District State/District Density of Density of Code Population(per Sq. Population (per Km. 2001) Sq.Km. 2011) 1 2 3 4 01 Kasaragod 604 657 02 Kannur 812 366 03 Wayanad 366 384 04 Kozhikode 1,228 1,316

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05 Malappuram 1,021 1,157 06 Palakkad 584 627 07 Thrissur 981 1,031 08 Ernakulam 1,012 1,072 09 Idukki 259 255 10 Kottayam 885 895 11 Alappuzha 1,492 1,504 12 Pathanamthitta 468 452 13 Kollam 1,038 1,061 14 Thiruvananthapuram 1,476 1,508 Kerala 819 860 Source: Census 2011. Proportion of Population: In Kerala 1,74,71,135 persons have been reported living in Rural area (52.30% of total population) and 1,59,34,926 (47.70% of total population) live in urban area. In 2001, share of urban population was only 25.96%, which has been increased by 47.72 per cent in 2011. is most urbanized in Kerala with the share of 68.1 per cent whereas the is least urbanized in Kerala with the area of 3.1 per cent. Table2.1.3: Proportion of Rural and Urban population: 2001-2011 State/District State/District Proportion 2001 Proportion 2011 Code Rural Urban Rural Urban Kerala 74.0 26.0 52.3 47.7 01 Kasaragod 80.6 19.4 61.1 38.9 02 Kannur 49.7 50.3 35.0 65.0 03 Wayanad 96.2 3.8 96.1 3.9 04 Kozhikode 61.8 38.2 32.8 67.2 05 Malappuram 90.2 9.8 55.8 44.2 06 Palakkad 86.4 13.6 75.9 24.1 07 Thrissur 71.8 28.12 32.8 67.2 08 Ernakulam 52.4 47.6 31.9 68.1 09 Idukki 94.9 5.1 95.3 4.7 10 Kottayam 84.7 15.3 71.4 28.6 11 Alappuzha 70.5 29.5 46.0 54.0 12 Pathanamthitta 90.0 10.0 89.0 11.0 13 Kollam 82.0 18.0 55.0 45.0 14 Thiruvananthapuram 66.2 33.8 46.3 53.7 Source: Census 2011.

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Sex Ratio (Number of Females per 1000 Males): As per results of Census 2011, the sex ratio of the State of Kerala is 1084. When compared to 2001 Census, sex-ratio has improved by 26 points. The highest sex ratio is in (1136) where as the lowest sex ratio is reported in Idukki district (1006). All district of Kerala show positive sex ratio or in other words more females than males. Among the States, Kerala stands first in terms of Sex ratio.

Table 2.1.4 Sex Ratio (number of females per 1000 males) by residence: 2001-2011 State/D State/District Sex Ratio Sex Ratio istrict 2001 2011 Code Total Rural Urban Total Rural Urban 1 2 3 4 5 6 7 8 32 Kerala 1,058 1,059 1,058 1,084 1,078 1,091 01 Kasaragod 1,047 1,042 1,070 1,080 1,059 1,113 02 Kannur 1,090 1,067 1,112 1,136 1,072 1,171 03 Wayanad 995 995 994 1,035 1,034 1,051 04 Kozhikode 1,057 1,059 1,055 1,098 1,091 1,102 05 Malappuram 1,066 1,067 1,061 1,098 1,096 1,101 06 Palakkad 1,066 1,068 1,056 1,067 1,068 1,063 07 Thrissur 1,092 1,096 1,079 1,108 1,099 1,112 08 Ernakulam 1,019 1,014 1,024 1,027 1,021 1,029 09 Idukki 993 992 1,012 1,006 1,005 1,036 10 Kottayam 1,025 1,022 1,038 1,039 1,034 1,051 11 Alappuzha 1,079 1,087 1,060 1,100 1,108 1,094 12 Pathanamthitta 1,094 1,095 1,078 1,132 1,132 1,126 13 Kollam 1,069 1,075 1,042 1,113 1,.128 1,096 14 Thiruvananthapuram 1,060 1,070 1,042 1,087 1,111 1,068 Source: Census 2011

Child Population (0-6 YEARS): The child population of Kerala according to Census 2011 is 34,72,955. In absolute number, Malappuram district is reported to have the highest child population (5,74,041) and Wayanad district with a child population of 92,324 is having the lowest number of children. The growth rate of child population at the State level is 8.44%. The district having the highest growth rate of child population is Malappuram (4.08%) while Pathanamthitta district with -23.76% is having the lowest

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State Industrial Profile, 2016-17 growth rate in respect of child population. Except Malappuram in all other district the child population declining. Table 2.1.5 Child Population (0-6 years) and proportion by residence: 2011 (PERSONS) State/ Child Population Proportion of Child Population Dt. State/ (0-6 years) 2001 2011 code District Urba Tot Rur Urb Tot Rur Urb Total Rural n al al an al al an 1 2 3 4 5 6 7 8 9 10 11 32 Kerala 34,72, 18,23, 16,49, 11. 12.1 11.3 10.4 10.4 10.4 955 664 291 9 01 Kasaragod 1,55,8 13. 91,832 63,975 13.4 12.5 11.9 11.5 12.6 07 2 02 Kannur 2,74,3 1,79,0 11. 95,223 12.0 11.3 10.9 10.8 10.9 18 95 6 03 Wayanad 13. 11.3 92,324 88,727 3,597 13.4 12.8 11.3 11.4 3 2 04 Kozhikode 3,35,6 1,14,6 2,21,0 12. 12.0 12.2 10.9 11.3 10.7 45 02 43 1 05 Malappuram 5,74,0 3,20,0 2,53,9 15. 15.3 14.8 14.0 13.9 14.0 41 51 90 2 06 Palakkad 3,02,2 2,31,8 12. 70,405 12.3 11.2 10.8 10.9 10.4 97 92 2 07 Thrissur 3,03,9 1,00,9 2,02,9 11. 11.3 10.7 9.7 9.9 9.7 50 77 73 2 08 Ernakulam 3,04,2 2,10,6 10. 93,614 10.9 10.9 9.3 8.9 9.4 42 28 9 09 Idukki 1,05,6 1,00,4 11. 5,182 11.9 12.0 9.5 9.5 10.0 41 59 9 10 Kottayam 1,74,4 1,25,1 10. 49,343 10.9 10.8 8.8 8.9 8.7 86 43 9 11 Alappuzha 1,92,0 1,02,6 10. 89,414 10.6 10.9 9.0 9.1 8.9 46 32 7 12 Pathanamthitta 10. 96,837 86,181 10,656 10.3 10.3 8.1 8.1 8.1 3 13 Kollam 2,54,2 1,37,5 1,16,7 11. 11.3 11.3 9.6 9.5 9.8 60 59 01 3 14 Thiruvanantha 3,07,0 1,47,9 1,549, 11. 11.8 10.6 9.3 9.7 9.0 puram 61 90 071 4 Source: Census 2011.

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Child Sex Ratio (0-6 Years) (Girls per Thousand Boys): As per Census 2011, the State of Kerala has a child sex ratio of 964. In 2001 child sex ratio was 960. Among the districts, Pathanamthitta district with 976 and with 950 are witnessing the highest and the lowest child sex ratio respectively. Table 2.1.6 Child Sex Ratio (0-6 years) by residence: 2001-2011 State/ Child Sex Ratio Child Sex Ratio Distri (0-6 Years) 2001 (0-6 years) 2011 State/District ct Total Rural Urban Total Rural Urban Code 1 2 3 4 5 6 7 8 32 Kerala 960 961 958 964 965 963 01 Kasaragod 959 960 957 961 966 954 02 Kannur 962 963 960 971 966 974 03 Wayanad 959 959 972 965 965 959 04 Kozhikode 959 959 958 969 967 971 05 Malappuram 960 961 949 965 964 966 06 Palakkad 963 964 957 967 969 959 07 Thrissur 958 954 969 950 956 947 08 Ernakulam 954 955 954 961 959 961 09 Idukki 969 968 988 964 964 974 10 Kottayam 962 959 978 964 963 968 11 Alappuzha 956 957 953 951 955 947 12 Pathanamthitta 967 967 966 976 977 973 13 Kollam 960 962 951 973 973 972 14 Thiruvananthapuram 962 966 954 964 965 962 Source: Census 2011.

Literates (Age 7 years and above): A person aged 7 years and above who can both read and write with understanding in any language is treated as literate in Census (Effective Literacy). Total number of literates in Kerala as per Census 2011 is 2, 81,35,824. Effective Literacy Rate Effective Literacy Rate is Number of Literate Persons aged 7 and above x 100 Population aged 7 and above

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State Industrial Profile, 2016-17

a) Total Literacy Rate: Among States/UTs Kerala occupies 1st position in terms of literacy. The effective literacy rate of the State of Kerala is Census 2011 is 94.00% (Rural-92.98%, Urban – 95.11%). In 2001, literacy rate of Kerala was 90.86% . There has been an increase of 3.14% points in the effective literacy rate (2.94% points in rural areas and 1.92% points in urban areas) during the last decade. has recorded the highest literacy rate (97.21%) and Wayanad district with 89.03% is having the lowest literacy. All India literacy rate is 72.99%. b) Male Literacy: Male literacy rate has increased by 1.87% points and the male literacy rate works out to be 96.11% (Rural – 95.35%, Urban – 96.95%) The highest male literacy rate in rural areas is returned in Kottayam (97.97%) while the lowest is returned in Palakkad (92.36%). In urban areas, the lowest male literacy rate is returned in Wayanad (94.31%) and the highest in Kottayam (98.24%). All India male literacy rate is 80.89%. Table 2.1.7: Literacy Rates by Sex for State and Districts : 2001 and 2011 State/ Literacy rate* District State/District Persons Males Females Code 2001 2011 2001 2011 2001 2011 1 2 3 4 5 6 7 8 32 Kerala 90.86 93.91 94.24 96.02 87.72 91.98 01 Kasaragod 84.57 89.85 90.36 93.93 79.12 86.13 02 Kannur 92.59 95.41 96.13 97.54 89.40 93.57 03 Wayanad 85.25 89.32 89.77 92.84 80.72 85.94 04 Kozhikode 92.24 95.24 96.11 97.57 88.62 93.16 05 Malappuram 89.61 93.55 93.25 95.78 86.26 91.55 06 Palakkad 84.35 88.49 89.52 92.27 79.56 84.99 07 Thrissur 92.27 95.32 95.11 96.98 89.71 93.85 08 Ernakulam 93.20 95.68 95.81 97.14 90.66 94.27 09 Idukki 88.69 92.20 92.33 94.84 85.02 89.59 10 Kottayam 95.82 96.40 97.34 97.17 94.35 95.67 11 Alappuzha 93.43 96.26 96.27 97.90 90.82 94.80 12 Pathanamthitta 94.84 96.93 96.41 97.70 93.43 96.26 13 Kollam 91.18 93.77 94.43 95.83 88.18 91.95 14 Thiruvananthapuram 89.28 92.66 92.64 94.60 86.14 90.89 * Literacy rate is the percentage of literates to population aged 7 years and above

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State Industrial Profile, 2016-17

Source: Census 2011. c) Female literacy: The female literacy rate has increased significantly by 4.35% points during the last decade and the same is 92.07% as per Census 2011 (Rural – 90.81%, Urban – 93.44%). In female literacy rate, Kottayam district tops with 96.48% and Wayanad district with 85.07% is at the bottom. The highest female literacy rate in rural areas has returned in Kottayam (96.37%), while the lowest is returned in Palakkad (84.56%). In Urban areas, the lowest female literacy rate is returned in Wayanad (88.40%) and the highest in Kottayam (96.75%). All India female literacy rate is 64.64%.

Gender gap in literacy It is significant to note that the gap in literacy rate among males and females has reduced from 6.52% in 2001 to 4.04% in 2011. Kottayam district with 1.49% has the lowest gender gap in literacy and the district of Kasargod has the highest gap in literacy 7.56%. Among States/UTs. Meghalaya is the only State with 3.07% gap in literacy which is less than that of Kerala. All India gap in literacy is 16.25%. Scheduled Caste Population: The total Scheduled Caste Population returned in Census 2011 is 30,39,573. Out of this 18,18,281 are in rural areas and 12,21,292 are in urban areas. a) In terms of proportion, the Scheduled Caste population constitutes 9.1% of the total population of the State. The proportion during the last Census was 9.8%. There has been a decrease in proportion of 0.7% during the last decade. The highest proportion of Scheduled Caste has been recorded in Palakkad (14.37%) and the lowest in Kannur (3.30%). b) The Scheduled Caste population in absolute numbers has decreased by 84,368. c) The highest number of Scheduled Castes population has been recorded in Palakkad (4,03,833) and the lowest in Wayanad (32,578) d) In terms of gender composition, there are 14,77,808 male Scheduled Caste population (Rural – 8,83,819 and Urban – 5,93,989) and 15,61,765 female Scheduled

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Caste population (Rural – 9,34,462 and Urban – 6,27,303) Sex ratio of SC population in Kerala is 1057. Table 2.1.8 District wise distribution of Scheduled Caste population in 2011 Sl. District Total Male Female Rural Urban No. KERALA 3039573 1477808 1561765 1818281 1221292 1 Thiruvananthapuram 372977 178589 194388 179917 193060 2 Kollam 328263 157801 170462 208474 119789 3 Pathanamthitta 164465 78942 85523 151844 12621 4 Alappuzha 201211 97183 104028 111931 89280 5 Kottayam 153909 75503 78406 119360 34549 6 Idukki 145486 72399 73087 143340 2146 7 Ernakulam 268411 131573 136838 102403 166008 8 Thrissur 324350 156480 167870 121839 202511 9 Palakkad 403833 197451 206382 322951 80882 10 Malappuram 308266 151557 156709 192270 115996 11 Kozhikode 199191 97279 101912 75490 123701 12 Wayanad 32578 16406 16172 30378 2200 13 Kannur 83350 40260 43090 23562 59788 14 Kasargod 53283 26385 26898 34522 18761 Source: Census 2011

Scheduled Tribe Population: The total Scheduled Tribe population returned in Census 2011 is 4,84,839. Out of this 4,33,092 are in rural areas and 51,747 in urban areas.

Table 2.1.9 District wise distribution of Scheduled Tribe population in 2011 Sl. District Total Male Female Rural Urban No. KERALA 484839 238203 246636 433092 51747 1 Thiruvananthapuram 26759 12624 14135 20022 6737 2 Kollam 10761 5195 5566 7663 2875 3 Pathanamthitta 8108 3947 4161 2961 445 4 Alappuzha 6574 3175 3399 19698 3613 5 Kottayam 21972 10974 10998 19698 2274 6 Idukki 55815 27995 27820 55243 572 7 Ernakulam 16559 8349 8210 8324 8235 MSME-Development Institute, Thrissur 28

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8 Thrissur 9430 4362 5068 5859 3571 9 Palakkad 48972 24314 24658 47023 1949 10 Malappuram 22990 11272 11718 18247 4743 11 Kozhikode 15228 7429 7799 9555 5673 12 Wayanad 151443 74476 76967 148215 3228 13 Kannur 41371 20141 21230 36302 5069 14 Kasargod 48857 23950 24907 46094 2763 Source: Census 2011

a) In terms of proportion, the Scheduled Tribe population constitutes 1.45% of the total population. The proportion during the last Census was 1.14%. Thus there has been an increase of 0.36% in the proportion during the last decade. The highest proportion of Scheduled Tribe has been recorded in Wayanad (18.53%) and the lowest in Thrissur (0.30%). b) The Scheduled Tribe Population in absolute numbers has increased by 1,20,650. c) The highest number of Scheduled Tribe has been recorded in Wayanad (1,51,443) and the lowest in Alappuzha (6,574). In terms of gender composition there are 2,38,203 male Scheduled Tribe population (Rural – 2,13,208 and Urban – 24,995) and 2,46,636 female Scheduled Tribe population (Rural 2,19,884 and Urban -26,752). Sex ratio of ST population in Kerala is 1035. It is worthwhile mentioning that the list of Scheduled Tribes in Kerala had undergone changes during the decade 2001-2011 resulting change in proportion of Scheduled Tribes. 2.2 LABOUR FORCE Workers: As per Census 2011, the total number of workers (who have worked for at least one day during the reference year) in Kerala is 1,126,19,063. Out of this 84,51,569 workers are males and 31,67,494 are females. There is an increase of 13,35,176 workers during the decade 2001-2011. Work Participation Rate: The percentage of workers to total population (WPR) in Kerala according to Census 2011 is 34.78%. Compared to 2001 Census, an improvement of 2.48% is observed in WPR. The highest WPR is in Idukki (46.56%) and

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State Industrial Profile, 2016-17 the lowest in Malappuram (25.83%). Among males, the Work Participation Rate is 52.73%. In 2001 the same was 50.20%. Highest Male Work Participation Rate is observed in Idukki (60.00%) and the lowest in Malappuram (45.82%). Among females the work participation rate is 18.23%. In 2001, the same was 15.38%. Highest Female Work Participation Rate is observed in Idukki (33.20%) and lowest in Malappuram (7.63%). Table 2.2.1 Percentage distribution of main workers in Kerala (2011) Sl.No Item Sex Total Rural Urban 1 2 3 4 5 6 1 Area in Sq. Kms. 38852.00 31,253.20 7,598.80 2 Total households 78,53,754 41,49,641 37,04,113 3 Total population (incl.) P 3,34,06,061 1,74,71,135 1,59,34,926 Institutional and M 1,60,27,412` 84,08,054` 76,19,358 houseless population F 1,73,78,649 90,63,081 83,15,568 4 Population in the age P 34,72,955 18,23,664 16,49,291 group M 17,68,244 9,27,888 8,40,356 0-6 F 17,04,711 8,95,776 8,08,935 5 Scheduled caste P 30,39,573 18,18,281 12,21,292 population M 14,77,808 8,83,819 5,93,989 F 15,61,765 9,34,462 6,27,303 6 Scheduled Tribe P 4,48,839 4,33092 51,747 Population M 2,38,203 2,13,208 24,995 F 2,46,636 2,19,884 26,752 7 Literates P 2,81,35,824 1,45,49,320 1,35,86,504 M 1,37,04,903 71,32,430 65,72,473 F 1,44,30,921 74,16,890 70,14,031 8 Total workers P 1,16,19,063 63,41957 52,77,106 M 84,51,569 45,m07,501 39,44,068 F 31,67,494 18,34,456 13,33,058 9 Main workers P 93,29,747 49,30,191 43,99,556 M 71,29,828 37,43,078 34,36,750 F 21,49,919 11,87,113 9,62,806 (i) Cultivators P 5,44,932 4,81,651 63,281 M 4,65,546 4,10,532 55,014 F 79,386 71,119 8,267 (ii) Agricultural Labourers P 9,19,136 7,60,632 1,58,504 M 6,29,092 5,10,300 1,18,792 F 2,90,044 2,50,332 39,712

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(iii) Household Industry P 1,98,281 1,04,642 93,639 workers M 1,32,111 68,889 63,222 F 66,170 35,753 30,417 (iv) Other workers P 76,67,398 35,83,266 40,84,132 M 59,53,079 27,53,357 31,99,722 F 17,14,319 8,29,909 8,84,410 10 Marginal Workers P 22,89,316 14,11,766 8,77,550 M 12,71,741 7,64,423 5,07,318 F 10,17,575 6,47,343 3,70,232 (i) Cultivators P 1,25,321 1,05,378 19,943 M 81,360 68,349 13,011 F 43,961 37,029 6,932 (ii) Agricultural Labourers P 4,03,714 3,22,371 81,343 M 2,28,903 12,79,994 48,909 F 1,74,811 1,42,377 32,434 (iii) Household Industry P 74,741 46,285 28,456 workers M 32,504 Q20,508 11,996 F 42,237 25,777 16,460 (iv) Other workers P 16,85,540 9,37,732 7,47,808 M 9,28,974 4,95,572 4,33,402 F 7,56,566 4,42,160 3,14,406 11 Non-workers P 2,17,86,998 1,11,29,178 1,06,57,820 M 75,75,843 39,00,553 36,75,290 F 1,42,11,155 72,28,625 69,82,530 Source: Census of India 2011

Main and Marginal Workers a) In Census 2011, out of the 1,16,19,063 workers, 93,29,747 are main workers and the remaining 22,89,316 are marginal workers. The percentage of main workers among the total workers in Census 2011 is 80.30% against 80.01% in Census 2001. b) The percentage of main workers among the male workers is 84.95% and that among female workers is 67.87%. The percentage of male main workers has increased from 83.20% to 84.95% in Census 2011. On the other hand, the percentage of female main workers has reduced from 70.54% to 67.87% in Census 2011. Ernakulam reported the highest percentage of main workers

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(84.96%) as per Census 2011 and a minimum of 74.13% recorded in Alappuzha. c) For the first time, in Census 2011, the marginal workers, i.e. workers who worked for less than six months during the reference year, have been sub divided in two categories, namely, those worked for less than 3 months and those worked for 3 months or more but less than six months. Amongst the 22,89,316 marginal workers 18,28,203 (79.85%) worked for 3 to 6 months whereas 4,61,113 (20.14%) persons worked for less than 3 months. Percentage share of persons worked for 3 to 6 months is slightly higher in urban areas (81.20%) than in rural areas (79.42%). Whereas for persons worked for less than 3 months, the share is higher in rural areas (20.58%) than in urban areas (18.80%) Categories of Economic Activities of the Workers:

a) The broad categories of economic activities, also known as fourfold classification of the workers are Cultivators (CL), Agricultural Labourers (AL), working in Household Industries (HHI) and Other Workers (OW). b) In Census 2011, out of 1,16,19,063 workers, 6,70,253 (5.77%) are cultivators and 13,22,850 (11.39%) are Agricultural Labourers. Thus 17.16% of workers are engaged in agricultural activities compared to 22.80% of Census 2001. Of the remaining workers 2,73,022 (2.35%) are in Household industries and 93,52,938 (80.50%) are Other Workers. c) During the decade 2001-2011, the Census results show a fall of 53,902 in cultivators and a decrease of 2,98,001 in Agricultural Labourers. The Household Industries have also shown a decrease of 96,645 however other workers have increased by 17,83,724. d) In Census 2011, the percentage of male Cultivators decreased to 6.47% from 7.75%. Among the females, the percentage of Cultivators has reduced to 3.89% from 4.85%.

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e) In Kerala Iuka has reported the highest share of Cultivators with 19.54% and Wayanad has reported the highest share of Agricultural Labourers with 29.88%. Kasaragod has the highest workers in Household Industry with 5.29% and Kozhikode has the highest share of Other Worker at 89.04% Table 2.2.2 Total Workers 2011and Work Participation Rate for 2001 and 2011 Rural and Urban. Stat State/ District Total Workers 2011 Work Participation Rate e/ 2001 2011 Dt Total Rural Urban Tota Rur Urba Tota Rur Urba cod l al n l al n e 1 2 3 4 5 6 7 8 9 10 11 32 Kerala 1,16,19,063 63,41,957 52,77,106 32.3 32.5 31.6 34.8 36.3 33.1 01 Kasaragod 4,62,998 3,00,809 1,62,189 34.7 35.3 32.4 35.4 37.7 31.9 02 Kannur 8,24,116 3,22,381 5,01,735 31.9 34.0 29.8 32.7 36.6 30.6 03 Wayanad 3,40,077 3,28,034 12,043 39.5 39.5 40.8 41.6 41.7 38.1 04 Kozhikode 9,48,981 3,16,246 6,32,735 27.9 27.4 28.7 30.7 31.2 30.5 05 Malappuram 10,62,424 6,13,162 4,49,262 24.1 24.1 24.4 25.8 26.7 24.7 06 Palakkad 10,42,340 8,06,903 2,35,437 36.1 36.5 33.9 37.1 37.8 34.8 07 Thrissur 10,95,727 3,79,199 7,16,528 32.1 32.2 31.9 35.1 37.0 34.2 08 Ernakulam 12,49,343 4,17,997 8,31,346 36.0 37.5 34.2 38.1 39.9 37.2 09 Idukki 5,16,363 4,98,624 17,739 43.2 43.7 33.7 46.6 47.2 34.1 10 Kottayam 7,35,735 5,39,176 1,96,559 32.9 33.3 30.8 37.3 38.3 34.8 11 Alappuzha 8,04,471 3,71,442 4,33,029 34.3 33.8 35.6 37.8 37.9 37.7 12 Pathanamthitta 3,92,794 3,51,835 40,959 29.7 29.9 27.3 32.8 33.0 31.1 13 Kollam 9,12,025 5,12,817 3,99,208 32.1 32.2 31.2 34.6 35.4 33.6 14 Thiruvanantha 12,31,669 5,83,332 6,48,337 32.4 32.4 32.5 37.3 38.1 36.6 puram Source: Census of India 2011 2.3. LAND USE PATTERN The total geographical area of the State is 3886287 Ha. Geographical area in Kerala has been classified according to thirteen different uses of land during 2015-16 which is presented in Table 2.3.1. Kerala is one of those States in India, where land resources are put to more intensive use than anywhere else, mainly because of the low per capita availability of land in the State. Data on land use pattern of Kerala for the year 2015-16 is given in

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Table 2.3.1. Out of a total geographical area of 3886287 ha. Net sown area is 52 per cent. Forest occupies 29.10 percent. The net sown area was found to be decreased by 19808 ha compared to the previous year. The share of total cropped area in the total geographical area is around 68 percent. It marked an increase of 2952 ha during 2015-16 over the previous year. The share of land under non-agricultural uses out of total geographical area was fund to be 11.80 per cent in 2015-16 and an increase of 15518 ha in this regard was recorded. The area under current fallow was found to be increased with 4674 ha in 2015-16 over the previous year. The area under cultivable waste was found to be decreased by 1177 ha whereas, barren and uncultivated land found to be increased by 148 ha. TABLE 2.3.1 Land use Pattern in Kerala Percentage of Change in area Geographical between 2013-14 and Sl.No Classification of land 2014-15 2015-16 area 2014-15 Actual Percentage 1 Total Geographical 3886287 3886287 100 0 0 Area 2 Forest 1081509 1081509 29.10 0 0 3 Land put to non 419128 434646 11.80 15518 4 agricultural uses 4 Barren and 12952 13100 0.34 148 1 uncultivated land 5 Permanent Pastures 5 0 0 -5 -100 and Grazing land 6 Land under miscellaneous tree 2653 2663 0.07 10 0 crops 7 Cultivable waste 100676 99499 2.56 -1177 -1 8 Fallow other than 54741 55258 1.42 517 1 current Fallow 9 Current Fallow 65329 70003 1.8 4674 -7 10 Net area sown 2042881 2023073 52 -19808 -1 11 Area sown more than 581743 604504 16.83 22761 4 once 12 Total cropped Area 2624624 2627576.59 67.40 2952.59 0 13 Cropping Intensity (%) 128 130 0 2 2 Source: Directorate of Economics and Statistics,GoI

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Land put to non agricultural uses, Barren and 11.8 uncultivated land, 0.34 Forest, 29.1 Cultivable waste, 2.56 Total cropped Area, 67.4 Fallow other than current Fallow, 1.42

Net area sown, 52

Current Fallow, 1.8 Area sown more than once, 16.83

Fig.3 : Land Use Pattern of Kerala 2015-16

In most developing countries, agriculture is the dominant user of water, accounting for more than 85 percent of all water use. Irrigation plays an important role in the growth of agricultural income of the State. At the same time, this also raises significant issues for water resource management like problems dealing with water scarcity, competing demands from other sectors, irrigation service delivery and system management, water use efficiencies and so forth. The primary objective in coming years will be to balance water supply and demand among users to ensure adequate water for agriculture and sustainable irrigation system management while satisfying other needs. The basic premise of water resource management is that river basins are best managed and developed as an integrated whole. This is always legally and politically complex due to the challenges of allocation between users and between uses.

The water availability per capita in Kerala is one of the lowest in the country and has been declining overtime. The water availability of Kerala is dependent on rainfall and other climatic factors, particularly the spatial and temporal distribution of rainfall. Due to poor retention capacity of the soil, water available through rainfall cannot be conserved effectively. Irrigation development in Kerala is mainly cantered on the development of major and medium irrigation projects. On analyzing the investment pattern during IXth, Xth & XIth plan period; it is evident that major irrigation occupies

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State Industrial Profile, 2016-17 a major portion of the outlay. This increased sharing pattern was provided for completing the long pending major irrigation schemes. 2.4 AGRICULTURE In 1956-57, the share of agricultural products in Kerala was nearly 53 percent of the Net State Domestic Product (NSDP). The relative share of agriculture in state income was the lowest when compared with any State in the country while the relative share of service sector was the highest. During 1957-58, the per capita income from agriculture in Kerala was Rs.243 whereas it was only Rs.188 in all India. Now (at 2013- 14 prices), the per capita income from agriculture in Kerala (based on GSDP) is Rs.12738 and in all India it is Rs.13228. The Gross Domestic Product (GDP) from agriculture and allied sector consists of the following subsectors: 1. Agriculture (including livestock and dairying) 2. Forestry and logging 3. Fishing Thus GDP from agriculture is the total value of goods and services produced from agriculture (principal, minor and miscellaneous crops [products and byproducts]) and livestock (milk, meat, egg, wool, hair, dung, honey etc). At current prices, the all India GDP during the year 2015-16 is Rs. 12279410 crores (PE) and out of this the agriculture sector has shared an amount of Rs.2093081 crores (15.8 percent). While considering the State of Kerala, the total GDP in 2013-14 is Rs.396282.46 crores and the share of agriculture subsector is 43096.47 crores (10.88 percent of total GDP). The GDP contribution from above subsectors, primary sector and total GDP in Kerala and all India during 2004-05 and 2013-14 at current prices are given in the following graph.

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Forestr 2014 2004 y & logging Fishing Agricult 9% ure 12% 81%

Agricu lture 79% Fishing Forestry 9% & logging 10% Fig.4: GDP contribution from agriculture & allied sectors in Kerala in 2004 and 2014 Agricultural crops in the state are broadly classified as food crops and nonfood crops. Food crops are cereals & millets, sugar crops, spices & condiments, fresh fruits, vegetables, etc. The major non-food crops are rubber, betel leaves, lemon grass, etc. Another classification of crops is seasonal crops, annual crops and perennial crops which are based on their life time. Rice (area 196870ha) is the staple food of Kerala and forms an inevitable part of an average Keralites’ diet. Unfortunately, the area under rice has been declining consistently since the last three decades. Today rice occupies the only third position in area under cultivation way behind rubber and coconut. And though last year the trend was reversed with a marginal increase in area and production, in 2014-15, it again showed a declining trend. Moreover, the productivity of the crop is very low in the State (2790kg/ha), though it is higher than the national average (2424 kg/ha). China, which is the major producer of rice in the world, reports productivity more than three times the productivity of (6744kg/ha) rice in Kerala. The productivity of rice in Egypt is the highest in the world (9088kg/ha) which is nearly fourfold of our productivity. is the State with maximum yield in the country (3952kg/ha). There are three main rice growing season in the state : A) Virippu season/Automn season /First crop season, which starts in April – May and extends upto September – October; B) Mundakan season/Winter season/Second crop season,

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State Industrial Profile, 2016-17 which starts in September – October and extends up to December – January ; and C) Puncha season/Summer season/ Third crop season, which is starts in December – January and extends up to March April. Palakkad, Alappuzha, Thrissur and Kottayam account for about 81.20 per cent of the total production of the rice in the state. Table 2.4.1 Area, Production and Productivity of Principal Crops Sl. Area (Ha.) Production (MT) Productivity (Kg./Ha.) Crops No. 2014-15 2015-16 2014-15 2015-16 2014-15 2015-16 1 Rice 198159 196870 562092 549275 2837 2790 2 Pulses including Tur 3601 3764 3409 4263 947 1133 3 Pepper 85431 85948 40690 42132 476 490 4 Ginger 4800 4986 22989 22044 4789 4421 5 Turmeric 2470 2603 6820 7112 2761 2732 6 *Cardamom 39730 39730 16000 19500 403 491 7 Arecanut 96686 99126 125925 132453 1302 1336 8 Banana 61936 59835 545431 536155 8806 8961 9 Other Plantains 56761 57683 468320 411626 8251 7136 10 Cashewnut 45436 43090 29715 24733 654 574 11 Tapioca 75496 69405 2943919 2662610 38994 38363 12 Coconut 793856 790223 5947 5873 7491 7432 13 **Coffee 85359 84987 67700 69230 793 815 14 $ Tea 30205 30205 65174 57898 2158 1917 15 # Rubber 549955 550840 507700 438630 923 796 Production of Coconut in Million Nuts, Productivity in numbers. # Rubber Board, *Spices Board .** Coffee Board . $Tea Board Source; Directorate of Economics and Statistics 2.5 LIVE STOCK Livestock is a major source of livelihood for the World’s poor. It is an integral part of India’s agricultural economy and plays a multifaceted role in providing livelihood support to the rural population. Livestock sector apart from contributing to national economy in general and to agricultural economy in particular, also provides employment opportunities, asset creation, coping mechanism against crop failure and

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State Industrial Profile, 2016-17 social and financial security. Livestock is the main source of animal protein for the population. Small and marginal farmers and landless labourers own majority of the livestock resources. Hence sustainable development of the livestock sector would lead to more inclusive development and empowerment of women. Livestock sector contributed 3.03% of the GSVA and 29.18 percentage of the GSVA in Agriculture and allied activities in 2015-16 (at constant price with base year 2011-12). Milk production in the State increased from 21.19 lakh MT at the end of the tenth plan (2006-07) to 27.16 lakh MT at the end of the eleventh plan (2011-12). Milk production during 2014-15 2015-16 was 27.11 and 26.50 lakh MT respectively, the percentage change being 2.11 and -2.25 per cent respectively. Growth of milk production during 2015-16 in the State is far below that at the national level. During 2015-16, Kerala contributed only 1.70% of the annual milk production of the country. Table 2.5.1 Production of Major Livestock Products Kerala India Milk Milk Meat Meat S. (lakh Egg (lakh Egg Year (lakh (lakh MT) No MT) (crore)(growth MT) (crore)(growth MT)(growth (growth (growth %) (growth %) %) %) %) %) 2006-07 1 (Xth Plan 21.19 119.39 1.98 1026 5066 23 ) 2011-12 27.16 1279 2 170.48 (1.97) 4.26 (24.91) 6645 (5.44) 55 (14.58) (XI Plan ) (2.76) (5.01) 27.9 1324 59 3 2012-13 223.7 (33.22) 4.01 (-5.78) 6973 (4.94) (2.72) (3.52) (7.27) 26.55 (- 4.16 1376.8 62 4 2013-14 247.69 (10.72) 7475.2 (7.2) 4.83) (3.76) (3.99) (5.08) 27.11 4.46 1463.1 67 5 2014-15 250.36 (1.08) 7848.4 (4.99) (2.11) (7.16) (6.27) (8.01) 26.50 4.66 1554.90 8292.94 70.20 6 2015-16 244.25 (-2.44) (-2.25) (4.48) (6.27) (5.66) (4.78) Source: Animal Husbandry Department

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The livestock resource of the state as per the livestock census 2012 is given in Table 2.5.2, 2.5.3 and 2.5.4. Table 2.5.2 shows that the total cattle population of the state is 1322937. Table 2.5.2 Cattle population as per Census 2012 Provisional Variety Male Female Total Indigenous 12527 63506 76033 Cross variety 135458 1111446 1246904 Total 147985 1174952 1322937 Source: Cattle Census, 2012 Table 2.5.3 depicts the declining trend cattle population over the period. Table 2.5.3 Number and Percentage Distribution of Indigenous and Cross Breed Cattle in 2012 and the Previous Years

2003 2007 2012

Sl.

Distric

N

s s t s

o distribu

tionCB of tionCB of tionCB of

Crossbred Crossbred Crossbred

Indigenou Indigenou Indigenou

% distribu % distribu % % 38718 173527 11887 162124 7603 124690 1 Kerala 81.76 93.17 94.25 2 1 2 5 3 4 Source: Cattle Census 2003, 2007, 2012

The current status of livestock population is given in Table 2.5.4. It shows that the availability is far less than the requirement.

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Table 2.5.4. Live stock population 2012. Live stock Population 2012 Cattle 1322937 Goat 1242822 Pigs 55784 Elephant 731 Rabbits 229774 Dogs 921380 Fowls 8982883 Ducks Desi 341324 639132 Improved 297808 Drakes Desi 87419 192599 Ducks Improved 105180 Ducklings Desi 61329 163349 Improved 102020 Male 19898 51313 Turkey Female 31415 Quail 165188 Other poultry 373293 Hen 825648 Broiler 11704375 Duck 568226 Other 270365 Cocks Desi 759038 1598005 Improved 838967 Hen Desi 2242016 5344423 Improved 3102407 Chicken Desi 782644 2040455 Improved 1257811 Source: Livestock Census 2012

2.6 FISHERIES RESOURCES India is the second largest fish producing nation in the world, with a share of 5.4% of the global fish production. India is also a major producer of fish through aquaculture and ranks second in the world after China. The provisional figure for total fish production in India during 2014-15 is 10.06 Million Tonnes (MT) with a contribution of 6.57 MT from Inland sector and 3.49 MT from Marine sector.

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The marine fish production in Kerala has tended to fluctuate while the inland fish production has shown signs of improvement from 1999-2000. Marine fish production has declined from 5.24 lakh tonnes in 2014-15 to 5.17 lakh tonens in 2015-16. Inland production has been increasing during the recent years. During 2015-16, the share of inland fish production in the total fish production of the State was 29 percent.

The total approved outlay during the 12th plan under the fisheries sector was Rs.1471 crore (including Special Area Development) which accounts for 1.44 percent of the total State plan outlay and 16.66 percent of the outlay under Agriculture & Allied Sectors. The actual amount budgeted during the first four years of the 12th Plan from 2012-13 to 2016-17 was Rs.1419.9 crore and the expenditure reported up to October 2016 was Rs.972 crore (68.40%). Year-wise details are given in Table 2.4

Table 2.6.1: Outlay and expenditure of Fisheries and coastal area development (Rs in crore) Annual Annual Annual Annual Annual Plan 2012- Plan 2013- Plan 2014- Plan 2015- Plan 2016- Total Sector 13 14 15 16 17 Outla Ex Outla Ex Outla Ex Outla Ex Outla Outla Exp Exp y p y p y p y p y y 54.2 617.4 Fisheries 142 138 158 135 177 147 178 143 169.3 824.9 6 7 Coastal Area 355.1 Developmen 64 49 58 49 87 47 189 202 197 8.16 595 t 6 62.4 972.6 Total 206 187 216 184 264 194 367 345 366.3 1419.9 2 3 Source: Budget Programme Books, GoK and Planspace Kerala

Coastal line of Kerala covers 590 Kilometers. There are 6 Marine fishing harbours, 14 fish landing centers and 222 fishing villages in the state. About 0.54% of the total population of the state is fishermen. Marine fish catching is carried out through Traditional and Mechanical boats. There exist 14 FFDAs (Fish Farmers Development Agency) and 6 BFFDAs (Brackish Water Fish Farmer’s Development Agency) in the

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State. These agencies are formed to provide guidelines to promote Inland fish cultivation in the state. In Kerala there are 44 rivers covering an area of 85000 hectares, 53000 ponds and bunds covering area more than 27000 hectares, 9 fresh water lakes, 53 reservoirs and brackish water area of 46000 hectares. The polders of Kuttanadu having a water spread of 35000 ha and 17000 ha of kole lands of Thrissur are also very ideal for various aquaculture development activities. The last year production of inland fish was estimated at around 75000 tonnes. The fisherman population of the state for the year 2015-16 was estimated as 10.24 lakh on the basis of projected population of kerala as on October 1, 2015. Population of the state as per Census 2011 is 33.4 million. Hence, the fisherman population is around 3.1 per cent of the state population. Table 2.6.2 District-wise Distribution of Fishermen Population in Kerala (2011 Census) Marine S. Femal Childr Fema Childr & N District Male Total Male Total e en le en Inland o. Total 1 2 3 4 5 6 7 8 9 10 11 1 Thiruvananth 61261 54120 48120 163501 439 509 434 1382 164883 apuram 2 Kollam 38210 32316 18940 89466 13215 12440 7979 33634 123100 3 Alappuzha 42352 38659 26193 107204 24491 23472 12627 60590 167794 4 Pathanamthit 0 0 0 0 912 792 369 2073 2073 ta 5 Kottayam 0 0 0 0 9611 9124 5685 24420 24420 6 Idukki 0 0 0 0 261 264 166 691 691 7 Ernakulam 28126 26366 16463 70955 23258 22746 16428 62432 133387 8 Thrissur 27489 27697 15768 70954 7769 7104 4479 19352 90306 9 Palakkad 0 0 0 0 847 832 855 2534 2534 10 Malappuram 30472 24778 22647 77897 1771 1542 834 4147 82044 11 Wayanad 0 0 0 0 74 80 76 230 230 12 Kozhikode 37345 32575 24994 94864 4090 4309 3350 11749 106613 13 Kannur 20104 18269 15615 53988 2369 2505 1346 6220 60208 14 Kasaragod 16781 15844 9795 42420 386 366 170 922 43342 State 302140 270624 198485 771249 89493 86085 54798 230376 1001625 Source: Census 2011

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They reside in 222 marine fishing village and 113 inland fishing villages of the state. Out of this, 7.881 lakh fisherman belong to marine sector while 2.36 lakh fisherman belong to inland sector. Alappuzha (1.90 lakh) is the district with largest fisherman population, followed by Thiruvananthpuram (1.70lakh), and Ernakulam (1.36 lakh). Table 2.6.2 shows district-wise distribution of fishermen population in Kerala (2011 Census). 2.7 FOREST As per the Forest Survey of India (FSI) report 2015, total forest cover in the State of Kerala is 19239 sq.km, which is 49.50 per cent of the total geographical area. Forest cover in the State consists of 1523 sq.km of very dense, 9301 sq.km of moderate dense and 8415 sq.km of open forest. Idduki stands on top with highest forest cover (3770sq.km) whereas; Alappuzha has the least forest cover (112sq.km). Table 2.7.1: District wise forest cover in kerala S. Name of District Geographica Forest Cover % To No. l Area Very Moderat Open Total GA Dens e Dense Fores e t 1 Thiruvananthapura 2193 60 718 539 1317 60.05 m 2 Kollam 2491 99 671 632 1402 56.28 3 Alappuzha 1414 0 45 67 112 7.92 4 Pathanamthitta 2641 158 1202 382 1742 65.96 5 Kottayam 2203 12 530 341 883 40.08 6 Idduki 5019 349 2081 1340 3770 75.11 7 Ernakulam 2407 12 282 412 706 29.33 8 Thrissur 3033 181 454 490 1125 337.0 9 9 Palakkad 4480 317 677 767 1761 39.31 10 Malappuarm 3549 142 417 916 1475 41.56 11 Wayanad 2131 142 1256 301 1699 79.73 12 Kozhikode 2344 30 316 706 1052 44.88 13 Kannur 2966 21 346 971 1338 45.11 14 Kasargod 1992 0 306 551 857 43.02 Total 38863 1523 9301 8415 19239 49.50 Source : FSI, 2015

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In terms of percentage of forest cover to total geographical area, Wayanad district stands on first position with an area of 79.73 per cent followed by Idduki (75.11 per cent) and Pathanamthitta (65.96 per cent). Forest plantation constitutes the major source of raw materials to the forest based industries. The total area covered by forest plantation of various species is about 1.81 lakh ha. Teak is the major species planted having 74183 ha (41%) followed by eucalyptus 13566 ha (7.5%). Of the total forest plantations, the area covered by hard wood spices is 77443 ha 161 (42.8%), softwood species is 33164 ha (18.3%), bamboo and reeds is 6805 ha (3.8%), plantation crops is 1882 ha (1%) and mixed plantation is 61810 ha (34.1%). Major forest produce includes timber, reeds, bamboo and firewood. The quantity of timber produced in 2007-08 was 48628 cum (round log). The number of bamboos and reeds produced were 11.51 lakh and 143.52 lakh respectively.

2.8 MINING AND MINERALS The mineral resources in the State and its contribution to the State’s economy are insignificant. Major minerals in the State are beach sands comprising Illuminate, Monazite, Zircon, China clay, Tile clay, Lime shell, Lime stone, Bauxite, Silica sand, Graphite, Silica sand, Quartz etc., which are being explored and exploited by the State Department of Mining and Geology, Kerala Mineral Exploration and Development Project and Kerala State Mineral Development Corporations. Mining leases for major minerals and quarrying leases for minor minerals are major sources of revenue from this sector. The total area covered by mining leases of major minerals in the State is 120.7854 Ha. The contribution of Mining and Quarrying sector to Gross Value Added at constant prices is estimated at Rs.507958 lakh during 2015-16 with a registering growth of 6.21 percent compared to the previous year. The share of the sector in GSDP at constant prices stood at 1.20 percent during 2015-16. Mining and quarrying sector in the State registered negative growth in 2012-13 and witenessed a high positive growth of 50.13 per cent. in 2013-14 and again declined to 39.13 per cent during 2014-15 and 6.21 per cent in 2015-16. In 2015-16 total 40800634 tonne of major and miner mineral produced in Kerala and received an amount of Rs. 11951.44 lakh from royalty.. The production and royalty of minerals in the State during 2015-16 are given in the table below

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Table 2.8.1: Production and Royalty of Minerals in Kerala during 2015-16 Sl. No . Mineral Royalty ( lakh) Production (Tons.) Major Minerals 1 China Clay 234.39 585965 2 Ilmenite 115.08 54798 3 Rutile 38.75 2636 4 Zircon 84.42 6267 5 Sillimanite 16.07 7205 6 Silica Sand 159.21 70447 7 Limeshell/Sea shell 27.29 34118 8 Lime stone 501.16 626451 9 Bauxite/Laterite 1622.56 1690170 10 Graphite 0.41 630 11 Leucoxene 0.61 56 12 Monozite 0 0 0 0 Subtotal 2799.95 3078743 Minor Minerals 1 Granite Building Stone 7170.08 29875337 2 Granite Dimension Stone 51.36 1284 3 Laterite 161.14 671411 4 Lime/Sea Shell 2.25 3000 5 Brick Clay 104.1 260249 6 Ordinary Sand 532.45 1331120 7 River Sand 28.43 71076 8 Ordinary Earth 1101.68 5508414 Sub Total 9151.49 37721891 Grand Total 11951.44 40800634 Source : DSR of Mining and Geology,2016 2.9 SERICULTURE Sericulture is a nontraditional activity in Kerala. The State Government had declared sericulture as a village industry and constituted Kerala State Sericulture Co- operative Federation Ltd (Serifed) as an apex institution of Co-operatives in the year 1994. SERIFED promoted mulberry cultivation, silkworm rearing and silk industry in the state until 2010. During the year 2010-2011, Government took decision to liquidate SERIFED and continue sericulture activities through Rural Development Department. The productive acreage was 555 acres up to 2001- 2002 and during the X plan period it increased to 3351acres. Cocoon production increased from 31 MT during 1995-96 to 101 MT in 2006-2007, the highest in the sericulture history of the state. The growth in cocoon

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State Industrial Profile, 2016-17 production was significant particularly in X Plan period. The current cocoon production in the State (2014-15) was 100 tons. Rural Development Department is taking various measures to implement the Sericulture activities in the State. There are very good prospects for further expansion of this activity in Kerala establishing backward and forward linkages. 2.10 TOURISM Tourism is a social, cultural and economic phenomenon related to the movement of people to places outside their usual place of residence, pleasure being the usual motivation. With increasing globalization and disposable income, tourism has over the last few decades become one of the largest and fastest growing industries. International and regional tourism contributes to economic growth, job creation and development in nations all around the world. Today, tourism accounts for 10 per cent of global GDP, 7 per cent of total exports and one in 11 jobs across the world. In 2015, international tourist arrivals reached nearly 1.2 billion. By 2030, 1.8 billion travelers are expected to cross international borders. Tourism is a potent engine for economic development growth due to its forward and backward linkage in the economy. Tourism has also been recognized for its contribution to sustainable development. The economic development potential of the tourism sector is also associated with international tourism because of its capacity to generate foreign exchange and provide opportunities for the transfer of capital and knowledge. International tourism is a key contributor to the Balance of Payment (BoP) and to macroeconomic stability in developing countries like INDIA. Tourism is the hallmark of the Kerala’s economic development and a principal contributor to the State’s economy. Famously called the “God’s Own Country”, kerala has been successful in creating a place of its own in this sector. In the case of foreign tourist traffic, the State has recorded a consistent growth in the number of tourist arrivals during the past two decades except during the crisis periods i.e. 2001 and 2009. The policies and marketing strategies adopted by the State government have succeeded to a great extent in attracting foreign tourist. The growth rate of kerala with respect to foreign tourist arrivals is higher than that of India. But the

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State Industrial Profile, 2016-17 national average surpassed the state annual growth rate of foreign tourist arrivals in 2014 for the first time in decade. In 2010, the growth rate was 18.31 per cent, which dropped to 8.12 per cent by 2013 and further to 5.86 per cent in 2015. Kerala stands on 7th position in the share with respect to foreign tourist arrivals among top ten states in the country in 2015. The share of the State in the national pie of foreign tourist arrivals accounts for 12.2 per cent in 2015.; Fig.5: Annual Growth rate in the arrival of foreign tourists in India and Kerala (%)

Source: Department of Tourism, GoK. Table 2.10.1: District wise Foreign Tourist Arrivals during 2014 and 2015 District Number of Foreign Tourists 2014 2015 Thiruvananthapuram 289612 310223 Kollam 12467 14100 Pathanamthitta 1379 1667 Alappuzha 60337 63838 Kottayam 44366 49976 Idukki 77905 83894 Ernakulam 372997 383643 Thrissur 7391 7874 Palakkad 2093 2232 Malappuram 21613 23409 Kozhikod 11313 12251 Wayanad 11795 12377 Kannur 7563 9022 Kasaragod 2535 2973 Total 923366 977479 Source: Department of Tourism, Govt. of Kerala MSME-Development Institute, Thrissur 48

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In 2015, Kerala’s tourism sector has received several awards and citations for tourism related activities.

1. PATA Award 2. Conde Naste Traveller Award 3. National Tourism Award 4. Golden City Gate Award – ITB Berlin 5. FITUR

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CHAPTER-3 SOCIO-ECONOMIC STATUS 3.1 EDUCATION As literacy development is concerned, Kerala has the distinction of being a historic state in India so far. Kerala’s literacy rate is comparable to the most advanced regions of the world. Kerala’s literacy rate, which was only 47.18% in 1951 has almost doubled to 93.91% in 2011, which was closely followed by Lakshdweep (92.28%) and Mizoram (91.58%). The male, female literacy gap which was 21.92% in 1951 has narrowed down to 4.04% in 2011. There were 12882 schools in Kerala during 2015-16. Out of these 4619(36.58%) were government schools, 7140 (55%) were aided schools and 1123 (9%) were unaided schools. In the state, during 2010-11, 57.55% of total schools were aided schools, 35.62% government schools and 6.83% unaided schools. Compared to government upper primary and high schools more number of LP schools are functioning under government sector. Aided schools outnumber government schools in all sections. Malappuram District has the largest number of schools (1548 Nos.) in the state followed by Kannur (1305 Nos) and Kozhikode Districts (1,269Nos). Malappuram District has also the largest number of Government (546 Nos) and Un-aided schools (221 Nos) in the State. But largest number of aided schools are functioning in Kannur district (959 Nos). There are 1408 schools in the state are offering syllabus other than the one prescribed by the state government. These include 1210 CBSE schools, 148 ICSE schools, 36 Kendriya Vidhyalaya and 14 Jawahar Navodayas. One Jawahar Navodaya Vidhyalaya schools each is functioning in all the districts. One Jawahar Navodaya Vidhyalaya each is functioning in all the districts. 3.2 HEALTH Improvement in health status of the people is one of the crucial area in social development of a community. This can be achieved by improving the access to health services, specially for the underprivileged people. The health indicators of the state are

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State Industrial Profile, 2016-17 considerably superior to the national figures. The comparative figures of major health and demographic indicators at State and National level are as below (Table3.2.1). Table3.2.1 Basic Health Indicators in Kerala and India

Sl.No. Health Indicators Kerala India 2016 2016 1 Birth rate (‘000 population) 14.8 21.0 2 Death rate (‘000 population) 6.6 6.7 3 Infant mortality rate (‘000 population) 12 39 4 Child mortality rate 0-4 years (‘000 population) 2 15 5 Maternal mortality ratio (per lakh live birth) 66.00 178.00 6 Total fertility rate (children per woman) 1.70 2.60 7 Couple protection rate (in percent) 62.30 52.00 8 Male 71.40 62.60 Life at birth Female 76.30 64.20 Source: Directorate of Health Services, SRS 2016 The state planning Board constituted separate working group for medical and public health and Ayush for 13th Plan Period. The working group on Medical and Public health was constituted with Sri Rajeev Sdanandan IAS, Addl CS to Government, Health and Family Welfare Department and Dr. K.R.Thankappan, Professor and Head, Achuta Menon Centre for Health Science Studies, Sree Chitra Thirunal Institute for Medical science and Technology, Thiruvananthapuram as Co-Chairperons and 13 members. The working group on Ayush was constituted with Dr. B. Ashok IAS, secretary to Government, Ayush department and dr. Ravi M as co-cairpersons and 16 members. The working group deliberate on the various challenges faced by the State’s Health System and the strategies to be aopted during the 13th Five year plan period. The working group identified priority areas in Health sector for the 13th Five year Plan period and will submit its report shortly. The recommendations of the Committee will be incorporated in the schemes of the Health sector.

3.3. HOUSING STATUS Housing is one of the basic necessities of life and the right to housing and adequate shelter is guaranteed in the directive principles of the Constitution of India. Kerala has historically been a front runner in social innovations including housing. As

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State Industrial Profile, 2016-17 early as by 1970’s Kerala had launched a massive housing scheme for 100000 houseless families and it was hailed as pioneering effort in the housing sector. Since then Government of Kerala have been following housing policies to ensure that every family has a shelter. According to 2011 housing census, there were 336 houses for every 1000 persons in the State (All India 273 houses per 1000 persons). The average size and quality of housing units are far better than in rest of the country. The government in 2016 has announced an ambitious housing cum livelihood project “LIFE” (Livelihood Inclusion and Financial Empowerment) which will be the major focus during 13th Plan. A complete rehabilitation package for the houseless and landless in the next five years is envisage through a comprehensive housing scheme providing all basic facilities. It points that 85.4% of the households in rural Kerala were living in pucca houses against the all India level of 65.8%, whereas the report says that 90.8% of urban households in Kerala were living in pucca houses and the national average is higher at 93.6%. At the same time houses with good ventilation in rural areas of Kerala are 505 per 1000 houses, whereas for India it is 263 per 1000. This points out that in the matter of housing stock Kerala is far better than the national averages. Even then there are a lot of things remaining undone. Table 3.3.1 gives Comparative Details on Housing Status

Table 3.3.1 Comparative Details on Housing Status Number per 1000 households living in a house with State/UT Pucca Structure Semi-pucca Good ventilation structure Rural Urban Rural Urban Rural Urban Kerala 854 908 129 80 505 529 All-India (2012) 658 936 246 50 263 471 Source: National Sample Survey Office 3.4 POVERTY ERADICATION Poverty is the state of being extremely poor. The poor are exposed to greater personal and environmental health risks, are less well nourished, have less information and are less able to access health care; they thus have a higher risk of illness and disability. Conversely, illness can reduce household savings, lower learning ability,

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State Industrial Profile, 2016-17 reduce productivity, and lead to a diminished quality of life, thereby perpetuating or even increasing poverty. Kerala has followed a developmental path different from that followed by other Indian States. Rate of poverty in Kerala is low as compared to other states and the all India figures. The incidence of poverty on Kerala was 59.74 per cent in 1973-74 which reduced to 11.30 per cent in 2011-12 whereas, in India these figures declined from 54.88 in 1973-74 to 29.50 per cent in 2011-12. Kerala is seeking to achieve a breakthrough in participating poverty reduction through local governments and Kudumbasree programmes implemented by the State Poverty Eradication Mission through the local governments. According to the Socio Economic and caste Census (SECC), out of 76.99 lakh households in Kerala, 63.19 lakh households (82.08%) live in rural areas. Of these 10.32 per cent are Schedule caste and 1.63 per cent was ST Households. Out of the total rural households, 19.16 lakh (30.33%) rural households deprived. The highest deprived rate was recorded in Palakkad district (42.33%), followed by Thiruvananthapuram (38.36%) and Wayanad (36.33%). The lowest deprivation was recorded in Ernakilam (20.30%), Kottayam (23.02%) and Kannur (24.25%). Table 3.4.1: Year wise Proportion of poor in India and Kerala Year KERALA INDIA Rural Urban Total Rural Urban Total 1973-73 59.19 62.74 59.74 56.44 49.01 54.88 1977-78 51.48 55.62 52.22 53.07 45.24 51.32 1983-84 39.03 45.68 40.42 45.65 40.79 44.48 1987-88 29.10 40.33 31.79 39.09 38.29 38.86 1993-94 25.76 24.55 25.43 37.27 32.36 35.97 1999-00 9.38 20.27 12.72 27.09 23.62 26.10 2004-05 13.20 20.20 15.00 28.30 25.70 27.50 Rangrajan Committee Estimates 2009-10 9.7 23.70 16.00 39.60 35.10 38.20 2010-11 7.3 15.30 11.30 30.90 26.40 29.50 Source: Planning Commission, GOI, 2014 The state specific poverty line 2011-12 for Kerala is fixed at monthly per capita income of Rs.1018 for rural areas and Rs.987 for urban areas which is above the per capita income of 23 other states.. Rural poverty line is then derived from urban poverty

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State Industrial Profile, 2016-17 line of the respective State by applying urban-rural price differential. For the first time, Kerala’s rural poverty line is higher than urban poverty line. 3.5 STATE INCOME The quick estimate of Gross State Domestic Product (GSDP) at constant (2011-12) prices is Rs. 46724313 lakhs during 2015-16 as against the provisional estimate of Rs.43223674 lakhs during 2014-15, registered a growth rate of 8.10 per cent in 2015-16 compared to 7.31 per cent in 2014-15 . At current prices the Gross State Domestic Product is estimated at Rs.58833659 lakhs (quick estimate) during 2015-16 as against the provisional estimate of Rs. 52600230 lakhs during 2014-15 showing a growth rate of 11.85 per cent. The quick estimate of Net State Domestic Product (NSDP) at factor cost at constant prices (2011-12) is Rs42613173 lakhs during 2015-16 compared to the provisional estimate of Rs.39370155 lakhs during 2014-15, recording a growth rate of 8.24 per cent in 2015-16. At current prices the State Income is estimated at Rs.53112606 lakhs (quick estimate) in 2015-16 compared to the provisional estimate of Rs.47304466 lakhs during 2014-15. The growth rate of NSDP (State Income) at current prices is 12.28 per cent in 2015-16 compared to 13.37 per cent in 2014-15. Per Capita State Income As per the quick estimates, the per capita Gross State Domestic Product at constant (2011-12) prices in 2015-16 was Rs.136811 as against provisional estimate of Rs.127187 in 2014-15, recording a growth rate of 7.57 per cent in 2015-16. At current prices, the per capita GSDP in 2015-16 was Rs.172268 registering a growth rate of 11.30 per cent over the previous year’s estimate of Rs.154778. During the period 2012-13 to 215-16, the per capita state income at constant prices was found to be higher than the per capita national income.

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Fig.6: Sectoral Distribution of GSVA 2015-16 at Basic Prices, in per cent

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CHAPTER – 4 INDUSTRY

4.1 INTRODUCTION The strategic intent for the 12th Five Year Plan (2012-17) of the State is to lay the foundation for creating an economy which is productive, competitive, sustainable and inclusive. The benefits arising from a set of core initiatives being planned across the different sectors of the economy, if implemented with a high sense of urgency and passion, will be spread beyond the next five years. Such benefits, if nurtured well, will reinforce each other and put the State’s economy on a firm footing to harness the opportunities that national and international development will offer. The approach to the 12th Plan in a way should be looked at as the first step towards the achievement of the vision capturing the goals indicated above for the development of the State by 2030. In order to cherish the desired foundation it is necessary to have some basic infrastructure to work with. Therefore let us see how the industrial economy of the state was towards the end of Eleventh Five Year Plan. The growth of manufacturing sector in the state has been curbed due to the high cost of skilled labor, the rapidly propelling land prices and the preference of the local population for white collar jobs. Also being a traditionally service oriented economy with a high density of population, the state hasn’t been able to find a balanced growth strategy for the manufacturing sector. The state has been successful to some extent in ensuring private capital in these sectors. Village and traditional industries have been revived and rejuvenated for healthy growth thereby bringing substantial relief to lakhs of workers depending on them for their livelihood. Medium and large industry sector have also witnessed substantial hike in public investment and with its help the KSIDC and KINFRA have initiated the setting up of mega projects. The loss making State PSUs have initiated steps for generating decent profits. For the manufacturing sector to sustain in Kerala it should aim at bringing about environmentally sustainable practices, better waste management technology, sensible use of water and forest resources, and follow a stringent quality and environment norms. MSME-Development Institute, Thrissur 56

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4.2 INDUSTRIAL GROWTH India's industrial production increased by 1.7 percent year-on-year in May 2017, following a downwardly revised 2.8 percent rise in the previous month and missing market expectations of a 2.8 percent gain. It was the smallest increase in industrial production since November 2015, as manufacturing output rose at a slower pace (1.2 percent from 2.3 percent in April) while mining and quarrying contracted (-0.9 percent from 3.2 percent). Meantime, electricity production grew sharply by 8.7 percent after increasing by 5.4 percent in the previous month. Industrial Production in India averaged 6.61 percent from 1994 until 2017, reaching an all time high of 20 percent in November of 2006 and a record low of -7.20 percent in February of 2009. In Kerala the manufacturing sector grew by 9.28 per cent at current prices during 2015-16 compared to the growth rate of 5.02 per cent in the previous year. At constant price (2011-12) the sector registered a growth of 12.65 per cent in 2015-16 as against 2.46 per cent in 2014-15. The share of manufacturing sector in GSDP at constant and current prices in 2015-16 were 9.97 per cent and 8.72 per cent respectively. The income from manufacturing sector to GSDP and its growth rates are given in Table 4.2.1. Table – 4.2.1 Growth of Manufacturing Sector in Kerala (GSDP) (Base Year 2011-12) Contribution to GSDP Growth Rate (%) (Rs. In crore) Year At constant At current At constant At current prices prices prices prices 2011-12 34204.04 34204.04 0 0 2012-13 38469.15 40541.45 12.47 18.53 2013-14 (P) 36680.87 40691.29 -4.65 0.37 2014-15(P) 37581.4 42735.67 2.46 5.02 2015-16 42333.72 46700.69 12.69 9.28 P: Provisional Q: Quick Estimates Source: Dept. of Economics and Statistics

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4.3 INDEX OF INDUSTRIAL PRODUCTION (IIP)

Industrial production growth slipped to 3.1 per cent in April due to poor show by manufacturing, mining and power sectors coupled with lower off take of capital goods and consumer durables. The factory output measured in terms of the index of industrial production (IIP) had expanded by 6.5 per cent in April last year. The IIP General Index has increased from 83.6 in the year 2005-2006 to 131.5 in the year 2014-15. Thus it has shown an absolute increase of 47.9 points during the period from 2005-06 to 2014-15. The average annual growth in the index from 2005-06 to 2014-15 was 7.93. The index of industrial production for the period 2005-06 & 2014-15 is given in Table 4.3.1. Table 4.3.1: General Index Sectoral Bifurcation of IIP from 2005-06 to 2014-15 Year Manufacturing Mining & quarrying Electricity General Index 2005-06 67.3 122.6 117.1 83.6 2006-07 86.7 118.5 122.1 98.0 2007-08 103.0 129.6 141.8 115.1 2008-09 121.3 132.4 116.2 120.1 2009-10 94.0 146.1 124.2 104.4 2010-11 103.3 136.6 118.8 108.9 2011-12 122.6 138.5 139.3 127.9 2012-13 107.5 104.2 109.2 107.9 2013-14 112.4 139.3 125.2 116.9 2014-15 128.4 139.5 137.7 131.5 Source: Department of Economics and Statistics, Government of Kerala Table 4.3.2 General Index Sectoral Bifurcation of IIP 2016‐17 ‐ Forth Quarter (with 2011‐12 as Base) Sl. Sector Weight Index for Q4 No. 1 2 3 4 1. Manufacturing 614.34 113.4 2. Mining & Quarrying 138.97 115.7 3. Electricity 246.69 36.0 4. General IIP 1000 94.6 Source: Directorate of Economics & Statistics, Tvpm. MSME-Development Institute, Thrissur 58

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4.4 COMMODITY EXPORT As the commercial gateway of Kerala, external trade operations in the State are mainly conducted through . Important items of trade include pepper, cashew, coir and coir products, tea, cardamom, ginger, spices and spices oil and marine products. The total traffic handled by the Port increased from 215.95 lakh MT in 2014-15 to 220.98 lakh MT, in 2015-16, or an increased by 2.33 per cent. Within this traffic, Exports accounted for 39.14 lakh MT and Imports accounted for 181.84 lakh MT (Table 4.4.1). Table 4.4.1: Cargo handled at Cochin Port during 2011-12 to 2015-16 Traffic Export Import 2011- 2012- 2013- 2014- 2015- 2011- 2012- 2013- 2014- 2015- 12 13 14 15 16 12 13 14 15 16 Coastal 14.86 14.05 17.18 16.48 12.86 51.74 52.12 60.63 52.15 60.40 Foreign 28.25 24.29 25.32 24.10 26.28 106.06 107.99 105.73 123.22 121.44 Total 43.11 38.34 42.50 40.58 39.14 157.80 160.11 166.36 175.37 181.84

Export of commodities through Cochin Port was found to be decreased by 3.55 per cent ranged from 40.58 lakh MT in 2014-15 to 39.14 Lakh MTduring 2015-16. However, in value terms, coastal and foreign exports grew by 14.5 per cent during the period. Coastal export decreased from 16.48 lakh MT in 2014-15 to 12.86 lakh MT in 2015-16. Foreign exports on the other hand, increased from 24.10 lakh MT in 2014-15 to 26.28 lakh MT in 2015-16. In 2014-15 and 2015-16 the export of spices declined by 41.00 per cent, tea declined by 25.73 per cent, of cashew kernels declined by 25.60 per cent, of see foods declined by 24.71 per cent and of coffee declined by 16.90 per cent. In the export of coir and miscellaneous products including POL, the decline was found to marginal to the extent of 0.97 to 0.34 per cent respectively.

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Table 4.4.2 EXPORT OF COMMODITIES THROUGH COCHIN PORT DURING 2012-13 to 2015-16 (Quantity in MT and Value in Rs. Crore) 2012-13 2013-14 2014-15 2015-16 Commodity Qty Value Qty Value Qty Value Qty Value 1 5 6 8 9 11 12 13 14 Tea 94165 516.02 96681 511.71 90348 478.21 67103 987.05 Cashew 67067 1982.7 64897 2657.1 67273 2754.16 50054 1568.07 Kernels Sea Foods 210986 2804 222794 4000 185922 3337.3 139980 3019.64 Coir Products 140882 556.47 124116 385.37 125523 389.12 124305 374.03 Spices 7550 374.55 95540 655.91 84388 582.28 49706 315.91 Coffee 80674 902.18 75631 872.03 65216 749.98 54720 858.16 Miscellaneous 3232651 14837 3570686 15202 3439808 14791.2 3428249 19316.15 Total 3833975 21972 4250345 24283 4058478 23082.2 3914117 26439.01 Source: Cochin Port Trust Imports through Cochin Port continued to increase from 175.37 lakh MT in 2014- 15 to 181.84 lakh MT in 2015-16, which amounted to a growth by 3.6 per cent. Fertilizers and raw materials, iron & steel and machinery, newsprint, raw cashew nut, Petroleum, Oil and Lubricants (POL) etc. are the main items of import. In 2015-16, about 95475 MT food grains were also imported through the Cochin Port. There was no import of newsprint reported in 2015-16.the import of all items, except fertilizers and raw materials, miscellaneous items and raw cashew nut, marked an increasing trend between 2014-15 & 2015-16. 4.5 STATE LEVEL PUBLIC SECTOR ENTERPRISES State Public Sector Undertakings (PSUs) play a vital role in the development of the economy, especially in the manufacturing sector. There were 126 PSUs in kerala as on March 31, 2015. Of these, there were 122 Government Companies and 4 statutory corporations. Out of the 122 PSUs 107 are currently working while 15 are non-working. State Public Sector Enterprises are one of the largest employers in the organised sector in the state. Public Sector Restructuring and Internal Audit Board (RIAB) constituted in 1993 executes State Owned Enterprise Reform Initiatives. Performance planning and MSME-Development Institute, Thrissur 60

State Industrial Profile, 2016-17 monitoring of PSUs, Enterprise reconstruction, Capacity building / Recruitments in PSUs and Governance advisory support are the major responsibilities. Various strategies were introduced for the revival of SLPEs such as performance management, capacity building, enhancing productivity, due diligence and asset reconstruction. Performance Management strategies like online monitoring systems, monthly reviews by the Minister in charge and institution of rewards were other notable initiatives. Capacity Building Strategies that were initiated included professionalization of boards, transparency in selection of CEOs, Board level Committees for Succession Planning, continuous training at all levels and trade union participation in evolving operational strategies. No less important was the introduction of better financial accountability. As a result, performance of the PSUs underwent tremendous change. The major Initiatives in PSUs during 2014-15 and 2015-16 are the following. • The Government gave clearance for the implementation of modernasation projects in Travancore Cochin chemicals Ltd. At a cost of rs.65 crore. • The bulk cement handling project of Malabar Cements was started at Cochin Port Trust at a project cost of Rs 160 crores. • The unit of Malabar Cement Ltd was reopened and started production during 2015. • Various modernisation / expansion projects were initiated by the Kerala Electrical and Allied Engineering Company Ltd and Steel Complex Ltd. • As part of their corporate social responsibility programmes, various social and welfare activities were implemented by profit making units. • Cooperative spinning mills implemented modernasation / expansion projects with assistance from National Cooperative Development Corporation (NCDC), and with a total outlay of Rs.120 crores. • As part of modernisation of PSUs, Kerala Electrical and Allied Engineering Co Ltd has initiated a Cast Resin Transformer project at its Eradikoode unit with an outlay of Rs. 8.50 crores during the year. • Modernisation and Expansion projects have been initiated by TRACO Cables Company Ltd,Kerala Drugs and Pharmasuticals Ltd, Steel Complex Ltd,Travancore Cochin Chemicals etc. during 2014-15. • Keltron and its subsidiary units have initiated various development projects as part of expansion and modernisation during 2014-15 in line with Electronic Manufacturing Policy of Government of India.

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• Reopened the Cherthala unit of Malabar Cements Ltd. Clinker was imported for the first time through Cochin Port and trial-run was done during this period. • As part of performance improvements of PSUs, Performance and Audit Monitoring system have been strengthened through RIAB. • Implementation of e-procurement with e payment system in PSUs ensured more transparency and competition in purchase. • As part of corporate social responsibilities, PSUs have initiated various social welfare measures for the development of different sectors of the society.

As per the latest finalized accounts of working PSUs in the State as on March 2015, 50 units earned profit, 53 units incurred losses and 4 PSUs made neither profit nor loss. Under the Industries Department, Government of Kerala, there are 43 State PSUs, of which 37 are in the manufacturing sector and 7 are in non-manufacturing /service sector. The detail of performance of PSUs of last five years given in table 4.5.1. Table 4.5.1 Performance Trend of PSUs under Industries Department during 2011-12 to 2015-16 (Rs. Crore) PARTICULARS 2011-12 2012-13 2013-14 2014-15 2015-16 Profit Making Units Number of Units 18 17 13 13 10 Value of Production 2170.87 2243 1849.3 1661.33 1424.75 Turnover 2083.13 2014.3 1835.4 1334.6 1476.86 Profit made by the profit 324.52 187.97 89.92 61.3 98.32 Making units Loss Incurring Units Number of Units 25 26 30 30 33 Value of Production 850.3 608.6 1093.68 2571.96 1404.97 Turnover 835.23 694.69 1142.9 1595.28 1471.4 Loss made by the loss 111.6 112.32 156.42 241.23 208.12 making units Total Number of Units 43 43 43 43 43 Value of Production 2925.15 2851.6 2942.9 4233.29 2829.72 Turnover 2918.37 2709.00 2978.3 2929.88 2948.27 Net Profit/Loss(-) 212.86 75.56 -66.49 -179.93 -109.80 Source: Economic Review 2016 The table 4.5.2 stated that the turnover profit/loss of PSUs in the year 2015-16. The combined value of production and turnover of 43 State PSUs under the Industries

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State Industrial Profile, 2016-17 department showing that there has been no significant variation in the combined turnover of these State PSUs during the last three years. But the combined value of production decreased in 2014-15 and subsequently increased (Source: Public sector Restructuring and internal Audit Board). Table 4.5.2 Turnover and Profit/Loss of PSUs under the Ministry of Industries 2015-16 (Rs. Crore) 2015-16 Sl. Company Turnover Net No. Profit/Loss 1 Kerala State Industrial Development Corporation 48.38 34.55 Ltd 2 The Kerala Minerals and Metals Ltd 516.57 21.16 3 Malabar Cements Ltd 338.80 38.75 4 Kerala State Electronics Development 409.80 1.03 Corporation 5 KINFRA 0.000 0.00 6 Kerala Small Industries Development 285.33 -4.99 Corporation Ltd 7 CAPEX 73.72 -15.44 8 Kerala Clays & Ceramic Products Ltd 3.36 -4.57 9 Transformers and Electricals Kerala Ltd 150.62 -9.90 10 Steel and industrial forgings 55.65 -1.18 11 Travancore – Cochin Chemicals Ltd 165.69 -5.87 12 Kerala State Industrial Enterprises Ltd 52.11 0.18 13 Kerala Electrical & Allied Engineering Company 104.11 -7.58 Ltd 14 The Kerala Ceramics Ltd 2.11 -4.56 15 United Electrical Industries Ltd., 18.82 -5.40 16 SAIL - SCL Kerala Ltd 3.64 -12.15 17 Handicrafts Dev. Corp. (Kerala) Ltd. 15.19 -3.07 18 The Travancore Cements Ltd. 27.52 -5.69 19 Forest Industries (Travancore) Ltd. 44.81 0.88 20 Traco Cable Company Ltd. 120.72 -2.19 21 Kerala State Bamboo Corporation Ltd. 13.53 -8.68 22 The Metal Industries Ltd. 3.53 -0.06 23 Steel Industries Kerala Ltd. 32.51 0.12 24 Keltron Component Complex Ltd. 61.61 -0.97 25 KELPALM 0.12 -0.11 26 Kerala Artisans Development Corporation Ltd. 19.57 0.42

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27 Travancore Titanium Products Ltd. 113.39 -4.47 28 Autokast Ltd. 17.93 -5.34 29 Kerala State Drugs & Pharmaceuticals Ltd. 26.75 -3.34 30 The Trichur Co-operative Spinning Mills Ltd. 6.40 -6.85 31 Kerala State Textile Corporation Ltd. 31.69 -29.50 32 Kerala Automobiles Ltd. 14.82 -4.71 33 Kerala State Handloom Dev. Corp. Ltd 19.09 -2.84 (HANVEEV) 34 Alleppey Co-operative Spinning Mills 11.57 -4.35 35 Keltron Electro Ceramics Ltd. 12.72 0.56 36 Sitaram Textiles Ltd. 10.12 -6.42 37 The Malappuram Co-operative Spinning Mills 16.53 -7.96 38 The Quilon Co-operative Spinning Mills Ltd. 4.80 -6.14 39 Cannanore Co-op. Spinning Mills Ltd. 15.21 -4.70 40 Kerala State Co-operative Textile Federation Ltd 0.96 -0.31 41 Kerala State Mineral Development Corporation 1.58 0.68 Ltd. 42 Trivandrum Spinning Mills Ltd. 1.65 -2.51 43 Kerala State Cashew Development Corporation 38.67 -25.15 Ltd. 44 HANTEX 36.55 -1.14 Total 2948.25 -109.81 *KINFRA not included Source: RIAB During the year 2015-16, the Ten State PSUs under the industries Department reported profit as against 13 in 2014-15. The total profit made by the profit making PSUs increased from Rs61.30 crore in 2014-15 to Rs.98.32 crore in 2015-16. Major profit making units in 2015-16 were Cements Ltd (Rs.38.75crore), Kerala State Industries Development Corporation Ltd (Rs.34.55crore), and Kerala Minerals and Metals Ltd (Rs.21.16crore). Even though, the number of loss making State PSUs increased from 30 in 2014-15 to 33 in 2015-16, the total loss making State PSUs decreased from Rs.241.23 to Rs.208.12 crore during the period. Details of PSU wise turnover and profit/loss during 2013-14 are shown in Table No. 4.5.2 4.6 MICRO SMALL AND MEDIUM ENTERPRISES (MSMES) Micro, small and medium enterprises (MSME) sector can play a vital role in promoting equitable development and in nurturing innovation on a small scale. The MSME sector in India is diverse in terms of Size, level of technology employed and

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State Industrial Profile, 2016-17 products. There are 346.12 lakh units spread across the country employing 805.24 lakh workers. Planning Commission constituted the Working Group on Micro, Small & Medium Enterprises (MSMEs) Growth for the 12th Five Year Plan (2012-17). The terms of reference of the Group was carrying forward the recommendations of the Prime Minister's Task Force and suggest specific action plan and milestones to be achieved within the 12th Plan period. Further, the terms of reference of the Group also includes suggestions to address problems of Un-organized Sector and formulate proposals/schemes to facilitate overall growth of the MSME sector.

A framework for the report of the Working Group was developed in the first meeting of the Group and 11 Sub-Groups were constituted for detailed study of important focal areas to identify the bottlenecks and suggest facilitation needed to overcome them. In its second meeting the Working Group decided to give the recommendations on following thematic verticals: i. Finance, including credit. ii. Infrastructure. iii. Technology. iv. Marketing & Procurement. v. Skill Development & Training. vi. Institutional Structure In Kerala, the Micro, Small and Medium Enterprises (MSME) sector contributes to the process of economic growth, employment generation and balanced regional development. It has the potential to emerge as a strong, vibrant and globally competitive sector in the State’s economy. Kerala, with its excellent connectivity, communication network, availability of highly or average skilled human resources and developing industrial infrastructure, is best suited for the growth of the micro, small and medium scale enterprises. The Micro Small and Medium Enterprises sector help in industrialisation of rural & backward areas, targeting various social groups like SC, ST,

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Women, Youth, Physically Handicapped etc. thereby, reducing social/regional imbalances, assuring more equitable distribution of income and wealth. This sector contributes enormously to the socio-economic development of the State. A total amount of Rs. 2373.74 Crore have been provided for the development of Industry and Minerals, during the first four years of 12th plan. The Mission outlined in Kerala Perspective Plan 2030 under Micro, Small and Medium Sector is “Kerala’s evolution into knowledge– driven competitive economy with spirit of entrepreneurship, innovation, social inclusion, tolerance and diversity”. The measures/schemes initiated in integration with perspective plan is given below: Improving infrastructure in existing DA/DP’s, Construction of multi storied Industrial Estates & Assistance for promoting industrial area/plots in private sector: • Infrastructure investments on PPP mode • Promoting mutual trust between government and entrepreneurs through Partnerships • Involve real world entrepreneurs • Promote private investments • Develop eco –friendly parks

Entrepreneur Support Scheme & Start up subsidy for creation of new employment Opportunities • Encourage technology up gradation and product innovation • Promotion of microfinance

Business incubation Centres in Handloom, Power loom and DIC • Involve real world entrepreneurs • Promote entrepreneurial learning in an informal learning environment. • Increase visibility and emphasise the role of entrepreneurship in creating new jobs. The number of New Enterprises filed Memorandum under MSMED Part II in Kerala during the year 2015-16 up to September 17, 2015 was7705. Out of these, 301 (3.9%) MSMEs were registered under SC community, 31 (0.4%) registered under ST Communnity and 1805 (23.42%) by women entrepreneur. Investment in the sector during the period was found to be Rs. 129356.95 lakh while, employment generated and the value of goods and services produced were 45407 Nos. And Rs338001.36 lakh respectively. The details are given in the following table:

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Table 4.6.1 District wise details of Enterprises filed Memorandum under Part II registered in Kerala during 2015-16 No. of MSME units Promoted by Value of goods Total and Employment SI. Investments District services generated No. SC ST General Total Women (Rs. in produced (Nos) lakhs) (Rs. in lakhs) 1 2 3 4 5 6 7 8 9 10 1 Thiruvananthapuram 43 5 1150 1198 298 17024.08 24892.98 7842 2 Kollam 22 3 476 501 135 7550.55 14194.39 3809 3 Pathanamthitta 44 2 412 458 160 19874.4 23227.82 2153 4 Alappuzha 4 2 228 234 70 4737.17 13450.09 1555 5 Kottayam 10 0 317 327 93 4635.93 12071.29 1630 6 Idukki 15 1 171 187 40 2227.56 4220.52 876 7 Ernakulam 15 7 1395 1417 266 28244.16 107104.73 10105 8 Thrissur 46 1 727 774 220 14552.12 59660.07 4245 9 Palakkad 35 0 724 759 174 8649.98 24278.75 3505 10 Malappuram 16 2 567 585 87 5850.76 16716.04 2925 11 Kozhikod 31 1 481 513 87 8050.39 25526.3 3262 12 Wayanad 2 4 178 184 47 911.04 989.87 777 13 Kannur 14 1 314 329 94 3458.82 7049.67 1668 14 Kasaragod 4 2 233 329 34 3589.99 4618.84 1055 TOTAL 301 31 7373 7705 1805 129356.95 338001.36 45407 Source: Directorate of Industries & Commerce. As on September 17, 2015, the total number of working MSMEs registered in the State are 257466. Out of these 3.84 per cent were promoted by SC entrepreneurs, 0.72 per cent by STs and 24.97 per cent by women entrepreneurs. The total investment was Rs. 1798646.38 lkah while the total value of goods and services produced was Rs.6765143.93 lkah and the total numbers of employment generated was 1318666 No. The details are given in table 4.6.2.

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Table 4.6.2 District wise details of Enterprises filed Memorandum under Part II registered in Kerala during up to 30.09.2015) No. of MSME units Value Promoted by of Goods Total & Employm S. Investme service ent N Districts Othe Tot Wom nts (Rs. s generated O. SC ST rs al en in lakhs) Produc (Nos) es (Rs in Lakh) Thiruvananthap 131 3465 380957.0 240 33100 8597 200259.01 172168 1 uram 9 9 3 116 1803 1018236. Kollam 112 16757 6479 127592.5 122186 2 7 6 24 1113 181238.1 Pathanamthitta 812 50 10274 4226 88041.4 61384 3 6 9 1848 252134.8 Alappuzha 562 91 18036 5737 116357.65 104622 4 9 0 2477 299029.1 Kottayam 500 187 24084 6788 129716.38 86983 5 1 0 1294737. Idukki 431 172 5010 5613 2281 51767.9 31567 6 06 3449 1289572. Ernakulam 575 202 33720 7539 377620.95 236709 7 7 68 142 3284 561216.2 Thrissur 124 31303 6911 185008.35 136107 8 2 9 6 142 1797 448984.9 Palakkad 146 16403 3984 144213.35 81275 9 1 0 9 1455 227542.2 Malappuram 532 97 13923 2277 98555.92 65683 10 2 3 1978 434762.4 Kozhikod 643 87 19052 3418 133190.95 96629 11 2 5 12 Wayanad 106 168 3839 4113 1524 25864.46 75690.53 20637 1341 227219.3 Kannur 228 88 13103 2857 80913.79 63137 13 9 2 14 Kasaragod 189 104 7287 7580 1675 39543.77 73823.05 39579 990 186 24589 2574 6765143. 64293 1798646.38 1318666 Total 7 8 1 66 93 Source: Directorate of Industries & Commerce

Trends in investment, production & employment in MSME sector over the period from 2011-12 to 2015-16 is shown that the investment in the sector during the period from 2011-12 to 2014-15 has increased on an average by 9.73 per cent. The

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State Industrial Profile, 2016-17 investment has shown a steady upward trend over the period. The value of production shows an enormous increase of 25 per cent during the 2013-14. The employment remains more or less constant over the period. The value of production and employment generation were at their peak during 2013-14. This is an outcome of the ‘self employment generation’ and ‘entrepreneur support’ programs/schemes initiated in 2012-13 by the State Government with keen focus on enhancing entrepreneurship opportunities and awareness among young skilled generation of the State, in addition to the self employment schemes of the Central Government such as PMEGP, SFURTI etc. The number of MSME units has steadily been increasing though at a declining rate of 10.95 per cent, that is, from 6944 as on September 2014 to 7705 in 2015-16. Table 4.6.5 Year wise details of MSME units registered in Kerala during the period 2007-08 to 2015-16 Value of goods Total Employment Sl. and services Year No. of units investment provided No. produced (in lakhs) (Nos.) (in lakhs) 1 2007-08 10757 205198.6 878959.83 107165 2 2008-09 15541 144349.62 573368.79 106159 3 2009-10 10956 136003.27 2479321.96 80020 4 2010-11 11089 240193.41 8353150.28 83468 5 2011-12 11071 180436.95 697837.46 79015 6 2012-13 13551 197912.01 700712.08 86431 7 2013-14 14997 222412.28 1425141.4 87789 8 2014-15 15455 238794.75 711975.39 83500 9 2015-16 11317 190735.00 6765143.93 75402 Source : www.udyogadhar.gov.in Economic Review 2016, GoK. District wise data show that Thiruvananthapuram occupies highest position with 298 new MSME units and Ernakulam stands on top with highest Numbers of employment generated (10105) and Wayanad was at the lowest position with 184 new MSME units and 777 new jobs generated. In case of online registration from September 18, 2015 to March 2016 Ernakulam occupies the first position in all aspects with 2129 new MSME Units, Rs 48371 lakh Investment and 18857 Numbers of Employment generated (Table 4.6.2).

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4.7 PRIME MINISTER’S EMPLOYMENT GENERATION PROGRAMME (PMEGP) Government of India introduced PMEGP Scheme, i.e. credit linked subsidy programme from 2008-09 by merging the two schemes viz,PMRY and REGP. The Khadi and Village Industries Commission (KVIC) was approved as the nodal agency for implementation of the scheme at national level. In Kerala, State KVIC Directorate, State Khadi and Village Industries Board (KVIB), District Industries Centres (DICs) and bankers are the agencies for implementation of the scheme. The Banks sanctioned 758 applications and provided margin money of Rs.917.092 lakh up to March 31, 2016. As on September, 2016 total 1430 applications has been received of them only 26 applications sanctioned by the banks with an amount of margin money Rs. 109.62 lakh. Table 4.7.1 District Wise Progress Report of PMEGP during 2015-16 Margin No. of No. of Money persons applications District Target sanctioned given SlNo sanctioned by And released (Rs. EDP banks in lakhs) training 1 2 3 4 5 6 1 Thiruvananthapuram 36 100 71.44 95 2 Kollam NA 51 70.13 52 3 Pathanamthitta 18 13 7.38 13 4 Alappuzha 30 95 125.94 106 5 Kottayam 50 60 70.68 60 6 Idukki 30 53 45.93 49 7 Eranakulam 70 56 66.836 50 8 Thrissur NA 15 13.686 14 9 Palakkad 42 48 43.14 48 10 Malappuram 36 48 43.00 43 11 Kozhikode 50 73 145 60 12 Wayanad NA 40 86.90 40 13 Kannur 146 83 102.04 73 14 Kasaragod 30.1 23 24.99 22 Total 538.1 758 917.092 725 Source: Directorate of Industries & Commerce, Thiruvananthapuram.

4.8 INDUSTRIAL CO-OPERATIVE SOCIETIES In Kerala, the total number of working industrial co-operative societies as on March 31, 2016 was 408 against 405 in the previous year, a increase of 0.74 per cent over

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State Industrial Profile, 2016-17 the previous year. Out of 408, 111 Societies were registered by women. The details are given in Table 4.8.1. During 2015-16, 12 societies were registered. Table 4.8.1 Industrial Co-operative Societies in Kerala as on 31.03.2016 (Nos.) Industrial Co-operative Total No. of working Societies (Registered) in Societies 31.03.2016 SI.No. District Kerala during the year 2015-16 G SC ST W Total G SC ST W Total 1 2 3 4 5 6 7 8 9 10 11 12 1 Thiruvananthapuram 0 0 28 19 5 52 17 2 Kollam 3 3 31 13 1 45 9 3 Pathanamthitta 0 0 4 1 0 5 1 4 Alappuzha 2 2 11 5 0 16 2 5 Kottayam 0 0 34 5 0 39 13 6 Idukki 0 0 4 1 2 7 3 7 Eranakulam 2 2 28 4 0 32 14 8 Thrissur 0 0 38 5 0 43 5 9 Palakkad 2 2 13 6 2 21 7 10 Malappuram 0 0 14 4 0 18 4 11 Kozhikode 1 1 18 1 0 19 1 12 Wayanad 1 1 12 2 5 19 6 13 Kannur 1 1 61 6 2 69 28 14 Kasaragod 0 0 23 0 0 23 1 Total 12 0 0 12 3 319 72 17 408 111 Source: Directorate of Industries & Commerce, Tvpm. (G-General, W-Women)

4.9 BANK CREDIT TO MSME SECTOR. Banks are said to be agents of social transformation. To meet this end devised many plans for the development of this priority sector. RBI issued a master circular with the enactment of MSMED Act 2006, to all Scheduled Commercial Banks stating that the bank loans to micro and small enterprises, both Manufacturing and Service are eligible to be classified under Priority Sector advance and provide direct finance to manufacturing enterprises, loans for food and agro processing, Service Enterprises, Export Credit, Khadi and Village Industries Sector (KVI) and rehabilitation of sick Micro and Small Enterprises. Public sector banks have

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State Industrial Profile, 2016-17 been advised to open at least one specialised MSME branches in each district for lending to MSME Sector. As per the State Level Bankers’ Committee (SLBC) report, the outstanding bank credit to various sectors by the commercial banks in Kerala at the end of March 2016 increased by about 13.9% i.e. Rs.218706 crore against Rs.192010 crore in the previous year. The outstanding flow of credit to MSME sector was Rs. 39463 crore with an increase of 10.44 per cent over Rs.35730 Crore of previous year. The status of flow of credit to various sectors is given in Table 4.9.1. Table 4.9.1 Outstanding Advances to Various Sectors by Commercial Banks in Kerala (Rs. Crore) Priority Sector Year Non Advances Sl. (as Priority Total Other No. at Sector Advances Total Agriculture MSMEs Priority March) Advances Sector 1 2 3 4 5 6 7 8 1 2009 48387 15959 8095 24333 34432 82819 2 2010 58204 21786 11758 24660 38783 96987 3 2011 71145 27439 16894 26812 50837 121982 4 2012 85606 36209 20593 28804 63687 149293 5 2013 99318 45055 23563 30700 75769 175087 6 2014 113555 48812 32069 32674 78455 192010 7 2015 128655 57656 35270 35270 90051 218706 8 2016 132256 54888 39463 37905 100161 232417 Source: State Level Banker’s Committee, Kerala.

4.10 FOOD PROCESSING Food processing sector is an important industry in India in terms of output and employment. India’s food processing sector covers fruit and vegetables, spices, meat and poultry, milk and milk products, alcoholic beverages, fisheries, plantation, grain processing and other products like confectionery, chocolates, cocoa products, soya based products, mineral water and high protein foods. The ministry of Food Processing Industries has taken initiative to develop the food processing sector, which will help to enhance the income of farmers and export of agro and processed food among others.

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National Mission on food Processing (NMFP) is a centrally sponsored scheme introduced by ministry of Food Processing Industries (MoFPI), GoI in the 12th Five Year Plan. The implementation of the scheme is entrusted to the State through the State Food Processing Mission. KINFRA is the Nodal Agency for State Food Processing Mission in Kerala. KINFRA reported that an amount of Rs 967.18 lakh have been received up to March 31, 2015 and an amount of Rs.966.91 lakh had utilized for implementation of scheme under NMFP. As per the Kerala Perspective Plan 2030, food processing sector in the State enjoys a revealed comparative advantage among other Indian states. The industry is also one of the largest employment creators, with growth in direct employment in the organised food processing sector standing at 6.05% between 2010-11 and 2011-12. In terms of employment, the total number of persons engaged in registered food processing units in MSME sector was 14.68 lakh. The contribution of food processing sector to GDP has been growing faster than that of the agriculture sector. Food processing sector in Kerala has always made significant contribution to food exports. Kerala has been a major exporter of spices, marine products, cashew, coffee, tea and pickles. Two thirds of Kerala’s export income comes from processed food.

Fig 7: Sector wise processing unit registered in 2015-16 In Kerala, number of food processing units registered during 2015-16 is 879. Thiruvananthapuram district stands on first position with registration of 237 units. The share of food processing units in the registered sector is only 19 per cent as shown in figure 7. Kerala Industrial Infrastructure Development Corporation (KINFRA) aims at MSME-Development Institute, Thrissur 73

State Industrial Profile, 2016-17 accelerating the industrial development of the State by providing infrastructure facilities to industries. KINFRA has completed infrastructure development in 12 key industrial sector with world class infrastructure in 22 industrial parks, of which 8 are catering exclusively to the Small and Medium Enterprises sector. Some of the notable achievements are the successful completion of International Apparel Park at Thiruvananthapuram, Export Promotion Industrial Park at Ernakulam, Intertainment Park, the Film and Video Park at Thiruvananthapuram and food Processing Industrial Park at Malappuram. KINFRA has developed small Industries Park at Thiruvananthapuram, Pathanamthitta, Ernakulam, Kannur, Wayanad and Kasargod. KINFRA has set up exclusive Food Processing Parks to suit the specific needs of the food processing sector and they offer space for food processing units in their 22 Industrial Parks as the demand for space is high. KINFRA has obtained an in principle approval from the MOFPI, GOI to set up KINFRA Mega food Park at Palakkad. The proposed project will cover a region of 6 districts viz. Palakkad, Malappuram, Thrissur, Ernakulam, Kozhikode and Wayanad as the raw material cluster for the Mega food Park. KINFRA has developed Joint Venture Projects like India’s first Rubber Park (a JVC with the Rubber Board) at , India’s first Seafood Processing Park (a JVC with MPEDA) at Alappuzha and Western India KINFRA Ltd. (a JVC with Western India Services & Estates) at Palakkad. A Joint Venture Company between KINFRA and ICICI, known as I-KIN, has been set up to identify and facilitate the development of infrastructure projects in the State and another company between KINFRA and NTPC, Electrical Supply Co. Ltd. (KINESCO) for distribution of power to KINFRA Parks in the State.

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Table 4.10.1 Status of Food Processing Units in KINFRA Parks – 2015-16 Sl Total Investment No of Employment NO Name of the Park Area (Rs. In Units (in Nos) (in acres) Lakh) 1 2 3 4 5 6 1 KINFRA Food Processing Park, 15 14.273 6978 510 Kakkancherry, Malappuram 2 KINFRA Food Processing Park, 8 4.66 2500 324 , Pathanamthitta 3 KINFRA Small Industries Park, 24 20.53 9587 631 Mazhuvannur 4 KINFRA Small Industries Park, 5 4 500 60 Wayanad Total 52 43.463 19565 1525 Source: KINFRA, Thiruvananthapuram Ongoing Projects of KINFRA • Industrial Park, • Industrial park, Piravamboor (almost complete) • Industrial Park, Kuttipuram • Marine Park, • Integrated Industrial and Textile Park, Palakkad • Knowledge Cities Thrissur & Kozhikode • Telecom Incubator at Hi-Tech Park, • Global Village, Thiruvananthapuram • Trade and Convention Ground, Ernakulam • Special Economic Zone for Food Processing at KINFRA Food Processing Park, Kakkancherry. • Special Economic Zone for electronics Industrial at KINFRA Hi-tech Industries Park, Kochi Initiatives of KINFRA in Food Processing • Marine Park in Beypore for Seafood pre-processing activity. • Kera Park in Thrissur for Coconut based Industries.

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• Spices Park in Idukki for Spice Processing Industries. • Integrated Food Zone (Mega Food Park) in Wayanad. • Mega Food Park in Kinaloor under the new Mega Food Park Scheme of Ministry of Food Processing Industries, Government of India. 4.11 HANDLOOM INDUSTRY The Indian Textile Industry plays a significant role in the economic growth of the country through its contribution to industrial output, employment generation and export earnings. The industry with all its ebbs and flow is a prominent economic activity in the State. Kerala’s textile industry comprises of traditional handloom sector, Power Loom and spinning sector.

The Handloom Sector in Kerala stands second to the coir sector in providing employment among the traditional industries of the State. The Handloom Industry in the State is mainly concentrated in Thiruvananthapuram and Kannur District and in some parts of Kozhikode, Palakkad, Thrissur, Ernakulam, Kollam and Kasaragod Districts. The year wise details of production and productivity under handloom industry in Kerala for the period from 2010-11 to 2015-16 is provided in table no 4.11.1 Table 4.11.1: Production in Handloom Industry in Kerala S.No Item 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 1 No of Looms 40153 30478 29761 21898 21261 21375 2 Production of Handloom 26.68 26.88 28.37 33.32 39.06 39.26 cloth (M.M.) 4 Value of Production 190.96 193.62 214.10 204.71 253.89 278.75 (Rs. In Crore) 5 Productivity 932.97 881.98 953.26 1521.55 1837.14 1836.70 6 No of 52386 49930 50433 20584 20984 19018 Weavers 7 Employment Generated 96.65 85.30 101.60 89.34 64.54 65.18 (man days in lakhs) 8 No of women 20909 20784 20854 12688 12284 14171 employed

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The Industry is dominated by the Co-operative sector. The Co-operative sector consists of factory type and cottage type societies. There were 600 registered Primary Handloom Weavers Co-operative Societies in the State during the year 2015-16 as against 575 during March 2015. Of this, 167 are factory type and 433 are cottage type societies. Of these 600 societies 402 are in working condition as on October 2016. The number of factory type Co-operative Societies functioning at present is 84 (%) and cottage type societies is 318 (53%). Details are given in Table 4.11.2 Table 4.11.2 Number of Handloom Co-operative Societies by Type in Kerala SI Particulars 2015-16 2010-11 2011-12 2012-13 2013-14 2014-15 No. A Factory type: 1 Working 108 108 102 107 101 84 2 Dormant 41 39 36 37 42 45 3 under liquidation 16 17 13 27 20 31 4 Not started working 2 2 2 0 3 7 Total (a) 167 166 153 171 166 167 B Cottage type: 1 Working 260 259 329 319 304 318 2 Dormant 117 113 71 68 41 37 3 under liquidation 41 43 101 104 56 66 4 Not started working 11 10 10 43 8 12 Total (b) 429 425 511 534 409 433 Total (a+b) 596 591 664 705 575 600 Source: Directorate of Handlooms & Textiles, Tvpm. Major physical Achievements during 2015-16 • Started Handloom Incubation Centre and Power loom Incubation centre in Thiruvananthapuram. • Given skill Development Training to 657 weavers. • Given training to 30 weavers in solid borders and in new designs. • Given training to 49 weavers in handloom Art works. • Conducted 69 seminars cum exhibitions for the propagation of Handloom products. • Assistance given to 20 new weavers to start new handloom production units. • Technological up-gradation work of 14 Handloom Societies completed. • 12010 Handloom weavers and 423 Power loom weavers admitted to Group Insurance Scheme. • Given Skill Development training to 120 Power loom weavers.

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Promotional measures of handloom sector Promotional measures of handloom sector such as procurement, sales and marketing of handloom fabrics are being undertaken by two state level organisations namely Hantex and Hanveev. Hantex, the apex society of around 450 primary handloom societies in the State, was formed in 1961 with the objective of organizing the handloom industry in the State on sound commercial basis. Despite grants and loans being given to the society, the organisation is running at a heavy loss. The following table shows the working results of Hantex. Table 4.11.3. Working Results of Kerala State Handloom Weavers Co-operative Society Ltd. (HANTEX) Particulars Provision (Rs. In lakh) SI 2014-15 2015- No 2010-11 2011-12 2012-13 2013-14 16 1 Paid up capital (as at 2620.00 3070.00 3670.00 4270.00 5001.09 5255.08 the end of the year) 2 Total Borrowing (as at the end of the year 4131.43 4001.43 4051.43 4111.43 1656.18 1730.68 including interest) Principal Interest 4873.09 5558.85 5735.54 5822.14 6666.18 2705.84 3 Gross Block ( as at the 123.16 125.38 127.43 132.76 139.81 141.74 end of the year) 4 Quality and Value of production through clusters & sponsored - - - 1841.49 - - societies (as at the end of the year) 5 Income through sales of products (as 2273.27 2844.92 2910.73 3213.28 3395.07 3869.56 at the end of the year) 6 Other Income 8.1 11.44 12.31 205.88 9927.2 368 a Export of handloom ------cloth by KSHDC b Grants, MDA, interest, 912.05 534.98 236.48 92.64 6503.46 195.23 processing charges etc 7 Expenditure on Raw 2145.05 2283.17 2318.84 2633.02 2801.39 3206.9

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Materials a Yarn 560.05 504.82 603.12 685.01 487.79 469.41 b Dyes and Chemicals 3.53 5.49 6.27 6.32 7.03 c Fabrics 1580.88 1772.86 1709.45 1948.01 2307.28 2730.45 8 Expenditure on 501.46 630.40 572.00 641.90 612 667.08 personal payments 9 Provision of 5.00 5.00 5.00 5.00 5 5.0 Depreciation 10 Expenditure towards interest 474.55 474.55 500.00 474.55 1536.31 142.9 and bank charges 11 Other Expenses 167.39 152.07 105.00 59.23 98.47 172.47 a Trading Expenses 61.47 33.44 155.00 154.91 175.01 251.63 b Administration and 83.16 103.84 110.00 96.4 148.82 163.9 selling expenses 12 Stock differential (- (- 128.89 (-)208.21 767.47 442.95 )287.84 )285.74 13 Net profit (+) Net loss (- (-)43.18 (-)398.11 (-)84.26 7659.53 695.48 (-) )420.11 Accumulated loss at the (- (- (- (- (- - end of the year )9451.09 )9847.20 )10269.31 )10353.49 )4222.31 1998.48 Source : Kerala handloom Weavers' Co-operative Society Ltd – Hantex The Kerala State Handloom Development Corporation Ltd. (HANVEEV) is a Government of Kerala undertaking incorporated in 1968 for up-liftment of traditional handloom weavers in the unorganized sector and engaged in the manufacturing and marketing of wide range of handloom products depending on the market trends and sale through various outlets in Kerala. At present, the Corporation has 50 own showrooms, 7 exclusive agency showrooms and 32 production centres. HANVEEV’s sales turnover was Rs.1903.94 lakh, but it incurred an accumulated loss of Rs. 7808.58 lakh. The year wise working results of Hanveev for the period from 2010-11 to 2014-15 is given in the following table 4.11.2.

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Table 4.11.2 Working Results of Kerala State Handloom Development Corporation (HANVEEV) (Rs. in lakhs) SI Provision (Rs. In lakh) No Particulars 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 1 Paid up capital (as at 1808.28 2500 2500* 2500* 2500* 2500.00* 4000.00 the end of the year) 2 Total Borrowing (as at the end of the year 3817.32 4022.12 4242.34 4468.49 4715.88 4964.44 5045.46 including interest 3 Gross Block ( as at the 481.64 494.14 494.38 481.43 383.83 400.72 400.72 end of the year) 4 Value of production through clusters & sponsored societies 58.87 67.05 76.23 135.08 96.82 92.59 95.10 (as at the end of the year) 5 Income through sales of products 1036.44 1176.08 1646.29 1755.59 1893.42 1903.94 1036.80 (as at the end of the year) 6 Other Income a Export of handloom cloth by KSHDC b Grants, MDA, interest, processing 441.63 117.06 76.98 87.78 249.41 26.44 35.71 charges etc 7 Expenditure on Raw

Materials a Yarn 340.10 393.06 274.56 294 286.18 210.66 126.04 b Dyes and Chemicals 23.11 16.92 20.84 40.91 28.43 29.65 7.29 c Fabrics 441.77 548.96 709.92 827.93 740.38 790.31 58.80 8 Expenditure on 686.82 910.54 843.57 703.56 1041.01 1132.31 459.35 personal payments 9 Provision of 21.89 19.17 17.27 13.6 12.74 14.06 10.02 Depreciation 10 Expenditure towards interest 178.15 179.17 180.24 181.15 186.28 191.75 ** and bank charges 11 Other Expenses a (+)/(-) Prior -0.19 -4.14 -0.09 0 5.36 5.90 Period/Expenditure b Trading Expenses 177.52 197.36 226.50 173.61 191.21 159.54 301.18 c Administration and 213.04 221.15 260.42 235.2 289.96 297.35 69.78 MSME-Development Institute, Thrissur 80

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selling expenses 12 Stock differential -327.50 -427.14 -187.03 -238.16 -100.85 30.18 -169.38 13 Net profit (+) Net loss (-) -277.02 -770.09 -623.11 -388.37 -518.71 -883.28 -129.31 Accumulated loss at the 4495.7 5265.8 5888.9 6277.27 6795.99 7679.27 7808.58 end of the year Source : Kerala State Handloom Development Corporation Ltd (HANVEEV) The Integrated Handloom Development Scheme is a centrally sponsored Scheme introduced to the growing competitiveness in the textile industry both at the national and international markets and the free trade opportunities emerging in the post MFA environment. A growing need has been felt for adopting a focused yet flexible and holistic approach to the sector to facilitate handloom weavers to meet the challenges of a globalised environment. A need has also been felt to empower weavers to chart out a sustainable path for growth and diversification in line with the emerging market trends. The Integrated Handlooms Development Scheme (IHDS) is an attempt to facilitate the sustainable development of handloom weavers located in and outside identified handloom clusters into a cohesive self managing and competitive socio - economic unit. Development of Clusters having Loom-age 300 – 500 It is intimated that a maximum of Rs. 60.00 lakh per cluster will be provided for a period of 3 years depending upon the requirement. The components of IHDS eligible for financial assistance are baseline survey, formation of consortium, raw material support, design development etc. Assistance for individual weavers for basic input and construction of work shed will also be provided in a cluster having loom-age of 300-500 subject to the condition that the expenditure under these components will be within 25% of the maximum project cost of Rs.60.00 lakhs per cluster. Government of India has sanctioned 24 projects submitted by Kerala under the component viz. Cluster Development Programme of the scheme and released the 1st and 2nd installment. Out of the 24 clusters sanctioned, 20 Clusters are working well; the remaining 4 were wound up.

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IHDS – Development of Group Approach Handloom Weavers who are not covered by clusters will be benefited by a Group Approach. A Group should have more than 10 to 100 weavers, which can be in the form of SHG, PWCS and other independent/individual weavers in groups. Assistance to such a group of weavers will be provided for basic inputs, skill up gradation, construction of work shed etc. 192 groups are identified in the State for getting benefits under the Group approach for development of handlooms. 21 Groups are approved by Government of India and released 2.11 crore. Integrated Handloom Cluster Development Scheme (IHCD) This is a scheme to facilitate sustainable development to handloom weavers located in identified clusters into a cohesive, self managing and competitive socio- economic unit. The scheme will address the requirements of the cluster in a coordinated and comprehensive manner. Of the 20 handloom clusters identified throughout the country for development under the IHCD scheme, one is from Kerala i.e. Thiruvananthapuram cluster. Hanveev is the implementing agency. 4.12 Textile Sector The Textile Industry in Kerala is spread over in public sector as well as in Cooperative Sector and there exist thirteen Spinning Mills jointly in the public / co- operative sector. Kerala State Co-operative Textile Federation (TEXFED) has 7 Co- operative Spinning Mills in its member fold. Five of them are administered by the Government and two have elected boards. From 2006 onwards the Government interfered in the day-today activities of these mills and turnaround the units in a big way enforcing financial as well as technical discipline. The main handicaps faced by the Mills were the lack of working capital and availability of raw materials. Also the sale of Yarn carried out through depot system is being monitored by the same committee. Due to this raw material cost was brought down heavily and sufficient savings in this area accelerated revenue and turnover.

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The Co-operative Spinning Mills in the State were formed with a social objective to provide raw material support to the traditional handloom weavers of the state. This support has been stopped in 1999. Instead an integrated approach for the industry has been put in place with establishment of three hank yarn production centres by the Government at Cannanore, Alleppey and Trichur Co-operative Spinning Mills to provide raw material support to the weavers. The Co-operative Spinning Mills in the State were formed with a social objective to provide raw material support to the traditional handloom sector in Kerala. But from 1999 onwards due to various reasons this has been stopped. The Government took up the issue seriously and to have an integrated approach for the industry decided to establish three hank yarn production centres in the State. 4.13 Power loom The weaving sector is relatively less developed in Kerala. Around 75 per cent of the Textile mills in Kerala are Spinning mills, which produced cotton yarn. To promote the weaving sector, government provided budgetary support to set up four integrated power loom co-operative societies in the State. At present there are 52 power loom co- operative societies. The co-operative sector owns 550 looms of the total 575 power looms in the State. The year wise details of production and productivity under power loom industry for the period from 2010-11 to 2014-15 is given in the following table. Details on the production and productivity of power loom industry for the year 2009-10 to 2012-13 are given in Table 4.13.1.

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Table 4.13.1: Production and Productivity under Power loom Industry S. 2011- 2012- 2013 2014 201 N Items 12 13 -14 -15 5-16 o 1 Total Number of Power looms in the state 536 963 694 658 575 2 Number of looms in the Co-operative sector 496 651 579 594 550 3 Percentage of 2 to 1 93 68 83 90 96 Number of looms in the Co-operative sector 40 312 81 64 25 4 unorganized/private/corporate sector Number of power loom co-operative societies 17 21 36 45 52 5 in the state 168 1504 2387 2359 1856 6 Number of members in the cooperative sector 4 Number of members in the 10 310 55 120 69 7 corporate/unorganised/private sector Number of women employed in Power loom 242 280 283 571 285 8 sector Number of women employed in co-operative 570 288 318 788 595 9 sector Number of women employed in 32 56 28 54 42 10 Corporate/unorganised/private sector 11 Co-operative Sector

27.6 39.4 27.65 21.61 24.2 A Production of cloth (lakh meters) 9 4 247.5 624. 671. 181 377.22 B Value of Production 8 52 32 5 3719. 4781 6639 440 2128.4 C Productivity (Metre/loom) 57 .52 .67 0 136 D Total Turnover (crore) 1.25 12 Corporate/unorganised/private sector

0.1744 0.89 22.56 2.07 1.7 A Production of cloth (lakh meters) 5 6 2206. 79.2 118. 42.1 3.12 B Value of Production 51 5 22 1 332.1 2551 2656 358 582 C Productivity (Metre/loom) 5 .36 .25 4 31.5 D Total Turnover (crore) 8 Total(co-operative and 13 Corporate/unorganised/private sector) Production of cloth (lakh meters) 27.82 44.17 29.7 41.1 25.1

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6 4 2454. 703. 789. 185 380.34 Value of Production 09 77 54 7.11 4051. 7332 9295 798 2710.4 Productivity (Metre/loom) 72 .88 .92 4 139 Total Turnover (crore) 2.83 Source: Directorate of Handloom & Textiles, Tvpm. The Six integrated power loom co-operative societies in the state under the membership of TEXFED i.e. Calicut Integrated Power loom Co-op. Society Ltd., Calicut, Wayanad Handloom, Power loom and Multipurpose Industrial Co-operative Society Ltd., Thrissileri, Wayanad, Paravoor Integrated Power loom Industrial Co-operative Society Ltd., Paravoor, Ernakulam, Kottayam Integrated Power loom Industrial Co- operative Society Ltd., Amayanoor, Kottayam, Taluk Integrated Powerloom Industrial Co-operative Society Ltd., Uchakkada, Neyyattinkara, Thiruvananthpauram and Kerala Hi-tech Weaving and Garment Co-operative Mills Ltd., Punnathala Post, Vettichira, Malappuram.

The Calicut Integrated Power loom Co-operative Society Ltd. has been converted as a textile park comprising all the segments of a composite mill i.e., weaving, processing and garment making. Here semi automatic power looms, automatic looms and highly sophisticated machines are working. The value added products manufactured from these units are being exported through merchant vendors to Europe and other parts of the world. They manufacture terry towels, high quality home furnishings, shirts, dothies, blazers etc. for domestic as well as export market. A modern processing unit to process yarn for both handloom and power loom with modern facilities is functioning in this project. A garment making unit with state of art technology and professionally trained manpower is also working in this project. Wayanad, the most remote district in Kerala which is lacking industrial initiatives has been looked into and rehabilitation cum industrial project is functioning. As part of it, a handloom production centre has been started in Thirunelli for tribal women folk and training for the first batch has been completed and for another batch is

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State Industrial Profile, 2016-17 ongoing. This will be converted as an employment generating centre in handloom for women. Integrated Power loom Co-operative Societies in Neyyattinkara and Kottayam has also been activated and are in the process of production of grey cloth and some conversion orders for export market. The sizing unit functioning at Kottayam is activated as a common facility centre for all the integrated power loom Co-operative societies in the state. To market the products manufactured by the above power loom Co-operatives, Texfed set up a marketing and distributing system by spending Rs. 90.00 lakhs by establishing a high tech show room in Kozhikode. 4.14 Handicrafts Handicraft industry is one of the traditional industries of Kerala, providing employment to artisans. Eighty per cent of these artisans are from socially and economically backward classes. Kerala has the tradition of making beautiful handicrafts with ivory, bamboo, palm leaves, seashells, wood, coconut shells, clay, cloth, coir, metals, stone, lacquer ware and so on. Many old handicraft classics can be seen in palaces, old heritage homes and museums in the State. Kerala State Handicrafts Apex Co-operative Society (SURABHI), Handicrafts Development Corporation and Artisans Development Corporation are the major promotional agencies in the handicraft industry. SURABHI is the apex organization of primary handicrafts co-operatives established with a view to uplift the artisans by marketing their products through the primary co-operatives and implementing welfare schemes with the assistance from State and Central Governments. The turnover of the society during the year 2015-16 was Rs. 280.84 lakh less than the previous year’s turnover of Rs. 337.33 lakh. Apex society received an amount of Rs. 170.62 lakh during the year under the scheme, “Assistance to apex organisation in handicrafts sector”. This was primarily used for conducting exhibitions and repair works of showrooms. There are 48 societies and SURABHI made a profit of Rs.2.36 lakh from 13 exhibitions and fairs in the year 2015-16. The total employment provided during the period was 30000. Handicrafts Development Corporation of Kerala (HDCK) is engaged in procuring and marketing handicraft products by giving fair returns to artisans through

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Sree Moolam Shashtyabdapurthi Memorial Institute (SMSMI) and Kairali emporia spread all over India. At present it is having a net work of 19 such sales emporia other than SMSMI. HDCK has been running a Common Facility Service Centre (CFSC) at Thiruvananthapuram for artisans who engage in development wood crafts. HDCK received an amount of Rs. 29.37 lakh during the year 2015-16 under the Scheme “Assistance to apex organisation in handicraft sector” which was utilised for organising exhibitions cum sales. This benefitted more than 2500 handicrafts artisans (both directly and indirectly). HDCK was running in a loss of rs.2.45 lakh from 49 exhibitions and fairs conducted in the year 2015-16. The Kerala Artisans Development Corporation (KADCO) was established in 1981. It is one of the State agencies to provide assistance to artisans for establishing production units, promoting marketing of products and providing employment opportunities through trade fairs and marketing centres. 4.15 BAMBOO INDUSTRY The Kerala State Bamboo Corporation Ltd. was established in 1971 in Kerala to develop and promote industries based on bamboo, reed, cane and rattan. Kerala State Bamboo Corporation’s main activity is collection of good quality reeds from Government forests and distributing these reeds to the registered mat weavers of the Corporation, throughout the State of Kerala, on credit basis and procuring woven mats made of these reeds at reasonable prices, thus providing employment and regular means of livelihood to these weaver sections of the society. Bamboo mats, bamboo ply, flattened board, flooring tiles are the main products. It is an ISO 9001-2000 certified company now. Bamboo/Reeds industry is one of the age-old traditional industries of our state. Since inception KSBC is endeavoring for the up-liftment of the socially and economically backward classes of the society by generating employment and reasonable income for them. In Kerala 28 species of bamboo are found. Bamboos from the Kerala forest are being supplied mainly to the pulp and rayon units under concessional rates. It is estimated that there are about one lakh people in the State depends on bamboo for their

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State Industrial Profile, 2016-17 livelihood. It is notable that 67.3 per cent of the extracted bamboo in Kerala comes from home garden rather than from forest. The major achievement during the year are as follows: Around 10000 traditional worker families were provided assistance of Rs.1030.36 lakh, Common Facility Centre established for reed collection, facilitation /amenities centre in forest including other facilities, and automatic putty applying machine was installed at Bamboo Flooring tile factory at Nallalam. Two factories are functioning under the Corporation Viz. (1)Bamboo Board Factory at Angmaly for manufacturing of Bamboo Ply (2) Hi-Tech bamboo Flooring tile Factory at Nallalam Calicut for manufacture of Bamboo Flooring Tiles, Bamboo Furniture and other allied products. Table 4.15.1: Stock of Bamboo in Different Regions of Forests in Kerala Yearly Total Area Bamboo Stock Availability Circle (km2) (Dry) (Tonnes) (Tonnes) Per Cent Northern Region 1,522. 74 8,07,151.00 67,262.59 30.68 Olavakode Region 2,230. 98 8,95,130.80 74,594.25 34.03 Central Region 1,723. 79 2,34,205.70 19,517.15 8.91 High Range Region 2,820. 51 1,22,726.80 10,227.23 4.66 Southern Region 12,828. 44 5,71,232.00 47,602.67 21.72 Total 11,126.46 26,30,446.30 16000 (0.11) 100

4.16 Coir Industry Coir Industry is a major traditional industry in Kerala in terms of the employment generation and foreign exchange it earns. It provides livelihood to nearly 3.75 lakh people. Government has given more emphasis on Coir Industry by considering the social features and problems faced by it. Kerala accounts for about 85% of the total production of coir in the country. The availability of coconut husks, the basic raw material, the natural retting facilities present in the lakes, lagoons and backwaters of Kerala and the traditional expertise of the people of the state were the reasons for the concentration and growth of the industry in the state, especially in the coastal area. The Coir Industry is classified into four sectors viz: Retting and Fibre Extraction Sector, Spinning Sector, Manufacturing Sector and Export Sector.

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India produce significant share of coir to the world market. Among the states in India, Kerala is the largest producer of contributing to 45% of the total production but only a meager portion of husk is being used for producing coir fibre. This agro-based rural industry provides substances to around 2 lakh families in the coastal belt of Kerala. 80 per cent of workers are women. The co-operative sector plays a major role in the coir industry in the State. The private sector too has a large presence in the industry as coir, yarn producers, product manufacturers and exporters. Coir, which is environment friendly, is an important product in the industrial, construction and household sectors. This strongest natural fibre, continues to struggle at the low end of the commodity market primarily due to poor value addition, diversification, technological refinement and inadequate policy intervention. Appropriate mechanization in all areas of processing viz. defibering, spinning, weaving, etc. has to be brought in to improve productivity and reduced drudgery. Kerala State Coir Corporation is implementing in Purchase Price Stabilization Scheme (PPSS) in Coir Sector. Under the scheme the Kerala State Coir Corporation will directly procure coir products from Small Scale Producers. Major Institutions in Coir Sector 1) Foam Mattings (India) Limited FOMIL caters to the needs of domestic and international markets with a wide range of products by its accent on technology; infrastructure and machinery such as its Denmark make Latex Backing Plant producing international quality latex backed mattings, Modern Dye House, Semi Automatic and Fully automatic Power loom, Auxiliary facilities and uninterrupted power system etc. The value of exports from FOMIL has decreased from Rs.49.99lakh during 2014-15 to Rs.13.05 lakh in 2015-16. 2) Coirfed The Kerala State Co-operative Coir Marketing Federation (Coirfed) is the apex federation of primary coir Co-operative societies spread all over Kerala. It is entrusted with the task of procurement of the entire products of the member societies and marketing the product of these co-operative societies which provides sustenance to

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State Industrial Profile, 2016-17 workers especially women. The value of export of Coirfed increased from Rs. 13.11 lakh in 2014-15 to Rs 29.17 lakhin 2015-16. 3) Kerala State Coir Corporation Kerala State Coir Corporation (KSCC) was set up in 1969 for the systematic development of coir industry in the State. It caters the needs of the small scale coir manufacturers by providing them manufacturing and marketing facilities. Its diversified operations include curled coir manufacturing and allied products sectors. The value of export of the corporation has increased from Rs.4.16 crore in 2014-15 to Rs.8.14 crore in 2015-16. 4) National Coir Research & Management Institute The National Coir Research and Management Institute (NCRMI) is a State Government institution set up to strengthen the R&D activities in coir sector to enable the industry in producing more value – added products and products with new designs at reasonable cost. The NCRMI has developed improved version of Defibering Machine with crusher for both green and dry husks with a processing capacity of 600 husks per hour. It has also developed Automatic spinning machine, Willowing machine, Electronic ratt and screener with more productivity, Agri coir cell and fiber softening techniques. It is also developing pneumatic loom for the production of coir geo textiles and acoustic panel for the use in industry. Coir co-operative societies play substantial role collecting husk, de-fibring and producing varieties of coir products in Kerala. There are 1007 co-operatives registered in coir sector as on March 31, 2016. As per the report of the Coir Directorate 16 new societies were registered in 2015-16. There is also increase in the number of working societies. It increased from 536 to 544, an increase by 8 units. Details of the societies are shown in Table 4.16.1.

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Table 4.16.1: Coir Co-operative Societies in Kerala S. No. Of Societies as No. Of Societies Type of Society No. on 31.3.2015 As on 31.3.2016 1 Primary Co-operative Societies (Yarn

Sector) A Working 420 431 Profit 109 136 Loss 311 295 Total (1A) 420 431 B New Societies which have not started 120 100 working C Dormant Societies 74 82 Total (1) 614 613 2 Manufacturing Societies (Mats and

Mattings A Working (started production) 31 31 Profit 12 10 Loss 19 21 Total (2A) 31 31 New Societies which have not started 3 3 working Dormant Societies 18 15 Total (2) 52 49 3 Small Scale Producers Co-operative

Societies A Working 49 45 Profit 37 12 Loss 12 33 Total (3A) 49 45 B New Societies which have not started 5 5 working C Dormant Societies 9 9 Total (3) 63 59 4 Husk Procurement and distribution

societies A Working 1 1 Profit 0 Loss 1 1 Total (4A) 1 1 B New Societies which have not started 0 working C Dormant Societies 0

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Total (4) 1 1 5 Fibre Societies (DF mill Societies) A Working 22 17 Profit 6 6 Loss 16 11 Total (5A) 22 17 B New Societies which have not started 20 19 working C Dormant Societies 26 36 Total (5) 68 72 6 Co-operative Coir Marketing Federation 7 ICDP Societies A Working 56 63 Profit 13 13 Loss 43 50 Total (7A) 56 63 B New Societies which have not started 4 4 working C Dormant Societies 3 3 Total (7) 63 70 8 Samyojitha CVCS A Working 13 19 Profit 0 6 Loss 13 13 Total (8A) 13 19 B New Societies which have not started 43 48 working C Dormant Societies 8 1 Total (8) 64 68 9 Total Number of Co-operative Societies A Working 536 544 Profit 164 170 Loss 372 374 Total (9A) 536 544 B New Societies which have not started 191 175 working C Dormant Societies 135 143 D Societies under liquidation 129 145 Total (9) 991 1007 Source : Directorate of Coir Development, Thiruvananthapuram

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The export of coir and coir products from India in quantity during the year 2015- 16 was 752020 MT valued at 1901.43 crore as against 626666 MT valued at 1630.34 crore during the previous year. This recorded an overall increase of 20 per cent in quantity and 17 per cent in value over the export of previous year. Curled coir, coir fibre, coir rugs, coir pith, coir rope, coir yarn, coir geo-textile, handloom matting, Power loom Mats, rubberized coir and other sorts constitutes the major export items of the industry during 2015-16. The State Government directly supports coir sector in promotion of export of coir products. The exporters collect products from small scale producers’ co- operatives through Kerala State Coir Corporation (KSCC). Government support this by Purchase Price Stabilisation Scheme. The State Government supports the public sector enterprises, viz. Kerala State Coir Corporation (KSCC), Coirfed and Foam Matings (India) Ltd. (FOMIL) export large quantities of coir products by participating in various national and international exhibitions and B2B conferences. Coir Kerala– an International event on Coir and Natural Fiber Products aimed at exploring and expanding the international market for coir and coir products in consecutive years since 2011 gives impetus to the export of the industry as a whole and particularly the PSUs. The details of export of Coir and Coir Products during last 5 years by Public sector undertakings /Coirfed in Kerala is in table 4.16.2. Fig.8: Export of coir & coir products by State PSUs from 2011-12 onwards, (Rs in lakh)

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Table 4.16.2 Export of Coir and Coir Products by Coir public Sector Undertakings/Coir fed Kerala State Coir Foam Matting Coir fed Total Corporation (India) Ltd Year Value Quantity Value Quantity Value Quantity Value (lakh) (Sq.M) (lakh) (tonnes) (lakh) (tonnes) (lakh) 2011-12 0 25.98 51.325 30.99 42.89 56.97 2012-13 112 27317 43.79 56.929 150.52 90.51 306.31 2013-14 245 59756 72.23 56.14 29.67 58.78 346.9 2014-15 416 101463 49.99 42.386 13.11 25 479.1 2015-16 814 198537 13.05 9.95 29.17 10.91 856.22 Source : Directorate of Coir Development, Thiruvananthapuram Achievements of Coir industry in Kerala ➢ The Coir Development Department has organised ‘Coir Kerala 2016’ at Alappuzha. This was an international fair on natural fibre and allied products, in which buyers from various parts of India and from around 38 countries participated. ➢ An amount of Rs 5 crores was disbursed among 269societies during the year 2015-16. ➢ An amount of Rs.8 crores was released to 25 coir mats and mattings Societies, Coir Corporation, Foam Mattings India Ltd. And Coirfed during the year 2015- 16. ➢ An amount of Rs 25.4 crores has released as pension and matching grant to coir workers during the year. ➢ Provided assistance to 196 societies under infrastructure development scheme. ➢ Training to workers of societies on Spinning in Electronics Ratt in , Kollam, kayamkulam. ➢ Given assistance to 20 societies under Government share participation scheme. ➢ Inaugurated Coir machinery Manufacturing Factory at Alappuzha. National Coir Policy Coir Board evolved a draft National Coir Policy and vision 2025 with a view to develop the coir Industry in a holistic manner. The policy broadly defines the vision of Government of India on Coir sector development and the targets to be achieved by 2025. The National Coir Policy aims at, • Enhancing the utilization of coconut husks available in the coconut producing states for coir fiber extraction. • Improving the quality of coir fiber, yarn and products produced in India. • Women empowerment through value addition of coir products and coir pith. • Zero wastage in the extraction of fiber and manufacturing process. • Inventions in product and process for use in betterment of society and environment.

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• Modernising equipments so as to eliminate drudgery in the production processes and enhance productivity and quality. • Addressing the problem of infrastructure bottlenecks. • Supporting modernization and technology up gradation of industry. • Assistance for capacity building in industry. • Providing fuller employment to the existing coir workers and generate additional employment. • Undertaking vigorous research and development activities for finding new areas for coir. • Development of high productivity defibering units and mechanical spinning machines. • Finding new uses for Coir Wood, Coir Pith and explore more business opportunities within India and abroad. • Augmenting fiber availability in the country and facilitate high growth and competitiveness of the coir sector. • Developing domestic and export of coir products. • Promoting Consortium approach in the production and marketing of coir products. • Implementing schemes for welfare of coir workers. • Promoting towns of export excellence in coir in areas of coir production. Skill up-gradation Quality Improvement Mahila Coir Yojana and Welfare Measures Coir Board continued to impart training in processing of coir to artisans and workers engaged in the coir Industry through its training centres ie., National Coir Training and Design Centre (NCT &DC) Kalavoor, Alappuzha and Research cum Extension Centre Tenkasi, . Mahila Coir Yojana The Mahila Coir Yojana is the first women oriented self- employment scheme in the Coir Industry, which presides self- employment opportunities to the rural women artisan in regions producing coir fiber. The conversion of coir fiber into yarn on motorized art in rural households provides scope for large scale employment, improvement in productivity and quality, better working conditions and higher income to the workers. Coir Udyami Yojana The Ministry through Coir Board is implementing a Central Sector Scheme of Rejuvenation, Modernisation and Technology Up gradation of Coir Industry (REMOT) to facilitate sustainable development of the coir sector in the country. This will in turn

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State Industrial Profile, 2016-17 generate more employment opportunities especially for women and the weaker sections of the rural society. Under this scheme, financial assistance is provided for replacement of out-dated ratts/looms and for construction of work sheds so as to increase productivity/ productions and earnings of workers. The selling limit for setting up of coir units under this scheme has been increased to 10 lakhs in spinning sectors and tiny / household sector. Major schemes implemented by the Directorate of Coir Development during 2015-16 Following are the major schemes implemented in the coir sector during 2014-15. 1. Regulated Mechanization of Coir Industry intended to modernize the industry 2. Marketing, Publicity, Propaganda, Trade Exhibitions and Assistance for Setting up of Showrooms 3. Price Fluctuation Fund intended to stabilize the price of coir fibre, and yarn 4. Coir Geo Textiles Development Programme intended to implement pilot projects for including Geo textiles as a standard engineering material. 5. Production and Marketing Incentive scheme. 6. Market Development Assistance for the Sale of Coir and Coir Products. Coir industry in Kerala faces competition in both the domestic and international markets. One of its major challenges is the relatively high cost of coir products in comparison to its synthetic substitutes. Wages costs account for around 70 per cent of the total product cost in the coir sector. The coir industry in Kerala should try to build itself on a slogan of “return to nature”. At the same time, it should find ways to remedy some of the bottlenecks such as weak procurement of coconut husk, increased cost of production, pollution caused during traditional method of ratting and husk beating, and lack of professional management. 4.17 Khadi & Village Industries Khadi and Village Industries Board (KVIB) is the statutory body vested with the responsibility of organizing, developing and promoting Khadi and Village Industries in the State. It carries out its activities through co-operative societies, registered institutions and departmental units by availing financial assistance from State Government, Khadi Commission and Nationalized Banks. Khadi & Village Industries play a substantial role in generating employment in rural areas with minimum investment. These industries use eco-friendly, local resources and generate higher employment opportunities. The Kerala Khadi and Village MSME-Development Institute, Thrissur 96

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Industries Board is a statutory body constituted by the Act IX of 1957 Legislative Assembly. It is vested with the responsibility of organizing, developing and promoting Khadi and Village Industries in the State. Co-operative Societies, registered institutions and departmental units carry out activities of the Board by availing financial assistance from State Government, Khadi Commission and Nationalised Banks. Major Physical achievements of Khadi and Village Industries Board during 2015-16 • K&VI Board has created 2906 new employment opportunities through PMEGP scheme during the year. • An amount of Rs. 819.46 lakh was given as margin money grant to beneficiaries. • The Government has exempted building tax for all department Khadi production centre working under the board. • The Board has increased the Khadi Production by 20 per cent than the previous year through its own production centres. • The total cost of the cloth production during 2015-16 is Rs. 2000.50lakh. • 25 new departmental khadi production centres has been established, 780 new charka and 650 new looms were installed and 20 new readymade warping units were setup. • The board has imparted training to 650 new artisans in khadi weaving and provided employment to them. • The festival incentives to Khadi workers have been enhanced to Rs.1000 which was disbursed during . • The production incentive to khadi weavers have been enhanced to 180 paisa from 90 paisa for the hank consume for weaving. The production incentives to Khadi spinners have been enhanced to 60 paisa from 30 paisa for the hank production. • The board has disbursed Rs.4 crore as production/festival incentives to Khadi spinners and weavers. • All the Khadi workers in the State will be under the purview of ESI act from April, 2016 and all the benefits under the ESI act will be given to Khadi workers also. • The Board has disbursed Rs27 crore to Khadi workers in the State to ensure minimum wages to them through Income Support Scheme during the year. 4.18 Cashew Industry India is the third largest producer of cashew nuts which is the world’s favorite nut and the third widely consumed edible tree nut. In 2014, India’s total production of cashew was 7, 37,000 metric tons, which accounted for 18 per cent of the total cashew production of 4,439,960 metric tons in the world. The World’s top 5 producers are Vietnam, Nigeria, India, Ivory Coast and Benin. India stands first in cashew nut

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State Industrial Profile, 2016-17 processing and processes around 1.59 million tons of cashew nuts every year though only around half of the cashews processed in the country are produced domestically. More than 50 percentage of cashew processing is in the unorganized sector. Due to large processing capacity, India imports raw cashew nuts from other countries. African countries process least quantity of nuts and more than 90% of the raw nuts produced in the region are exported to India, Vietnam and other processing countries. India was the first country to enter the global cashew trade. The cashew kernels produced in India are sold both in the international and domestic markets. The major international markets for Indian cashew kernels during 2014-15 were United States of America, United Arab Emirates (UAE), Netherlands, Japan, Saudi Arabia, Germany, Korea DP Republic, the United Kingdom (UK), France, Italy, Spain etc. At present the area under cashew is 10.08 lakh ha with a production of 7.37 lakh MT and productivity 782 kg/ha. India’s requirement of raw cashew nut is about 16.23 lakh tonnes. Hence, the balance quantity of cashew nuts is being met by importing raw nuts from Africa and South East Asian countries (Table 4.18.1). Table 4.18.1: Production of cashew nut in major countries in 2014 (MT) Countries 2011 2012 2013 2014 India 692000 674000 728000 737000 Ivory Coast 400000 460000 525000 460000 Vietnam 300002 264810 252000 425000 Guinea Bissau 190000 176400 158000 220000 Tanzania 149999 130000 126000 120000 Source: Cashew Export Promotion Council, Kollam Cashew Industry- Kerala scenario Kerala’s contribution to Indian cashew industry is remarkable in the processing and exporting sectors. With approximately 800 cashew processing units/factories functioning in Kerala, the demand for raw cashew nuts is high. Cashew processing in Kerala started as a cottage industry. This traditional industry is mainly concentrated in and is highly labour intensive which employs about 2 lakh workers, majority (>90 per cent)of whom are women. Kerala during 2015-16 was at the 5th position in production of cashew nuts, after Maharashtra, Andhra Pradesh, Orissa and , with a production of 72000 MT. The area under cultivation of raw cashew in

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Kerala is 87010 ha during 2014-15. Among the states Maharashtra and Andhra Pradesh have the major share of the total area under cashew cultivation. Production and yield of cashew in the states which are new to cashew cultivation, like Maharashtra, Andhra Pradesh, Odisha and Tamil Nadu have been increasing and with the state government’s support, these states were adopting high yielding variety seeds for plantation, which gives them high yield per acre in shorter time periods. Cashew Export Promotion Council of India (CEPCI) The Cashew Export Promotion Council of India(CEPCI) was established by the Government of India in the year 1955, with the active cooperation of the cashew industry with the object of promoting exports of cashew kernels and cashew nut shell liquid (CNSL) from India. The Council provides the necessary institutional frame-work for performing the different functions that serve to intensify and promote exports of cashew kernels and cashew nut shell liquid. The Council also serves as a liaison between foreign importers and member exporters and offers investment to producers for the purchase of innovative technology and equipment and operates plan schemes of Government of India. The council has set up a laboratory and technical division of international standards which is recognised as an approved Research Centre for Doctoral research by Kannur University and University of Kerala. The service of CEPC Lab is available to cashew industry as well as entire food processing industry in India and abroad. The CEPC Lab and Technical division, Kollam analysed 8431 samples in 2015-16. The total export of Cashew Kernels from India during 2015-16 was 96346 MT, valued at Rs.4952.12 crore. Similarly, the total export of cashew kernels from Kerala during 2015-16 was 50652 MT valued at Rs. 2579.49 crore. Nearly 53 percent of total exports of India are from Kerala. Export of cashew kernels from Kerala showed a sharp decline in quantity by 25.68 per cent and in value by 16.76 per cent between 2014-15 and 2015-16. The details of export of cashew kernels from Kerala and India from 2010-11 to 2015-16 are given in Table 4.18.2.

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Table 4.18.2: Exports of Cashew Kernels, Kerala and India, 2010-11 to 2015-16, Quantity in MT and Value in crore Year Kerala India % Share of Kerala Quantity Value Quantity Value Quantity Value 2010-11 56578 1478.67 105755 2819.39 53.50 52.45 2011-12 68655 2295.84 130869 4383.82 53.46 52.37 2012-13 53624 2138.47 100105 4046.23 53.57 52.85 2013-14 65679 2861.75 114791 5058.73 57.22 56.57 2014-15 69150 3098.75 118952 5432.85 57.29 57.04 2015-16 50652 2579.49 96346 4952.12 52.57 52.09 *Export through Cochin Port. Source: The Cashew Export Promotion Council of India

Table 4.18.3: Performance of Kerala State Cashew Development Corporation (KSCDC) Number of Turnover Profit /Loss Number of Total working Years Factories Employment days Rs in Lakh Rs in Lakh in factories 2008-09 30 18448 209 12788 -7774 2009-10 30 18240 284 17948 -6254 2010-11 30 18918 282 20655 -8979 2011-12 30 18205 288 27041 -12795 2012-13 30 17215 202 12674 -88768 2013-14 30 13486 198 12260 -3274 2014-15 30 11687 190 14690 -3279 2015-16 30 10632 106 6940 -2058 Source: KSCDC, Kollam Table 4.18.4: Performance of CAPEX Number of Turnover Profit /Loss Number of Total working Years Factories Employment days Rs in Lakh Rs in Lakh in factories 2008-09 10 1053570 210 3671.87 -490.13 2009-10 10 1254770 242 4822.77 -156.93 2010-11 10 1344881 257 4878.55 -318.12 2011-12 10 1200876 229 6775.97 -58.52 2012-13 10 1340635 265 6882.94 -16.64 2013-14 10 1016752 212 6347.86 -945.73 2014-15 10 867330 207 7385.74 -1445.95 2015-16 10 878120 232 7372 -1537 Source: CAPEX, Kollam

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4.19 Beedi Industry Beedi Industry in Kerala is concentrated in Kozhikkode, Kannur and Kasaragod. The Kerala Dinesh Beedi Workers Central Co-operative Society Ltd. was the only agency in the State to promote beedi industry in the organized sector. During the period under review, the society concentrated on the upliftment of units for the diversified products for the rehabilitation of about 7000 beedi workers under the society. As part of product diversification programme, the Society started a Dinesh Garment unit, Dinesh Umbrella unit and Dinesh Foods. Dinesh Garment unit, Thana, Kannur provided employment to 150 workers. Two more units of Dinesh Garment at Chala , Kannur and , Kasargod which will provide employment to 250 workers were initiated functioning with training to workers and the development activities of Dinesh Cocunut milk unit is also started. 4.20 Industrial Promotion Promotional institutions and public sector manufacturing units are given prime focus under the programmes of medium and large industries. Government of Kerala assists the industrial units by providing financial assistance, infrastructure and training /consultancy services. Government encourages all sorts of investments on mutually beneficial terms which will positively contribute for the growth of the economy, employment generation and increase in tax revenue. Important agencies /departments engaged in industrial promotion in the State are the following: (1) MSME Development Institute (formerly SISI) (2) Kerala State Industrial Development Corporation (KSIDC) (3) Small Industries Development Bank of India (SIDBI) (4) Kerala Industrial Infrastructure Development Corporation (KINFRA) (5) Infrastructure Kerala Ltd (INKEL) (6) Directorate of Industries and Commerce (DIC) (7) Khadi & Village Industries Commission (KVIC) (8) Khadi & Village Industries Board (KVIB) (9) Kerala Small Industries Development Corporation (SIDCO) (10) Kerala Financial Corporation (KFC) (11) Kerala Industrial and Technical Consultancy (KITCO) (12) Kerala Bureau of Industrial Promotion (K-Bip) and (13) Centre for Management Development (CMD).

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4.21 Industrial Financing Kerala Financial Corporation (KFC) has been playing a major role in the industrialisation of Kerala. This is a trend setter and path breaker in the field of long term finance, playing a major role in the development and industrialization of Kerala. The main objective of KFC is the rapid industrialization of the state by extending financial assistance to Micro, Small and Medium Enterprises in manufacturing and service sector. Corporation can give financial assistance for setting up of new units and for the expansion / modernization / diversification of existing units in both manufacturing and service sectors. The Corporation sanctioned loan of Rs. 1025.99 crore during 2015-16 and disbursed an amount of Rs.838.83 crore to various SSI units and Rs.422.53 crore to other units in 2015-16. The Corporation reported profit (before taxation) of Rs.20.35 crore during 2015-16 as against Rs. 30.03 crore during 2014-15. During 2015-16 the Corporation sanctioned loans for an amount of Rs.7263.41 crore and disbursed Rs.6573.68 crore. Performance of KFC during the last five years is given in Table 4.21.1 shows the progress of the working of Kerala Financial Corporation for the last five years. Table 4.21.1: Performance of Kerala Financial Corporation at a Glance Value figures in crore Loans Loans Profit Loans Profit after Year sanctioned disbursed before outstanding taxation cumulative cumulative taxation 2009-10 3961.13 3261.06 888.39 46.65 21.14 2010-11 4468.19 3704.50 1124.81 61.89 36.40 2011-12 5007.20 4169.07 1239.84 62.63 45.65 2012-13 5668.59 4645.01 1401.43 88.42 66.83 2013-14 6680.32 5399.74 1800.37 57.09 41.34 2014-15 7627.77 6056.83 2038.18 30.03 14.37 2015-16 8653.76 6895.19 2400.19 20.35 5.33 Source : KFC The Corporation is the first PSU in Kerala and first SFC in India to initiate Corporate Social Responsibility activity. As part of its Corporate Social Responsibility, KFC has set up KFC-CARE (Centre for Assistance and Rehabilitation) to rehabilitate and serve the marginalized sections of the community. Kerala Financial Corporation (KFC) has been providing finance to a large number of projects and enterprises. Table 4.21.2 gives details of the loan operations during 2015-16.

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Table 4.21.2 Kerala Financial Corporation- Details of loan sanctioned and disbursed during 2015- 16 (Rs in Crore) S. Particulars SSI Others Total No. No. Amount No. Amount No. Amount 1 Application pending as on 12 10.59 16 7.00 14 17.59 1.4.2015 2 Application Received 999 551.35 384 569.14 1383 17.59 during 2015-16 3 Total application for 1011 561.94 386 576.10 1395 1120.49 consideration 4 Application 25 56.44 16 13.64 41 70.08 withdrawn/rejected or

otherwise is posed off 5 Application Sanctioned 969 472.36 363 556.02 1332 1028.38 (Gross) 6 A. Application cancelled/reduced out of 3 0.50 1 1.89 4 2.39 current year's sanction B. Application cancelled/reduced out of 24 56.77 6 20.46 30 77.23 previous year's sanction C. Total cancellation/ 27 57.27 7 22.35 34 79.62 reduction (6A+B) 7 Application sanctioned 966 471.86 332 55.41 1298 1025.99 effectively (5-6A) 8 Net Sanctions (5-6C) 942 415.09 386 533.66 1328 948.75 9 Amount disbursed along with number of newly 1111 415.83 325 422.52 1436 838.36 assisted units 10 Application pending sanction as on at the end of 17 33.13 7 6.49 24 39.62 the period Source : KFC The Corporation has now emerged as a financial supermarket giving the customers a wide range of products and services. The Corporation is one of the best State Financial Corporations in the country with a competent tech savvy team of professional at the core of services. Corporation also provides Working Capital finance and Short Term Finance apart from schemes focused at the weaker sections of the

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State Industrial Profile, 2016-17 society. Modernisation schemes for MSMEs are one of the innovative schemes introduced to suit changing customer requirements. KFC has also set up KFC Consultancy Division with a view to render excellent Consultancy Services to the Clients as a Total Solution provider. KFC has also made a small beginning to nurture and develop a new managerial cadre that can dream, envision and create a new future. Instead of entrepreneurs approaching KFC, officers will reach the entrepreneurs in order to sanction financial assistance to various commercial and industrial projects. KFC has already started a marketing wing for this, and officers at the regional and district level will assist in the process. A task force had been formed to sort out issues of long-standing loans that are very old and without assets. The gross NPA of the Corporation will be reduced below 4 per cent in this fiscal year. In order to mobilise more funds, KFC will associate with banks and institutions like HUDCO, and would also tap the financial market. It will also start an innovation incubation center for assisting the new-generation entrepreneurs and young businessmen. For traditional sectors, integrated development clusters of enterprises will be formed. KFC will also start village adoption scheme with the help of village panchayat offices in various villages. Project offices will be opened in selected villages. Kerala Financial Corporation (KFC) provides long term finance, primarily to Micro, Small and Medium Enterprises (MSME), both in manufacturing and service sectors. Government of Kerala is the major shareholder with more than 97 per cent and the balance is held by SIDBI, LIC, SBT and others. 4.22 Small Industries Development Bank of India (SIDBI) Small Industries Development Bank of India (SIDBI) was set up on April 2, 1990 under an Act of Indian Parliament, is the Principal Financial Institution for the Promotion, Financing and Development of the Micro, Small and Medium Enterprise (MSME) sector and for co-ordination of the functions of the institutions engaged in similar activities.

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It also acts as the nodal agency for the scheme sponsored by Government of India in this regard. It also extends indirect financial assistance by way of refinance facilities to primary lending institutions viz., KFC, KSIDC and Commercial Banks against their loans granted to MSME units. The business domain of SIDBI consists of MSME units, which contribute significantly to the national economy in terms of production, employment and exports. The P&D initiatives of SIDBI have crystallised over the years and are now oriented to serve rural entrepreneurs and youth, particularly women through programmes to empower them and motivate them to undertake entrepreneurial ventures. SIDBI operates a number of schemes for the development of MSMEs. The Rural Industrial Programme (RIP) of SIDBI aims at creation of rural employment through enterprise promotion in rural and semi urban areas and aims at solving problems such as rural unemployment, urban migration, under utilization of knowhow etc. Based on the modifications suggested in the “Package for Promotion of Micro and Small Enterprises”, the Credit Guarantee Fund Trust for Small Industries (CGTSI) has been renamed as “Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). In accordance with the direction from CGTMSE, MSMED Institute conducted awareness campaigns with SIDBI for the Stakeholders. 4.23 Kerala State Industrial Development Corporation (KSIDC) Kerala State Industrial Development Corporation (KSIDC) is a Government agency for industrial and investment promotion in Kerala. Established in 1961 with the objective of promoting, stimulating, financing and facilitating the development of large and medium scale industries in Kerala, KSIDC acts as a promotional agency involved in catalyzing the development of infrastructure required for constant growth of industry in the State. It offers professional guidance and support for potential investors through a comprehensive set of services that include developing business ideas, identifying viable projects, providing financial assistance, guidance and assistance for implementation. KSIDC has a proven track record of attracting a commendable volume of investment to the State.

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Kerala State Industrial Development Corporation Ltd. (KSIDC) has the main objective of promoting, stimulating, financing and facilitating the development of large and medium scale industries in Kerala. KSIDC has sanctioned various projects involving a capital investment of Rs. 2069.62 crores with direct term loan assistance of Rs. 76.65 crores and Rs 10 crore under share capital assistance in the financial year 2015- 16, which are expected to generate employment for 10000 persons directly and indirectly. Out of projects sanctioned, four are in Ernakulum, three in Thiruvananthapuram, two in Alappuzha and one each in Palakkad and Malappuram districts. The Corporation has also registered Rs. 67.76 crores disbursement and Rs. 118.36 crores in recovery by way of principal and interest. The total profit of the Corporation has come to Rs. 49.98 crores during2015-16. Majority of projects financed by the Corporation during 2015-16 are under metals and chemical sectors, hospitality, rubber and infrastructure sectors. Major Projects Initiated by KSIDC • Petrochemical Park, Kochi- to promote petroleum chemical and petrochemical investment. • Mega Food Park, Cherthala • Electronic Hardware Park at Kochi – a world class manufacturing and R&D facility for Electronic Sector. • Life Sciences Park for setting up state-of-the-art manufacturing and R&D facility for Biotechnology, Nano Technology, Contract Research etc. • Titanium Sponge Project at Kollam • Supplementary Gas Infrastructure Project • Coconut Industrial Park, Kuttiyadi • Organic Industrial Park, Kodungallor. • Light Engineering Industrial Park, Palakkad. KSIDC conducted ‘Young Entrepreneurs Summit” (YES) with the theme of “Collaborating and Networking” and had tied up with Indian Software Product Industry Round Table (ISPIRT) & India Private Equity & Venture Capital Association (IVCA) for YESCAN 2015. KSIDC had set up first All Women Incubation Centre at Assumption College, Changanachery. KSIDC developed the infrastructure facilities in its Industrial Growth Centres (IGC) at Kannur, Kozhikode, Alappuzha and Thiruvananthapuram districts. KSIDC has

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State Industrial Profile, 2016-17 also initiated a special finance assistance scheme known as “Angel Fund/Seed Fund” to promote entrepreneurship among youth making them as job providers rather than job seekers and has made a total disbursement of Rs.366 lakh to 18 innovative ventures. The total stage wise disbursement of funds during 2015-16 is Rs.110.50 lakhs. It had set up a 120 seat incubation space spread over an area of 4500 sq. m at Infopark, Kakkanad Kochi. KSIDC also developed a light engineering industrial park at palakkad in 34 acres of land. 4.24 Industrial Infrastructure 4.24.1 Kerala Industrial Infrastructure Development Corporation (KINFRA) Kerala Industrial Infrastructure Development Corporation (KINFRA) aims at accelerating the industrial development of the State by providing infrastructure facilities to industries. The Industrial Parks developed by KINFRA have facilities like developed land or built up space, dedicated power, continuous water supply, communication facilities etc. KINFRA has completed infrastructure development in 12 key industrial sector with world class infrastructure in 22 Industrial Parks in Kerala, of which 8 are catering exclusively to the small and medium Enterprises sector. Some of the notable achievements are the successful completion of India’s first International Apparel Park at Trivandrum; India’s first Export Promotion Industrial Park at Ernakulam; India’s first Infotainment Park, the Film & Video Park at Trivandrum and India’s first Food Processing Industrial Park at Malappuram. KINFRA has developed Joint Venture Projects like India’s first Rubber Park (a JVC with the Rubber Board) at Kochi, India’s first Seafood Processing Park (a JVC with MPEDA) at Alappuzha and Western India KINFRA Ltd. (a JVC with Western India Services & Estates) at Palakkad. A Joint Venture Company between KINFRA and ICICI, known as I-KIN, has been set up to identify and facilitate the development of infrastructure projects in the State and another company between KINFRA and NTPC, Electrical Supply Co. Ltd. (KINESCO) for distribution of power to KINFRA Parks in the State.

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4.25 Industrial Development Plots/Areas This is an ongoing scheme for the up gradation and modernisation of existing DA/DPs, such as creating improving common infrastructural facilities, providing power and water facilities, providing solid & liquid waste management system, construction and maintenance of internal roads and other common facilities, and completion of works already taken up in the existing DA/DPs. The development works will be undertaken with beneficiary contribution under cost sharing ratio of 70:30 between Government and beneficiary. At present there are 37 Development Area / Development Plots under DIC having a total acquired area of 2439.45 acre, in which one has not yet commenced functioning and another one has not developed. A total of 2563 units are functioning in these DA/DPs in 2015-16 compared to 1797 in the previous year. The details are given in following table.

Table 4.25.1 DAs/DPs under District Industries Centres as on 31st March 2016 Total Total Allota Area Total No. of Income area Employm Name of ble allotte No. Worki generat District acquir ent DA/DP area d of ng ed ed (Numbers (acres) (acres) Units units (lakh) (acres) ) 149.0 DA Veli 108.64 88.29 84.57 140.00 627.00 5606.00 TVM 0 DP Manvila 27.53 22.69 22.69 72.00 61.00 388.00 3582.00 DP 1809.0 1809.0 20.67 53.00 50.00 460.00 75.00 Mundakkal 0 0 Kollam DP 1853.0 1391.0 20.75 1.00 0.00 0.00 Chathanoor 0 0 DP Pathanamat Kunnamtha 20.94 15.37 14.95 81.00 63.00 765.00 1910 hitta nam DA 16.22 14.39 14.39 45.00 39.00 349.00 2334.00 DP 5.51 4.56 4.56 18.00 14.00 164.00 1760.30 Alappuzha DP 57.28 52.37 52.37 79.00 58.00 258.00 954.70 Punnapra Coir Park 1 23.40 22.08 22.08 11.00 8.00 345.00 1100.00 Coir Park 2 17.06 15.66 15.66 5.00 2.00 48.00 3000.00 DA 62.90 52.28 52.28 96.00 83.00 2600.00 11800

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DP 224.0 Poovanthur 41.25 37.45 37.45 215.00 3055.00 8.25 0 uthu Kottayam DP Athirampuz 1.00 0.75 0.75 12.00 7.00 120.00 24.00 ha DP 3.75 3.36 3.36 13.00 12.00 165.00 40.00 Idduki DP Muttom 5.00 4.58 4.58 13.00 11.00 113.00 1234.52 DA 57.82 54.91 54.91 88.00 84.00 998.00 46400 346.0 DA Edayar 435.29 376.70 376.70 316.00 9320 251400 0 DA 219.52 214.52 214.52 52.00 51.00 2925 49000 Ernakulam DA 15.26 12.16 12.16 40.00 37.00 555.00 2270.00 Vazhakulam DP 31.91 26.62 26.62 59.00 55.00 854.00 21000 angamaly DP 178.0 78.12 64.74 64.74 173.00 3800 30550 Kalamassery 0 DP Athani 42.29 43.45 43.45 86.00 78.00 640 205.00 DP Kunnamkula 3.00 2.10 2.10 26.00 23.00 150.00 24.00 m DP Ayyankunn 29.32 25.08 25.08 88.00 79.00 454.00 93.00 Thrissur u DP 24.07 21.87 21.87 36.00 30.00 200.00 170.00 Velakkode 11.41 Padam (*) Varavoor 8.55 DP 134.15 129.99 129.99 64.00 61.00 321.00 621.45 Pudussery NIDA 262.0 14100.7 Palakkad 532.80 513.44 513.44 235.00 2215.00 Kanjikodu 0 5 DP Kappur 18.26 16.29 15.46 34.00 34.00 110.00 800.10 DP Shornur 17.72 17.12 7.50 3.00 3.00 17.00 165.25 Functional Industrial Malappura Estate, 16.19 6.79 6.23 31.00 25.00 90.00 1144.00 m (Payyanad) DP Westhill 12.63 10.30 10.30 37.00 34.00 165.00 1650 Kozhikode Thamarasser 20.43 0 y Wayanad NIL 0

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170.0 Kannur DP Andoor 59.31 46.61 46.61 166.00 1250.00 16000 0 DP Ananthapur 103.00 79.90 57.57 52.00 15.00 150.00 1500 am DP 5453.0 Ananthapur 108.00 83.40 19.00 Nil Nil Nil Kasaragod 0 am DP 28.50 22.05 2045 20.00 12.00 75.00 550.00 Chattanchal 2439.4 5763.8 12656. 2563. 2274.0 476094. 33746.00 5 6 83 00 0 32 Source: Directorate of Industries and Commerce Table 4.25.2: Details of Mini Industrial Estates under District Industries Centre as on 31st March 2016 Number Total Numbe Total Income S. of Numbe r of Employmen Generate No Districts Industri r of workin t d . al SSI g (Numbers) (in lakh) Estates Units units 1 Thiruvananthapuram 7 53 42 150 1000.00 2 Kollam 5 50 42 160 50.00 3 Pathanamthitta 20 20 15 60 45.00 4 Alappuzha 7 52 52 95 7.04 5 Kottayam 11 96 93 343 19.72 6 Idukki 4 39 29 109 41.80 7 Ernakulam 19 160 123 1528 2729.00 8 Thrissur 10 150 126 494 630.00 9 Palakkad 6 42 35 145 56.02 10 Malappuram 5 33 29 112 98.43 11 Kozhikod 8 90 72 225 112.00 12 Wayanad 1 4 4 10 28.00 13 Kannur 4 29 27 105 500.00 14 Kasaragod 5 39 30 54 70.00 Total 112 857 719 3590 5387.01 Source: Directorate of Industries and Commerce 4.26 Kerala Small Industries Development Corporation (KSIDCO) Kerala Small Industries Development Corporation was established for strengthening the Small Scale Sectors in the State. It provides infrastructure facilities such as land, work shed, water, distribution of scarce raw materials, marketing the products etc. by setting up of industrial estates, mini industrial estates and industrial parks. Execution of construction works for Industries department and public sector MSME-Development Institute, Thrissur 110

State Industrial Profile, 2016-17 undertakings are the other activities of SIDCO. There are 17 major industrial estates, which include 882 working units, under the administrative control of SIDCO. These working units provided employment to nearly 7394 people as on 31.10.2016. Further, there are 36 mini industrial estates and 7 Industrial Parks under SIDCO in which about 1303 employees are working in 326 working units all over the State. The total turnover during 2015-16 of SIDCO was Rs.277.69 crore. Details of industrial estates under SIDCO are given in the following table 4.26.1. Table 4.26.1 Major Industrial Estates under SIDCO as on 31st October 2016 S.No District Name of IE Total Total No. Of No. Of No. of Total Income area area working employees closed no of generated acquired allotted units in units unit units in 2015- 16 (lakh) 1 TVM Pappanamcode 18.54 1514.97 76 820 4 80 16.59 2 Kollam Umayanaloor 26.03 2138.00 77 375 9 86 19 Karunagappally 8.63 737.00 22 145 7 29 1 3 Alapppuzha Cherthala 8.94 742.00 26 251 2 30 46.28 Kollakadavu 18.79 1238.00 46 450 4 50 4.56 4 kottayam Changanacherry 14.22 1276.00 72 985 3 75 0.8 29.2 2133.30 73 1250 1 74 10.58 5 Ernakulam Mudickal 4.59 401.39 13 60 1 14 4.31 Palluruthy 1.85 143.00 6 110 2 8 0 6 Thrissur 29.56 2357.15 133 922 2 146 71.6 Kallettumkara 5.00 450.00 16 270 4 20 1.33 7 Palakkad Olavakkode 21.74 1680.41 41 248 4 45 37.35 Karakkad 10.84 803.83 48 379 1 49 0.68 8 Malappuram Manjeri 4.92 436.14 73 183 0 76 0.33 9 Kozhikode West Hill 12.55 922.50 50 361 3 53 1.24 10 Kannur Palayad 8.44 660.00 42 265 2 44 8.38 11 Kasargod Kasargod 16.84 1533.19 68 320 2 70 28.04 Total 240.68 19166.88 882 7394 51 949 252.07 Source: SIDCO Table 4.26.2 provides details on Mini Industrial Estates under SIDCO as on 31st October, 2016. The total area acquired is 36.10 acres and total number of working units is 295 provides employment to 1303 persons.

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Table 4.26.2 Mini Industrial Estates under SIDCO as on 31st October 2016 S.No District Name of IE Total Total No. Of No. Of No. of Total Income area area working employees closed no of generated of IE allotted units in unit units in 2015- (acres) (cents) working 16 (lakh) units 1 Ulloor 1.00 93.00 9 60 1 10 3.89 Anad 1.00 92.00 5 42 3 8 0.03 TVM Vellanad 1.00 92.00 10 31 0 10 1.74 1.00 52.50 7 35 0 7 0.11 2 Chithara 1.00 62.00 7 31 0 7 1.57 Kollam Thrikkovilvattom 1.00 95.00 3 24 3 6 0.27 Chadayamangalam 0.83 78.00 5 26 0 5 0.01 3 Kadakarappally 1.05 95.00 10 35 0 10 0.32 Alappuzha Mararikilam 1.00 88.00 12 45 0 12 0.04 4 Pathanamthitta Pandalam 0.95 87.00 5 25 3 8 1.95 5 Nattakam 1.00 80.00 8 46 2 10 0.00 Kottayam Ayarkunnam 0.99 78.50 5 40 3 8 0.01 1.00 89.00 3 25 2 5 0.00 6 Olamattom 0.99 84.97 5 40 0 5 0.01 Idukki Kodikulam 0.93 75.00 4 20 2 6 1.61 1.00 67.80 5 35 0 5 10.5 7 South Vazhakulam 1.00 90.00 12 44 1 14 6.64 Piravam 1.00 75.00 4 35 4 8 0.00 Ernakulam 0.98 74.00 4 25 0 4 0.00 Edathala 1.00 71.00 5 30 0 5 0.04 Rayamangalam 1.00 89.00 9 32 0 9 0.00 8 Mala 1.00 90.00 12 44 0 12 0.00 Thrissur Kattur 1.00 92.00 11 45 2 13 0.49 Arimpur 1.00 92.00 15 42 0 15 0.01 9 Ottapalam 1.19 109.00 10 44 3 13 6.03 Palakkad Vaniyamkulam 1.00 85.00 11 55 0 11 0.08 Patambi 1.00 93.00 10 40 0 10 0.01 10 Edavanna 1.20 110.00 7 20 0 7 0.34 Malappuram Oorakam 1.00 92.00 10 28 0 10 0.63 Kokkoor 0.99 91.00 8 21 1 9 2.27 11 Wayanad Sulthan Bathery 1.00 90.00 10 25 0 10 0.00 12 Kadalundi 1.00 92.00 12 60 0 12 0.00 Kozhikode 1.00 93.00 13 42 0 13 0.72 13 Valapattanam 1.00 85.00 6 26 1.00 7 0.09 Kannur 1.00 85.00 9 25 0 9 0.00 14 Kasargod 1.00 88.00 13 60 0 13 0.00 Total 36.10 3095.77 295 1303 31.00 326 39.41 Source: SIDCO 4.27 Centres for Management Development (CMD) The Centre for Management Development (CMD) is a leading, self supporting autonomous institution, which provides Research, Consulting and Training support to

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State Industrial Profile, 2016-17 the Development Agencies, Corporate and the Government, at the national, state and local levels. Established in 1979 under ACT XIII of the “Travancore-Cochin Literary, Scientific and Charitable Societies Act 1955”, it is sponsored by the Government of Kerala, as an independent, professional registered society. In 2015-16, the centre completed 43 research projects. In addition, the centre also completed 9 training programmes on Management Development /Entrepreneurship Development /Workshop and 7 training programme on Micro Enterprises Development were conducted. In the training front, CMD, in collaboration with the Bureau of Public Enterprises, Government of Kerala conducted Management Development Programmes for Officers /Managers of the Public Enterprises on the following topics: • Project Formulation and Management • Finance for Non Finance Managers • Behavioral Lab: Developing Managerial Competencies and • Leadership Skills for Management of Change Micro Enterprises Development Programmes (MEDPs) is an initiative for promotion of sustainable livelihood through vocational training in the State of Kerala. The programme is carried out in association with the local self government institutions in the State. The trainees were selected from rural villages in association with the local self government institutions and the majority of them were women. Other than these, CMD also conducted twelve Skill Development Training Programmes for Kudumbashree members in Palakkad, and a skill development programme sponsored by the Ministry of Sciences and Technology, New Delhi. 4.28 Special Economic Zone Special Economic Zone provides high quality and world class infrastructure designed to render cost of products, delivery, logistics and transactions competitive on global basis. The special policy disseminated by the Central Government provides for setting up of SEZs in the public, private, joint sector or by State Governments. The units operating in Special Economic Zones are excluded from the sectoral restrictions prevalent in the conventional manufacturing sector. Apart from this, these units also enjoy other benefits like single-window clearance, 100 percent exemption of income tax for the first five years, self certification of activities exempted from routine customs check etc.

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4.29 Cochin Special Economic Zone (CSEZ) The Cochin Special Economic Zone (CSEZ) is one among the seven Government of India owned Special Economic Zones set up as a multi-product Export Processing Zone to boost exports from the State. The Cochin Export Processing Zone was converted into a Special Economic Zone in November 2000. CSEZ stands out amongst the SEZs in India having the best infrastructure for attracting investors globally. A 25 MVA 110/11 KV substation and RMU based power distribution system, Integrated Water management system comprising 1.8 MLD water supply operations and 1.2 MLD Common Effluent Treatment Plant, a warehouse measuring an area of 24000 sq. ft for the temporary storage requirements of CSEZ units are some of the facilities offered in the Zone. The Zone has an efficient drainage network and an incinerator for disposal of solid waste within the Zone. The Zone also has a 35 m3 capacity bio-gas plant to treat vegetable / seafood waste. Besides operating the Central Government owned CSEZ, the jurisdiction of the Development Commissioner extends to new SEZs being set up in Kerala and Karnataka and also the 100% Export Oriented Units (EOUs) in Kerala, Karnataka, Lakshadweep and Mahe . The State’s SEZ policy The state’s SEZ policy contains a dozen conditions, mainly to ensure the welfare of workers and to curb the real estate interest of the developers. The state government has insisted that 70 per cent of the land should be utilised for industrial purpose. This is a major shift from the Centre’s policy, which stipulates that only 50 per cent of the land needs to be used for industry. The other highlights of Kerala’s SEZ policy are: • Supplementary facilities — housing, entertainment etc — to be exclusively dedicated for employees of that particular SEZ only. • Reclaimed paddy fields would not be given SEZ status. • The state would not acquire land for establishing private sector SEZs. • Sales tax exemption for SEZ units would be limited to 10 years only. • SEZs would be brought under the purview of labour laws, factories act and other welfare schemes. • SEZ ventures would not be exempted from any electricity incentives.

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• All applicants must sign individual agreements with the government, declaring their willingness to abide by the state SEZ policy.

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CHAPTER- 5 INFRASTRUCTURE 5.1 INTRODUCTION

Infrastructure refers to structures, systems, and facilities serving the economy of a business, industry, country, city, town, or area, including the services and facilities necessary for its economy to function. It is typically a term to characterize the existence or condition of costly 'technical structures' such as roads, bridges, tunnels, or other constructed facilities such as loading docks, cold storage chambers, electrical capacity, fuel tanks, cranes, overhead clearances, or components of water supplies, sewers, electrical grids, telecommunications, and so forth. Infrastructure thus consists of improvements with significant cost to develop or install that return an important value over time.

Infrastructure plays a crucial role in promoting economic growth and thereby contributes to the reduction of economic disparity, poverty and deprivation in a country. Greater access of the poor to education and health services, water and sanitation, road network and electricity is needed to bring equitable development and social empowerment. Infrastructural investments in transport (roads, railways, ports and civil aviation), power, irrigation, watersheds, communications, education, health and family welfare play a strategic role in the development process and make a significant contribution towards sustained economic growth.

5.2 THE 12TH FIVE YEAR PLAN APPROACHES TO INFRASTRUCTURE.

1. Roads, Bridges and Transport Good physical connectivity in the urban and rural areas is essential for economic growth. Road development activities in the State are being carried out under three major heads viz, Roads and Bridges, Road Transport and Other Transport Services There is a need to undertake planned development of State Highways, District Roads and City roads in the State which should include geometrical improvement, junction widening, relaying the roads after proper design and giving maintenance contracts. Plan & non-plan funds should be provided for maintenance and original works from a corpus fund. The State needs to provide a dedicated source of funding for road development by transferring the revenue from road sector such as fuel cess or entire revenue from Motor Vehicle Tax to a corpus fund.

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City Road Improvement Project should cover more cities beyond major cities. More funds should be provided for that. Quality Control should be given higher priority A system of annual revision of Schedule of Rates will be undertaken by an Empowered Committee chaired by Chief Secretary. For major road widening projects, green field roads and by passes, the State will develop a policy for commercial utilization of land as well as providing developed land to the owners whose land is being acquired. Government will develop policy and rules on this issue to facilitate development of bypasses, major widening of roads and green field roads. A task force will be set up with the objectives of identifying methods for ensuring long term durability of and for improving road safety. The committee will also look into the possibility of using rubber and waste plastic to strengthen road surfaces and make them more durable.

2. Port and Inland Waterways State Maritime Board will be set up through an enactment. Minor Ports under Port Department including Azheekal, Beypore, , Kollam-Thankasseri, Vizhinjam and will be developed with new port facilities, support infrastructure, upgradation of existing facilities along with installation of modern and efficient handling equipments. The PPP mode will be utilized for the purpose. Vizhinjam International Transshipment Container Terminal will be developed with all infrastructural facilities. The facilities in the ports like Kollam and Vizhinjam have to be enhanced and that the thrust areas are to be given more attention. Improve the cargo port facilities at Kollam and Ponnani. Develop Ship and boat facilities in the State. Establish Tidal Meteorological station on scientific basis. Initiate steps for Kollam based Cashew export through cargo Modernize dredging facilities.

3. Inland Waterways Adequate infrastructure support will be provided for the development of coastal waterways inland waterways for Cargo and Passenger transportation. There will be a time bound plan of action for the development of all possible waterways with the support of Inland Waterways Authority of India. PPP ventures will also be

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4. KSRTC and Motor Vehicles Department For reducing congestion in roads parking facilities will be provided wherever land is available. Automated enforcement system will be introduced for avoiding accidents. A restructuring plan for KSRTC will be developed. A national management and consultancy institution will be engaged for this task. Motor Vehicle Department to be restructured to make it more as a Transport Regulator than mere revenue collection and licensing agent

5.3 ROAD

The roads in Kerala are maintained by National Highways / Public Works Department (R&B), Local Bodies, Department of Irrigation, KSEB, Department of Forests, Railways etc. Other agencies dealing with transport sector are National Transportation Planning and Research Centre (NATPAC), Motor Vehicles Department, Kerala State Road Transport Corporation (KSRTC), Kerala Transport Development Finance Corporation (KTDFC) and Roads & Bridges Development Corporation of Kerala(RBDCK). Transport infrastructure of the State consists of 3.72 lakh Kms of road, 1257 Kms of Railways, 1687 Kms of Inland Waterways and 111 statute miles of Airways and 18 Ports. The major road network of Kerala, though well connected, faces severe constraints due to the urban sprawl and the haphazard ribbon development all along the routes. The traffic on roads is steadily increasing at a rate of 10 to 11 percent a year. Capacity augmentation of existing roads is beset with problems relating to limited right of way and land acquisition. Even though Kerala stands at the forefront with regard to density of roads, the condition of most of these roads are very poor. Therefore the focus of road development programme has to be for improvement and up gradation of the existing roads rather than constructing new roads. Quality infrastructure creation in road construction is the focus area during the five year Plan. There is a need to undertake planned development of State highways, important major district roads and city roads in the State which should include geometrical improvement, junction widening, re-laying the roads after proper design and giving maintenance contract.

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On the road front, traffic has been growing at 10 to 11 percent every year, resulting in excessive pressure on the roads of the State. Total road length in Kerala during 2015-16 is 205545.616 Km. Road density in the State is 528.8 Km/100 sq.km and it is far ahead of the national average of 387 km/100 sq.km. The length of road per lakh population is 615.5 km. almost 90 per cent of the road network is single lane and below standard. The Roads maintained by different local self Government Departments during 2015-16 is 139380.410 km (67.81 per cent), of which 63348.52 km (45.45 per cent) are black topped and 16716.24 km (8.13 per cent) are cement concrete and of varying standards. The roads maintaining agencies of the State are given as below: Table 5.3.1: Agency wise distribution of State roads in Kerala during 2015-16 Sl.No Name of Department Length (Km) Percentage 1 Panchayats (LSGDs) 139380.410 67.81 2 PWD (R&B) 31812.096 15.48 3 Municipalities 18411.870 8.96 4 Corporations 6644.000 3.23 5 Forests 4575.770 2.23 6 Irrigation 2611.900 1.27 7 PWD (NH) 1781.570 0.87 8 Others (Railways, KSEB) 328.000 0.16 Total 205545.616 100.00 Source: Various Departments

5.3.1 STATE HIGHWAYS AND MAJOR DISTRICT ROADS All major arterial roads which provide mobility is with the PWD (R&B) consist of 4342 Km State Highways and 27470 Km Major District Roads, which shows the length of 31812 SH & MDR during the year 2015-16. In case of districts Kottayam has the major share of PWD roads with the length of 3456.214Km and Wayanad has the lowest share with 1029.314 Km. The district wise, surface wise and category wise length of road maintained by PWD (R&B) as on 31-3- 2016 is given in Table 5.3.2. Table 5.3.2 District-wise and Category-wise Length of Roads Maintained by PWD as on 31-03- 2016 Sl.No Name of District State Highways Major District Roads Total 1 Thiruvananthapuram 180.36 2377.360 2557.720 2 Kollam 123.79 2079.079 2202.869 3 Alappuzha 170.841 1301.493 1472.334 4 Pathanamthitta 249.194 1782.178 2031.372

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5 Kottayam 406.531 3049.683 3456.214 6 Idukki 998.372 1868.994 2867.366 7 Ernakulam 325.206 2760.075 3085.281 8 Thrissur 374.033 1690.183 2064.216 9 Palakkad 245.987 1938.706 2184.693 10 Malappuram 374.764 2305.388 2680.152 11 Kozhikode 377.173 2077.474 2454.647 12 Wayanad 128.955 900.359 1029.314 13 Kannur 244.665 2020.577 2265.242 14 Kasaragode 141.78 1318.882 1460.662 Total† 4341.651 27470.445 31812.096 Source : PWD (R and B)

Major Activities of PWD R&B during 2015-16

• Steps have been taken to strengthen Road safety Cell, Environment Cell, Geographycal Information System and road Maintenance management System unit. • PWD manual has been revised and updated. • Project Preparation Unit formed to take up major project preparation works. • Integrated Financial Management System (IFMS) is being implemented in a phased manner. • Quality control unit set up in all Districts with Laboratories. • Proposal formulated for Infrastructure Development works through kerala Infrastructure Investment Fund Board (KIIFB). • Human Resources Development Wing instituted to provide good quality training to Engineers, Technical and Administrative Staff. • An Environment Cell established to ensure environment impact assessment guidelines in high value project.

Table 5.3.3: Number of Bridges and Culverts in P.W.D. Roads as on 31.3.2016 S.No. Particulars SH MDR Total 1 Total Number of Bridges 648 1605 1806 2 Number of Unsafe Bridges 61 3 Total Number of Culverts 11520 39880 51400 4 Number of unsafe culverts 345 1212 1557 Source : PWD ( Roads and Bridges )

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Table 5.3.4: Details of bridges completed by PWD (NH) in 2014-15(Rs. Crore) Sl.No Name Span Cost 1 Construction of bridge, 85 m 6.45 2 Moidu Bridge at Dharmadam 175 m 17.98 3 KSRTC Bridge at Munnar, Devikulam 16 m 4.77 4 New bridge parallel to the existing iron bridge in Kollam 76 m 7.84 Town 5 ROB at Kazhakuttam 576 m 28.6 6 Widening of existing bridge across Kuntipuzha at 55 m 7.34 Mannarkadu 7 Bridge in Calicut Bye pass 408.10 42.16 m 8 Putakkatteri Bridge, Kozhikode 185.5 m 18.76 Source : PWD (NH)

Government of Kerala vide has made it mandatory to follow Indian Road Congress (IRC) standards and Ministry of Road Transport & Highways (MoRTH) specification for road works in Kerala. Kerala Public Works Department Manual has also been revised and the revised Edition 2012 has been brought effective with effect from 01.04.2012. Table 5.3.5 shows National Highways in Kerala with their old number and new number, name of the roads and their length in Kerala. Table 5.3.5: National Highways in Kerala Sl. New Existing From To Length of New NH No. in No No. No. Kerala Kms 1 66 NH 17 Thalappadi Edappally 420.777 669.437 NH 47 Edappally Kaliyikkavila 248.660 2 544 NH 47 Valayar Edappally 168.14 3 85 NH 49 Bodimettu Kundanoor 167.593 4 744 NH 208 Kollam Kazhuthuruthy 81.280 5 766 NH 212 Kozhikode Kerala– Karnataka 117.600 Border 6 966 NH 213 Kozhikode Palakkad 125.304 7 183 NH 220 Kollam Theni in Tamil Nadu 190.300 Border 8 966 B NH 47 A Wellington Island Kundanoor 5.920 9 966 A NH 47 C Vallarpadam Kalamassery 17.000 10 183 A - Bharanikkavu Mundakkayam 116.800 11 185 - Adimaly Chelimadu 96.000 Total 1781.57 Source: PWD (NH)Government of Kerala PWD

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The growth of vehicle population in Kerala is eight percent over the previous year. The number of motor vehicles having valid registrations as on 31.03.2016 is 10171813 as against 9421245 in the previous year. The growth of vehicle population in Kerala is above 10 percent over the previous year. The growth of Motor Vehicles during last nine years is shown in Figure 9. Fig.9 : Growth of Motor Vehicles since last Eight years 15000000 No. of Vehicles

10000000

10171813

9421245

8547966 8048673

5000000 6870354

6072019

5397652

4880059 4442387 0 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

Source: Motor Vehicles Department The percentage of category wise motor vehicles registered during 2015-16 is shown in figure 10.

Fig. 10: Distribution of motor vehicles registered by type during 2015-16 Goods vehicles, oythers , 2 Buses, 1 Autorikshaw6 , 6

Two Wheelers, 64 Four wheelers, 21

Source: Motor Vehicles Department

About 2360 vehicles are newly added to vehicle population every day. Of this 1657 are two wheelers. The highest vehicle population was recorded in Ernakulum

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TRANPORT POLICY STATEMENT The present transport system in the state was evolved by piece meal process, which remains under connected and uncoordinated. It is characterized by high operating cost, inefficiency and high accident risk. The situation is likely to worsen in future due to increase in population, urbanization and demand for personalized transport. In order to achieve the stated policy objective it is necessary to revamp public transportation system to increase its share from existing 33% of total passenger traffic to 80% in 2025 and reduce dependency on personal transport and increase share of railways in interstate and intercity transport and that of buses in intra state and intra city transport. The strategy adopted is that Government will and encourage rail based transport system for inter city travel which is cost effective and environment friendly. Encouragement will be given for investment in rail based metro or mono rail systems in congested intercity routes. The Government will encourage public sector KSRTC with more autonomy to enhance efficiency in operation. The operational structure of KSRTC and that of the private stage carriages will be further streamlined to attract commuters towards public transport. Public transport will get preferential treatment in the tax structure as compared to personalized transport.

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5.4 RAILWAYS The Indian Railway system is the second largest network in the World under a single management. It provides one of the cheapest means of . The State total railway route has a length of 1588 km and covers 13 railway routes including 933 km of broad gauge and 117 km of meter gauge lines. The Railway Divisions at Thiruvananthapuram, Palakkad and Madurai jointly carry out Railway operations in Kerala. Total route Km of 623.76 Km of Thiruvananthapuram division comprises of 494.76 Km in Kerala and 129 Km in Tamil Nadu. Thiruvananthapuram Division is the largest coaching division of Southern Railway with coach holding of 1572 (bars) coaches. The new trains are New Delhi- Trivandrum weekly express and two MEMU trains in the Ernakulam- Kollam route. One will be through Kottyam and the other through Alappey. Trivandrum-Kozhikode Jan Shatabdi Express will be extended till Kannur. Kozhikode- Shornur passenger will be extended till Trichur. Kochuveli- Lokmanya Tilak express will be made bi-weekly.

Kochi Metro Kochi Metro Rail Project (KMRP) is the flagship project of the Government of Kerala designed to cure the transportation woes of Kochi City. The Project is implemented through the Kochi Metro Rail Ltd (KMRL) which is a Special Purpose Vehicle having joint ownership of Government of Kerala and Government of India with equity participation. The Union Government gave sanction for the project in July 2012 at a total cost of Rs. 5181.79 Crore. The Kochi metro connecting Aluva-Pettah will be completed in three stages, and each stage will be approximately 8 Kms and the stations proposed are 22 numbers. The first phase of the Metro Rail Project is 25.612 Kms from Aluva to Petta. An agreement was signed between KMRL and DMRC on 23rd May 2013 delineating the roles, responsibilities and obligations of KMRL and DMRC in the implementation of the project. A tripartite agreement has also been linked by Government of Kerala, Government of India and Kochi Metro Rail Ltd. DMRC is entrusted with the implementation of this project. Thiruvananthapuram and Kozhikode Light Metro Projects Light Metro rail Project is a mass Rapid Transit System (MRTS) proposed to be implemented in the cities of Thiruvananthapuram and Kozhikode by a special purpose vehicle, Kerala Rapid Transit Corporation Limited (KRTL) and the DPR has been prepared by DMRC. A route length of 13.33 km with 14 stations in Kozhikode is being taken up as the first phase of the project. The estimated completion cost of the project is

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5.5 PORTS Kerala has a coastal length of 585 km and the State has an average width of about 60 km with one major port at Cochin and 17 minor ports. Out of 17 minor , four are considered as intermediate ports based on berthing, cargo handling and storage facilities available in them. They are Vizhinjam, Beypore, Azheekal and Kollam ports. The remaining 13 minor ports in the state are , Alappuzha, Valiyathura, Kayamkulam, Manakkodam, Munambam, Ponnani, Vadakara, Thalasserry, Manjeswaram, Neeleswaram, Kannur and Kasaragod.

Most of the minor and intermediate ports in the State are seasonal in nature with insufficient infrastructure to handle even medium and small sized vessels throughout the year. Presently cargo operations take place only in four ports i.e. Vizhinjam ,Beypore, Kollam and Azheekal . At Beypore, passenger traffic to Lakshadweep islands is also handled. At Thangassery (Kollam) new cargo port facilities are created utilizing the calm fishery harbour basin. The Annual budget 2016-17 focus on development of non major ports, development of coastal shipping, PPP mode of development of ports, overall infrastructural development of operational ports for improving cargo/ passenger traffic.

The Government of Kerala has already decided to develop five minor ports through PPP mode. These Ports are Azheekal, Beypore, Ponnani, Alappuzha and Kollam. Apart from this a major port, Vizhinjam Deepwater International Container Transshipment Terminal is coming up.

5.5.1 COCHIN PORT Cochin Port is the only major port in Kerala. It is spread over 827 hectares. It has a water frontage of 7.5 Km. The port has connectivity to hinterland through NH 47, NH 17 and NH 49. Rail links to the Konkan and Southern Railway also give key rail access to its hinterland. An Inland Waterway connecting Kollam and Kottappuram on either side is being developed by the Inland Waterways Authority of India.

In the case of Cochin Port, the quantity of cargo handled has shown an increase of 2.33 per cent to 220.98 lakh tones as against 215.95 lakh tones handled in 2014-15.

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Total traffic handled during 2015-16 recorded an increase of 3.69 per cent to 181.84 lakh tones from 175.36 lakh tones in previous year. The major component of import include POL (65.61%) followed by container (21.54%) comprising machinery, cashew, and chemicals, other cargo (10.98%), fertilizers and raw material (1.27%) coal (0.49%) and fertilizer (0.12%).

Fig. 11: Commodity wise break up of cargo handled in Cochin Port during 2015-16, in per cent

Source: Cochin Port Trust Cargo handling during 2015-16 was confined mainly to Kozhikode, Kollam, Vizhinjam and Azheekal ports .the commodity handled in all ports except Vizhinjam has declined. The growth of commodity handled in Vizhinjam is only 6.25 per cent. Azheekal, Kollam and Kozhikode ports witnessed negative growth of 88.04, 53.87 and 0.94 per cent respectively. During 2015-16, 356 steamers and sailing vessels with registered tonnage of 237417.98 called at non- major ports against 558 steamers and sailing vessels with 15871.51 tonnages in the previous year. This shows decrease in number of vessels and increase in tonnages.

120000 106669 100000 103699 88548 87211 91619 80000 81502 Export 60000 55528 44634 Import 40000 36799 20000 19706 20226 16556 0 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Fig.12: Trend of Cargo handled at minor ports (operable) of Kerala

Vallarpadam International Container Transhipment Terminal

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Vizhinjam International Deep Water multipurpose Seaport is a flagship project of Government of Kerala Vizhinjam International Deep Water Multipurpose Seaport limited (VISL) is a special purpose government company (fully owned by Government of Kerala) which acts as a implementing agency for the development of the Greenfield port. The Port is being developed on DBFOT Model and has been awarded to M/s Adani Vizhinjam Port Pvt Ltd. The Concession Agreement was signed between the Government of Kerala and the private partner on 17th August, 2015. The concession period of the project is 40 years. The total cost of the project is Rs.6770 crore. Out of this Rs.4,089 crore will be the contribution of the private partner, Rs.1,463 crore will be put by State Government for ‘funded works’ of the project. The Central Government will provide Rs.818 crore as Viability Gap Funding support and balance Rs.817 crore will be provided by the State Government out of the total Viability Gap Fund (VGF) of Rs.1,635 crore sought for the project. The state would be providing land and developing external infrastructure such as water, power and rail connectivity. It’s the first project in the State and first port in the country to receive VGF assistance from Ministry of Finance. The state government would get its portion of revenue, from non-port operations after 7 years of operation and from port operations after 15 years of operations. Another novel feature of this project is the Funded Works component. Funded works are those components of the project where the development will be undertaken by the private partner and the State Government will reimburse the cost of the same. The construction of breakwater (3.1 km), fish landing berth and buildings in fishing harbor and side development are the constituents of funded works of this project. The construction of breakwaters for the project would be an engineering feat in the maritime history of the country. The project will have a capacity of 10 lakhs TEU in the first phase which will be scaled up to 30 lakhs TEU. This Port will not only meet the Trans shipment needs of the country but also boost coastal shipping in the State. 5.6 INLAND WATER TRANSPORT Inland Water Transport is a fuel efficient and environment friendly mode of transportation. India is richly endowed with navigable waterways, comprising rivers, canals, backwaters, creeks, etc. The Inland Waterways Authority of India has been established for the development and regulation of Inland waterways for shipping and navigation and related matter. The Inland Waterways Authority of India Act, 1985, empowers the Government to declare waterways with potential for development of shipping and navigation as National Waterways.

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The State is endowed with numerous backwaters and it is one of the States in India, where waterways are successfully used for commercial inland water transport. The transportation is mainly done with country craft and passenger vessels. There are 41 navigable rivers in Kerala. The total length of the Inland Waterways in the State is 1895 Kms. The main arterial waterway in the state is West Coast Canal. The West Coast Canal connects Hosdurg in the north to Thiruvananthapuram – Poovar in the South and is about 560 Km long including 47 Km. uncut portion from to Azheekal. The inland canals play an important role in the economy of the State as they interconnect the rivers, on the banks on which are situated places of commercial and industrial importance and also give a connection from interior places to the West Coast Canal System. It can be broadly divided in to three sections as below: 1. Neeleswaram to Kottappuram 348 Km 2. Kottappuram to Kollam (NW III) 168 Km 3. Kollam to 74 Km The canal portion from Thiruvananthapuram to Ponnani and then along Bharathappuzha River upto Shornur is known as Thiruvananthapuram – Shornur Canal (TS Canal). As part of a programme for developing Waterways by the Central Government, 168 Km of Waterway from Kollam to Kottappuram of West Coast Canal including Udyogamandal and Champakara Canals were declared as National Waterway No. III. National Waterway from Kollam to Kottappuram is navigable. The reach from Kottappuram to Beypore is partially navigable in different stretches.The stretch from Beypore to Vatakara is at present not fully navigable. The reach from Vatakara to Mahe is to be constructed. The Mahe – Valapattanam stretch of the canal ( 42.91 km) is also not navigable The reaches north of Valapattanam up to Konni and Koratti to Neeleswaram (Kottapuram) of Kasaragod is presently navigable as per State Water way standards.

Government agencies engaged in the development of Inland Water Transport in the State are Coastal Shipping and Inland Navigation Department (CSIND), State Water Transport Department (SWTD) and Kerala Shipping and Inland Navigation Corporation Ltd. (KSINC). An amount ofRs.13339 lakh, Rs.10925 lakh, Rs.14342 lakh and Rs.15542 lakh are earmarked for this sector during 2012-13, 2013-14 2014-15, 2015- 16 and 2016-17 respectively.

5.7 AIRPORTS

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Air Transport plays a major role in the development of tourism both domestic and international. Kerala has three airports at Thiruvananthapuram, Kozhikode and Kochi. During 2015-16, 94344 flights (37459 domestic and 57485 international) were operated from the three airports together. A total number of 14128802 passengers (5009456 domestic and 9119346 international) were carried during 2015-16. Kannur International Airport Limited (KIAL) has been set up by Government of Kerala to build and operate Kannur International airport. The Kannur airport project is being developed in two phases by KIAL. The first phase is envisaged to span from FY 2016-17 to FY 2025-26 and second phase would be from FY 2026-27 to FY 2045-46. In Phase I, the airport runway is proposed to be 3050 m in length, which would be sufficient to allow all major aircrafts to operate on key routes viz, Hong Kong, Singapore, Middle Eastern countries etc. The second phase is proposed to have increased capacities of passenger terminal, aprons and other facilities including a longer runway of 3400 m to accommodate bigger aircrafts like A380.The Greenfield airport is being set up in 2000 acres, of which 1265 acres have been acquired. Of the required land, 1215 acres (equivalent to Rs.315.94 Cr) has been brought in by Government of Kerala as equity in the project. The Ministry of Environment, Forest and Climate Change has granted necessary environmental clearance for Kannur International Airport. Agreement for the provision of CNS/ATM facilities has been executed with Airports Authority of India. Construction work on Terminal Buildings and City side facilities are being carried out by Larsen & Toubro Ltd. And 80 per cent of city side works has been completed. Expression of Interest (EoI) for servicing the debt component has been invited by KIAL and KIAL has already tied up the debt component requirement (Rs.892.00 Crore) with a Consortium of three Banks namely (Rs.692.00 Crore), (Rs.110.00 Crore) and (Rs.90.00 Crore).

Kozhikode International Air Port: The following are the major achievements of Kozhikode International Air Port during 2016:

1. New international arrival block to be awarded. 2. Courier cargo operation to commence 3. In Line Baggage Handling System Commissioned on 27/06/2016 4. Roof top Solar Power plant of 750KWp commissioned on 16/07/2016 5. Runway Strengthening work in progress with PDC 06/02/2017

5.7.1 Cochin International Airport Limited

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CIAL recorded a cumulative annual growth rate of nearly 20% in the initial 8 years and thereafter at 12% with annual passenger traffic touching 7.7 million in 2015- 16. The airport handles more than 1100 aircraft movements per week . Over 18 International carriers offer direct flights to the Middle East, Singapore, Malaysia and direct connectivity to UK, Europe, United States, Far East & the Pacific region. Technical highlights

3400m long, 45m wide, Code E Runway with Boeing-747-400 as critical aircraft Full length parallel taxi track, Rapid Exit Taxiway and 3 normal taxi links 5 contact bays and 11 remote bays CAT – 1 Runway Lighting and state of the art ILS facility CIAL, has a self contained cargo village comprising of 70,000 sq. ft of International cargo, 40,000 sq. ft domestic cargo with annual handling capacity of over 100,000 MTs. 25000 MT storage area for perishables Fully equipped CAT -9 Fire fighting & Rescue services MRO Facility with 2 conventional hangars

Aircraft Movement Passenger Movement Year International Domestic International Domestic Total Total Sector Sector Sector Sector 2006-07 14172 16501 30673 1429172 1131898 25610700 2007-08 16335 22833 39168 1770612 1567530 3338142 2008-09 19047 22125 41172 2010114 1352687 3362801 2009-10 18068 23476 41544 2232346 1713757 3946103 2010-11 18465 22615 41080 2359937 1985242 4345179 2011-12 18324 22817 41141 2588032 2135361 4723393 2012-13 20286 21252 41538 2934017 1965970 4899987 2013-14 23134 24082 47216 3271755 2114708 5386463 2014-15 25929 26855 52784 3745043 2682929 6427972 2015-16 29861 27901 57762 4641127 3129658 7770785

5.7.2 Kannur Air port

The State’s prestigious Greenfield airport project named ‘KANNUR INTERNATIONAL AIRPORT’ will be coming up close to Mattannur in Kannur district of Kerala State. It is only 20 kms away from Kannur city, and 2 kms from Mattannur on

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Kannur – Mattannur – Mysore road. The Airport will have a runway length of 3400 meters. The orientation of the runway is 07/25, which permits obstacle free approach. 1. ENVIRONMENTAL CLEARANCE • Ministry of Environment & Forest granted necessary Environmental clearance for the project, vide MoEF letter no. nil dated 19thJuly 2013. 2. STATUS OF CLEARANCES FROM MINISTRY OF DEFENCE (MoD), MINISTRY OF HOME AFFAIRS (MHA) AND DGCA •Ministry of Defence, GOI renewed its NOC on 28thSeptember, 2012 for a period of 5 years. •Ministry of Home Affairs accorded security clearance for theproposed airport vide letter dated 12th October 2012. •DGCA accorded site clearance of the proposed airport vide its letter dated 17th August 2012. •Master plan submitted to DGCA and other concerned authorities. •Security vetting first inspection carried out by Regional Deputy Commissioner of Security, BCAS along with IB, Customs, CISF, Local Police & KIAL Officials on 19thNovember 2013. •Keezhallur Gramapanchayat accorded clearance vide its letter no. A5-3860/13 dated 19 October 2013. •Mattannur Municipality accorded clearance vide its letter no. E2- 11681/13 dated 4 November 2013. •The consent to establish Airport has been accorded by Kerala State Pollution Control Board to commence the work. •Preliminary inspection of the site was carried out by DGCA Officials on 28August 2014. Site inspection was carried out by IMD Officials represented by Dy.Director General Shri R.R.Mali & Shri S.B.Thampi on 03 & 04 September 2015 . • Security vetting second inspection carried out by Regional Deputy Commissioner of Security, BCAS along with IB, Customs, CISF, Local Police & KIAL Officials on 29th May 2015. • Memorandum of Understanding (MoU) between Airports Authority India (AAI) and KIAL has been signed on 24June 2015 for investing Rs 100 crores in the equity capital of KIAL. Balance funds committed are yet to be confirmed by AAI. •A team lead by Shri B.N.Shetty,Dy Director General, National Informatics Centre, NewDelhi had visited the site on 30 November 2015 for ascertaining and finalizing the requirements of immigration system at KIAL.

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•A site inspection was carried out by DGCA Official Shri Y.V.Subramaniyan , Aerodrome Inspector on 30 January 2016 to ascertain the Civil Aviation Requirement (CAR) compliance towards trial landing of a code B aircraft during February 2016 •Security vetting third inspection carried out by Office of Regional Deputy Commissioner of Security, BCAS along with IB, Customs, CISF, Local Police & KIAL Officials on 01 June 2016. 3. Detailed Project Report Completed by Project consultants Detailed project report (DPR) has been completed by project consultants M/s AECOM & CRISIL consortium.

4. Land Total land planned for the project -2061 acres Already acquired & available with KIAL-1277.93 acres Balance land under acquisition-225.72acres

5.8 COMMUNICATIONS

Kerala provides high international connectivity and instant data transfer facilities. Investment bases such as Technopark even provide an in-campus dedicated satellite earth station, which offers global information links that are quite inexpensive. What is more, Kerala is one of the only two locations in India where both the optic fibre submarine cables SEA-ME-WE-3 and SAFE converge, giving superb Global Connectivity at unbelievably low rates. In addition, Kerala not only has the highest tele-density, but also the highest penetration of optic fibre cable in the country. Kerala also comes across as the cell phone circle with the highest density in India, with an unparalleled connectivity across 70 different towns. Even in the most remote part of Kerala, state-of-the-art digital exchanges provide voice communication to every nook and corner of the world.

5.9 POSTAL SERVICE Indian postal system is the largest in the World with a network of about 1.55 lakh Post Offices, of which 1.39 lakh (89.78 %) are in rural areas and 15826 (10.22%) in urban areas of the country. The postal network consists of four categories of post offices namely, Head Post Offices, Sub Post Offices, Extra Departmental Sub Post Offices and Extra Departmental Branch Post Offices.

Kerala Postal circle includes the entire State of Kerala, the Union Territory of Lakshadweep and Mahe under the Union Territory of Puducherry. Kerala is the only

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State Industrial Profile, 2016-17 postal circle where every village has at least one post office. As on 30.09.2016, there are 5066 post offices in the circle, of which 1457 are Departmental post offices and 3558 Extra Departmental post offices. On an average each post office in the State serves an area of 7.69 Sq.km and a population of 6609 as against the national average of 21.21 sq.km and a population of 7175 people. Around 83 percent of the post offices are located in rural areas

Major Activities of Kerala Postal Circle during 2016-17 up to 30.09. 2016 • All the 1508 departmental post offices in the Circle are computerised and provided e-MO services. • Introduction of the facility to register the complaints on the web and track the progress till it is finally settled. • New e-based and value added services introduced. • The track and trace facility available for registered, insured, speed post, e-MO and foreign accountable articles continued and is availed through the www.indiapost.gov.in and enables the customers to track their articles right from the time of booking to the time of delivery. • Introduction of International Speed Post or EMS - a facility available from India to 99 countries. • World Net Express Service (WNX) is introduced to connect 220 countries. • Two new parcel products of India “Express Parcel” and “Business Parcel” introduced. • Introduction of Logistics Post Air to the customers for getting end to end services on the logistics value for faster transmission /delivery of their consignments. • 1498 Post Offices (51 HOs and 1447 SOs) in the State have been shifted to the Core Banking System. • Introduction of ‘My Stamp” – any individual can get their personalized stamps with their photograph on it. • Tie up with Kerala State Government for Corporate e-post i. Tie up with Commissioner for Entrance Exam for selling Application forms under Retail post ii. Tie up with Local Self Government for tax collection iii. Kerala water authority under e-payment iv. BSNL under e-payment v. Tie up with Kerala Books and Publication Society (KBPS) for distribution of text books to schools throughout the State for the academic year 2015-16 vi. Sale of Penta mobile through Post Offices (e-payment)

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5.10 TELECOMMUNICATION Telecommunication is one of the prime support services needed for rapid growth and modernization of the economy. The telecommunication service in India has improved significantly since independence. Kerala Telecom circles serve the whole of Kerala State, the Union Territory of Lakshadweep and part of Union Territory of Puducherry (Mahe). The circle has 11 major Secondary Switching Areas (SSAs) and one minor SSA of Lakshadweep.

Status of Telecom Sector in Kerala as on 31.03.2016 No. of Telephone Exchanges 1321

Equipped Capacity 3585324

Working Connections 2165925

Average No. of Telephone per Sq.Km 66.77

Telephone Density 70.235 per 000 population

Percentage market share 28.03

All the Panchayats and all the villages in the Circle have been provided with public telephones. There is wide network of over 28915 Public Telephones for easy access to the average public and it has become very popular among the people. The State has a modern telecom network spanning its length and breadth and comprises state-of-the-art digital switches interconnected by reliable Optical Fibre/Microwaves/Satellite media. The State is served by 1294 automatic exchanges all of which are Digital electronic.

BSNL has launched WIMAX (Wireless Broadband Service) service with mobility for the first time in the State with 456 towers covering all the SSA Head Quarters. As part of Digital India Project (NOFN) 1130 internet connections (978 Grama panchayats and 152 Block Offices) have been provided. 87524 landline connections converted with New Generation switch which is a packet based network able to provide telecommunication services, multiple Broadband enabled transport technologies.

Public Grievance Cell is working at Circle level with ‘12727’ and District level with ‘12728’ other than computerized 198 faults repair services. Call Centre with ‘1500 & 1501’ for Landline, 1502 for CDMA/WIMAX, 1503 for GSM Mobile services and 1504 MSME-Development Institute, Thrissur 134

State Industrial Profile, 2016-17 for BB Services is fully functioning in Kerala. Call Centre for Mobile service is ‘9447024365’. On line Public Grievance Cell is also fully functioning in Kerala Circle SSA –wise & Circle - wise

The major achievements of BSNL as on 31.03.2016 • The total number of Telephone connections working is around 89.69 lakh (Landline 24.84 lakh, WLL 2 lakh and Mobile 62.84 lakh) • There are 657129 Broadband Customers are available in the Circle and Broadband service is ‘on demand’ in almost all Exchanges • 21677.512 RKM OF cable has been laid • 28318 WIMAX connections provided • 4954 FTTH connections ( Internet connection with Fibre Home) provided • 844 Colleges are covered under National Mission for Education Project (NME) and about 14734 broadband connections have been provided • BB connectivity to 1565 Akshaya Centres are provided • BB Kiosks have been provided at 1102 locations under USOF • 15 WiFi Hotspots (Ernakulam-10, Calicut -4, and Malappuram -1) • Provided 872 VPNoBB connections to Grama Panchayats and 1100 Village offices in twelve districts • Provided about 935 BB connections to Kudumbasree Offices and 472 connections to NREGS • Provided about 652 Combined VPN connections to Excise Department and 566 connections to • 4490 Broad band connections provided under IT @ School Project • 61 leased circuits provided to Registration Department and 59 to KWA • Provided 451 MPLSVPN circuits to KSEB 5.11 PASSPORT AND EMIGRATION 13 PSKs in the State of Kerala are located at Thiruvananthapuram, Neyyattinkara, Kollam, Kochi, Aluva, Alappuzha, Kottayam, Thrissur, Kozhikode, Vadakara, Kannur, Payyannoor and Malappuram. The first Passport Office in Kerala was set up in Kochi in 1975 followed by Kozhikode in 1978, Thiruvananthapuram in 1992 and Malappuram in 2006 in response to fast growing demand for passports in the State. The number of passports issued by four Passport Offices in Kerala rose from 6.17 lakh in 2006 to 7. 46 lakh in 2011 – a rise of nearly 21%. They also rendered 90 thousand miscellaneous services last year. The work relating to emigration of Indian citizens from India to other countries for

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State Industrial Profile, 2016-17 employment and return of emigrants is the responsibility of the Ministry of Overseas Indian Affairs. Office of the Protector of Emigrants, Cochin is under the supervision and control of the Protector General of Emigrants, Ministry of Overseas Indian Affairs, New Delhi. 5.12 ENERGY Energy plays a vital role in the socio-economic development and human welfare of a State. Efficient, reliable and competitively priced energy supply is a prerequisite for accelerating economic growth and human development. Apart from its contribution to economic development, it contributes significantly to revenue generation, employment, enhancing the quality of life and reducing poverty. Making available the required quantity of power of acceptable quality at affordable price is one among the prime responsibilities of the Government. For any developing country, therefore the strategy for energy development is an integral part of the overall economic strategy. Kerala generates power from four sources - hydro power, thermal power, wind power and solar power. Of these, hydel and thermal power generations account for the bulk whereas wind and solar power generations make only marginal additions. Monsoon is essential to sustain the hydropower base in the State and the deficit in rainfall usually creates a power crisis. Yet hydel energy is the most reliable and dependable source of energy in Kerala. The main challenges faced by the energy sector in the State are i) Inadequate capacity addition over the years leading to massive in house demand supply gap ii) Hydel power dominated supply scenario iii) Negligible share of renewable energy in the energy mix iv) Gap between energy conservation potential and its realization v) Limited presence of Independent Power Producers (IPP) and Co-Generating Stations (CGS) and vi) Limited penetration of star labelled products.

Capacity Addition during 2015-16

Total installed capacity of power in the State as on March 2016 is 2880.20 MW. Hydel contributed the major share of 2104.30 MW (73.06%) to total and 718.46 MW was contributed by thermal projects including National Thermal Power Corporation (NTPC) at Kayamkulam (Kerala’s dedicated thermal station) and 43.27 MW from wind & 14.15MW from Solar. Additional capacity added during 2015-16 from all sources was 44.5MW. of which, 22 MW from hydel, 14.16 MW from Solar and 8.4 MW from Wind was added to the installed capacity of the State Although it is produced by different agencies. Figure 13 highlights total installed capacity in Kerala from hydel, thermal and wind sources.

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Fig. 13: Total Installed Capacity Wind+Solar, Thermal, 718.4 57.4

Hydel, 2104.3

Source: KSEBL Of the total installed capacity of 2880.20 MW during 2015-16, the contribution of State sector is 2209.2 MW (76.7%), Central sector 359.6 MW (12.4%) and Private sector 311.31 MW (10.80%). Power development activities in the State are carried out mainly through four agencies viz, Kerala State Electricity Board Limited (KSEBL), Agency for Non- conventional Energy and Rural Technology (ANERT), Electrical Inspectorate and Energy Management Centre (EMC).

Outlay and Expenditure (Rs. Lakh) Annual plan 2015-16 Annual plan 2016-17 S. Department % of % of No. Outlay Expenditure Outlay Expenditure* exp exp 1 KSEBL 140942 105005.35 74.50 156412 68378.42 43.72 2 ANERT 4280 2107.71 49.25 4388 2.41 0.05 3 MTSL 560 354.82 63.36 730 1.63 0.22 4 EMC 938 751.21 80.09 740 230.98 31.21 Total 146720 108219.09 73.76 162270 68613.44 42.28 Source: Plan space* Expenditure as on December 5, 2016 KSEBL has been responsible for the generation, transmission and supply of electricity in the State, with particular mandate to provide electricity at affordable cost to the domestic as well as for agricultural purposes.

In order to comply with the provisions of Electricity Act 2003 and the Government of India directives, the Kerala Government notified a transfer scheme vide GO (M.S) No.37/2008/PD dated, 25.9.2008 through which all assets and liabilities of KSEB were vested with the State Government. The assets and liabilities were revested

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State Industrial Profile, 2016-17 with fully owned government company, KSEB Limited under the Indian Companies Act, 1956 on 14th January 2011

The electricity demand of the State is met through generation from KSEBL, Central Generating Stations (CGS), Independent Power Producers (IPPs) and Traders. Generation from KSEB’s own plants provide 30% (6791.8 MU) of the total energy requirement. Import from CGS,IPPs,UI and Traders provides the rest of the (15791.6 MU) total requirement. 19378.55 MU of energy was also sold (including sales outside the state ) during the year 2015-16. KSEBL has 19 hydel projects,2 gas based projects and one solar project under its purview in the pipeline. Only one hydre project is expected to be completed in the year 2016-17. Kerala’s consumption is predominantly domestic, which accounts for 51% of the total consumption. Revenue from domestic consumers is only 36% of the total revenue. The domestic category consumers showed a growth rate of 1.52% from 8987947 in 2014- 15 to 9124747 in 2015-16. Per capita consumption has increased by 3.86% i.e. to 565 kWh in 2015-16 against 544kWh in 2014-15. During 2015-16, 19325 MU of energy valued at Rs.1044601 lakh was sold (internally) showing an increase of 899 MU as compared to the previous year’s 18426 MU. It is also estimated that the annual consumption and maximum demand will be 26584 MU and 4669 MW respectively by the end of 12th Plan period (2017). KSEB has entered into a Power Purchase Agreement (PPA) with various Central Generating Stations such as NTPC and Neyveli Lignite Corporation. This includes purchase of 229 MW of power from Nuclear power stations and 1244.6 MW of power from various Thermal stations for the year 2015-16. As a measure to encourage non- conventional sources of energy, KSEBL has executed PPAs for purchase of power from Wind Energy Projects, Agali (18.60 MW) & Ramakkalmedu (14.25MW) and from small Hydro Projects Meenvallam (3MW), Iruttukkanam (3 MW), Karikkayam (10.5 MW) Ullunkal (7 MW) and Iruttukanam (4.5 MW). Power is also being purchased from co- generation plant of MPS steel, Kanjikode (10MW) and RGCCPP, Kayamkulam (359MW).

5.12.1 THE 12TH FIVE YEAR PLAN APPROACH TO ENERGY SECTOR Capacity Augmentation:- Kerala’s installed Capacity is presently around 2680 MW but the maximum power availability is only 2090 MW. During 12th Plan, the target will be to double the installed capacity through installation of new Gas based and Super Critical Plants. The IPP concept will be encouraged to provide more resources for development of capacity of hydel power other than SHPs (300 MW) and Renewable Energy (RE) (700 MW) and also from Energy Conservation measures.

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•Reducing AT &C Losses:- It is targeted to reduce AT& C losses to a sustainable level of 13% by the end of 12th Five Year Plan period largely through timely implementation of RGGVY and R-APDRP flagship schemes. •Energy Conservation/Saving/ Efficiency Activities:-‘Energy saved is equivalent to energy produced’ concept will be aggressively pursued during the 12th plan. •Reinventing KSEB:- Managerial efficiency and productivity will be sought to be enhanced with the help of management institutions •Massive utilization of Solar Energy •Renewable energy sources like wind, solar and co-generation shall be tapped to the maximum extent possible •Low cost generation and optimum utilization of capacity •Control input cost •Better fuel mix •Hydro improvement •Development of National Grid •Inter State connections •Up gradation of Distribution system •Theft Control Quality, reliability and Safety •Demand side Management and load Management •Technology up gradation to provide energy efficient equipments •Awareness creation •Private participation as a strategy for AT & C Loss reduction

Capacity Addition: It is essential that increased thrust to be given to large-scale capacity addition from all possible resources during 12th Plan period. Doubling capacity is the main objective of 12th Plan. As per the 19th Electric Power Survey Committee report, demand projection of Kerala by the end of 12th Plan period is 4669 MW. The present peak demand is 3348 MW and the availability from all sources, including CGS allocation is only 3312 MW. Thus, an additional supply of 1357 MW needs to be arranged to meet the increased demand. If the costly liquid fuel stations of Kayamkulam and BSES are not considered, then the deficit will be 1804 MW. It is expected that about 874 MW power will be available from various central generating stations and UMPPs during 12thPlan. Large and medium hydro projects with a total capacity of 100 MW and small hydro projects with a total capacity of 148 MW are proposed to be added during the period.

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It is proposed to add 300 MW of wind power projects and 60 MW of solar power projects during the 12th Plan period. Another 100 MW capacity addition is planned from wind power units during the 12thPlan period through IPPs/CPPs as well as units set up directly by KSEB. The existing land available with KSEB at various locations such as Kanjikode, Madakkathara, Pothancode, Idukki etc. may be explored for installing wind generators after studying the feasibility.

Government of India has allotted about 200 MT of coal from the Baitarni West coal block in Orissa to Kerala, which is sufficient for a 1000 MW power plant. Discussions are being held with NTPC to jointly setup a power plant at their site in Ramagundam using KSEB’s share of coal from Baitarni. Similar discussions are also being held with NLC for setting up a power plant at Sirkazhi in Tamilnadu. Possibility of tariff based bidding to develop the project is also being explored. • Govt. of Kerala has accorded administrative sanction for setting up a 1026 MW natural gas based combined cycle power plant at Brahmapuram. The fuel requirement for the project is proposed to be met from the Petronet LNG terminal at Kochi through the gas pipeline laid by GAIL to Ambalamugal. The project is proposed to be set up in the balance land available at the site of existing Brahmapuram diesel power plant. It is expected that the first unit of about 350 MW capacity can be commissioned by the end of the 12thPlan period. •Kochi Refinery is embarking on a massive refinery expansion project, which may produce as a byproduct about 1.4 Million Tons of petroleum coke (petcoke), which can be used as a fuel for power generation. KSEB proposes to set up a 500 MW capacity power plant adjacent to the refinery using this petcoke as fuel. Since the price of petcoke is comparatively less, a lower variable cost of power can be ensured on a long term basis. •Proposal for setting up a 1200 MW gas based power plant at Puthuvypin in association with Petronet LNG Limited (PLL) adjacent to their LNG terminal is under consideration of the Govt. The fuel (RLNG) required for the plant is proposed to be met from the Petronet LNG terminal. It is proposed to implement project in phases. •NTPC is planning expansion of their existing Kayamkulam plant by adding gas based combined cycle units with a total capacity of 1950 MW. In the first phase, 1050 MW will be added using natural gas/RLNG as fuel. •Proposal to set up a 1200 MW gas based power plant at Cheemeni by KSIDC using RLNG as fuel is under consideration of the Government.

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Innovation Fund: KSEB proposes a new scheme for Innovation with State Govt. support. The components under consideration include connected roof top solar panels, solar PV plants of medium and large capacity, floating solar plants in the water bodies like reservoirs, power generation from solid waste treatment plants, Solar Powered Inverters etc. The Board is also in the process of developing and implementing various technology oriented programs such as Smart grid, Pre-paid metering, Automated metering System etc. in the plan period. Many of the renewable and smart grid technologies are on the evolving stage and further innovation and experimentation are required to customize such solutions to our need.

Roof Top Solar Photo Voltaic Power Plants: Under Non-Conventional sources of Energy ANERT proposed 10,000 numbers of Roof Top Solar Photo Voltaic Power Plants of capacity 1KW with the support of both State and Central Govt.

5.13 MSME Sector In Kerala, the Micro, Small and Medium Enterprises (MSME) sector contributes to the process of economic growth, employment generation and balanced regional development. It has the potential to emerge as a strong, vibrant and globally competitive sector in the State’s economy. Kerala, with its excellent connectivity, communication network, availability of highly or average skilled human resources and developing industrial infrastructure, is best suited for the growth of the micro, small and medium scale enterprises. The potential of IT industry in the MSME sector is big as the State offers best connectivity with broadband reach in almost all parts of the State. It is estimated that the share of Tier-III cities in the IT industry in India is expected to grow up from 10 per cent now to 80 per cent. Consultancy firm KPMG has suggested that the State can become an economic growth driver of the country by tapping its SME and IT sectors.

The Micro Small and Medium Enterprises sector help in industrialisation of rural & backward areas, targeting various social groups like SC, ST, Women, Youth, Physically Handicapped etc. thereby, reducing social/regional imbalances, assuring more equitable distribution of income and wealth. This sector contributes enormously to the socio-economic development of the State. As per the MSME survey & Quick Results of 4th Census, 5.62% of all India share of MSME enterprises is in Kerala.

The industries coming under this sector are handicrafts, Handloom, Khadi, Food processing industries, Garment making and Textile industries, industries related to

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The Directorate of Industries and Commerce of Government of Kerala acts as a facilitator for industrial promotion and sustainability of MSME sector and traditional industrial sector in the State with the help of Directorates of Handloom & Textiles, Directorate of Coir and Khadi & Village Industries Board. A total amount of Rs.2373.74 Crore have been provided for the development of Industry and Minerals, during the first four years of 12th plan.

Highlights of 2015-16 State budget announcements in industry sector are: • Encouraging entrepreneurship in the State is one of the seven themes focused on State budget 2015-16. • The State budget 2015-16 gives priority on new initiatives for the development of a culture of entrepreneurship and establishment of business incubation centres to coordinate entrepreneur promotion activities for creating more employment opportunities, in the industry sector.

• It is proposed to establish Trade Facilitation Centres in selected district industries centres to promote trade in products like Handloom, Handicrafts, Coir etc. to enhance traditional industries sector.

The number of New Enterprises filed Memorandum under MSMED Part II in Kerala during the year 2015-16 up to September 17, 2015 was 7705. Out of these, 301 (3.9%) MSMEs were registered by SC, 31 (0.4%) by ST and 1805 (23.42%) by women. Investment in the sector during the period was Rs.129356.95 lakh while employment generated and value of goods and services produced were 45407 Nos. and Rs.338001.36 lakh respectivey.

As on 30.09.2015, the total number of working SSIs/MSMEs registered in Kerala is 257466. Out of the total SSIs/MSMEs, 3.84% were promoted by SCs, 0.72% by STs and 24.97% by women entrepreneurs. The total investment was Rs.1798646.38 lakh while the total value of goods and services produced was Rs.6765143.93 lakh which indicates an increase of 26% over Rs.50848.27 lakh of previous year. The total number of employment generated was 1318666 Nos. as on 30.09.2015.

The investment in the sector during the period from 2011-12 to 2014-15 has increased on an average by 9.73%. During 2014-15, the investment went up by 7.37% MSME-Development Institute, Thrissur 142

State Industrial Profile, 2016-17 than that of the previous year. The trends shows that there was a significant increase in investment during 2013-14, ie. by 12.38% as against 2012-13. But the value of production shows an enormous increase of 25% during 2013-14 and employment has remained more or less constant over the period. The value of production and employment generation were at their peak during 2013-14. This is an outcome of the ‘self employment generation’ and ‘entrepreneur support’ programs/schemes initiated in 2012-13 by the State Government with keen focus on enhancing entrepreneurship opportunities and awareness among young skilled generation of the State, in addition to the self employment schemes of the Central Government such as PMEGP, SFURTI etc.

The number of MSME units has been increasing at a declining rate of 12.04% on an average during the period 2011-12 to 2014-15. However for the year 2015-16 from April – September 2015 there has been a growth rate of 10.95 per cent that is from 6944 as on September 2014 to 7705 as on September 2015.

There has been increase in employment generation for the period from 2011-12 to 2013-14. But the employment generated has decreased by 4.88% in 2014-15. However for the year 2015-16 from April – September 2015 there has been a growth rate of 14.51 per cent, that is from 39651 as on September 2014 to 45407 as on September 2015.

District wise analysis reveals that during the year under review, Thiruvananthapuram occupies highest position with 298 new MSME units and Ernakulam stands on top in numbers of employment generated with 10105 and Wayanad was at the lowest position with 184 new MSME units and 777 numbers of employment generated. In case of online registration from September 18, 2015 to March 2016 Ernakulam stands on top position in all aspects with 2129 new MSME units, Rs48371lakh investment and 18857 employment generated.

Sector wise analysis shows that IT & IT enabled services units registered higher number of units in the MSME sector at 5546. The number of food processing units is 2315 and number of handloom units is 1876 among a total of 15455 units registered during 2014-15.

As per the latest Census (Fourth All India MSME Census) as well as data extracted from Economic Census 2005 conducted by CSO, MoSPI, the total number of persons employed in the sector increased to 805.24 lakh in entire country. Kerala was at 6th position with 49.62 lakh people.

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In Kerala, the total number of working industrial co-operative societies as on 31.3.2016 was 408 against 405 in the previous year (0.74% increase over previous year). Out of 408, 111 Societies were registered by women.

Directorate of Industries and Commerce (DIC) is providing and developing infrastructure facilities for small scale sector in the State. At present there are 37 Development Area / Development Plots under DIC having a total acquired area of 2439.44 acre. A total of 2274 units are functioning in these these DA/DPs in 2015-16 compared to 1797 in the previous year.

The total number of mini industrial estates under DIC as on 31.3.2016 is 112 and the total number of SSI units are 857. The employment in these estates that are working is 3590.

Kerala Small Industries Development Corporation (SIDCO) provides infrastructure facilities such as land, work shed, water, distribution of scarce raw materials to the units in the small scale sector. There are 17 major industrial estates, which include 830 working units, under the administrative control of SIDCO. These working units provided employment to nearly 7394 people as on 31.10.2016. Besides, there are 36 mini industrial estates and 7 industrial Parks under SIDCO in which about 1303 employees are working in 326 working units all over the State.

As per the State Level Bankers’ Committee (SLBC) report, the outstanding bank credit to various sectors by the commercial banks in Kerala at the end of March 2016 increased by about 13.9% ie. Rs.218706 crore against Rs.192010 crore in the previous year. The outstanding flow of credit to MSME sector was Rs.35730 crore with an increase of 11.4% over Rs.32069 Crore of previous year.

Financing MSMEs, which have been largely dependent on promoter’s resources and loans from banks/financial institutions, particularly knowledge based enterprises has some issues as these industries do not create tangible assets. SIDBI has played a critical role in developing the MSME venture eco-system in the country. SIDBI has so far contributed to the corpus of 75 venture capital funds that have catalysed investment of more than Rs.5600 crore to more than 472 MSMEs.

In Kerala, entrepreneurship is promoted in low knowledge-intensive sectors such as trade, transport and tourism, as well as knowledge-intensive sectors such as IT, IT enabled services, engineering etc. The labour scenario in Kerala is very challenging for entrepreneurs. MSME-Development Institute, Thrissur 144

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Staff training and vocational and continuous on-the-job training ensure a constant upgrading of workers’ skills. In India, Ministry of Micro, Small and Medium Enterprises provided entrepreneurship and skill development training to 16,87,324 persons during the 11th Plan and 11,58,562 persons during the first two years of the 12th Plan, through various institutions like MSME-Development Institutes, KVIC, Coir Board, NSIC etc. Skill Development & Training Institutes in Kerala MSME Development Institute under the Ministry of MSME, Government of Institute (MSME-DI), India takes care of the needs of MSME sector in the State of Thrissur, Government of Kerala and the Union Territory of Lakshadweep in the area India of Techno-economic and managerial consultancy services. It conducts need based development training programme on Entrepreneurship, Business Skill & Management and other awareness programmes. Kerala Academy of Skill Government of Kerala has setup three kaushal kendras Excellence (KASE) under KASE at Kollam, Kozhikode and Palakkad to provide career guideance and industrial training to rural youth, improving their employability. Kerala Institute for A Public Sector Training Institute aimed to create Entrepreneurship awareness for entrepreneurs and sort out the issues for the Development (KIED) development of entrepreneurial culture. The institute conducts various programmes for developing the spirit of entrepreneurship among the people such as Entrepreneurial Awareness Campaign, Seminars, Workshops, Research etc. Kerala Institute of Labour Constituted by Government of Kerala for training and and Employment (KILE) research in labour and allied subjects. During 2015- 16various programme were conducted by KILE including Training, Workshops, Seminars, Publications and research studies. The beneficiaries through these programmes were 669. 29 programmes were conducted during 2016-17 (as on 30th November 2016). The beneficiaries of these programme were 1641, which is 40.77 per cent higher than the previous year. Source: 1. MSME Development Institute, (MSME-DI), Thrissur, Government of India. 2. Kerala Academy of Skill excellence (KASE) 3. Kerala Institute of Labour and Employment (KILE)

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The State has already adopted the cluster development approach for industrialization to reap the benefits of agglomerations through transformation of the traditional systems of activities or industrial districts to new networks ready for competition and innovation. The State supports cluster development through MSME- DI, Thrissur and K-Bip. The Common Facility Centres which are in various stages of development in the State are in the areas of Wood, Plywood, Furniture, Rubber, Terratile, Rice Mill, Plastic, Printers, Ethnic Food, Agriculture Implements and General Engineering. The State has identified about 75 SME clusters and they are at different stages of development. Central Government agencies like Coir Board, SISI, and NGOs like Federation of Industrial Clusters etc. are also taking initiative in Cluster Development.

In Kerala, State KVIC Directorate, State Khadi and Village Industries Board (KVIB), District Industries Centres (DICs) and bankers are the agencies for implementation of the PMEGP scheme. The banks sanctioned 758 applications and provided Margin Money of Rs.917.092 lakh up to 31st March 2016.during 2016-17 up to September 2016, 1430 applications were received. Applications sanctioned by banks are 26 and margin money sanctioned and released is rs.109.62 lakh. Entrepreneurs Entrepreneurial activity is a pillar of economic growth, across countries.

Entrepreneur Support Scheme & Start up subsidy for creation of new employment opportunities

• Encourage technology up gradation and product innovation • Promotion of microfinance Business incubation Centres in Handloom, Power loom and DIC. • Involve real world entrepreneurs • Promote entrepreneurial learning in an informal learning environment. • Increase visibility and emphasise the role of entreneurship in creating new jobs. 5.14 Labour Labour and labour welfare is the cornerstone of human development policies undertaken by the Government to attain greater efficiency and productivity and ensure safety and security of its human resources. Labour market has witenessed significant transformation in the last two decades both in terms of employment conditions and industrial relations. Labourers in Kerala have been protected by intervention of the Government on right to work of one’s choice, right against discrimination, prohibition of child labour, social security, protection of wages, redressal of grievances, right to organize and form trade unions, collective bargaining and participation in

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State Industrial Profile, 2016-17 management. It is accepted that the labour laws and labour welfare schemes implemented by the State go far beyond that in other parts of the country. The Government is of the view that every employee/ worker should be a member in a Welfare Board and they must be protected by the State throughout their lives. Currently around 29 Labour Welfare Fund Boards exist in the State, of which 16 are under Labour Commissionerate.

Kerala has been facing challenges in terms of high rate of unemployment and under employment, low rate of productive employment, inadequate levels of skill creation and training, low level of labour force participation and low worker population ratio and so on. Essentially, the State has to create employment opportunities and employment-intensive growth and re-allocate labour force from low-value added activities to high-value added activities.

Existing labour policy envisages the creation of 15 lakh new jobs within five years. Other thrust areas of State labour policy are unified and consolidated legislation for social security schemes, reprioritisation of allocation of funds to benefit vulnerable workers, long term settlements based on productivity, labour law reforms in tune with the times, amendments to Industrial Disputes Act, revamping of curriculum and course content in industrial training and policy progress monitoring.

Even though labour in Kerala is more literate, the Labour Force Participation Rate (LFPR) and Worker Population Ratio (WPR) for the persons of age group of above 15 are below the national average and this has been a persistent characteristic of the Kerala labour market. The 5th Round of Report on Employment & Unemployment Survey, 2015-16 of Labour Bureau, Ministry of Labour & Employment, and Government of India shows that LFPR in Kerala is 50 per cent, a marginal increase by 0.3 per cent over the year 2013-14. Even if we are at par with the national average, LFPR in our neighbouring states is better at 62.5, 57.2 and 55.5 per cent in Andhra Pradesh, tamil Nadu and Karnataka respectively. Similarily in rural areas, we are not only distant from national average but also from our neighbouring states of AP and TN where the rate is 69.2 and 65.8 per cent respectively.

5.15 Skill Development Skill development is crucial for the state to take advantage of the demographic dividend of our population in the coming years. Technological advancement in the existing areas and emergence of new areas in various sectors necessitates the imparting of more skills.

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The State has taken several measures to encourage skill development. But much needs to be done to equip its workforce to international standards. In oreder to address this, the Additional Skill Acquisition Programme (ASAP) was introduced in the State. ASAP is meant for those studying in various colleges in the State. The key focus would be to produce maximum number of trained people who will be able to fulfill the global demand for skilled labour. It is proposed to initiate a registration portal for skilled labour with the help of Akshaya and IT department so that people can effectively utilize the services of various types of skilled labourers. A mission mode approach would be followed for addressing the unemployment problem for educated unemployed through skill development and other means. This will be implemented with joint participation of public and private sectors and Panchayats Training programmes will be conducted with help of National Skill Development Corporation and Entrepreneurial Development Institute of India to make educated youth capable of becoming entrepreneurs A master plan for skill development will be prepared with particular emphasis on using the advantage Kerala has of broad band connectivity to every village. Milestones During 2015-16 • The initiative of the department were recognized with the award of ISO certification to 10 it is, Dhanuvachapuram, Chackai, Kollam (W), Pallickathode, kattppana, , , Kannur (W), Kasargode. • Department has implemented digital file management system for creating a paperless office with timely action and better service. • Nutrition programme by supplying egg & milk to the trainees of all Government it is for all training days was started. • Noon meal programme was started in the ITI attappady and Aryanadu. • Nypunnyam International Skill Summit and Skill Fiesta 2016 was conducted. • An amount of Rs.80.83 crore has been expended for the implementation of various plan schemes. 5.16 Information technology Information and Communication Technology is one of the key sectors powering growth of the State economy. Government of Kerala acknowledges the critical importance of ICT in the economic progress of the State and thus revised the Information Technology Policy for the State in 2012. The vision of the State’s policy is to “plan, develop, and market the State as the most preferred IT/ITEs investment/business destination in India”. The State Government supports the sector

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State Industrial Profile, 2016-17 by way of single window clearance, developing Kerala “IT Brand”, incentivising investment and making direct investment. Kerala Perspective Plan 2030 aims at developing State’s ICT sector on par with top countries in the world in terms of ICT development.

Kerala State Information Technology Mission (KSITM), Indian Institute for Information Technology and Management – Kerala (IIITM-K), Technopark, Infopark, Cyberpark, Kerala State Information Technology Infrastructure Ltd. (KSITIL), International Centre for Free and Open Source Software (ICFOSS) and Kerala Start-up Mission are the major agencies involved in the implementation of Information Technology programmes in the State under the Information Technology Department. The State Government envisages expansion of IT industry in the State in a manner that benefits all the districts in the State. A hub and spoke model has been planned. Thiruvananthapuram (Techno Park), Kochi (Info Park) and Kozhikode (Cyber Park) will act as hubs and the remaining districts will be the spokes. Government of Kerala has provided an amount of Rs.482.87 crore during 2016-17 for the development of core IT infrastructure, ITeS, e-governance activities and incentivising investment in the sector, which is 28.91 percent higher than the previous year.

The export from Technopark increased from Rs.2171 crore in 2011-12 to Rs.6250 crore in 2015-16. It grew by 22.55 per cent in 2015-16 as compared to 2014-15. The trend in export from technopark during last six years is depicted in Figure 14.

Fig.14: Export from Technopark

5.17 Science and Technology Science and technology are the key drivers to development, because technological and scientific revolutions underpin economic advances, improvements in

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Health systems, education and infrastructure. Kerala is one among the few States inn India that has been giving top priority for the development of science and technology sector. The Sttae has been providing 0.7 per cent of its budgetary allocation to the sector. High quality research and development will be encouraged to take Kerala to a higher level in original research and cutting edge technologies ➢ Technology development in India and abroad will be effectively showcased to facilitate development of science and technology based industries ➢ Schemes will be introduced to honor scientists who make significant contribution in developing new concepts, theories, products and technologies. Such awards will be subject to rigorous peer evaluation and scrutiny by leading scientists. ➢ The marine brackish water and fresh water resources of the State need to be researched and developed systematically as they hold the potential for commercial utilization on a very large scale. In the 12th Plan, special attention will be given to marine biotechnology. 5.18 Non-Resident Keralites The Department of NORKA will liaise with Ministry of External Affairs, Ministry of Overseas Indian Affairs and with Missions abroad to maintain regular contact with Non-Resident Keralites. The problems of in-migrants from amongst Non-Resident Keralites will be addressed through convergence of existing schemes and, where necessary, by evolving new schemes. The Department of NORKA and KSIDC will develop new investment opportunities for Non- Resident Keralites and support them in the task of establishing new enterprises in Kerala. Major expansions in allocation, improvement of existing schemes and introduction of new ones are urgently required for addressing problems of NRKs especially in view of the possible global economic slow-down and consequent crisis in destination countries. Out of the total Non-Resident Keralites (NRKs), 87.77 per cent are engaged in economic activities. Among those employed, 93.04 per cent are men and 6.96 per cent are women. Among all districts, Malappuram has the highest proportion of NRKs employed at 19.51 per cent followd by Thrissur and Kozhikode at 10.50 and 10.37 per cent respectively. According to New State Indsutrial Polocy, Government will provide training and facilitation for rehabilitation of NRKs coming back from abroad through capacity building for enterprise creation. 5% of allotable area in industrial estates will be reserved for them. * * * * * *

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CHAPTER- 6 INSTITUTIONAL SUPPORT AND INCENTIVES 6.1 CENTRAL GOVERNMENT ORGANISATIONS AND THEIR FUNCTIONS There are number of Central Government Institutions functioning in the State for promotion and development of Small Scale Industries. Brief details of these Institutions are given below: 6.2 MSME-Development Institute, Thrissur MSME Development Institute is a field outfit of Ministry of MSME Government of India rendering techno-economic and managerial assistance to entrepreneurs. It conducts skill up-gradation courses to the personnel employed by small industries through its Workshop in trades like Welding - TIG, MIG & STIC, Machine shop Practice, CNC Lathe Programming and Operation, Fruit and Vegetable Preservation, Training in Leather and Footwear manufacturing. The Workshop also renders common facility services in General Engineering, Machine Shop, Welding, Footwear making, Leather Goods making and Fruit and Vegetable Preservation etc. Apart from the above, specialized short-term training courses are conducted by the Institute in various disciplines like Industrial Management, Financial Management, Marketing Management, Quality and Inventory Control, Accounting Procedures and Labour Law, Export Packaging etc. Entrepreneurial Development and Skill Oriented Training Programmes are also organized in association with Technical Institutions and NGOs. Depending upon the need Seminars, Open House Discussions, Motivation Campaigns, Awareness Programmes on ISO-9000, Pollution Control, Energy Conservation, Quality Control, Modernisation etc. are also organised by the Institute. SCHEMES OF DCMSME ➢ FINANCIAL ASSISTANCE UNDER NATIONAL MANUFACTURING COMPETITIVE PROGRAMME (NMCP) 1. Marketing Support / Assistance to MSMEs (Bar Code) • Reimbursement of 75% of the onetime registration fee and 75% of the first three years annual fees. 2. Support for Entrepreneurial and Managerial Development of SMEs through incubators • Financial assistance upto Rs.6.25 laks per incubatee

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3. Enabling Manufacturing Sector to be competitive through Quality Management Standard & Quality Tech. Tools (QMS/QTT). • Introduction of Course Modules in 1800 ITI’s/ Technical Institutions Rs.425 lakh per year. • Product Professional study upto Rs.2.5 lakhs (50%) • Technical exposure visit upto Rs.7.5 lakhs per association • Procurement of samples/ technical details upto Rs.25 lakhs (50%) • Product development by technical bodies upto Rs. 5 lakhs (62.5%) • Popularization of improved products upto Rs.1.5 lakhs (75%) • 100 MSMEs would be assisted @ Rs.1.5 lakhs/ unit for covering costs of Diagnosis Study and for implementation of QMS/ QTT Tools. • International Study Mission Rs.1.5 lakhs (62.5%) 4. Building Awareness on Intellectual Property Rights (IPR) for MSME Assistance for Grant on Patent/ GI Registration (i) Domestic Patent Rs. 0.25 lakhs (ii) Foreign Patent Rs.2 lakhs (iii) GI Registration rs. 1 lakh. 5. Lean Manufacturing Competitiveness Scheme for MSMEs • Upto 80% charge of Consultant 6. Design Clinic Scheme for design expertise to MSMEs Manufacturing Sector (DESIGN). • Reimbursement of 60% fees of designer • Upto Rs.15 lakhs for a group of 4 MSME’s & above. • Upto Rs. 9 lakhs for a group of 3 MSME’s 7. Marketing Assistance & Technology Up-gradation Scheme in MSMEs. • Technology Up-gradation in Packaging, upto ₹8 lakhs for group of 10 units. • Skill up-gradation/ Development for modern marketing techniques, upto Rs.4.8 lakhs/cluster • New Markets through State/ District level local exhibitions/ Trade fair upto Rs. 20 thousand/ unit 8. Technology and Quality Up-gradation Support to MSMEs • Subsidy upto Rs. 10 lakhs (25%) for adoption of Energy Efficient technology by MSEs. • National/ International Product Certification Rs. 1.5 lakh for National and Rs. 2 lakh for International Certification. 1. Promotion of ICT in Indian Manufacturing Sector (ICT) • For preparation of feasibility report Rs. 1 lakh/ cluster. • For Detail Project report Rs. 2 lakhs/ cluster • For e-Readiness Centre 40% of project cost. • Upto Rs. 0.75 lakh/ unit for procurement of software & hardware.

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2) MSME-MDA. a) Participation in International Fairs. b) Purchase & Price preference scheme. 3) VENDOR DEVELOPMENT PROGRAMME • Identify potential items for development in Micro & Small Scale Sector in consultation with Large and Medium Scale establishments for the purpose of Vendor Development. • To organize Buyer-Seller Meets/ Vendor Development Programme & Industrial Exhibition to provide marketing support to Micro & Small Enterprise Sector. 4) CREDIT LINKED CAPITAL SUBSIDY SCHEME FOR MSMEs (CLCSS) • @ 15% upto Rs.15 lakh maximum subsidy for adopting approved technology through Institutional finance. 5) EXPORT PROMOTION – PARTICIPATION IN INTERNATION TRADE FAIR. • Under the scheme, financial assistance is provided to Micro & SSI units upto Rs. 1.25 lakhs. The unit may avail once in a year for single person. 6) CLUSTER DEVELOPMENT PROGRAMME (MSECDP) • Undertake Detail Survey of Clusters & Diagnostic Study • Identify the MSEs Cluster • Checkout the strategy for developing Cluster and to make it competitive • Implement the action plan • Creating of Common Facility in the Cluster • Assist State Government for developing Cluster • Assist Associations and other Agencies for Cluster Development • Financial assistance for soft hard intervention, infrastructure development etc. to MSEs cluster upto Rs. crores & Rs. 10 crores respectively. 7) CREDIT GUARANTEE TRUST FUND SCHEME FOR MICRO & SMALL ENTERPRISES (CGTMSE) • The credit facilities which are available to be covered under the scheme are both term loans and working capital facility upto ₹100 lakhs per borrowing unit, extended without any collateral security or third party guarantee, to new or existing micro & small enterprise. The guarantee cover ranges between 62.5% - 85% as per the credit facility and will accordingly be restricted to a maximum of 65 lacs.

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7) NATIONAL AWARDS TO MSMEs • Outstanding Entrepreneurship • Quality Products • Research & Development Efforts • Lean Manufacturing 8) ZERO DEFECTS AND ZERO EFFECT (ZED) SCHEME

Indian MSME’s need to continuously improve their manufacturing capabilities. Development Commissioner, Ministry of MSME, Government of India, has launched the pilot phase of ZED Maturity Assessment Model Implementation through its implementing agencies National Productivity Council and Quality Council of India. The rating model would provide a robust, reliable and transparent assessment rating for MSMEs on the basis of their manufacturing capability, quality, environment friendliness etc. This rating may be used by large scale manufacturers while sourcing from these MSMEs. This rating may also be used to diagnose the problem in MSME unit so that hand holding for up gradation of the unit may be done. The scheme guidelines are available at www.dcmsme.gov.in and the MSME may register free of cost for availing the benefit under the scheme.

9) START UP INDIA PROGRAMME

Startup India campaign is based on an action plan aimed at promoting bank financing for start-up ventures to boost entrepreneurship and encourage start ups with jobs creation. The campaign was first announced by Hon’ble Prime Minister Shri Narendra Modi on 15 August 2015. It is focused on to restrict role of States in policy domain and to get rid of "license raj" and hindrances like in land permissions, foreign investment proposal, environmental clearances etc. It was organized by Department of Industrial Policy and Promotion. A startup is an entity that is headquartered in India which was opened less than five years ago and has an annual turnover less than 25 crore (US$3.7 million). The government has already launched iMADE, an app development platform aimed at producing 1,000,000 apps and PMMY, the MUDRA

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Bank, a new institution set up for development and refinancing activities relating to micro units with a refinance Fund of 200 billion (US$3.0 billion).

10) STAND UP INDIA SCHEME The objective of the Stand-Up India scheme is to facilitate bank loans between 10 lakh and 1 Crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower per bank branch for setting up a greenfield enterprise. This enterprise may be in manufacturing, services or the trading sector. In case of non-individual enterprises at least 51% of the shareholding and controlling stake should be held by either an SC/ST or Woman entrepreneur. The following are eligible for the scheme:

• SC/ST and/or woman entrepreneurs, above 18 years of age. • Loans under the scheme is available for only green field project. Green field signifies, in this context, the first time venture of the beneficiary in the manufacturing or services or trading sector. • In case of non-individual enterprises, 51% of the shareholding and controlling stake should be held by either SC/ST and/or Women Entrepreneur. • Borrower should not be in default to any bank/financial institution. 6.3 NATIONAL SMALL INDUSTRIES CORPORATION LIMITED The National Small Industries Corporation (NSIC) is a Central Agency functioning for the cause of SSIs and arranges machinery on hire purchase, enlist units under single point registration programme, provide machinery/equipment under leasing scheme and organizes a number of technical training courses through its Prototype Development Centres located throughout the country in addition to conducting EDPs and short term training courses on Information Technology. The various assistance schemes operated by NSIC are detailed below. i) Single point registration scheme for participation in Central Govt. Store Purchase Programme for marketing SSI products. ii) Internal and external marketing of SSI products are carried out by the following methods. a) Consortia approach – by pooling the SSI units producing same products are associated in the form of consortia and NSIC explores market and secure orders for

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State Industrial Profile, 2016-17 bulk quantities. The incidental jobs connected with the execution of orders are also carried by NSIC. b) Tender Marketing – On behalf of SSTs, NSIC participate in bulk local tender and global tender of Central and State Govt. and suitably help SSTs compete for orders. c) NSIC Marketing Development Centres – NSIC Shoppe – are Centers functioning throughout the country play a catalytic role in providing exposure of SSI products and assist in direct and indirect marketing etc. iii) Prototype Development and Training Centres for promoting Technical Skill. iv) Raw Material Assistance against Bank Guarantee Scheme This schemes aims at helping MSEs by way of financing the purchase of Raw Material (both indigenous and imported – help MSMEs to focus better on manufacturing quality products. Financial assistance for procurement of Raw Material upto 90 days, MSEs helped to availa economics of Purchases like bulk purchase, cash discount etc. are the highlights of the scheme. NSIC takes care of all the procedures, documentation and issue of letter of credit in case of imports. v) Bank Credit Facilitation Scheme – This schemes aims to meet the credit requirements of MSME units NSIC has entered into a Memorandum of Understanding with various Nationalized and Private Sector Banks. Through syndication with these banks, NSIC arranges for credit support (fund or non fund based limits) from banks without any cost to MSMEs to enable them upgrade their competence in terms of business and technologies by getting rated through independent, renowned and professional rating agencies empanned with NSIC. 6.4 OTHER SIDO OFFICES AND THEIR FUNCTIONS The other two organizations functioning under SIDO in Kerala are Directorate of Small Entrepreneurs Promotion And Training Institute, Ettumanoor and Small Entrepreneurs Promotion And Training Institute, a) DIRECTORATE OF SMALL ENTREPRENEURS PROMOTION AND TRAINING INSTITUTE, ETTUMANOOR The erstwhile Directorate of Production Centre, Ettumanoor in Kottayam District is re-named as Directorate of Small Entrepreneurs Promotion and Training Institute (D- MSME-Development Institute, Thrissur 156

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SEPTI) with effect from 1/12/99 and imparts technical training to educated unemployed youth and inculcate in them entrepreneurial culture. b) SMALL ENTREPRENEURS PROMOTION AND TRAINING INSTITUTE, THIRUVALLA Small Entrepreneurs Promotion and Training Institute (SEPTI) Manjadi, Thiruvalla is a SIDO field outfit established in 1994. Its prime function is to educate and motivate entrepreneurial culture among technically qualified unemployed youth with special reference to electrical technology, conducting Skill Development Training Programme for technically qualified persons, developing entrepreneurship among educated unemployed youth and build confidence in them to set up small production ventures with the ultimate objective of generating employment opportunities in addition to conducting training programmes on Information Technology, Fire fighting and other sponsored programmes for Govt., Semi-Govt. and Autonomous Bodies. 6.5 OTHER INSTITUTIONS 6.5.1 SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA. The Small Industries Development Bank of India (SIDBI) – a subsidiary of IDBI was established under an Act of Parliament in 1990 as principal financial institution for promotion, development and financing of industries in small scale sector in India and to co-ordinate the functions of institutions engaged in these activities. SIDBIs assistance to MSME sector is channelised mainly by way of refinance through primary lending institutions (PLI) like commercial/co-op and regional Rural Banks, State Financial Corpn. and State Industrial Development Corporations etc. SIDBI refinances these institutions to the extent of the assistance they provide. Beneficiaries have to directly approach PLIs for this purpose. The role played by SIDBI for development of MSME sector is channelised through: (i) Indirect assistance to Primary Lending Institutions (PLIs.) (ii) Direct assistance to small units (i) Development and support services

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(i) INDIRECT ASSISTANCE Indirect assistance is extended by way of refinance, granting of Line of Credit (LoC) in lieu of refinance to and rediscounting of bills of PLIs including banks, SFCs, SIDCs, etc. (ii) DIRECT ASSISTANCE Dispensed through SIDBI’s 38 Regional Branch Offices spread across the country under several tailor-made schemes. SIDBI Directly Finances for: • Setting up new MSME Units, small hotels, hospitals & nursing homes, tourism related activities and modernization / expansion / diversification / technology upgradation of existing units. • Marketing development projects, which enlarge the domestic and international marketability of MSME products. • For developing infrastructure for MSMEs. • MSME Units for acquiring ISO-9000 Series Certifications. • MSME Units engaged in exports by way of pre-shipment and post-shipment credit in rupee and foreign currency. • Leasing and hire purchase companies for offering leasing / hire purchase facilities to MSME units. SIDBI Directly Discounts

• Bills of manufacturer-seller in MSME sector for selling either equipments or components.

(iii) SIDBI OFFERS FINANCIAL ASSISTANCE TO: • MSME units under Technology Development and Modernization Fund (TDMF) Scheme. • MSME units in the textile and jute sector for taking technology upgradation and modernization under Technology Up-gradation Fund Scheme (TUFS)

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• Tanneries in MSME sector for taking up modernization under the Tannery Modernization Scheme (TMS). • 12 per cent capital subsidy on loans advanced to MSME units by scheduled commercial banks and NSIC under Credit Linked Capital Subsidy Scheme. • Short term loans to State Electricity Boards to facilitate their purchases from MSMEs and effect payment in time. Discounting of invoice of MSMEs supplying their products to large purchaser companies in the public/private sector. • Support to obtain credit rating from accredited credit rating agencies. • Direct factoring services (in select centers) to MSMEs. The following schemes have also been introduced with a view to facilitate credit flow to MSME Sectors: 1 Credit Guarantee Fund Scheme for Small Industries. 2 Credit Linked Capital Subsidy Scheme for Technology Upgradation of MSMEs. 3 SIDBI National Programme on Innovation & Incubation for Small Industries. 4 Venture Capital Fund for Small Industries. 5 Refinance Scheme for Term Loans granted by SFCs/SIDCs to Industrial concerns other than Small Scale Sector. (Details of the above Schemes can be had from the SIDBI Office at Kochi) 6.5.2 BUREAU OF INDIAN STANDARDS The Bureau of Indian Standards, the national standards body of India, was established in the year 1947 under the popularly known name Indian Standards Institution (ISI). The ISI was set up as a registered society, under a Government of India resolution to induct the culture of standardization and quality in the Indian industry. In 1986 the government recognized the need for strengthening this National Standards Body due to fast changing socio-economic scenario and according it a statutory status. Thus came the Bureau of Indian Standards Act 1986 and on 1 April 1987, the newly formed BIS took over the staff, assets, liabilities and functions of the erstwhile ISI. Through this change over, the Government envisaged building of the climate of quality culture and consciousness and greater participation of consumers in formulation and

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State Industrial Profile, 2016-17 implementation of National Standards. BIS has a network of offices throughout India with at least one office in almost every state. The objectives of BIS are: • Harmonious development of standardization, marking and quality certification. • To provide new thrust to standardization and quality control. • To evolve a national strategy for according recognition to standards and integrating them with growth and development of production and exports. The major functions of the Bureau of Indian Standards are as follows: 1. Formulation of standards for products and services by bringing together and coordinating various interest groups like manufacturers, consumers, technical experts, testing personnel and others interested. The standards so prepared are known as Indian Standards (IS) and are legal documents. The first Indian Standard formulated was for the National Flag (IS 1). So far BIS has published about 17000 Indian Standards covering various products, codes of practices, terminology, etc. for various industrial and economic sectors. Indian Standards are used not only by the industry, but also by Governments, students, consumers and regulatory authorities. The standards are priced publications and are available from the offices of the Bureau. 2. Product Certification Scheme is a scheme whereby manufacturers producing products as per relevant Indian Standards are permitted to use the Standard Mark of the Bureau (the popular ISI mark) on their products after obtaining a license from the Bureau. At present there are about 13000 licenses being operated all over India and abroad for about 1000 products. The pre-requisites for obtaining a license are the manufacturer has necessary manufacturing and testing facility and agrees to follow the quality assurance scheme of the Bureau in addition to payment of necessary fees as stipulated. The license is initially granted for a period of one year, which is renewable for subsequent periods based on performance of operation. The scheme is voluntary in nature for most products. However, the government has made ISI marking compulsory for 136 products, which affect health and safety of consumers or are products of mass consumption.

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3. Quality System Certification (ISO 9001 Certification): The Bureau operates the Quality Management System certification for organisations based on the ISO 9001: 2000 standard published by the International Organisation of Standardization (ISO). Being a member of ISO the standards of ISO can be adopted in toto by the Bureau and can be published as IS/ISO standards. Accordingly, the ISO 9000 series of standards have been adopted and are published as the IS/ISO 9000 series of standards. The certification is for the systems implemented by an organisation and not for the product. The Standard requires implementation of systems in all relevant activities and functions within an orgnaisation that goes to satisfy the needs of customers. The standard also requires that the orgnaisation shows continual improvement by defining specific objectives and measuring the same in its activities. The certification being operated by the Bureau is accredited by the Dutch Council of Accreditation – Raad voor Accreditatie (RvA), the HACCP (Hazard Analysis and Critical Control Point) programme for the food industry which envisages identification and control of hazards – physical chemicals or biological – is also covered in QMS Certification Scheme if so desired by any organisation. 4. Environment Management System Certification: The Certification scheme is based on the ISO 14001 standard which as in the case of ISO 9000 standards has been adopted as IS/ISO 14001. The thrust of the standard is ensuring that orgnaisations meet the legal requirements of environmental protection and has systems whereby they control and improve upon measures that will lead to healthier environments. 5. Hall Marking of Gold Jewellery: India is the largest consumer of gold and the purchaser of gold. Jewellery is the common consumer. The scheme was launched on 11th April 2000 at the behest of the Government of India with a view to ensure standards of purity and prevention of adulteration and thereby protect the consumer. The certification of purity of gold jewellery is done in accordance with the Indian Standard IS: 1417 Grades of gold and gold alloys jewelry /artifacts – fineness and hall marking. The Standard is equivalent to the International Standard. The scheme is voluntary in nature.

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In addition to the above certification schemes, the Bureau is also operating the schemes of Ecomark, which is a system for marking of Environment friendly products and also certification scheme for importers of products. Other activities of the Bureau include operation of: 1. Rajiv Gandhi National Quality Award instituted in 1991, with a view to encouraging Indian manufacturing and service organisations to strive for excellence and giving special recognition to those who are considered to be the leaders of quality movement in India. This award is intended to generate interest and involvement of Indian industry in quality programmes, drive our products and services to higher levels of quality and equip our industry to meet the challenges of domestic and international markets. 2. WTO – TBT Enquiry Point: The Government of India, Ministry of Commerce has designated BIS as the enquiry point under the Agreement on Technical Barriers to trade of the World Trade Organisation (WTO). According to the agreement, the Enquiry Point issues notifications on proposed technical regulations and certification systems in India to WTO, Geneva. Parties in other member countries wishing to make comments on the above notifications can obtain copies of the text from the Enquiry Point. For further information / purchase of Indian Standards please contact;

BUREAU OF INDIAN STANDARDS Thiruvananthapuram Branch Office. TC 14/1421, University P.O. Thiruvananthapuram –695 034 Phones: 0471-2322117, 2327215, 2322104 Fax: 0471-2322117, 2327215 E-mail: [email protected] Website: www.bis.org.in 6.6 STATE INDUSTRIES DEPARTMENT AND OTHER ORGANISATIONS A number of State Govt. agencies are functioning in the State for promotion and development of industries. Functions of few important institutions are detailed below:

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6.6.1 DIRECTORATE OF INDUSTRIES AND COMMERCE All programmes of assistance to MSMEs are implemented by Director of Industries and Commerce, Thiruvananthapuram who allocates and co-ordinates various activities for industrial development that includes organizing exhibitions, fairs, issue of various licenses, certificates, marketing of products, implementation of various quality control orders, selection and recommendation of MSME units for State and National Awards, liaison with Central Govt./Agencies, implementation of various Central Govt. programmes etc. The District Industries Centres located at all the district headquarters come directly under the jurisdiction of Director of Industries and Commerce and ensure smooth implementation of various industrial development programmes. 6.6.2 DISTRICT INDUSTRIES CENTRE District Industries Centres (DICs) provide all assistances under one roof for setting up MSMEs and cottage industries at pre and post investment stages. It assists entrepreneurs by way of providing techno-economic and managerial services, taking into consideration their techno-economic potentialities and resource background. It helps in identification of entrepreneurs, product selection, registration, project report preparation, raw material selection, infrastructure facilities, coordination of credit facilities, quality control, entrepreneurial training, marketing assistance etc. The details of assistances rendered are given in the incentives portion. 6.6.3 KERALA STATE SMALL INDUSTRIES DEVELOPMENT CORPN. LTD. Kerala SIDCO, an agency for promotion and development of MSME sector allots industrial sheds and space for setting up MSMEs in industrial estates, mini industrial estates situated in various districts, distributes essential raw materials like iron and steel, IPCL products, titanium dioxide, paraffin wax, cement and non-ferrous metals, PVC materials, furnishing materials etc., marketing various kinds of lubricants, bitumen of IOC. marketing MSME products such as wooden/steel/plastic furniture, office equipment/ laboratory chemicals, lab equipment/ hospital furniture / hospital equipment / electronic and electrical items etc., Assist MSME units in Govt. Stores

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Purchase Programme. At present SIDCO has included to its list 27 items of MSMEs for Govt. Purchase. SIDCO participates in tenders floated by Central and State Govt. Departments / Organisations on behalf of MSME units. Other services of SIDCO include setting up industrial parks, factoring services and marketing consumer products etc. These are aimed at helping MSME units for tackling their financial and marketing problems. Under factoring service, SIDCO collect payments of supplies made by MSMEs to various Govt. Departments / Organizations under a pre-conceived agreement. To participate in this scheme, MSMEs have to abide by the rules and regulations framed by SIDCO. The consumer products marketing scheme endeavors to strengthen marketing of MSME products in association with Development Societies. Regd. Office: Santhinagar Thiruvananthapuram -695 001 Phone: +91-471-2330613 (5 lines) Fax : +91-471 - 2330904

Raw Material & Marketing Division: Gandhinagar, Kochi - 20 Phone: +91-484-2311651 (3 lines) Fax: +91-484 – 2316077

6.6.4 KERALA FINANCIAL CORPORATION The Kerala Financial Corpn (KFC), incorporated in 1953 under the State Financial Act, is a Pioneer Agency for providing financial assistance to industrial units engaged in manufacturing or service activities. Principal objective of the Kerala Financial Corporation is to extend Term Loan assistance for establishing new industrial units or to extend credit assistance for meeting part of the cost of expansion / diversification / modernisation of existing units, in small scale or medium sectors. Initially, the corporation had only a single scheme for extending term loan assistance to the segments in MSME or Medium Scale Sectors. Over the years it has introduced various loan schemes to suit various requirements of promoters. Scheme has been introduced for application ranging from short term to long term and equity type

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State Industrial Profile, 2016-17 assistance. The repayment span varies from 2 years to 10 years. Service sectors like Tourism, Transport, Hospital etc. and industrial sectors are also eligible for assistance. For meeting the requirements of the existing well managed, profit making units, scheme such as Working Capital Term Loan, Short Term Funds, Revolving Fund & Modernisation Funds are available. • Registered companies (private or public) and co-operative societies can be given loans upto Rs.20 crores and others upto Rs. 8 crores. • The Corporation can give financial assistance to all types of industries for manufacturing/ service activities where the project cost for such loans does not exceed Rs.10 Crores. The unit (existing / new) should necessarily be in Kerala. 6.6.5 KERALA INDL. & TECH. CONSULTANCY ORGANISATION LTD. (KITCO) The main objective of KITCO was to provide quality advice and consultancy service at an affordable price mainly to SMEs for identifying, planning and formulating their projects and to the FIs and banks for a systematic appraisal of industrial finance proposals. Therefore, the basic thrust in the initial years was in Project Consultancy, namely preparation of project reports, appraisal reports, techno-economic feasibility studies, market surveys, etc. The emphasis was also on the development of entrepreneurship in the State. The organisation also built up its strengths in conducting special studies like Industrial Potential Surveys sponsored by the State Government, IDBI, etc. The company, in addition, offered management consultancy services for improving organisational efficiency and productivity. Subsequently, the Company diversified its activities into various related fields like detailed engineering & project execution, asset valuation, energy audits, skill certification, etc. 6.6.6 KERALA INDUSTRIAL INFRASTRUCTURE DEVELOPMENT CORPORATION (KINFRA) Kerala Industrial Infrastructure Development Corporation (KINFRA) provides infrastructure for industrial development. It has set up technology banks, technology parks and IIDCs (Integrated Industrial Development Centres) that include joint venture projects also. The Industrial parks have facilities like developed land, power supply,

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State Industrial Profile, 2016-17 water supply, communication facilities etc. in addition to supporting infrastructure like Bank, Post Office, Security, etc., thus providing a conducive environment for setting up industrial units with minimum time and cost. 6.6.7 KERALA STATE ELECTRONICS DEVELOPMENT CORPORATION LTD. The Kerala State Electronics Development Corporation is offering the following training programmes for development of MSMEs in the state. 1. Keltron is conducting ‘O’ level and other courses related to information technology. 2. Provides implant training facilities to those undergoing professional courses and assist in entrepreneurship development. 3. Keltron have plating shop, phosphating plant and transformer winding and fabrication shop in its equipment complex with which it serves the needs of entrepreneurs. 4. Provides Tool fabrication facility to Entrepreneurs through its Central Tool Room at Sreekariyam Provides technical support for development of ancillary units like coil winding within the state. 6.6.8 CENTRE FOR MANAGEMENT DEVELOPMENT (CMD) Centre for Management Development is actively involved in Entrepreneurship Development through Training, Consultancy, Research and Publication. Some of the important training programmes that the Centre offers for prospective and existing entrepreneurs are given below: 1. Entrepreneurship Awareness Programme 2. Entrepreneurial Development Programme 3. Skill Development Programme 4. Management Development Programme 5. Trainers Training Programme 6. Small Industries Management Assistant Programme 7. Seminars and Workshops

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6.6.9 KERALA BUREAU OF INDUSTRIAL PROMOTION (K-BIP) Kerala Bureau of Industrial Promotion (K-BIP) was constituted under the Industries Department during the year 1991 as an autonomous body of the State Government. It is envisaged for promoting the potential business opportunities of the State to the foresighted entrepreneurs and to highlight the ideal business climate prevailing in Kerala. K-BIP works in close co-ordination with similar promotional agencies like KSIDC (Kerala State Industrial Development Corporation), KINFRA (Kerala Industrial Infrastructure Development Corporation), Technopark etc for the uplift of the industrial development giving specific attention to the strategic advantages, the various Governmental supports and other incentives offered in the different sectors of the industry. K-BIP provides operational flexibility and acts as support mechanism for the Industries Department of the State Government. The Bureau also functions as an interface between the prospective entrepreneurs and other State agencies. K-BIP is the linkage between national and international agencies for technology up-gradation, technology development and technology management for the various sectors. Recently, K-BIP has signed an MOU with Asian and Pacific Centre for Transfer of Technology (APCTT) of UNESCAP (United Nations Economic and Social Commission for Asia and the Pacific), which enables K-BIP to utilize the services of APCTT to promote Small & Medium industries in the State. The MOU envisages them to have an understanding with the APCTT to facilitate the Technology up-gradation and Technology Transfer Services for the rural enterprises. K-BIP is the repository of information regarding MSMEs, Infrastructure and Technology databases. K-BIP acts as nodal agency to stimulate interest among the lesser-known industrial organisations to participate in trade fairs and similar events by providing them suitable platforms to highlight and market their products and services. The major activities of the Bureau are:

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• To collect, process and disseminate information/ data on investments opportunities in industry, commerce, trade and other related areas in the State of Kerala or for the benefit of present and prospective entrepreneurs • To identify prospective entrepreneurs and motivate them in establishing industrial units and other productive ventures in the State • To help entrepreneurs plan projects in terms of: - Choice of Product, Technology, Plant and Machinery and Location. - Preparation of Project Profiles, Market Survey Reports and Project Reports. • To organize training programmes, workshop, etc. for the benefit of entrepreneurs in general and specific target groups in particular. • To undertake or arrange to undertake general or specific studies in the problems of small-scale industries in Kerala and to evolve strategies for combating such problems. • To co-ordinate the extension and promotional activities of all institutions involved in the industrial development of the State. • To publish literature in the form of papers, case studies, reports, brochures, pamphlets, periodicals, digests, journals, project profiles; model project reports and distribute them to present and prospective entrepreneurs and other relevant institutions. • To establish, develop and support centres for documentation, maintenance and supplying of data, projects and information, which may be useful to industries, Government and entrepreneurs. • To establish, maintain or manage offices, bureaus, counters, conference halls anywhere in India required furthering the cause of industrial development of Kerala.

6.6.10 NATIONAL CENTRE FOR HACCP CERTIFICATION (NCHC) National Centre for HACCP Certification (NCHC) is a quality organisation of Government of Kerala providing professional & cost effective assessment, audit and certification of Hazard Analysis Critical Control Point (HACCP) System for food industry and other food-related vendors. HACCP (Hazard Analysis Critical Control Point) is an internationally accepted technique for preventing microbiological, chemical and physical contamination along the food supply chain. The HACCP technique does this by identifying the risks, establishing critical control points, setting critical limits, and ensuring control measures are validated, verified and monitored before implementation. The effective implementation of

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HACCP will enhance the ability of companies to: protect and enhance brands and private labels, promote consumer confidence and conform to regulatory and market requirements. All businesses involved in the food supply chain from producers to retailers can use HACCP. 6.6.11 KERALA STATE INDUSTRIAL DEVELOPMENT CORPORATION LTD. (KSIDC) KSIDC helps in establishing any large-scale or medium-scale industry in the State from identifying the viable projects, providing financial assistance and helping through the entire project till implementation and the running of the industry. KSIDC is the government agency for industrial promotion, financing and facilitating in Kerala. Considering the tremendous potential for the IT industry in the State, KSIDC evolved a special financial package to promote the sector.

• New IT units are eligible for an Investment Subsidy @ 20% of fixed Capital Investment, subject to a maximum of Rs.25 lakhs. KSIDC will process and release the eligible subsidy against this. (Fixed Capital Investment includes land, buildings, plant & machinery, utilities and miscellaneous fixed assets.) • 75 % of the eligible subsidy is included in the means of finance as Subsidy Loans, to reduce the minimum promoter’s contribution in the project. The Subsidy Loan is given at the term loan rate, for a period of 1 year and will be adjusted against subsidy released from Government.

• Units are eligible for an initial moratorium up to 2 Years, as per the special package. A Venture Capital Fund with a corpus of Rs 20 Crores has been formed jointly by the Small Industries Development Bank of India (SIDBI), Kerala State Industrial Development Corporation Ltd. (KSIDC) and Kerala Financial Corporation (KFC). IT units can avail venture capital assistance from the fund, if they are otherwise eligible. 6.7 INCENTIVES AND ASSISTANCE FROM STATE INDUSTRIES DEPARTMENT The State Govt. assistance is channelised through the Industries Department and District Industries Centres. Assistances and incentives available to entrepreneurs

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State Industrial Profile, 2016-17 through the Directorate of Industries and Commerce and District Industries Centres are given below: 1. State Investment Subsidy. i) State Investment Subsidy (General) • 10% on fixed capital investment limited to Rs.5 lakhs • Additional 5% subsidy to SC/ST, women, physically handicapped persons subject to a limit of Rs. 1 lakh. • Units that have installed renewable sources of energy systems are eligible for additional investment subsidy @ 15% subject to a maximum of Rs. 5 lakhs. • Additional subsidy of 10% subject to a maximum of Rs.25000 for installation of pollution control devices in diesel generators. ii) State Investment Subsidy for Thrust Industries – eligible for 15% subsidy on fixed capital investment limited to Rs. 15 lakhs. iii) State Investment Subsidy on Information Technology Industries – Units are eligible for subsidy @ 20% of the fixed capital investment subject to a maximum of Rs.25 lakhs iv) State Investment subsidy is provided to units in Idduki, Wayanad and notified industrial Growth Centres and Industrial Parks – 10% of fixed capital investment subject to 10 lakhs (for thrust industries 25% of the fixed capital investment subject to a maximum of Rs. 25 lakhs). Units undertaking expansion, diversification and modernisation are also eligible for investment subsidy at the revised rates. However, expansion, diversification or modernisation must result in, at least, 25% increase in plant and machinery on gross block basis. Expansion in capacity should also increase by at least 25% to avail the investment subsidy. II. Women Industries Programme The Govt of Kerala has special schemes of financial assistance to Women Entrepreneurs, brief details of which are as under: Scheme of Grant-in aid is given: • To meet equipment cost

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• To meet cost of construction of building. • To meet rent of building. • To meet cost of building under hire purchase. • To meet salary of MD/Secretary/Technical expert/Manager. • To meet stipend of trainees The Department stipulated certain general conditions like registration, non- functioning for more than six months etc., for giving grant-in-aid. III. Margin Money Scheme All registered MSME units other than those categories of industries included in negative list shall be eligible for assistance under this scheme. Under the scheme soft loan is given to entrepreneurs for setting up MSME units to raise the required equity (Margin) insisted upon by financial institutions. Maximum limit under the scheme is Rs. 2.5 lakhs under term loan and working capital put together shall be limited to 20% of the project cost. The promoter will have to raise a minimum of 10% of the project cost and of working capital. The loan is repayable in 16 equal quarterly instalments and first instalment of repayment falls due three months after the date on which the last instalments of margin money loan falls due. Loans sanctioned under this scheme shall carry an interest of 9% per annum. IV) Margin money loan to Non-resident Indians (NRIs) Technically qualified Non-Resident Keralites are eligible to avail this scheme to start MSMEs. The maximum limit for MML is Rs. 5 lakhs. The interest rate chargeable is 11.5% per annum and repayment to be made in 24 equal quarterly instalments. V) Prime Ministers Employment Generation Programme (PMEGP) Government of India have introduced a new Credit linked Subsidy Programme called Prime Ministers Employment Generation Programme (PMEGP) by merging the two schemes PMRY and REGP which were in operation till 31.03.2008, from 2008-09 onwards. KVIC was approved as the nodal agency for the implementation of the scheme at National Level and KVIC, Directorate, KVIB, DICs and Banks in the State Level. The loans will be released through Banks and are permitted to charge normal

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State Industrial Profile, 2016-17 rate of interest. The maximum cost of the project/unit admissible under manufacturing sector is Rs.25 lakh and in business/service sector is Rs.10 lakh. The selected beneficiaries will have to undergo two weeks mandatory training before the disbursement of the loan. Beneficiaries who have attended similar types of training earlier are exempted from the training. Steps being taken to implement the scheme in the State and necessary directions were given to the General Managers to initiate action on PMEGP. VI Sick Unit Revival Scheme A unit is declared sick due to erosion in the net worth due to accumulated cash loss to the extent of 50% or more of its peak net worth during the preceding two years is eligible for assistance under revival scheme. The following assistances are available to sick units. • Margin Money Loan. • Cost of Rehabilitation. • Sales Tax exemption (only for those units registered as sick before 1.1.2000). • Start-up Expenses. • Suitable assistance for rescheduling the following a) Other dues b) Revenue recovery c) Electricity dues VII Marketing Support and Price Preference

Earnest Money Deposit (EMD) exemption and price preference of 15% to MSE units are available.

VIII Green Channel Counter Green channel counters function at DICs whose prime function is to settle various pending issues with various departments/agencies concerning industrial development. IX Other assistances The following assistances are also available from Industries Department: • Priority in getting power connection. • Organising fairs and exhibition etc.

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X Registration of units under Co-op sector For development of traditional industries like handicrafts and handloom, MSME/Cottage units are registered in Co-op sector. The incentives and assistance like share participation by Govt. Grant for land and building, machinery; managerial grant, revitalization subsidy rebate for marketing etc. are available to such units. For development of Coir industry, a coir project office is also functioning in the State. XI Single Window clearance Single Window Clearance Boards and Industrial Townships Act 1999 enacted by the Govt. of Kerala provide special provision for speedy issual of various licenses, clearances and certificates etc. required for setting up MSMEs. Applications received by the board would be disposed off within 60 days of its receipt. Single Window Clearance boards function at State Level and District level. XII Kerala State Entrepreneur Development Mission

During 2011-12 Govt. of Kerala have launched an innovative programme viz; Kerala State Entrepreneur Development Mission, aimed at providing self-employment to one lakh youths through 10,000 new ventures. It aims to launch 2,000 ventures every year and providing employment to 20,000 persons annually. Kerala Financial Corporation (KFC) is the nodal agency for the scheme. Salient Features • The objective is to bringing down the level of unemployment and to build entrepreneurship culture among the youth of the State. • The scheme is proposed to be implemented with the participation of Public, Private Sectors and Panchayats. • The prospective entrepreneurs will be selected based on their capability and project ideas. • Candidates’ minimum qualification is higher secondary/vocational training. • Orientation programmes will be organized for the registered applicants at Block, District, Municipality, Corporation levels to explain the features and eligibility criteria of the scheme.

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• The applicants will be evaluated on their aptitude, qualification, skill, project ideas, project feasibility and available infrastructure facilities. • After selection, entrepreneurship training will be organized in batches in collaboration with various training institutes like Entrepreneurship Development Institute, KITCO, RSETI (set up by NABARD), Centre for Management Development etc. • Upon successful completion of training, groups/individuals would be eligible for financial assistance under the scheme. The interest free loan assistance to a group of five persons will be limited to 90% of the total project cost subject to the ceiling of Rs.20 lakh. The ceiling will be reduced for smaller groups on pro rata basis. • The financial burden of interest on the loans would be borne by the Government. Technocrats who are not members of groups will be considered on individual basis for a maximum financial assistance of Rs.10 lakh. • The loan will be repayable in a maximum period of 5 years with the initial moratorium of one year. • The Government will bear the entire interest burden on the loans provided to the selected and trained entrepreneurs under the mission who set up the units successfully. • For financing the principal amounts, assistance of banks, NABARD and other financial institutions will be taken. Government will provide guarantee to Kerala Financial Corporation for raising funds from financial institutions. • For training of the selected entrepreneur, the funds would be mobilized from various agencies like NABARD, National Skill Development Corporation, SC/ST Development Department, Labour Department and other similar institutions. Balance amount will be provided by the Government. XIII Multipurpose Service Centres/Job Clubs The scheme is intended for the establishment of Multipurpose Service Centres/Jobs Clubs formed by groups of qualified and registered unemployed persons. The scheme is implemented through the Employment Exchanges in the State. The District Employment Officer with the help of Employment Officer concerned will select candidates for the scheme from the Live Register of Employment Exchanges and form

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State Industrial Profile, 2016-17 groups of candidates who have got same type of qualification after ascertaining their willingness. Thereafter entrepreneurial training is imparted to these groups. The maximum amount of loan admissible to each group will be ₹ 10 lakh depending upon the nature of the project; of which 10% of the project cost will have to be paid by the group members as beneficiary contribution. 25% of the loan amount subject to a maximum of Rs. 2.00 lakh will be given as subsidy.

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CHAPTER- 7 INDUSTRIAL POTENTIALITY IN THE STATE

7.1 INTRODUCTION

Kerala has abundant material resources in the State like the coconut and its bi- products, rubber, cashew, spices, plantains and fruit items which are under-utilized due to various socio-economic reasons. However, shortage is felt for forest resources like wood, honey and herbal plants, which are not sourced properly and made use of for economic gains. Rice production declined during the last year due to diversion of vacant land for unproductive purposes. However, the bi-products like hay and rice- bran etc. could be better utilised for production of feed, rice-bran oil etc. However, global trade situations have also affected adversely, to some extent, a wide spectrum of economic activities of the State. 7.2 POTENTIAL INDUSTRIES The State is endowed with a variety of natural resources in the area of Agriculture, Bio Technology, Fisheries, Dairy Sector, Forest, Food Processing, Rubber and Chemical Industries, etc. Kerala being a consumer State, a number of demands based items having scope for development especially in the field of Electronics, Information technology, Electrical, Fruit Processing, etc., can be identified for industrial development. Repairing and Servicing Industries are now catching up demand and the economy of the State largely depends on these sectors. Industries in the area of Software Development, Biotechnology, Simple Chemical and Engineering Goods also can flourish in the State using modern technology, skill and quality service to customers. Considering the immense potential, resources and infrastructure facilities available, there exists scope for development of a number of industries in the State. The State is endowed with a large number of Agricultural products like Coconut, Tapioca, Plantains, Cashew, Coffee, Tea, Rubber, Fruits like Pineapple, Mango, Papaya, Spices and Forest Products etc. Livestock, Milk and Milk products also can prosper in the

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State. There has been oft-repeated mention that most of the resources available in the State have not been utilized for industrial purposes to the optimum level due to divergent socio-economic factors and constraints. Due to improved training facilities available and the better infrastructure facilities for that, there exist prospects for a number of skill-based industries. With the setting up of KINFRA Parks for Information Technology, Textile, Food Processing, Fish Processing, Coir, Rubber, Electronic, Export Promotion, TV & Video etc., infrastructure resources improved substantially, in recent years, and that would act as an impetus for a healthy and sound industrial growth. Electric power that would be generated by the commissioning of various ongoing projects would take care of the future demand – undoubtedly a healthy symptom for growth of industries based on the Resources and Demands. 7.3 LIST OF ITEMS HAVING SCOPE IN KERALA

A list of items, not exhaustive, having scope for development in the State is given below:

A RESOURCE BASED INDUSTRIES

I. Agricultural Products

1. Refined Coconut Oil 2. Coconut Milk/Cream 3. Desiccated Coconut 4. Arecanut Processing 5. Coconut Shell Products (Handicraft Item) 6. Coconut Shell Powder 7. Coir Products 8. Spices and Curry Powder 9. Modern Rice Mill 10. Tapioca Chips 11. Beaten Rice 12. Banana Powder 13. Coffee Powder 14. Flower Mill 15. Dehydrated Green Pepper 16. Oleoresins/Spices Oils/Essential Oils

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17. Supari 18. Copra Processing. 19. Sagu Rice. II Fruit and Vegetable Products 1. Ready to serve Fruit Beverages 2. Vegetable Pickles 3. Fruit Preservation 4. Jack Fruit Processed Products 5. Ice Cream 6. Mushroom Processing 7. Banana Powder

III. Rubber Based 1. Rubber Moulded Goods 2. Centrifuged Latex 3. Rubber Mats 4. Rubberised Coir Products 5. Rubber Sheets 6. Rubber Chappals 7. Rubber Wood Treatment 8. Wood Seasoning, Panel, Doors etc. 9. Wooden Furniture

IV Chemical/Mineral 1. Mineral Water 2. Tyre Retreading 3. Corrugated Paper Boxes 4. Woven Sacks 5. Water for Injection 6. Washing Soap 7. Detergent Powder 8. Plastic Moulded Items 9. Anodising 10. Plastic Reprocessing 11. Paints and Primer 12. Perfumes and Lotions 13. Toilet Soap 14. Surgical Cotton 15. Printing Ink 16. Cycle Tyre and Tubes 17. Disposable Cups and Plates 18. Water Storage Tank 19. PVC Chappals

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20. Screen Printing 21. Prefabricated Building Materials 22. Decoration of Glass and Ceramic Wares 23. Glazed Tiles 24. Marble Cutting and Polishing 25. Stoneware Pipes 26. Spectacle Frames 27. Cement Concrete Blocks 28. Chalk Crayons 29. Computer Stationery Items 30. Prawn Culture 31. Aqua culture 32. Ornamental Fish V Mechanical 1. Agriculture Implements 2. General Engineering and Fabrication 3. Automobile Repairing and Servicing 4. LPG Cooking Range 5. Interior Decoration 6. Industrial Knives 7. Stainless Steel Watch Strap 8. Steel Furniture 9. Fibre Glass Products 10. Artificial Jewellery 11. Aluminum Doors and Windows 12. Rolling Shutter 13. Wheel Balancing (Automatic)

VI Electrical/Electronics 1. Emergency Lamp 2. Inverters 3. Uninterrupted power supply (UPS) 4. Electronic Toys 5. CFL Ballast 6. Small Transformers 7. Uruli Roaster 8. Other electronic items 9. PVC Wires 10. Tube light fittings 11. Auto & GLS Lamps 12. Computer Software 13. Voltage Stabilizer 14. Bottle Coolers

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B Demand Based 1. Cattle Feed 2. Poultry Feed 3. Bone Meal 4. Fish Meal 5. Readymade Garments 6. Sanitary Napkins 7. Artificial and Fresh Flower Bouquet 8. Hosiery Items 9. Umbrella 10. Biscuits 11. Fish Processing 12. Fish Pickles 13. Meat Processing 14. Other Meat Products.

C Skill Based Industries 1. Bell Metal Products 2. Synthetic Gem Cutting and Polishing 3. Diamond Cutting 4. Flower Nursery 5. Soft Toys 6. Beauty Parlour 7. Electronics Items (Rep. & Servicing Centre) 8. Orchid Culture 9. Wooden Handicrafts 10. Kannadi 11. Carved Furniture 12. Handicraft Items made out of Sea Shells 13. Block Printing 14. Thazhapai/Kutta/Muram etc. 15. Fashion Designing 16. Carving of Idols and Statues out of Stone 17. Leather Chappals. 18. School Bags (Rexine) 19. Children Shoes. 20. Dog Belts. 21. Screen printing. 22. Simple Chemical items like liquid soap, Phenoil, Liquid Blue. 23. 2/3 Wheelers Repairing & Servicing Shop. *****

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CHAPTER-8 WHOM TO CONTACT AND FOR WHAT

Sl N Activity Address o Micro, Small & Medium Enterprises Development Institute (Ministry of MSME, Government of India) Kanjany Road, Ayyanthole P.O. Thrissur – 680 003 (Kerala) e-mail: [email protected] e-mail: dcdi-

[email protected]

website: www.sisikerala.org.

website:www.msmedithrissur.gov.

in

Phone: 2360536, 2360686

Fax: 0487-2360216

Kerala State Industrial

Development Corporation,

Kowdiar, Thiruvananthapuram

Tel: 318922

Website: www.ksidc.org.

K-bip

Kerala Bureau of industrial

information,

Sree Ganesh, 9/2197, Kurup’s

Lane

Sasthamangalam P.O. 1. Thiruvananthapuram 2311882 Identification of Project Ideas, Technical Website: www.keralaindustry.org. Consultancy, Product Selection and Central Food Technological Research Assistance in Preparing Project Report, Institute Feasibility Report, Market Survey. CFTRI Mysore-570 020 Ph. 0821-2514534 Fax. 0821-2515453 E.mail: [email protected]. Web. www.cftri.com Kerala Industrial & Technical Consultancy Organisation Limited (KITCO) PB No. 1820

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Ravipuram, M.G. Road, Kochi- 682016 Ph. 0484-2354180, 2360409, Fax. 484-21374580 [email protected] web. www.kitco-cocin.com National Institute of Small Industry Extension Training, Yousufguda, Hyderabad-500 045 Ph. 040-23608544, Fax. 040- 23608547 E.mail. [email protected] Web. www.nisiet .org Central Electrochemical Research Institute Karaikudi-630006 Tamil Nadu Ph. 04565-227550 to 9 fax.04565-227713/227779 e.mail. [email protected] web. www.cecri.res.in Khadhi & Village Industries Board Vanchiyoor, Thiruvananthapuram-695035 Ph. 0471-2471696 Fax. 0471-2472113 e.mail [email protected] web. www.keralakhadi.org Community Canning and Preservation Centre Peace Home, TC No. 26/930. Panavila Junction, Thiruvananthapuram-695001 Ph. 0471-2331239 web. www.wed.nic.in Central Institute of Plastic Engineering and Technology TVK Industrial Estate, Guindy, -600 032 Ph. 044-22343960 [email protected]. web.www.cipetindia.com Central Institute of Medicinal and Aromatic Plants

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PO Cimap, Near Kukrail Picnic Spot, Lucknow-226 015 Ph. 0522-2359623 Fax. 0522- 2342666 e.mail. [email protected] web.www.cimap.res.in National Institute of Industrial Research, Kamala Nagar, P.O. Box. No. 2162, New Delhi- 110007 Ph. 011-23843955 Fax. 011-23841561 e.mail. [email protected]. Web. www.niir.org Weavers Service Centre, Madena Complex, 1st and 2nd Floor, South Bazaar, Kannur002 Ph. 0497-2700937 Fax. 0497-2711085 Director Directorate of Industries and Commerce Vikas Bhavan P.O. Micro, Small and Medium Enterprise Thiruvananthapuram. Kerala- 2 Registration 695033 Phone +91-471-2302774 Fax. No. +91-471-2305493 Website: www.keralaindustry.org /Promotional_DI&C.htm Assistant District Industries Officers/Industries Extension Registration of Small Scale Industries 3. Officers of Taluk Industries Offices (Provisional/ Permanent SSI Registration) of the concerned area. or District Industries Centres. Secretariat for Industrial Letter of Intents/ Industrial Licenses for Assistance, items placed under compulsory Licence Udyog Bhavan, and to issue industrial entrepreneurs 4. New Delhi-110 011 memorandum IIEM) for manufacture of Ph. -11-3011983 Fax. 011-3011034 items not covered under compulsory E.mail. [email protected] Industrial Licence and MSME sector Web. www.indmin.nic.in 5. Promotional & Financial Assistance for Managing Director

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setting up Medium and Large Scale Kerala State Industrial Industries Development Corporation, (KSIDC) Kowdiar, Thiruvananthapuram, Kerala Ph. 0471-2318922, Fax. 0471- 2315893 e.mail [email protected]. www. ksidc. org Registrar of Firms (I.G. of Regn.) Company formation and Registration of Near Collectorate, Vanchiyoor, 6 firms (proprietorship/partnership firms) Thiruvananthapuram-695035 Ph. 0471-2463597, 2471458 Registrar of companies, M.G. Road, Ernakulam Private Ltd//Public Ltd. Companies 7. Ph. 0484-2361424 Registration of firms E.mail [email protected] web. www.nic.in/dea Employees State Insurance Corporation, Panchadeep Bhavan, North Swaraj Registration under ESI Act (applicable for 8. Road, Thrissur-680 020 units employing 20 or more workers Ph. 0487-2331241 fax. 0487-2338441 [email protected] web www.esic.nic.in MSME-DI, Thrissur Centre for Management Development Thycaud, Thiruvananthapuram-14 Tel: 0471-2320101(3 lines) Industries Department The Director Small Entrepreneurs Promotion & 9. Training in industrial Management and Training Institute, Entrepreneurial Development P.B. No.7 Ettumannur, Kottayam – 680 631 Small Entrepreneurs Promotion & Training Institute (SEPTI), Thiruvalla Institute for Management Development 34/1874-A, 1st Floor, Mettepadath Bldg. MSME-Development Institute, Thrissur 184

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Mamangalam, Kochi – 682 025 Palghat Management Association Management House, Marutharode, Palakkad DICs of respective Districts Kerala Small Industries Development Corporation of respective Districts

10 Local Body License Local Bodies / (Contact respective district DIC for details) Technical Resource Centre, MSME- DI, Thrissur 11 Marketing & product information NSIC Ltd., Thrissur, Ernakulam and Thiruvananthapuram KSIDCO of respective Districts Bureau of Indian Standards Door No.14/11421 Palayam 12 ISI Marks and Allied Details Thiruvananthapuram, Ph.0471- 2327215 The Chairman, Kerala Productivity Council Testing of Products & Allied Information Post Box No.8, HMT Road, Kalamassery – 683 104 Tel: 2855526 Regional Testing Centre, 65/1 G S T Road, Guindy, Chennai 13 Research and Testing Laboratories – 32 Tel: 044-2343634 MSME-TI, Ministry of MSME Manjadi P.O, Tiruvalla 689 105 Testing phone: 0469 2701336, Fax:04692738465 e-mail: [email protected] Central Electrochemical Research Institute, Chemical & Food Based Industries Ernakulam- 680 017 14 Metallic, Mineral, etc. Regional Research Laboratory, Pappanamcode Thiruvananthapuram-695 019 Government Analysis Laboratory 15 Food Processing and Chemicals Malaparamba, Calicut

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Government Analysis Laboratory Near , Kakkanad, Ernakulam CEPC Laboratory The Cashew Export Promotion Food Processing, Cashew, Spicesb Council of India Products, Herbs, Marine Products, 16 Post Box No. 1709, Chittoor Road Beverages, Fruits and Vegetables, Serials Ernakulam South, Cochin – 682 and Pulses 016 Tele: 2361549, 2370973 State Agmark Grading Laboratory Laboratory Building 17 Agmark Nalanchira P.O., Thiruvananthapuram Centre for Materials for Electronics Technology, Mulamkunnathukavu Thrissur – 680 581 Tele: 2201757, 2201156-59 18 C-MET & Materials Fax:0487-2201347 email:[email protected], [email protected]

The Technical Officer Central Drugs, Standard Control Organisation, 19 Chemical Drugs & Standards Customs House, Ernakulam Chemical Examiners Laboratory Thiruvananthapuram Electronic Research and Development Centre, Vellayambalam, Thiruvananthapuram Electronic Regional Test Laboratory Vellayambalam, 20 Electronics, ERTL, DE, CEDIT Thiruvananthapuram Electronics Regional Test Laboratory (South) Standardization Testing & Quality Certification Directorate Department of Electronics Govt. Of India Vellayambalam,Thiruvananthapur MSME-Development Institute, Thrissur 186

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am – 695 033 Centre for Electronics Design and Technology of India (CEDIT) Calicut Ayurveda Research Institute Medical Research 21 Poojappura, (Ayurveda Research Institute) Thiruvananthapuram Regional Research Institute, 22 RRL Poojappura, Thiruvananthapuram Regional Conservation Laboratory 23 RCL (Archaeology) Thiruvananthapuram Rubber Research Institute of India 24 RRI Rubber Board, Kottayam – 9, Kerala Kerala State Productivity Council Productivity House, P.B. No.8 25 Kerala State Productivity Council HMT Road, Kalamassery-683 104 Tele: 2855526, 2855367 Cochin University of Science & Technology 26 CUSAT Cochin University P.O. Cochin – 682 022 (Kerala) Phone: 0484-2555039 Director General of Technical Development 27 Technical Development Udyog Bhavan New Delhi through Industry Department

28 For Registration of Factory Act Inspector of Factories of the respective Districts Chairman, Kerala State Pollution Control Board, Palamood Junction For Clearance under Pollution Control 29 Pattom Palace P.O. Rules Thiruvananthapuram – 695 004 Tel: 2438133, 2438154, 2438152 Pollution Control Board in respective Districts 30 Khadi Village Industries

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Director, Khadi and Village Industries Board, Vanchiyoor, Thiruvananthapuram The Director, Dairy Development 31 Dairy Development Government of Kerala, Thiruvananthapuram The Director Kerala State Horticultural Products 32 Horticulture Development Development Corporation Poojappura Thiruvananthapuram The Director Coconut Development Board 33 Coir/Coconut based Industry Promotion Kerala Bhavan, Kochi – 682 011 Telephone: 2354216 Coir Board, M G Road, Ernakulam The Director The Spices Board Government of India 34 Spices based Industry Promotion P.Box No.2277 Palarivattom By-Pass Junction Cochin -25 Tele: 2333602 The Director Rubber Board 35 Rubber Ministry of Commerce Government of India, Kottayam Tel: 0481-2578311-7 Lines Rubber Park India (Pvt.) Ltd. Kochi 5th Floor, Penta Tower, Kochi Developing infrastructure facilities 36 Rubber Park for industrial park exclusively for rubber and rubber wood based industries E.mail: [email protected] The Director Handloom & Textiles 37 Handloom & Textiles Government of India Thiruvananthapuram

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The Director of Fisheries Department of Fisheries 38 Fisheries Government of Kerala Secretariat, Thiruvananthapuram Extend refinance facilities to Banks for NABARD extending term loans for setting up of General Manager small village and tiny industries in the National Bank for Agriculture & 39 rural areas. Also extend grant assistance to Rural Development registered voluntary agencies, charitable Thiruvananthapuram institutions to take up promotion schemes. E.mail : [email protected] Website: www.nabard.org National Institute for Entrepreneurship and Small NIESBUD Business Development, New Organising EDPs, holding Seminars, 40 Delhi-110 020 conducting Trainers Training Programmes, Ph. 6826533, 6826505. Fax. 11- etc. 6826811

The Coconut Development Board Govt. of India, Min. of Agriculture, The Coconut Development Board 41 Kera Bhavan

Cochin-16 Ph. 2369248, 2362237 Kerala State Pollution Control Board, Trivandrum-4 Approval of Factory Building, Factory Ph. 0471-2318153 42 registration and renewal of licences Fax. 2318152 E.mail: [email protected] Website: www.keralapcb.org Approval of High Voltage and Medium Chief Electrical Inspectorate, Voltage installations, installations of 43 Housing Board Bldg. Generator of 50 Kilo Watts and above. Trivandrum-1

SIDBI Principal financial institution for the General Manager promotion, financing and development of Small Industries Development industries in the small scale sector and for Bank of India, M G Road, 44 co-ordination of the institution engaged in Ravipuram similar activities. Cochin – 682 015 Tel: 2366788

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Provides direct financial assistance for Industrial Finance Corporation of setting up medium large industrial projects India (IFCI) to Ltd. Companies in public, joint or PB No. 4265 45 private sector or Co-operative Societies, for Br. Office Panampilly Nagar projects with capital cost of over ₹ 300 Kochi-36 lakhs only Tel. 0484-2311174 National Centre for Jute NCJD Diversification (NCJD) CIT To provide and create necessary Scheme VIII (in) Titadange, 46 infrastructural facilities and conditions Calcutta-700 067 conducive to the development of jute, jute Ph. 351-3269/3373/9818 Fax. 33- products and Diversified jute products. 351-3270

ANERT To gather and disseminate useful ANERT, Pattom PO, Trivandrum 47 knowledge in various fields of renewable

energy sources, Energy Conservation and rural Technology. IREDA Indian Renewable Energy Promoting , developing and extending Development Agency Ltd. Lodi 48 financial assistance for Projects relating to Road, N, New Delhi 110 003 Renewable Energy and Conservation Kerala Industrial Infrastructure Development Corporation, KINFRA House, 32/2312, Sasthamangalam, Trivandrum- 695010 Ernakulam, Ph. 2415796, Fax. 2424877 KINFRA – Small Industries Parks KINFRA (K-BIP) are located at Thumpa in 49 Provides infrastructure across the state and Trivandrum, Mazhuvannur in woo potential investors across the world. Ernakulam, in Kannur, Seethangoli in Kasargod, Kakkancherry in Malappuram in Thrissur, in “Wayanad, Kunnamthanam in Pathanamthitta SEZ for Animation and Gaming in TVPM, SEZ for Electronics, Kochi KSIDC Kerala State Industrial Merchant banking equipment leasing. Development Corporation Limited 50 short term loans, loans and short term Trivandrum: Keston Road, corporate loans, equipment refinance, Kowdiar, Kerala - 695 003 India

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venture sourcing project appraisal and Phone: 0471-2318922 Fax: 2315893 feasibility, Management consultants. Cochin: II Floor Choice Towers, Manorama Junction, Kerala – 682 016 Phone: 0484-2323010, 2323101 Fax: 2323011 E-mail: [email protected] WebSite: www.ksidc.org

Kochi, Choice Towers, Kochi- 682016 KVIC Registration of Khadi and Village 51 Provides assistance for Khadi Industrial Co-operative Society Units/Individuals. Director of Coir Development, 52 Coir Board Coir Bhavan, Trivandrum Tel. 322046 Fax. 0821-2517233 Bureau of Indian Standards, Palayam, Trivandrum-34 Ph. 53 BIS 2327215/2339174 E mail [email protected], website: www.bis.org.in Operates various schemes to assist the sea MPEDA 54 food industries Director General of Supplies and DGS&D Disposals 55 Rate Contract under Govt. Stores Purchase Madras-6 Programme.

Adviser, Agricultural Marketing, AGMARK 56 6th Cross Road, W. Island, Cochin. For AGMARK Registration.

Agricultural Marketing Adviser, AGMARK Directorate of Marketing and 57 Agmark Quality Certification of dal oil, Inspection, Faridabad-121001 ghee, honey, spices

Industrial Development Bank of India Provides technical and administrative assistance for promotion or expansion of IDBI, Panampilli Nagar, Kochi-36 industry. Extents direct assistance to 58 Ph. 0484-2318889 Public Limited Companies and Co-

operative societies and to private limited Companies in exceptional cases for financing new projects and also for

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expansion and diversification of existing ones. Normally assistance is confined to projects with investments over ₹300 lakhs. Provides soft loan assistance for modernization. Operates Technical Development Fund Scheme. IFCI Provides direct financial assistance for setting up medium large industrial projects PB No. 4265 to Ltd. Companies in public, joint or 59 Panampilly Nagar private sector or Co-operative Societies, for Kochi-36 project with capital cost of over ₹ 300 lakhs only. Industrial Finance Corporation of India Industrial Credit and Investment ICICI Corporation of India Assists Industrial enterprises by providing Madras-18 60 finance in both rupees and foreign Ph. 044-4364621-28 currencies in the form of loans or medium Fax: 4330097 term loans or equity participation etc. Website www.icicibank.com

Arrange for essential imports of raw materials other than those supplied by State Trading Corporation of India MMTC (STC) Ltd. 61 Import of non-ferrous raw materials like New Delhi Tin, Tin waste, Aluminium ingot, EC grade Alu Zinc, Copper ingot, Sulphur etc. Kerala Financial Corporation Vellayambalam, Thiruvananthapu KFC ram - 695033 Consultancy service for project ideas, E-mail : [email protected] selection and development liaison, surveys Tele :0471 - 2318319 Fax : 0471 – and feasibility reports. Finances for seed 2318541 capital and Term Loans for industrial

units, hospital, Genset Etc. Assistance to KINFRA 62 Women Entrepreneurs (Mahila Udyog KINFRA house Nidhi) Schemes for Technocrafts SC/ST. 14/1026, Vellayambalam, Single Window Scheme provides term loan Thiruvananthapuram, Kerala-695 and working capital to new tiny & SSI 010, units Equipment Leasing Scheme. ISO Ph:0471-324285 Fax:0471-324473. 9000,ll E- Discounting scheme. mail:[email protected] n

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Provides technical and administrative assistance for promotion or expansion of industry. Extends direct assistance to Industrial Development Bank of Public Limited Companies and Co- India (IDBI) operative societies, and to private limited Br. Office: Panampilli Nagar, Companies in exceptional cases for Kochi-36 financing new projects and also for Ph. 0484-2318889, 63 expansion and diversification of existing 2322157/58/2312964 ones. Normally assistance is confined to Fax. 2319042 projects with investments over ₹ 300 lakhs. Website: idbi.com Provides soft loan assistance for Head Office IDBI Tower modernisation, Operates Technical WTC Complex, Cuffe Parade Development Fund Scheme. -400 005

CFTRI CFTRI, Chalevamba Mansion, Providing Technical advice in setting up of Mysore, 64 Food based industries and is responsible Karnataka-570 020 for Education, Training and Research in

the area of Food, Science and Technology. Ministry of Food processing FPO mark and subsidy for food processing Industries, Govt. of India 65 industries. Panchasheel Bhavan

New Delhi Dy. Director, Fruit and Vegetables Preservation, Madras-6 Fruit Products Order (FPO) License. 66 Office, The Food and Nutrition

Board, 15, Haddows Road Chennai-600 006 Conducts Management Development Centre for Management Programmes. Entrepreneur Development Development(CMD) 67 Programmes, Management Research etc. CV Raman Pillai Road Thycaud, Trivandrum-14

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Ph. 2328737.2331253

Provides a range of Credit risk . (Commercial risk and Political risks) Export Credit Guarantee insurance covers to exporters against loss Corporation of India Ltd/ (EGC) in export of goods and services. Offers 682016 68 guarantees to banks and financial HDFC House, MG Road, institutions to enable exporters to obtain Ravipuram, Kochi-15 better facilities from them. Feedback Ph. 2359457.2359437 export about foreign buyers Fax. 0484-2359016 Board for Industrial and Financial Helps to revive and rehabilitate Sick Reconstruction (BIFR), II Floor 69 Industrial Units. Ansai Chambers, II Bhikaji Came Place RK Puram, New Delhi-110066 Import of non-ferrous raw materials like The Minerals and Metals Trading Tin, Tin waste, Aluminium ingot, EC grade 70 Corporation of India (MMTC) Ltd. Alu Zinc, Copper ingot, Sulphour etc. New Delhi

Promoting developing and extending 71 financial assistance for Projects relating to ANERT, Pattom PO Renewable Energy and Conservation Trivandrum.

ADDRESSES OF SOME PROMOTIONAL AGENCIES OF THE STATE GOVT.

Business Development Manager - Business Development Technopark Campus Thiruvananthapuram - 695 581 Phones: 0471-2700 222 Fax: 0471-2700 171. E.mail: [email protected]

General Manager Kerala Bureau of Industrial Promotion 'Sri Ganesh', TC IX/2197 Kurup's Lane, Sasthamangalam P.O., Thiruvananthapuram - 695 010 Phone: 0471-2311882, Fax: 2311883 E-mail: [email protected]

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Bureau of Indian Standards Thiruvananthapuram Branch Office TC/14/1421 University P.O. Thiruvananthapuram-695034 Phone: 0471-322117, 327215, 322104 Fax: 0471-322117, 327215 E.mail [email protected], Website: www.bis.org.in

KITCO Limited P.B. No. 1820, Ravipuram M.G. Road, Cochin-682016, Kerala Phone: 0484-354180/360409, 382408 Fax No. 0484-374580 E.mail [email protected]

Natural Centre for HACCP Certification 'Sri Ganesh' TC IX/2197 Kurup's Lane, Sasthamangalm Thiruvananthpuram – 695 010 Tel. 0471-2311882, Fax. 0471-2311883 E.mail [email protected] website: www.haccpindia.org, www.keralaindustry.org

Directorate of Coir Development Nandanam, Palayam Thiruvananthapuram Phone: 047-322046, 0471-322046 www.keralaindustry.org/kerala_coirp.htm

SIDCO Santhinagar Thiruvananthapuram-695001 Phone: 0471-330613, Fax.0471-330904 www.keralaindustry.org/promotional_SIDO

Director Directorate of Industries and Commerce Vikas Bhavan P.O., Thiruvananthapuram Kerala – 695 033 Phone 0471-2302774, Fax. No.0471-2305493 www.keralaindustry.org/Promotional_DI&C.htm

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