BEKAL FORT IN KASARGOD, KERALA
KERALA GOD’S OWN COUNTRY
For updated information, please visit www.ibef.org April 2018 Table of Content
Executive Summary……………….….…….3
Advantage State …………………..….…….5
Kerala Vision 2030 …………………..……..6
Kerala – An Introduction……….…….……..7
Budget 2016-17…………...………………..18
Infrastructure Status...... 19
Key Industries…….………...... …………….46
Doing Business in Kerala…….………...... 65
State Acts & Policies…….………...... ……..73 EXECUTIVE SUMMARY … (1/2)
Cultural diversity and . Kerala is known as God’s own country. It is one of the few states to have marketed its natural beauty well developed tourism successfully to the leisure tourism sector. The state’s unique heritage and cultural diversity have helped sector attract tourists from the world over.
Highest literacy and sex . As of census 2011, Kerala has the highest literacy rate of 94.0% and sex ratio of 1,084 women for 1,000 men, ratio in India. Male literacy rate in the state stands at 96.10%, among all states.
Largest recipient of . In 2016-17, Kerala received NRI remittances of US$ 22.71 billion. Remittances to the state are estimated at foreign remittances in 36.3% of the net state domestic product in 2016. the country
Ranks second in . Kerala holds second rank in the Investment Climate Index followed by Karnataka, as per a policy research Investment Climate working paper by the World Bank. The state stands second due to its world-class infrastructure and well- Index trained human resource pool.
Source: Economic Review of Kerala 2014-15 , NRI Achievers Bureau, MIGRATION AND DEVELOPMENT BRIEF 27 by World Bank, SLBC Kerala
3 KERALA For updated information, please visit www.ibef.org EXECUTIVE SUMMARY … (2/2)
Strong agricultural . Kerala is a leading agricultural state in the country & the largest producer of rubber, pepper, coconut & coir. As per budget 2018-19, Government of Kerala has proposed an outlay of US$ 1,131.75 million for the sector Agriculture, Animal Husbandry and Co-operation.
First international . Kerala has the 1st international transhipment terminal in India, having a design capacity of around 4 million container transhipment TEUs & providing better connectivity between Kerala & other ports in India. terminal
Presence of world class . Kerala has been promoting knowledge-based industries such as IT/ITeS, computer hardware & biotechnology. It is the first state having a technology park with CMMI level 4 quality certification & a world- technology park class IT campus in Thiruvananthapuram.
Cargo Traffic in Cochin . The total cargo traffic handled by Cochin port during 2016-17 was 25 million tonnes, recording an increase of 13.16% against 22.09 million tonnes for the year 2015-16. Cargo Traffic during April 2017-March 2018 Port reached 29.14 million tonnes.
Source: Economic Review of Kerala 2014-15 , Kerala IT Policy, TEU’s = Twenty-foot Equivalent Unit Rubber Board, Ministry of Commerce and Industry, Government of India, Department of Economics and Statistics, Kerala, Kerala State Co-operative Rubber Marketing Federation, Cochin Port Trust, New Indian Express, State budget 2018-19
4 KERALA For updated information, please visit www.ibef.org ADVANTAGE: KERALA
2017 2021E
Foreign High economic growth Leader in tourism Foreign tourist tourist . Kerala’s gross state domestic product (GSDP) surged at . In 2015, Kerala was rewarded as the winner of PATA arrivals: arrivals: a compound annual growth rate (CAGR) of 11.13% awards by Macau Government Tourism Office (MGTO) 1.09 million between 2011-12 and 2016-17. 3 million . BBC Travel survey has rated Kerala as the top favourite . Kerala is the leader in rubber production; high demand tourist destination among foreign travellers. of rubber has opened up immense opportunities for the . Foreign tourist arrivals increased by 5.11% during 2017 state in the rubber industry. over 2016.
Advantage Kerala
Rich pool of skilled labour Policy and . Kerala has a large base of skilled labour, making it an infrastructure support ideal destination for knowledge-intensive sectors. . Kerala has a wide range of fiscal and policy incentives . The state has the highest literacy rate in the country. for businesses under the Industrial and Commercial . It has a large pool of semi-skilled and unskilled Policy and has well-drafted sector-specific policies. labourers. . It has a well-developed social, physical and industrial infrastructure and virtual connectivity, and good power, airport, IT, and port infrastructure. E-governance initiatives will further strengthen transparency and bridge digital divide.
Source: Economic Review of Kerala 2014-15, Tourism Vision 2030, kerala Tourism
5 KERALA For updated information, please visit www.ibef.org KERALA VISION 2030
. Affordable and clean power to all. . Exploit the full potential of hydro-electric . Green, sustainable and safe generation. transport. . 100% electrified households with 24*7 availability.
. Growth oriented labour welfare policy. Transport Energy . Provide high quality education at . Connecting labour supply with affordable rates. demand. . Create a global brand name in . Increasing employment opportunities. Labour education and develop into a Education knowledge hub by 2030. Vision 2030 . Increase health expenditure to . Increase the share of manufacturing Industry Health GSDP ratio from 0.6% in 2012 to 4- to 10% of the GSDP by 2030. 5% by 2027−31. . Sustained increase in employment Agriculture & . Set up three medical cities by 2030. in manufacturing. Forestry livestock . Provide health insurance cover to all.
. Increase the share of forestry in . Shift from subsistence farming to GSDP to 0.5%. highly knowledge intensive, competitive farming. . Increase the productivity of forests through improved management of . Self sufficiency in supply of fish, resources. meat, milk and other dairy products to the local market.
Source: Government of Kerala
6 KERALA For updated information, please visit www.ibef.org KERALA FACT FILE
. There are 44 rivers flowing through Kerala, the major ones being Periyar (244 km), Bharathapuzha (209 km) and Pamba (176 km). Out of these 44 rivers 41 are west flowing and 3 are east flowing.
Parameters Kerala
Capital Thiruvananthapuram
Geographical area (sq km) 38,863
Administrative districts (No) 14
Source: Maps of India Population density (persons per sq km) 860 . Kerala is located along the coastline to the extreme south-west of the Total population (million) Indian peninsula, flanked by the Arabian Sea on the west and the 33.41 mountains of the Western Ghats on the east. The state has a 580 km Male population (million) 16.02 long coastline.
. Malayalam is the most commonly spoken language. Hindi, English Female population (million) 17.38 and Tamil are the other languages used. Sex ratio (females per 1,000 males) 1,084 . Kochi, Kozhikode, Kollam, Thrissur, Alappuzha, Palakkad, Thalassery, Ponnani and Manjeri are some of the key cities in the Literacy rate (%) 94.6 state.
Source: Kerala at a glance, Economic Review of Kerala,2014-15 , Government of Kerala website, Census 2011, Central Statistics Office
7 KERALA For updated information, please visit www.ibef.org KERALA IN FIGURES … (1/2)
Parameter Kerala All states Source
Economy 2016-17 2016-17
“Advanced Estimates” provided by Directorate of GSDP as a percentage of all states’ GSDP 4.05 100.0 Economics and Statistics of Kerala
“Advanced Estimates” provided by Directorate of GSDP growth rate (%) 10.59 10.8 Economics and Statistics of Kerala
“Advanced Estimates” provided by Directorate of Per capita GSDP (US$) 1,181.15 1,750.29 Economics and Statistics of Kerala
Physical Infrastructure
Installed power capacity (MW) 5,074.72 344,002.39 Central Electricity Authority, as of March 2018
Telecom Regulatory Authority of India, as of Wireless subscribers (No) 41,354,707 1,156,867,852 February 2018
Telecom Regulatory Authority of India, as of Internet subscribers (No) 18,930,000 445,960,000 December 2017
National highway length (km) 1,782 115,435 NHAI & Roads and Building Department
Major and minor ports (No) 1+17 13+187 India Ports Association
Airports (No) 3 125 Airports Authority of India
8 KERALA For updated information, please visit www.ibef.org KERALA IN FIGURES … (2/2)
Parameter Kerala All states Source
Social Indicators
Literacy rate (%) 94.6 73.0 Census, 2011
Birth rate (per 1,000 population) 14.3 20.4 SRS Bulletin September 2017
Investments
Department of Industrial Policy & Promotion, From FDI equity inflows (US$ billion) 1.93 368.053 April 2000 to December 2017
Industrial Infrastructure
DEA, Ministry of Finance, Government of India, PPP projects completed & operational (No) 152 9,066 April 2018
Exporting SEZs (No) 19 222 SEZ India, as of December 2017
PPP: Public-Private Partnership, SEZ: Special Economic Zone, SRS: Sample Registration System
9 KERALA For updated information, please visit www.ibef.org ECONOMIC SNAPSHOT – GSDP
GSDP of Kerala at current prices (US$ billion) Per Capita GSDP of Kerala at current prices (US$)
40.00 CAGR 11.13% 7 1,100 CAGR (In Rs) 10.69% 80000
35.00 70000
6
1,050
30.00 60000
1,081
37.23
6.17 5
1,000
34.52
72,535
25.00 5.58 50000
32.47
1,044 68,359
4
5.13
30.54
29.49
28.89
20.00 950 994 40000
4.65 59,894
3 55,098 971
15.00 4.12 30000
49,254 3.64 900
10.00 2 45,538 20000 914 850 907 5.00 1 10000
0.00 0 800 0
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
US$ billion Rs trillion US$ Rs
. At current prices, Kerala’s GSDP was about Rs 6.17 trillion . The state’s per capita GSDP^ stood at Rs 72,535 (US$ 1,081) (US$ 37.23 billion) in 2016-17. during 2016-17 as compared to Rs 45,538 (US$ 971) during . The state’s GSDP recorded a CAGR of 11.13 per cent 2011-12. between 2011-12 and 2016-17. . Per capita GSDP increased at a CAGR of 10.69 per cent . Growth was mainly driven by secondary and tertiary sectors. between 2011-12 and. 2016-17
Source: Directorate of Economics and Statistics of Kerala, Per Capita GSDP^ - calculated using GSDP million US$/Population in million
10 KERALA For updated information, please visit www.ibef.org ECONOMIC SNAPSHOT – NSDP
NSDP of Kerala at current prices (US$ billion) NSDP per capita of Kerala at current prices (US$)
CAGR (In Rs) 11.23%
90.00 6 2,500.00 CAGR (In Rs) 10.69% 180,000
80.00 160,000
5 2,400.00
70.00
5.58 140,000
83.24 2,300.00
60.00 5.04 4 120,000
76.98
75.33
4.61
68.97
50.00 2,200.00 2,425.37 68.41
68.21 100,000
4.17 3
162,717.91
40.00 3.71 80,000
2,100.00
147,552.48 3.28 30.00 2
135,537.49 60,000
2,254.09
2,000.00
123,387.70
2,216.48
20.00 40,000
1 110,313.73
97,912.42
10.00 1,900.00
2,025.96 2,039.47
2,041.97 20,000
0.00 0 1,800.00 0
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
2014-15 2011-12 2012-13 2013-14 2015-16 2016-17
US$ billion Rs trillion US$ Rs
. At current prices, Kerala’s NSDP# was about Rs 5.58 trillion . Kerala’s per capita NSDP& was Rs 162,717.91 (US$ 2,425.37) (US$ 83.24 billion) in 2016-17. in 2016-17 compared to Rs 2,041.9 (US$ 2041.9) during 2011- . NSDP of the state grew at a CAGR of 11.23 per cent between 12. 2011-12 and 2016-17. . Per capita NSDP of the state grew a CAGR of 10.69 per cent between 2011-12 and 2016-17.
Source: “Advanced Estimates” provided by Directorate of Economics and Statistics of Kerala,
11 KERALA For updated information, please visit www.ibef.org ECONOMIC SNAPSHOT – PERCENTAGE DISTRIBUTION OF GSDP
. In 2016-17, the tertiary sectorµ contributed 56.13% to the state’s VisakhapatnamGSDP composition port traffic by (million sector tonnes) GSDP at current prices, followed by the secondary sector contributing 20.85%. 100% . The tertiary sector grew at a CAGR of 12.38% between 2011-12 and 53.08% CAGR 56.13% 2016-17. Growth was driven by storage, transport, financial and real 90% estate segments. 80% . The secondary sector grew at an average rate of 6.94%, between 2011-12 and 2016-17. Growth was led by manufacturing, 70% construction, electricity, gas & water supply. 12.38% 60% . The primary sector expanded at an average rate of 7.46% between 2011-12 and 2016-17, mainly supported by growth across agriculture 50% and mining & quarrying segments. 40% 25.26% 20.85% 30% 6.94%
20%
10% 14.04% 7.46% 11.87%
0% 2011-12 2016-17
Primary Sector Secondary Sector Tertiary sector
Source: Directorate of Economics and Statistics of Kerala Economic Survey, Sector-wise%share of GSDPµ -Geometric mean of YoY calculation from 2004-05 to 2014-15
12 KERALA For updated information, please visit www.ibef.org ECONOMIC SNAPSHOT – AGRICULTURAL PRODUCTION
. Agriculture, Forestry and Fishing contributed 12.24% to Kerala’s Crop Annual production – 2016-17 (‘000 MT) gross state value added in 2015-16. Kerala is one of the leading Total food Onion 0.28 450.3 pepper and rubber producers in the country. grains Fruits* 5,158.35 Rice 448.4 . As per budget 2017-18, the state government allocated US$ 326.88 million for agricultural sector, US$ 15.83 million for soil and water Plantation* 4,659.30 Pulses 1.7 conservation sector, US$ 47.81 million for animal husbandry, US$ Mango 376.08 Nutmeg 14.19 15.06 million for dairy development and US$ 90.91 million for fisheries. On other hand, under the 12th Five Year Plan, US$ 1.46 Grapes 15.50 Vegetables* 5,656.99 billion was allocated for agriculture and allied sectors in the state. Pepper 30.47 Cocoa 7.15 . In November 2016, Kerala agreed to implement Food Security Law Tea^ 59.65 Turmeric 6.50 in the state. As per the law, the government will make available 5 kg of highly subsidized food grain at Rs 1-3 per kg, to each person in the state per month.
. Production of fruits, plantation and vegetables in 2017-2018 was 5,158.35, 4,659.30 and 5,656.99 thousand million tonnes respectively.
. Production of tea was 59,600 million tonnes between April 2017- February 2018.
Note: (2)m.kg 2017E, *2nd advance estimates for 2017-18, ^ - April 2017-February 2018 Source: Department of Economics and Statistics, Kerala, Department of Agriculture Cooperation And Farmers Welfare
13 KERALA For updated information, please visit www.ibef.org ECONOMIC SNAPSHOT – EXPORTS
. Value exports from Kerala increased from US$ 4,028 million in 2013- Total exports turnover from CSEZs (US$ million) 14 to US$ 4,220 million in 2014-15.
. Exports of non-basmati rice from the state increased from US$ 28.96 7,000.0 million in 2015-16 to US$ 33.52 million in 2016-17, and were US$
6,000.0 25.21 million for the period April-November, 2017. In 2015-16, exports of non-basmati rice from Cochin SEZ were valued at US$ 5,000.0
28.92 million. 4,000.0
6,108.64
5,998.80
3,000.0 Exports break-up, Cochin Special Economic Zone Port (2014- 2,000.0 1,486.54 15) 4,109.16 3,709.03 740.06
1,000.0 334.17 2,532.19 Sectors (US$ million) - Agricultural products 252.22(1)
2014-15 2009-10 2010-11 2011-12 2012-13 2013-14 2015-16 Electronics hardware 76.84 2008-09 Engineering 4.39 . Exports of basmati rice from the state, in value terms, increased from US$ Gem & jewellery 47.25 112.44 thousand in 2014-15 to US$ 175.82 thousand in 2015-16, and were IT and ITeS 77.73 US$ 36.17 thousand for the period April-November, 2017. Exports of Miscellaneous 59.16 floriculture products from the state stood at US$ 3.64 million in 2016-17 and were US$ 2.30 million for the period April-November, 2017, while Plastic and rubber products 14.36 exports of fruits and vegetable seeds from the state was recorded at US$ Textiles & garments 15.21 0.83 million during the same period.
Trading 11.25 . Exports from Electronics Technology Parks – Kerala, increased 22.55% in 2015-16 to reach US$ 970 million.
Source: Office of the Development Commissioner, CSEZ - Cochin Special Economic Zone (1)2015-16, APEDA, Kerala Economic Review 2016
14 KERALA For updated information, please visit www.ibef.org ECONOMIC SNAPSHOT – FDI INFLOWS & INVESTMENTS
. According to DIPP, during April 2000 to December 2017, FDI FDIVisakhapatnam equity inflows, port2008 traffic-09 to (million2016-17 tonnes)(US$ million) inflows into the state (including Lakshadweep) reached US$ 1.93 billion. 500
. The state government has sanctioned investments of US$ 100
million, US$ 156 million & US$ 8.3 million for the Vizhinjam 400 471 454 International Seaport project, Kochi Metro Rail Project & for land 300 acquisition for Kozhikode & Thiruvananthapuram international
airports respectively. 200
230
. The Government of Kerala is also planning to launch 72 70
100 171
“Magnificent Canals” program during 2016-17, for controlling the 37
128
90 82 investments & capitalising on the potential of tourism sector in 0 the state. The program would deal with the development of
select canal stretches under the PPP model in order to boost
2013-14 2008-09 2009-10 2010-11 2011-12 2012-13 2014-15 2015-16 2016-17 tourism in the state. 2017-18*
. In January 2017, several companies have planned to make . Further, the state government has also decided to propose a tax investments worth US$ 446.23 million in, Infopark Phase-II & reduction from 14.5% to 5% for attracting investments across generate employment for around 20000 IT professionals automated robotic car parking system, during 2016-17. . In January 2018, the Chief Minister of Kerala proposed a . In March 2017, Kerala Infrastructure Investment Board (KIIB) chamber of commerce using which expatriate businessmen will cleared basic development projects worth US$ 1.19 billion, which be able to invest funds into profitable and job-generating include development projects for physical infrastructure such as mercantile ventures in Kerala. roads, bridges, potable water, health, education, SC/ST development and power transmission grid.
Note #: Public-private partnership, 2017-18* - April – December 2017 Source: DIPP - Department of Industrial Policy & Promotion, 1Including Lakshadweep, Government of Kerala,
15 KERALA For updated information, please visit www.ibef.org KERALA STATE BUDGET 2018-19
Annual Budget 2018-19
Sector Investment (US$ million) Sector Investment (US$ million)
Education 3,170.82 Roads and bridges 224.59
Medical and Public Health 1,339.51 Ports Department 16.99
Other Social Services 1,892.07 Electricity Sector 286.38
Agriculture, Animal Husbandry and Co- 1,131.75 Arts and Cultural Field 22.24 operation
Irrigation 194.08 Coir Industry 32.59
Public Works 754.24 Fishery Sector 92.68
Industries, Labour and Employment 362.79 Forest 110.14
Transport and Communication 68.83 Others 1,224.31
Source: Finance Department, Government of Kerala, India, Converted using 1USD=64.74Rs
16 KERALA For updated information, please visit www.ibef.org PHYSICAL INFRASTRUCTURE – ROADS … (1/2)
. As per the state budget 2016-17, under the scheme of PPP annuity model and loan from NABARD, construction work on 20 mega projects was initiated in the state during 2016-17. Some of these projects include: Cherupuzha–Payyavur–Ulickal–Vallithod – 59.42 km hill highway, construction of 1st phase of Kodimatha, Kundannoor flyover, Ramanattukara Flyover, etc.
. Under the ambitious Bharatmala scheme, which aims to improve connectivity particularly on economic corridors, border areas and far flung areas and quicken movement of cargo, two new road construction projects were added in Kerala. The projects will involve 167 km and 218 km long development on NH 85 and NH 213, respectively. Also, the Kerala Infrastructure Investment Board (KIIFB) has alloted US$ 50.66 million for construction of a bypass at Source: Maps of India Angamaly and Perumbavoor.
. Road development activities in the state are undertaken under three broad categories of roads and bridges, road transport and other transport services. In the annual budget 2017-18, a total outlay of US$ 209.69 million has been proposed by the state Road type Road length (km) government for improving roads and bridge infrastructure. National highways 1,782 . An outlay of US$ 3.81 million was proposed by the state government for development and improvement of state State highways 4,341.65 highways including relaying of a 600 km length road during Major district roads 27,470.45 2016-17.
Source: Economic Review of Kerala, 2014-15, Kerala State Industrial Development Corporation Ltd.; Ministry of Road Transport & Highways, Government of Kerala, State budget 2017-18
17 KERALA For updated information, please visit www.ibef.org PHYSICAL INFRASTRUCTURE – ROADS … (2/2)
. Pradhan Mantri Gram Sadak Yojana (PMGSY) was launched in National highway length completed (km) 2000 with the objective of connecting eligible rural habitants. As of February 2017, about 590,104.62 km of road network was completed across India, of which 3,534.89 km was completed in 35.0 Kerala. 30.0 25.0 29.00 Pradhan Mantri Gram Sadak Yojana (PMGSY) 20.0 21.40 (as of December 2017) 15.0 10.0 5.72 Habitations benefitted 371 5.0 0.0 2012-13 2013-14 2014-15 Length completed 2,964.32
Total expenditure (US$ million) 19.47* Expenditure on road works under PMGSY in Kerala (US$ million) Source: PMGSY 40.00 . To improve efficiency of transportation to Kannur International 35.00 Airport, the state government has decided to convert six roads into 30.00 34.75 four-lane highways. The preparation of a Detailed Project Report 25.00 29.12 (DPR) is currently underway. 20.00 24.86 . In the Budget 2018-19, a new scheme is being formulated to 15.00 18.51 19.47 renovate 155 dilapidated bridges and culverts within a period of 5 10.00 years. Another mega scheme is the construction of 42 new rail 5.00 over bridges beginning in 2018-19. 0.00 2013-14 2014-15 2015-16 2016-17 2017-18^
Note: * till March 2018 Source: NHAI, omms.nic.in
18 KERALA For updated information, please visit www.ibef.org PHYSICAL INFRASTRUCTURE – RAILWAYS
. Kerala is well connected to other parts of the country via railways. The State Government has appointed Kerala State Industrial Development Corporation Ltd (KSIDC) as the nodal agency for developing a project to establish a north-south High-speed Rail Corridor (HSRC) to facilitate smooth and speedy passenger movement between various cities and towns in the state. As per state budget 2016-17, the state government approved US$ 10.88 billion for constructing a 570-km corridor from Thiruvananthapuram to Kasaragod. As per budget 2017-18, the Kerala Rail Development Corporation is going to undertake construction work of nine rail lines and detailed project reports of Thiruvananthapuram Light Metro for US$ 654.84 million and Kozhikode Metro for US$ 389.43 million have been prepared.
. Railway divisions in Thiruvananthapuram, Palakkad and Madurai jointly carry out railway operations in Kerala.
. Under the major infrastructure development projects, for ongoing and new projects, including Kochi Metro, Suburban Rail Corridor, and various others, the state government provided these projects with a common pooled amount of US$ 387.42 million during 2016- 17.
. The government announced the launch of Kochi Metro Rail’s
Source: Maps of India commercial services of the 13-km Aluva-Palarivattom section of the 27-km Line-1. Over 600 women from the ‘Kudumbasree Mission’ have been employed & trained for smooth run of the 1st phase of the metro.
Source: Economic Review of Kerala, 2014-15, Kerala State Industrial Development Corporation Ltd, Government of Kerala, State Budget
19 KERALA For updated information, please visit www.ibef.org PHYSICAL INFRASTRUCTURE – AIRPORTS
. Kerala has 3 airports handling domestic & international flights, located at Thiruvananthapuram, Kochi & Kozhikode. Aircraft movement from Cochin airport increased from 56,180 in 2015-16 to 61,688 in 2016-17. Aircraft movement from Thiruvananthapuram airport increased from 26,001 in 2015-16 to 29,117 in 2016-17. During April-February 2017-2018, aircraft movement from Cochin & Thiruvananthapuram airports stood at 63,023 & 30,859, respectively.
. Passenger traffic from Cochin airport increased from 7,749,901 in 2015-16 to 8,955,441 in 2016-17, while passenger traffic from Thiruvananthapuram airport increased from 3,470,788 in 2015-16 to 3,881,509 in 2016-17. During April-February 2017-2018, passenger traffic from Cochin & Thiruvananthapuram airport stood at 9.23 million & 4.02million, respectively.
. Freight traffic from Cochin airport increased from 79,233 tonnes in 2015-16 to 81,485 tonnes in 2016-17, while freight traffic from Thiruvananthapuram airport decreased from 35,570 tonnes in 2015- 16 to 28,450 tonnes in 2016-17. During April-February 2017-2018, freight traffic from Cochin & Thiruvananthapuram airports stood at 68,896 tonnes & 26,241 tonnes, respectively.
. An international airport at Kannur is upcoming and is expected to be operational by September 2018. This airport will be the 4th to have a Source: Maps of India runway of 4,000 metres. Kannur is airport at the final stage of completion and inauguration to be announced soon.
. In February 2017, Government of Kerala approved setting up of an airport at Erumely. This step is expected to benefit religious tourism Source: Airports Authority of India, Kerala State Industrial Development Corporation Ltd. as lakhs of devotees visit Pathanamthitta district every year.
20 KERALA For updated information, please visit www.ibef.org PHYSICAL INFRASTRUCTURE – PORTS … (1/4)
. Kerala has 18 ports, of which, Cochin is the major one. Furthermore, Existing Ports there are three intermediate and 14 minor ports.
. The development activities of the port are taken care of by the Major ports Cochin Department of Ports, Harbour Engineering Department and Harbour Engineering Department. Neendakara Intermediate ports Alappuzha . Under the 12th Five Year Plan from 2012 to 2017, the State Kozhikode Government approved an investment of US$ 364.9 million for development of port infrastructure facilities for handling cargo and Vizhinjam passenger transport. Valiyathura . Vizhinjam International Port Phase-I, with an outlay of US$ 1.05 Vadakara billion, is the largest harbour project in Kerala. Ponnani Thankasserry Head Budget 2018-19 Kayamkulam Manakkodam Ports US$ 16.99 million Minor ports Munambam Beypore Thalasserry Manjeswaram Neeleswaram Kannur Azhikkal Kasaragode
Source: Cochin Port Trust, Kerala Ports, Kerala Budget 2016-17, 2017-18, 2018-19
21 KERALA For updated information, please visit www.ibef.org PHYSICAL INFRASTRUCTURE – PORTS … (2/4)
. During 2016-17, the cargo traffic handled by Cochin port was 25 Cochin port traffic (million tonnes) million tonnes. The Cochin Port handled 12.078 million tonnes of crude oil, 816 thousand tonnes of cement 491,087 Twenty Foot 35.0 Equivalent Units (TEUs) in 2016-17. 30.0
25.0
. The cargo traffic handled by Cochin port was 29.14 million tonnes
20.0
29.14
between April-March 2017-18. 15.0 25.00
10.0 22.09
21.60
20.90
20.10
19.80
17.90
17.40 15.20 . In addition, the state government has been focussing on 5.0 15.80 0.0
development of minor ports.
2014-15 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2015-16 2016-17 2017-18*
Source: Cochin Port Trust, News articles, Economic Survey 2014-15, India Port Association
Ports to be developed Budget 2017-18 (US$ million)
Vizhinjam cargo port 3.42 Thankassery, Munambam, 7.16 Beypur and Azheekkal ports Alappuzha Mareena Port 1.14
Other small ports 0.62 Source: State Budget 2016-17
Source: * - between April-March 2017-18
22 KERALA For updated information, please visit www.ibef.org PHYSICAL INFRASTRUCTURE – PORTS … (3/4)
. The Cochin port is a favourite port-of-call for luxury cruise liners from Number of cruise vessel arrivals at Cochin port around the world.
. During 2016-17, total number of cargo vessels that entered Cochin 50
port were recorded to be 1,666.
40
45
44 44
43
42
41
39
30 38
. Around 28,342 cruise passengers embarked in Kochi in 2014-15. 36
34 33 20 . The arrival of a cruise vessel has an added impact on the regional 26 10 economy as cruise tourists are high end passengers. On an average, 0 each tourist is estimated to spend US$ 200 during the stopover of
less than a day.
2006-07 2005-06 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
Year Passenger
2011-12 34,768
2012-13 37,389
2013-14 24,535
2014-15 28,342
Source: Cochin Port Trust
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Category Wise Distribution Of Vessels Entering The Cochin Port
Year Number of Vessels General Containers Coal Fertilizers & raw materials Others Food Grains Tankers Total Vessels Cargo 2005-06 421 4 38 8 0 109 383 1225
2006-07 382 7 27 15 5 92 382 225
2007-08 350 6 15 11 2 73 352 269
2008-09 334 6 22 23 0 63 305 293
2009-10 390 5 17 36 0 45 381 359
2010-11 360 2 18 28 0 39 372 396
2011-12 390 2 15 33 0 37 361 504
2012-13 439 1 12 47 0 24 354 449
2013-14 501 0 11 62 0 41 382 399
2014-15 529 2 15 62 0 33 356 440
2015-16 643 2 8 73 3 42 398 418
2016-17 696 1 9 83 7 29 394 403
Source: Cochin Port Trust, New Indian Express
24 KERALA For updated information, please visit www.ibef.org PHYSICAL INFRASTRUCTURE – POWER … (1/3)
. As of March 2018, the state had a total installed power generation Installed power capacity (MW) capacity of 5,074.72 MW, of which 2,192.48 MW was accounted for by state utilities, 1,914.80 MW by central utilities and 967.44 MW 6,000.0 under private sector.
5,000.0
. Thermal power contributed 2,451.76 MW to total installed power
4,000.0
generation capacity. Hydropower (1,881.50 MW), nuclear power
3,000.0 5,074.72 (362.00 MW), and renewable power (379.46 MW) are the other main 4,998.94
2,000.0 4,172.00 4,106.00
energy sources. 3,892.00
3,856.40
3,827.70
3,718.80 3,553.70 1,000.0 3,514.00 . Kerala’s state utilities, which account for 41.96% of overall capacity, 0.0 generate 85.82% of the energy through hydroelectric power plants,
7.30% through thermal and 6.89% renewable power generation
2011-12 2009-10 2010-11 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 plants. 2008-09
Sub Sectors Budget 2017-18 (US$ million)
Agency for Non-conventional 7.45 Energy and Rural Technology
Energy Management Centre 1.24
Source: State Budget 2016-17, Central Electricity Authority
25 KERALA For updated information, please visit www.ibef.org PHYSICAL INFRASTRUCTURE – POWER … (2/3)
. Kerala is among the prominent Indian states to have achieved 100% Status of rural electrification in Kerala (100 per cent electrified rural electrification. since May 2017)
. The rural areas or villages in the state were electrified under a Area type Nos. scheme launched in 2015, “Deendayal Upadhyaya Gram Jyoti Yojana”. The operational electrification scheme, that is, Rural Total villages 1,017 Electricity infrastructure and Household. Electrification, was subsumed in the new scheme. Electrified villages 1,017
. As on July 31 2017, a total sum of US$ 33.8 million was sanctioned Total rural households 71,03,000 and US$ 32.97 million was disbursed under the DDUGJY scheme for rural electrification of 29 projects in the state. Electrified rural households 71,03,000
. Under Deendayal Upadhyaya Gram Jyoti Yojana scheme, 14 new Un-electrified rural households Nil projects have been sanctioned for US$ 76.16 million as of July 2017.
Status of rural electrification in Kerala under DDUGJY scheme (as of July 2017)
Area type Nos.
Intensively electrified villages 1,087
Electrified BPL households 1,50,305
Source: Deendayal Upadhyaya Gram Jyoti Yojana
26 KERALA For updated information, please visit www.ibef.org PHYSICAL INFRASTRUCTURE – POWER … (3/3)
. Budget Highlights - 2018-19:
• Total outlay for electricity sector is US$ 286.38 million.
• The annual scheme includes 49 Hydro Electric Projects, 2 Thermal Projects, 2 Windmill Projects and 1 Solar Project.
• Transgrid 2.0 with project cost of US$ 803.21 million being implemented through KIIFB, is the largest project in the transmission sector.
• Battery operated auto rikshaws will be introduced for connected journeys from Kochi Metro stations. For the recharging of these, bulk charging stations will be setup under the control of Electricity Board. It will be started in 2018-19.
• A new scheme is being launched to encourage inventions to reduce the electricity misuse and to expand them on an entrepreneurial basis. It will be implemented under the leadership of Energy Saving and Co-ordination Team of Electricity Board and US$ 4.32 million is allocated for this scheme.
Source: Finance Department, Government of Kerala, India Converted using 1USD=64.74Rs
27 KERALA For updated information, please visit www.ibef.org PHYSICAL INFRASTRUCTURE – TELECOM
. As of February 2018, Kerala had an overall tele-density of 119.87% Telecom Infrastructure (As of February 2018) as against an all-India average of 90.61%.
. According to the Telecom Regulatory Authority of India (TRAI), as of Wireless subscribers 41,354,707 February 2018, Kerala had 41.35 million wireless subscribers and 1.97 million wire-line subscribers. Wire-line subscribers 1,972,585
. By the end of February 2018, 8,956,962 subscribers had submitted Internet subscribers^ 18,930,000 requests for mobile number portability in Kerala. Post offices 5,067(2) . As per state budget 2017-18, free internet connections will be provided to two million poor families in Kerala under the Kerala Fibre Tele density (in%) 119.87
Optic Network (K-FON). WiFi transmission centres will be Source: Telecom Regulatory Authority of India, 2As of March 2016 established at Akshaya Centres, Friends Janasevana Kendras, government offices, libraries, and public places under the control of government. Performance status of Bharat Net Project (As of December 2017) No. of GPs in Phase-I 977 Cables laid (km) 830 GPs for which cable laid 1,129 No. of GPs Lit 1,129
Source: Ministry Of Communications And Information Technology, GP - Gram Panchayat
Note: ^ - data upto December 2017 28 KERALA For updated information, please visit www.ibef.org DEVELOPMENT PROJECTS: URBAN INFRASTRUCTURE
Cumulative expenditure (US$ . The Kerala urban area comprises of five Municipal Corporations and Projects & Programmes million)* 60 Municipalities for which the State Government proposed an outlay of US$ 11.2 billion under the 12th five year plan 2012-17. The Kerala Urban Transport Improvement 22.15 Sustainable Urban Development Project (KSUDP) is an Asian Solid Waste Management Project Development Bank-assisted project covering the five municipalities 4.23 of Thiruvananthapuram, Kochi, Kozhikode, Kollam and Thrissur. With Water Supply 14.50 an investment of US$ 221.2 million, the project focuses on urban infrastructure improvement, community upgrading, local government Sewage and Sanitation 21.97 infrastructure development and capacity building, and implementation assistance. Community Development Fund 11.12 . In May 2017, the state government proposed to spend about US$ 2.97 billion for various urban development projects. The package will . The state government launched Haritha Keralam Mission in include construction of big roads, IT parks and welfare schemes for December 2016, to make Kerala clean and protect its water poor and backward sections of the society. The funds are to be resources and soil. As per budget 2017-18, US$ 23.28 million will be arranged by the Kerala Infrastructure Investment Fund Board invested for establishing 14 septage units, one in each district. (KIIFB). . Major infrastructure projects such as Kannur Air Port, GAIL Pipeline, . In August 2017, Kerala Infrastructure Investment Board (KIIFB) gave Kochi-Edamon Electric line and Bypasses at Kollam and Alappuzha nod to four infrastructure projects. One of the major projects is the will be inaugurated in 2018-19. Kerala Fibre Optic Network (K-FON) project which aims to transform the state into an intelligent, innovative and inclusive society. The state government is going to lay KSEB transmission lines and distribution poles which will connect 30,000 government and educational institutions and 2 million economically backward households will get free Internet through it.
Note*- as on August 31 2017 Source: JNNURM, Ministry of Urban Development, State Budget 2016-17, 2017-18, Business Standard
29 KERALA For updated information, please visit www.ibef.org DEVELOPMENT PROJECTS: KEY PUBLIC-PRIVATE PARTNERSHIP (PPP) PROJECTS … (1/2)
Project name PPP type Sector Stage Project cost (US$ million) Road Upgradation (Kottayam- (DBFOT) Transport Under construction 20 Thiruvananthapuram) Project Annuity LNG Port & Terminal Facility (Puthuvypeen) Operation and (BOT) Annuity Transport 649.1 Project maintenance stage Multi-User Liquid Terminal (Puthuvypeen) (BOLT) Transport Under construction 26.38 Project Clinker handling jetty at Azhicode/Kodungallur (BOOT) Transport Pre-construction 7.76 Port
Ponnani Port Project - Phase I (BOT) Transport Under construction 118.43
Operation and Road Upgradation (Thiruvananthapuram) Project (BOT) Annuity Transport 16.29 maintenance stage Development and operation of an international ship repair facility at W/island with private sector (BOT) Transport Under construction 77.6 participation International Container Transhipment Terminal (DBFOT) Transport Under construction 328.74 (Cochin Port) Project Vizhinjam International Deepwater Multipurpose (DBFOT) Transport Under construction 634.67 Seaport Operation and Tindivanam to Ulunderpret on NH-45 Road (BOT) Transport 137.75 maintenance stage
Source: DEA, Ministry of Finance, Government of India, BOT: Build-Operate-Transfer, BOLT: Build-Own-Lease-Transfer, BOOT: Build-Own-Operate-Transfer, DBFOT: Design-Build- Finance-Operate-Transfer,
30 KERALA For updated information, please visit www.ibef.org DEVELOPMENT PROJECTS: KEY PUBLIC-PRIVATE PARTNERSHIP (PPP) PROJECTS … (2/2)
Project name Sector PPP type Stage Project cost (US$ million) Operation and Thavakkara Bus Station (BOT) Transport 5.12 maintenance stage Road Upgradation (Walayar-Vadakkancherry) Operation and (DBFOT) Transport 122.62 Project maintenance stage Operation and Crude Oil Handling for Kochi Refineries Ltd (Lease) Transport 109.168 maintenance stage Operation and Cochin International Airport (BOO) Transport 47.03 maintenance stage
Bus Terminal Complex (Thiruvalla) Project (BOT) Transport Under construction 6.42
Operation and Bus Terminal (Angamaly) Project (BOT) Transport 5.18 maintenance stage
Aircraft Maintenance Hangar (Kochi) (BOO) Transport Under construction 18.62
Source: DEA, Ministry of Finance, Government of India, BOT: Build-Operate-Transfer, BOO: Build-Own-Operate, DBFOT: Design-Build-Finance-Operate-Transfer
31 KERALA For updated information, please visit www.ibef.org DEVELOPMENT PROJECTS: SEZS … (1/3)
Kerala State Information KSITI, Kasargod Technology Infrastructure Limited . Kerala Industrial Infrastructure Development Corporation Limited (KINFRA) (KSITI), Kannur
KINFRA, Kakkancherry
Sutherland Global Services Hindustan News Print Infopark Limited Cochin Port Trust, Puthuvypeen Cochin Port Trust, Vallapadom KSITI, Pallipuram KINFRA, Kochi KSITI, Purakkad Unitech Real Estate Electronics Parsavnath Developers Technology Park Smart City Infrastructure KINFRA Carborundum Universal Limited Techno Park SEZ - I KSITI, Kollam MM Tech Towers, Alwaye Technopark Pallipuram Emmar MGF, Alwaye Techno Park SEZ - II
Source: Ministry of Commerce & Industry, Government of India,
32 KERALA For updated information, please visit www.ibef.org DEVELOPMENT PROJECTS: SEZS … (2/3)
. As of December 2017, Kerala has 19 exporting SEZs.
Name/Developer Location Primary industry Cochin SEZ Cochin Multi-product Cochin Port Trust Vallapadom Port-based Cochin Port Trust Puthuvypeen Port-based Infopark Kakkanad IT/ITeS Electronics Technology Parks - Kerala Attipura IT/ITeS KINFRA Ayiroopara Animation & Gaming KINFRA Chelembra Agro-based food processing Electronics Technology Parks- Kerala Thiruvanthapuram IT/ITeS KINFRA Thrikkakara Electronics industries Kerala State Information Technology Infrastructure Limited Pallipuram IT/ITeS Electronics Technology Parks Kerala (Technopark) Attipura IT/ITeS Kerala State Information Technology Infrastructure Limited Mulavana IT/ITeS Carborundum Universal Ltd. Thrikkakara North Solar Photovoltaic Sutherland Global Services Private Limited Thrikkakara North IT/ITeS Kerala State Information Technology Infrastructure Limited (KSITIL) Pantheerankavu and Nellikode IT/ITeS Infoparks Kerala Puthencruz and Kunnathunadu IT/ITeS Smart City (Kochi) Infrastructure Limited Kakkanad IT/ITeS Kerala State IT Infrastructure Ltd. (KSITIL) Thrissur IT/ITeS Uralungal Labour Contract Cooperative Society Limited (ULCCS LTD) Kozhikode IT/ITeS
Source: Ministry of Commerce & Industry, Department of Commerce, SEZ: Special Economic Zone
33 KERALA For updated information, please visit www.ibef.org DEVELOPMENT PROJECTS: SEZS … (3/3)
. As of December 2017, Kerala had 29 SEZs with formal approval and 25 notified SEZs.
Some of formally approved SEZs in Kerala
Name/Developer Location Primary industry
Cochin Port Trust Vallarpadam Port-based Cochin Port Trust Puthuvypeen, Ernakulam Port-based Kazhakoottam, KINFRA Electronics Industries Thiruvananthapuram Smart City (Kochi) Infrastructure Pvt Ltd Kakkanad, Ernakulam IT/ITeS Pantheerankavu Kerala State Information Technology Infrastructure Ltd (KSITIL) IT/ITeS and Nellikode, Kozhikode Infoparks, Kerala Kunnathunad, Ernakulam IT/ITeS Cochin International Airport Ltd Ernakulam Airport-based
Source: Ministry of Commerce & Industry, Department of Commerce, SEZ: Special Economic Zone
34 KERALA For updated information, please visit www.ibef.org SOCIAL INFRASTRUCTURE – EDUCATION … (1/2)
. Kerala has the highest literacy rate among all states in the country. Educational infrastructure (2016) As of 2016, the state has a literacy rate of 94.57%; male & female literacy rates stood at 96.61% & 92.52%, respectively. Schools 12,981 . Kerala has 3,021 higher secondary schools as of 2016. Of these, Universities 14 1,162 (38.46%) were government schools, 1,406 (46.54%) aided Engineering institutions 183 schools & the remaining 453 (15%) unaided schools. Arts and science colleges 213 . As per budget 2018-19, 45,000 hi-tech class rooms and IT labs will be established in 4,775 schools. The digitalisation will be completed Polytechnics 51 in 3 phases with 20,000 class rooms being completed before the end Source: Economic Review of Kerala of February, 10,000 class rooms in March and remaining 15,000 class rooms in the months of April – May. Sub sectors Budget 2018-19 (US$ million)
. In Budget 2018-19 US$ 5.10 million is allocated for ‘Kerala School education 149.83 Infrastructure and Technology for Education’ which is heading the Higher education 121.87 digitalisation programme.
. In June 2017, the University of Kerala decided to restore private Technical education 38.31 registrations at undergraduate level. A University Institute of Total 3,170.82 Management (UIM) and eight University Institutes of Technology (UITs) are to be established in various cities of the state this fiscal Source: State Budget 2017-18, (1) 2016-17, Converted 1USD=64.74Rs year.
35 KERALA For updated information, please visit www.ibef.org SOCIAL INFRASTRUCTURE – EDUCATION … (2/2)
Kerala primary education statistics (2014-15)
Lower primary: 6,882 Schools (No) Upper primary: 2,979 High schools: 3,021 Lower primary: 0.35 School dropout rate (%) (2013-14) Upper primary: 0.21 High school: 0.44 Pupil-teacher ratio 22.5:1
Nature of schools (2016-17P) Student strength (in million) Share of total student strength (%) Government 1.12 30.42 Government-aided 2.15 58.27 Unaided 0.41 11.30 Total 3.70 100.0
P: Provisional Source: Economic Survey of Kerala 2014-15, 2016-17
36 KERALA For updated information, please visit www.ibef.org SOCIAL INFRASTRUCTURE – HEALTH
. The departments that offer health services in the state & are Health indicators (2017) responsible for development activities are namely, Health Services Department, Medical Education Department, Ayurveda Department Birth rate(1) 14.3 (ISM), Ayurveda Medical Education Department, Homoeopathy Death rate(1) 7.6 Department & Homoeopathy Medical Education Department. Infant mortality rate(2) 10 . In Budget 2018-19, the state government allocated US$ 1,339.51 million for medical and public health department.
. Under the 12th Five Year Plan, the state proposed an outlay of US$ Life expectancy at birth (years) (2014-15) 650.71 million for health sector, of which US$ 295.05 million was proposed for the Directorate of Health Services, US$ 272.61 million for Male 71.4 Directorate of Medical Education & US$ 28.02 million for Indian System of Medicines. Female 76.3
. Government of Kerala announced plans to invest US$ 1.68 million for the establishment of a cath lab in the district hospital at Kollam & the Health infrastructure (as of April 2018) general hospital of Kozhikode as per the annual state budget 2016-17. Further, the state government also allocated US$ 79.7 million to the Primary health centres 955 Directorate of Health Services to facilitate implementation of different schemes. Sub-centres 5,841 . As of November 2016, the state was declared as the 3rd Open Community health centres 233 Defecation Free state in the country.
. In March 2017, True North, a leading PE fund, announced plans to District hospitals 58 invest over US$ 200 million in Kerala Institute of Medical Sciences.
Note: (1)Per thousand persons, (2)Per thousand live births Source: Economic Review of Kerala, 2017, State Budget 2016-17, 2017-18, NHRM, Sample Registration System (SRS)
37 KERALA For updated information, please visit www.ibef.org CULTURAL INFRASTRUCTURE … (1/2)
. Kerala has been rated as one of the 13 Paradises of the World by Popular tourist locations National Geographic Traveller; it has been promoted as ‘God’s Own Country’. Beaches Kovalam, Varkala, Marari, Bekal and Kannur . Sri Padmanabhaswamy temple makes the state one of the attractive religious tourism spots in India. Other temples in Kerala, such as Kumarakom, Alappuzha, Kollam, Kochi and Backwaters Guruvayoor & Sabarimala, are also major religious attractions. Kozhikode . US4 2.32 million was allocated in budget 2017-18 for the promotion Hill stations Ponmudi, Munnar, Wyanad and Vagamon of Nishagandhi dance and music festivals, Onam celebration, tribal dance festival, Pooram, Theyyam festivals and boat race etc. Periyar Wildlife Sanctuary, . In June 2015, Kerala organized a road show in Shanghai & Eraviikulam National Park, Wildlife reserves participated in Beijing International Tourism Expo (BITE) 2015. The Thattekad Bird Sanctuary BITE 2015 witnessed participation of 70 buyers from the Chinese Parambikulam Wildlife Sanctuary travel & tourism industry. The main objective of the initiative was to strengthen the Spice Route heritage with other countries & promote Budget 2018-19 sustainable tourism aimed at achieving world peace. Departments (US$ million) . In June 2017, the state government started a campaign ‘Anuyatra’, for people with special needs. In this campaign, 23 children suffering Sahithya Academy, Kerala Sangeetha Nadaka Academy, Kerala Lalithakala Academy and 2.46 from various challenges will become brand ambassadors of the Kerala Folklore Academy initiative. Arts and Cultural fields 22.24
State Central Library 0.56
Kerala State Science and Technology Museum 2.63
Development of Zoos 1.78
Source: State budget, Converted 1USD=64.74Rs
38 KERALA For updated information, please visit www.ibef.org CULTURAL INFRASTRUCTURE … (2/2)
. Art and culture are being fostered and promoted through various New sports infrastructure projects in Kerala
bodies such as: . New hockey stadium at Kollam • Kerala Sahitya Academy – To promote Malayalam literature. . Rajiv Gandhi Indoor Stadium, Kochi • Kerala Sangeetha Nataka Akademi – To promote traditional arts. . Shooting range at Vattiyoorkkavu, Thiruvananthapuarm • Kerala Lalithkala Academy – To promote painters and sculptors. . Corporation Stadium, Kollam • Kerala Folklore Academy – To promote Kerala folklore. • Kerala State Chalachitra Academy – Academy for motion . V.K.N. Indoor Hall, Thrissur pictures. . VKK Menon Stadium, Kozhikode • Kerala Kalamandalam – To teach traditional dances. . CSN Stadium, Thiruvananthapuram . The state government proposed an outlay of US$ 22.24 for art and . New football stadium at medical college ground, Kozhikkode culture million under annual budget 2018-19. . On November 1, 2016, the state celebrated the 60th year of its . New multipurpose hall, Kannur formation. . Kariavattom main stadium, Thiruvananathapuam
. Synthetic Athletic track at University of Calicut, Malapuram (Approved under Urban Sports Infrastructure Scheme (USIS))
Source: Department of Tourism, Government of Kerala, Economic Review of Kerala 2014-15
39 KERALA For updated information, please visit www.ibef.org INDUSTRIAL INFRASTRUCTURE … (1/3)
. As of December 2017, Kerala had 29 SEZs with formal approval and 25 notified SEZs. A cyber-park spread over a 68 acre campus is being developed in Kozhikode.
Infrastructure Project description
. The Technopark at Thiruvananthapuram is spread over 760 acres.
. It currently hosts over 300 IT and ITeS companies, employing over 46,000 IT professionals.
. Technopark Phase-II has been declared an SEZ by the Government of India. Technopark . The technology park is spread across 7.2 million sq. ft. built-up space (completed) and 3.5 million sq. ft. (work-in- progress)
. As a part of the Phase-IV, named Technocity, Technopark is developing 431 acres of land in Pallippuram, 5 km north of the main campus on the National Highway-47 to Kollam.
. The Infopark at Kochi is best suited for ITeS due to its proximity to the submarine optical-cable landings.
Infopark . The total land available with Infopark is 98.25 acres, of which 75 acres has been notified as an SEZ by the Ministry of Commerce, Government of India.
. Apart from the SEZs in Technopark and Infopark, the other SEZs in Kerala include the KINFRA Electronics Park SEZ in Kalamassery; a multi-product SEZ at Kochi; two port-based SEZs at Vallarpadam and Puthuvypeen at Special Economic Zones Kochi; a food processing SEZ near Calicut; a pulp and paper SEZ at Kottayam; and a non-conventional energy sources SEZ at Kalamassery.
Source: http://www.technopark.org/ , sezindia.nic.in
40 KERALA For updated information, please visit www.ibef.org INDUSTRIAL INFRASTRUCTURE – INDUSTRIAL CLUSTERS … (2/3)
Symbol Industries
IT
Engineering
Minerals and mining
Handlooms and power looms
Textile
Tiles
Canning
Coir products
Agriculture and forest-based
Sericulture
Rubber
Food products
Beedi Source: Maps of India
41 KERALA For updated information, please visit www.ibef.org INDUSTRIAL INFRASTRUCTURE – INDUSTRIAL CLUSTERS … (3/3)
District Industries
Kannur Handlooms, power looms, beedi
Alappuzha Coir products
Idukki Agriculture and forest based
Thiruvananthapuram Handlooms, IT
Thrissur Power looms, handlooms, textile, timber, tile, canning
Palakkad Power looms, sericulture
Kollam Minerals and mining
Kozhikode Rubber
Wayanad Minerals and mining
Kasargod Minerals and mining
Kottayam Rubber, food products, engineering
Ernakulam IT
42 KERALA For updated information, please visit www.ibef.org SMART CITIES
. As of June 2017, Kochi and Thiruvananthapuram are proposed to be developed as smart cities in Kerala. The Kochi smart city would be spread over an area of 246 acres. . Along with smart cities, 9 cities of Kerala have also been selected for infrastructure development. The infrastructure development will be done under the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) scheme. In July 2015, the state government allocated US$ 1.47 million for administrative and office expenses for service level improvement plan or capacity building under AMRUT scheme. . As per budget 2016-17, the state government is planning to inaugurate 650,000 square feet space in Kochi smart city, for Thrissur providing employment to around 90,000 unemployed youth of Kerala. . Smart City Kochi has set a revenue target of US$ 41.79 million for 2017, and US$ 2.40 billion by 2021. Ernakulam List of cities in Kerala covered under AMRUT Kochin Cities Area (sq. km) Kochi 94.88 Tiruvalla Kollam 58.18 Kollam Kozhikode 128 Thiruvananthapuram 2,192 Thrissur 101.4 Thiruvananthapuram Alappuzha 1,414 Palakkad 1,363 Guruvayur 29.66 Kannur 2,961
43 KERALA For updated information, please visit www.ibef.org KEY INDUSTRIES
. Kerala’s strategic location on the trans-national trade corridor, rich Key industries in Kerala
natural resources & simple & transparent procedures are favourably . Handlooms and power looms suited for investments in key sectors like tourism, IT/ITeS, manufacturing & mining. . Rubber
. Kerala’s traditional industries include handloom, cashew, coir and . Bamboo handicrafts. . Coir . KINFRA, KITCO Limited (formerly, Kerala Industrial and Technical . Khadi and village industry Consultancy Organisation Limited), the Directorate of Industries & Commerce & the Small Industries Development Corporation are jointly . Sericulture responsible for the development of industrial infrastructure in the state. . Seafood and other marine products . Around US$ 35.53 million has been earmarked in the budget 2018-19 for the main parks under KINFRA & KSIDC. . Cashew
. Forming industrial clusters & developing infrastructure (such as rubber . Mining parks, electronic hardware park, coconut industrial park, organic . Tourism industrial park & food processing parks) have been integral to the state’s strategies to attract investments in various industries. . Food processing
. As per budget 2016-17, the MSME sector accounted for higher growth . Spices and spice extracts rate in comparison with other industrial sectors during 2015-16. For . IT & electronics the development of MSME infrastructure, an amount of US$ 6.96 million was allocated by the state government during 2016-17
. The amount allocated to small scale industries by the state government during 2018-19 is US$ 25.02 million.
Source: Economic Review of Kerala, 2014-15, News articles, State budget 2017-18
44 KERALA For updated information, please visit www.ibef.org KEY INDUSTRY – COIR AND COIR PRODUCTS … (1/2)
. Kerala accounts for 85% of total coir production in India and its coir No. of coir units registered in Kerala as on March 2015 industry provides employment to around 375,000 people. . The Coir Co-operative Marketing Federation (COIRFED) is the apex 10000.0 federation of 842 primary coir co-operatives societies. 8000.0 8,814 8,811 . The US is the largest importer of coir products from India, followed by the Netherlands, the UK, Germany, Italy and Spain. 6000.0
. The Coir Kerala trade fair held in February 2015 witnessed the 4000.0 participation of around 170 foreign buyers from over 53 countries. . The Coir Board of India facilitates setting up of coir defibering units 2000.0 3 and coir manufacturing industries in each of the states under various 0.0 schemes such as Coir Udyami Yojana, Development of Production Total Private Public Infrastructure and Mahila Coir Yojana. . As per budget 2017-18, defibering machines will be provided to coir co-operative societies at 90% subsidy, to self help groups at 75% Growth trend of coir units registered in Kerala subsidy and to individuals at 50% subsidy. The state has a target of 9200.0 opening 100 husk processing mills in 2017-18.
9100.0 . As part of the second restructuring scheme the coir cooperative
societies taken up for revival will be provided with working capital 9000.0 9,108 and managerial subsidy. 8900.0
8800.0
. Under state budget 2018-19, US$ 32.59 million is allocated for the
coir sector. 8700.0
8,814
8,790 8,773
8600.0 8,744 8500.0 2011-12 2012-13 2013-14 2014-15 2015-16
Source: Economic Review of Kerala, 2014-15, Government of Kerala, Coir Board, News articles, State Budget 2017-18
45 KERALA For updated information, please visit www.ibef.org KEY INDUSTRY – COIR AND COIR PRODUCTS … (2/2)
. Exports of curled coir, coir fibre, coir pith, coir rope, coir yarn, coir Exports of coir industry of India (‘000 metric tonnes) geo-textile, handloom matting, power loom mats and rubberised coir from India increased in terms of quantity and value over past years. During 2015-16 value exports from the state was recorded at US$ 1200.0 282.82 million. . Total outlay of US$ 17.87 million was proposed under the Annual Plan of 2016-17 for the development of coir industry in the state with 1000.0 implementation of 12 schemes through Coir Geo-textiles Development Programme, Margin Money Loan to Entrepreneurs, Production and Marketing Incentives (PMI), 8 Cluster Development 800.0 957.00
Programme in coir sector, etc.
. The National Coir Research & Management Institute (NCRMI), a
600.0 752.02 State Government organisation, is following up on a potential deal
with Saudi Aramco for a new technology that can help cultivate crops 626.60
in saline and arid conditions. In the budget 2015-16, the State
400.0 537.00 Government announced plans to invest US$ 0.16 million for
facilitating scholarships to the coir worker’s children who secure
429.50
admission in professional courses. 410.90
200.0
321.00
. Coir pith and coir fibre are the major contributors in export of coir 294.50
products with over 80% share. China is the major customer for 199.90 India’s coir products with 28.6% share in value and 39% share in 187.60 0.0 volume.
. With an allocation of US$ 2.2 million in December 2016, for procuring
2008-09 2012-13 2016-17 2009-10 2010-11 2011-12 2013-14 2014-15 2015-16 raw material and carrying out repair works, public sector spinning 2007-08 mills in Kerala are anticipated to be operational soon. This would in turn propel growth in the textile sector of the state.
Source: Economic Review of Kerala, 2014-15, Coir Board, Government of India, Business Line
46 KERALA For updated information, please visit www.ibef.org KEY INDUSTRIES – HANDLOOM AND POWER LOOM
. Among the traditional industries of Kerala, the handloom sector Funds released under handicraft schemes (2016-17) stands second to the coir sector in providing employment. The (in US$ ‘000) industry is concentrated in Thiruvananthapuram and Kannur Ambedkar Hastshilp Vikas Yojna 31.64 districts and in some parts of Kozhikode, Palakkad, Thrissur, Design 44.7 Ernakulam, Kollam and Kasaragod districts. Human Resource Development Scheme 23.12 . Under the Budget Scheme 2018-19, the state government has allocated a sum of US$ 7.11 million for the handloom industries and Total 99.46 US$ 2.93 million for khadi and village industries.
Exports of textile & garments from Cochin SEZ Funds released by central and State government for assistance (US$ million) and development of Handloom industry in Kerala (in US$ million) 20.0
Central Government Loan 9.78 16.0 17.44 N.C.D.C, NAMBARD, HUDCO 11.08 15.03 15.21 12.0 12.61 State Government grant 79.42 8.0 Central Government Grant 1.05 N.C.D.C, NAMBARD, HUDCO 3.75 4.0 Grant - 2011-12 2012-13 2013-14 2014-15
Source: Economic Review of Kerala, 2014-15, Kerala State Handloom Development Corporation Ltd, Office of the Development Commissioner, State budget
47 KERALA For updated information, please visit www.ibef.org KEY INDUSTRIES – IT … (1/3)
. Kochi has emerged as a unique IT destination and is connected by two submarine cables and satellite gateways that directly support major IT cities, including Bengaluru. According to 2017-18 Annual Plan, an outlay of US$ 85.26 million has been allocated for the development of information technology.
. As per state budget 2017-18, almost all government transactions are expected to become IT-based.
. In June 2017, Kerala government signed a memorandum of understanding (MoU) with India Electronics and Semiconductor Association (IESA) in a bid to attract more investments from IT and electronics.
. Kerala possesses a cost-effective and highly skilled human resource base with the lowest attrition rate (less than 5%).
. The state has a techno park in Thiruvananthapuram, an info park in Kochi, and a cyber park in Kozhikode. It also has private IT parks such as Smart City (Kochi), L&T Park (Kochi), Leela Info Park (Thiruvananthapuram), Brigade Park (Kochi) and Muthoot Pappachan Techno Polis (Kochi).
. Software exports from registered units in Kerala through Software Technology Parks of India (STPI) reached US$ 467 million in 2015-16.
. As of December 2017, Kerala had twelve operational IT/ITeS SEZs which are located in Kakkanad, Thiruvanthapuram, Pallipuram Village, etc.
. The IT industry of the state is growing at a higher pace. Leading IT companies such as TCS, Infosys and UST are providing job opportunities and the industry is expected to add 23,500 new jobs by 2017.
. Exports of IT and ITeS products from Cochin Special Economic Zone increased from US$ 55.5 million in 2010-11 to US$ 77.7 million in 2014-15.
. As per ASSOCHAM, Kerala ranked 3rd in attracting the highest total investments in IT sector worth US$0.33 millon among all Indian states.
. In May 2017, Kerala government and Information and Communication Technology (ICT), United Nations struck a deal to setup the country’s first UN Technology Innovation Lab in the state to develop programmes for achieving sustainable development goals.
Source: Kerala IT Policy 2012, Economic Review of Kerala 2014-15, State Annual Plan, sezindia.nic.in, State budget 2017-18, Business Standard
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. IT exports from Kerala increased at a CAGR of 11.2% between Exports from IT industry (US$ million) 2007-08 and 2014-15. 800 CAGR 11.2% . Operational costs in the state are among the lowest in India (40% 700
lower as compared to other major IT locations in India). Also,
600
rental/real estate costs are lower than major IT cities in the country. 500
676.6
644.4
626.5
400 . Around 11% of the national IT pool is contributed by skilled human
300
resources from Kerala. 454.6
413.4 412.6
200 392.7
100 298.3 . Kerala has a strong e-governance infrastructure and is a leading 0
state in e-governance.
08 09 10 11 12 13 14 15
2008- 2009- 2010- 2011- 2012- 2013- 2014- . The state government is planning to provide job opportunities to 0.5 2007- million people in the IT sector by 2020. Exports of IT & ITeS from Cochin SEZ (US$ million) . As of June 2017, the state has 19 notified IT/ITeS SEZs.
. In December 2016, since demonetisation, Kerala government has 100.0 90.0 taken steps for enabling online payment of land registration fees. 80.0 87.26 82.85 85.57 The National Informatics Centre (NIC) has been tasked with the 70.0 77.73 process of automation of the same, by the state's Chief Minister. 60.0 50.0 55.45 40.0 30.0 20.0 10.0 - 2010-11 2011-12 2012-13 2013-14 2014-15
Source: Economic Survey of Kerala, 2014-15, sezindia.nic.in
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Tata Consultancy Services (TCS) is among the largest providers of IT and Business Process Outsourcing (BPO) services in India. TCS employed more than 315,000 IT consultants in 122 countries and generated revenue of US$ 18.3 billion in 2016-17 and US$ 4.21 billion during Q4 FY 18. TCS provides IT consulting and services in financial
services, healthcare and life sciences, insurance, manufacturing, media, entertainment, transportation etc. It has a Tata Consultancy Services software development and training centre at Technopark in Thiruvananthapuram and plans to set up the world’s largest corporate learning centre in Thiruvananthapuram.
Established in 1981, Infosys employs more than 176,187 people. The company generated US$ 9.68 billion in revenue in 2016-17 and US$ 2.58 billion during Q4 2017-18. It is engaged in IT consulting, modular global sourcing, process re-engineering, and BPO services. The company has operations in Australia, China and the US, and
marketing and technological alliances with Informatica, IBM, HP, Microsoft, Oracle, etc. Infosys has offices in 30 Infosys countries and development centres in India, China, Australia, the UK, Canada, Japan, etc. It has a centre at Technopark, Thiruvananthapuram.
Collabera is a fast-growing, end-to-end information technology services and solutions provider, working with leading global 2,000 organisations from banking & financial services, communications, media, manufacturing, retail, energy and utilities domains. The company employs over 9,000 professionals across more than 25 offices and four world- Collabera class delivery centres in the US, the UK, India, Singapore and Philippines. The company has an office at Technopark, Thiruvananthapuram.
Founded in 1995, RR Donnelley Global BPO has 7,700 employees in 28 delivery and 41 onsite operation centres across nine countries and had a revenue of US$ 6.896 billion in 2016. It is a subsidiary of RR Donnelley (RRD), a global provider of integrated communications, business services and supply chain solutions. RR Donnelley is a US$ RR Donnelley India 11 billion Fortune 300 company, with around 65,000 employees across the world. The company has an office at Outsource Pvt Ltd Co Technopark, Thiruvananthapuram. India
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. The self contained Electronics Technology Park at Technopark, Exports of electronic hardware from Cochin SEZ Thiruvananthapuram, has been instrumental in attracting global (US$ million) electronics manufacturers. 90.0 80.0 . Exports from Electronics Technology Parks – Kerala, increased 70.0 76.84 22.55% in 2015-16 to reach US$ 970 million. 70.67 60.0 66.47 64.73 50.0 54.72 . The state has ample availability of skilled and semi-skilled workers 40.0 for the electronics industry. 30.0 20.0 . The electronic hub proposed at Kochi is a prestigious project of the 10.0 Government of Kerala to promote electronic hardware manufacturing - and assembling units and R&D centres, and to support infrastructure 2010-11 2011-12 2012-13 2013-14 2014-15 for the same.
. As per Budget 2017-18, US$ 240.89 million is allocated for mega projects in the state, which include Kochi Electronic Hardware Park. Key players
. This hub is a high-priority area, which would promote a large number . Traco Cable Company Limited of small-, medium- and large-scale industries in the state. It would . Transformers and Electricals Kerala Ltd (TELK) also form a National Investment & Manufacturing Zone (NIMZ) for manufacturing electronic hardware items. . Kerala State Electronics Development Corporation Ltd (Keltron)
. Between 2010-11 and 2014-15, electronic hardware exports from Cochin Special Economic Zone grew at a CAGR of 8.86% to reach US$ 76.8 million in 2014-15.
Source: Economic Review of Kerala, 2014-15, 2016 Government of Kerala,
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Traco Cable Company Limited commenced operations in 1964. It manufactures high-quality cables and wires in technical collaboration with Kelesey Engineering Co Ltd, Canada. TRACO currently meets the needs of public sector
undertakings in India such as railways and the electricity boards of various states. The company is headquartered in Traco Cable Co Ltd Kochi and has factories in Ernakulam, Kannur and Thiruvalla.
TELK was incorporated in 1963 under an agreement with the Government of Kerala, Kerala State Industrial Development Corporation, and Hitachi Limited, Japan. It manufactures transformers, bushings and tap changing gears. The factory and corporate office are located in Angamally, near Kochi. Transformers and Electricals Kerala Ltd TELK provided its first 400 KV Class Transformer, 315 MVA Auto Transformer and Generator Transformer to India's (TELK) first 500 MW Thermal Unit.
Founded in 1973, Keltron is a state-owned electronics enterprise, employing around 1,800 people and has 10 manufacturing centres. It provides technical manpower to leading organisations such as Oil and Natural Gas Corporation Limited (ONGC). The company’s products span categories including aerospace electronics, security and surveillance systems, intelligent transportation systems, strategic electronics products, IT solutions, IT infrastructure Kerala State Electronics Development Corp solutions, process automation, ID card projects, power electronics, electronic components and TE units. (Keltron) Keltron is headquartered in Thiruvananthapuram and has training centres in 30 locations across Kerala with a strong infrastructure spread over 700,000 sq ft of built up area.
Source: Company website and annual report
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. The tourism sector of Kerala is a significant contributor to the state economy. As per Kerala’s economic review 2016, revenue from the tourism sector accounted for 10% share of the state’s GDP. Total revenue (including direct and indirect) from tourism surged by about 12.11% to US$ 4.1 billion in 2014. Kerala earned US$ 4.14 billion from tourism in 2015. . Popular tourist destinations in Kerala include beaches of Kovalam, Varkala, Marari, Bekal and Kannur; backwaters of Kumarakom, Alappuzha, Kollam, Kochi and Kozhikode; and hill stations of Ponmudi, Munnar, Wayanad and Wagamon. . Kerala has a number of well-known wildlife reserves, including the Periyar Wildlife Sanctuary, the Eravikulam National Park, the Thattekkad Bird Sanctuary and the Parambikulam Wildlife Sanctuary. . The State Tourism Department is developing eco-friendly, rural tourism packages in Kumarakom, Wayanad, Kovalam and Muziris heritage circuit. . Under state budget 2018-19, US$ 6.18 million is allocated for various tourism institutions and Muziris Heritage Project and the Thalassery, Alappuzha spice route are being implemented. . Under the State Budget 2018-19, US$ 12.67 million is allocated for Tourism marketing and US$ 4.05 million for Kerala Tourism Development Corporation, Kerala Tourism Infrastructure Ltd, Bekal Resort Development Corporation, District Tourism Promotion Councils etc. . Under budget 2016-17, the state government made a total allocation of US$ 47.59 million for 24 schemes for development of Tourism sector in the state. Further, an allocation of US$ 2.74 million and US$ 420.10 thousand has been proposed by the state government for the Heritage and Spice Route project as well as Infrastructure Development of Varkala, respectively, during 2016-17. . Total outlay of US$ 11.89 million was proposed under the Annual Plan of 2017-18 for the infrastructure development of the tourist destinations at Kovalam, Kumarakam, Thekkady, Munnar, Fort Kochi, Athirappally, Wayanad, Varkala, Neyyar, Ashtamudi, Thenmala, Sabarimala, Vembanad, Vagamon, Cherai, Peechi, etc. and US$ 4.46 million for the construction of new blocks at Guruvayoor, Thiruvananthapuram, Sulthanbathery, Peerumedu, Kozhikkode, Ponmudi and Munnar and for the upgradation of tourism guest houses . Kerala Blog Express (KBE), a campaign initiative from Kerala Tourism, was flagged off in Ernakulum, comprising 30 online bloggers from 29 countries such as Modova, Gibraltar, UK, Italy and Spain, Germany, etc,. The group will be visiting numerous destinations in the state for a fortnight to share their experiences with the audience, internationally. The destinations would include backwaters, beaches, hills & experience the life in cities & the villages. . To increase the number of tourist arrivals, Kerala Tourism will participate in the Arabian Travel Mart in Dubai in April 2018.
Source: Economic Review of Kerala, 2014-15, 2016-17, State Budget 2016-17, 2017-18
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. Major initiatives of Kerala Tourism - 12th FYP: Domestic tourist arrivals in Kerala (in million) • An investment of US$ 0.67 million was announced for Kerala 16.0 waste free destination scheme. 14.0 14.7 • An investment of US$ 2.47 million was announced for the 12.0 13.2 12.5 promotion and marketing activity of Kerala tourism sector. 11.7 10.0 10.9 10.1 • For the sea plane project, an investment of US$ 1 million was 8.0 9.4 6.0 announced. 4.0 • For the strengthening and modernisation of tourism institutions an 2.0 investment of US$ 0.24 million was announced. 0.0 2011 2012 2013 2014 2015 2016 2017
Description Budget 2017-18 (US$ million) Foreign tourist arrivals in Kerala (in million)
Alappuzha spice route 5.94 1.2 1.0 1.09 1.04 0.98 0.8 0.92 Kerala Tourism Development 0.86 3.27 0.79 Corporation (KTDC) Ltd. 0.6 0.73
District Tourism Promotion 0.4 1.78 Councils (DTPC) and DMC 0.2 0.0 2011 2012 2013 2014 2015 2016 2017
Source: Kerala Economic Review, Kerala Tourism
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. Kerala is the leader in rubber production in the country. State Exports of natural rubber from India (‘000 tonnes) accounted for about 65.94% share in the total natural rubber production in 2016-17. 35 30 . Rubber production in Kerala stood at 540.4 thousand MT during 30.59 2016-17, in comparison with 507.77 thousand MT during 2014-15. 25 20 . The area under rubber production in Kerala increased from 548.2 15
thousand hectares in 2013-14 to 549.9 thousand hectares in 2014- 20.03 10 15. The production of natural rubber in Kerala was 455 thousand MT 5 in 2016-17. 1.00 0.86 0 . In the budget 2017-18, the state government allocated US$ 77.6 2012-13 2014-15 2015-16 2016-17 million for Rubber Production Incentive Scheme of Government of Kerala.
. In June 2015, the state government announced the launch of a price Exports of rubber & plastic products from Cochin SEZ support scheme to offer an assured price of US$ 2.48 per kg, to the (US$ million) small rubber producers who grow rubber in an area of 2 hectares or 16.00 less. The state government allocated US$ 49.76 million for 14.00 14.36 12.00 implementation of this scheme. 12.45 12.51 12.44 10.00 . In December 2016, All India Rubber Industries Association (AIRIA) 8.00 9.33 collaborated with Tripura University (TU) for imparting education for 6.00 7.46 7.30 programs in Rubber Technology to improve rubber education, rubber 4.00 skills training and research co-operation. 2.00 - 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
Source: Economic Review of Kerala, 2015-16, 2016-17, Rubber, Board, Ministry of Commerce and Industry, Government of India, state annual budget 2017-18
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. Kerala can be termed as the land of spices, considering the large Exports of spices from Kerala variety of spices grown in the state. During 2016-17, overall (through Cochin ports) in US$ million production of spices in Kerala stood at 140.7 thousand tonnes. 160 . Kerala is the largest producer of pepper in India and accounts for a lion’s share in India’s production. 140 148.05 . Apart from pepper, other spices produced in the state include ginger, cardamom, nutmeg, tamarind, etc. 120 . Spices exports from Kerala (through Cochin port) stood at US$ 48.26 million in 2015-16. 100 103.99 . As per the Budget 2018-19, government has allocated funds worth US$ 1.70 million for cultivation of pepper in the state. 80 88.95 . The state also plans to setup a spices park each in Idukki and Wayanad. 60 61.40
40 48.26
20
0 2011-12 2012-13 2013-14 2014-15 2015-16
Source: Economic Review of Kerala, 2015-16, 2016, Department of Agriculture Cooperation & Farmers Welfare, State budget
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. As of 2013-14, the overall exports of spices from India was recorded Volume of exports through Cochin Port (tons) as 8,17,250 tons that reached 8,93,920 tons in 2014-15, with Kerala being the major contributor. In 2016-17 the figure was 947,790 Spices 2013-14 2014-15 tonnes. Ginger 2,125.3 1,750.8 . In terms of value, pepper exports from Cochin port were recorded at US$ 183.6 million during 2014-15. For the same period of time, the export values of cardamom, nutmeg, ginger and turmeric were Cardamom 858.3 1,607.7 recorded as US$ 20.56 million, US$ 16.30 million, US$ 7.93 million and US$ 7.57 million respectively. Chilies 4,425.3 5,565.4
. In 2015-16, 49,706 MT of spices worth US$ 49.03 million were exported from the Cochin port. Nutmeg 1,822.9 1,997.9
Pepper 15,978.7 16,203.6
Turmeric 3,607.7 4,444.6
Source: Economic Review of Kerala, 2014-15, 2016, Spice Board of India News articles, indianspices.com
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. Khadi and village industries have been an integral part of the Production in Khadi and village industries sector of Kerala traditions of Kerala. The Kerala Khadi and Village Industries Board is (in US$ million) the statutory body in the state. As per budget 2016-17, the State 25.00 Government proposed an outlay of US$ 2.13 million for khadi and 24.00 24.53 24.29 village industries. Moreover, the Kerala Khadi and Village Industries 23.00 Board has been provided with a financial assistance of US$ 152.76 22.00 22.18 thousand for the establishment of Gandhi-Khadi Museum at 21.00 Payyannur. As per budget 2018-19, the state government has 20.00 20.82 20.72 allocated US$ 2.92 million for khadi and village industries. 19.00 . As of 2013-14, under Income Support Scheme, an investment of 18.00 2011-12 2012-13 2013-14 2014-15 2015-16 US$ 0.21 million had been approved to 6,274 khadi spinners and 4,014 weavers. This investment was approved as a production incentive. The scheme also supports 11,193 khadi artisans with an investment of US$ 3 million in order to ensure minimum wages. Khadi sales value from Kerala (in US$ thousands) . The State Budget 2018-19 has allotted Rs 19 crore (US$ 29.35 million) for the revival of Khadi industry in Kerela 29.00
28.00 28.38 28.00 28.28 27.00 26.00 26.98 25.00 24.00 24.64 23.00 22.00 2011-12 2012-13 2013-14 2014-15 2015-16
Source: Ministry of Micro, Small & Medium Enterprises, State budget 2017-18
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. There are vast opportunities for investment in the field of Ayurvedic products due to higher demand for natural products for skin, hair, body and dental care.
. Kerala is the land of Ayurveda, with numerous medicinal plants. Herbs with good potency provide the continuity and consistency of Ayurvedic medicines needed for effective treatment procedures.
. Kerala has the highest number of Ayurveda colleges and practitioners in the world. As per budget 2016-17, the state government allocated an amount of US$ 1.09 million for the development of global Ayurveda in Thiruvanthapuram. As per state budget 2018-19, the government has allocated US$ 7.11 million for Ayurveda education and US$ 3.55 million for homoeopathy.
. Thrissur (Kerala) is emerging as one of the largest hubs for Ayurvedic drug manufacturing in the country.
. Kerala has 850 Ayurvedic drug manufacturing units, including some major ones such as Oushadhi, Vaidyaratnam Oushadhasala and KP Namboodiris. There are 815 dispensaries, 127 hospitals and 20 sub centres active for Ayurvedic treatment under ISM Department and the state government has proposed an amount of US$ 5.21 million for the development and strengthening of ISM Department of the state under the annual budget 2016-17. Another US$ 381.91 thousand and US$ 2.02 million were proposed for the strengthening of Ayurveda dispensaries and upgradation of ISM institutions, in the state, respectively.
. Under annual budget 2016-17, the state government proposed an investment of US$ 458.29 thousand for expansion of Oushadhi Kerala Ltd. (The Pharmaceutical Corporation (IM) Kerala Ltd.). Oushadhi Kerala is the 65th largest manufacturer of Ayurveda medicines in India.
Note: ISM- Indian Systems of Medicine Department, Government of Kerala Source: Economic Review of Kerala, 2014-15, State budget 2017-18, News articles
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. The state has a long coastline of over 580 km & innumerable water Total fish production in Kerala (in million tonnes) bodies, generating a huge potential for inland & marine fishing & providing it a prominent position in fish cultivation. . Among maritime states in India, Kerala ranks 2nd in marine fish 0.74 production. In 2015-16, total fish production in the state stood at 0.73
million tonnes. . As of 2016, the state government had finished construction of 14 0.72
fishing harbours and 10 are in progress. 0.730
. As per state budget 2016-17, the Government of Kerala proposed 0.7 0.708
allocations of US$ 6.04 million and US$ 5.87 million for the
implementation of social security schemes for fishermen as well as
0.68
0.693
for inland fisheries, respectively.
0.687
0.686 0.68
. Further, an allocation of US$ 4.58 million for the University of 0.681
0.678
Fisheries & Ocean Studies, US$ 4.12 million for NABARD assisted 0.66 0.677
RIDF schemes and US$ 4 million for ‘Development of Marine 0.66 Fisheries Infrastructure & Post-harvest Operations’, has also been 0.64
proposed by the state government during 2016-17.
. The state government has allocated US$ 92.68 million for fisheries 0.62
sector and coastal area development under annual budget 2018-19. 0.632 . The budget includes schemes such as conservation & management of fish resources, motorisation of traditional fishing crafts & insurance 0.6 coverage to fishing implements, integrated fisheries development, inland fish production, fishing harbours, modernisation of fish 0.58 markets & value addition, etc.
. In April 2018, Fish Farmers Development Agency for Aquaculture
2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 Development in Kerala will be implementing umbrella project 2006-07
‘Development of Inland Fisheries’ worth Rs 69.90 core (US$ 1.08 2016-17(P) million) launched by Fisheries Department .
Note: P - Provisional Source: Economic Review of Kerala, 2015-16, 2016, Department of Animal Husbandry, Dairying and Fisheries, Annual Budget 2016-17, 2017-18
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. During 2015-16, an outlay of US$ 17.2 million was proposed by the Total rice production in Kerala (in ‘000 tonnes) state government for the same scheme. 700.0 . As per budget 2016-17, for rice development, the state government
600.0
allocated an amount of US$ 5.34 million.
500.0
598.3
590.3
400.0 569.0
. Further, as per budget 2016-17, the state government also decided 558.3
549.3
522.7 509.2
to provide free rice through ration shops to the BPL/AAY families in 300.0 508.3 448.4 the state. Due to this initiative, the total subsidy granted was 200.0 418.7 expected to reach US$ 76.38 million during 2016-17. 100.0 0.0
. In state budget 2017-18, US$ 108.65 million has been allocated for
10 11 12 13 14 15 16 17 18
procurement of paddy. 09
2008- 2009- 2010- 2011- 2012- 2013- 2014- 2015- 2016- 2017-
. In 2017-18, the total rice production amounted to 418,700 tonnes.
Funds allocated in budget 2016-17 (US$ million)
Rice development 5.34
Operational support to padasekhara 0.68 samithies for group farming
Source: Economics & Statistics Department, Kerala, State Budget 2016-17, 2017-18
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. Being a leading tourist hub in the country, Kerala is making rapid strides in the hotel, retail and entertainment sector. . The sector is attracting investments in projects such as world-class spas, entertainment centres, mega shopping malls, multiplexes, business convention centres and theme parks. Hospitality, leisure and . The state has world-class infrastructure and perfect climate for Ayurveda health centres. . Hotel projects under development include Mfar Hotels and Resorts Ltd’s 5-star hotel and Banyan Tree Hotels & entertainment Resorts. . UAE based Western Marine Service and Techlink Systems plans to invest US$ 10.41 million in hospitality sector of Kerala, by setting up a hotel chain under the brand name - Springstay. . The Kerala State Film Development Corporation will build 100 more theatres in the state using funds from Kerala Infrastructure Investment Fund Board
. Food processing is a sunrise sector that has gained prominence over the years in the state. . FPI in Kerala constituted organised as well as unorganised units. . Spices, pickles and marine products are the major food product exports from Kerala. . Kerala has India’s first food processing industrial park in Malappuram and seafood processing park in Alappuzha. The state also has a coconut-based food processing plant in Kinalur. Food processing . An amount of US$ 2.44 million was sanctioned to establish a mega food park at Cherthala for processing of seafood products as per budget 2016-17. . During 2015-16, under the plan scheme for technology modernisation/ upgradation/ establishment of food processing units in the state, 20 units were assisted in the state of Kerala with an outlay of US$ 4.48 thousand. . Further, under National Mission on Food Processing (NMFP) scheme, 23 projects were sanctioned during 2015- 16, by the state government. Moreover, a total of 2 projects each were sanctioned under the Mega Food Parks scheme, Food Testing Laboratory Scheme as well as Research & Development Scheme, during 2015-16.
Note: FPI - Food Processing Industry Source: State Annual Budget 2016-17
62 KERALA For updated information, please visit www.ibef.org SINGLE-WINDOW APPROVAL MECHANISM
. A Single-Window Clearance Mechanism (SWM) was established in SWM structure in Kerala June 2000, with an aim to expedite clearances for new industrial projects.
. A state-level board, headed by the Chief Secretary, issues clearances within a time frame of 45 days to medium and large scale industries. State Board Chief Secretary . KSIDC is the single point of contact and convenor of the state board.
. District-level boards have been constituted for issuing clearances required by small scale industries.
. The District Collector of each district is the Chairman and General District Boards District Manager of the Board; the District Industries Centre (DIC) is the Collector convenor for such boards. The stipulated time frame for clearances is 60 days.
. Industrial Area Boards have been set up in various industrial areas of the state for the clearance of projects. An officer, not below the rank An officer not of District Collector, is Chairman of each Board, with the Designated Industrial Area below the rank Authority of the Industrial Area as Convenor. The stipulated time Board of District frame for obtaining the clearances is 30 days. Collector
Source: KSIDC
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Agency Description
. The aim of the organisation is to speed up industrial growth in Kerala through infrastructure support.
Kerala Industrial Infrastructure Development . It operates industrial parks in various sectors. Corporation . It has three newly operational parks: Kera Park (in Thrissur), Spices Park (Idukki) and Rubber (KINFRA) Park (Pathanamthitta).
. KINFRA’s four upcoming projects include a marine park in Beypore, a technology park in Ramanattukara, a food park at Wayanad and an industrial park in Palakkad.
. The organisation is involved in providing technical consultancy assistance to banks by KITCO Limited appraisal of projects for priority sector lending and to entrepreneurs in the Small & Medium (formerly, Kerala Industrial and Technical Consultancy Organisation Limited) Enterprises (SMEs) sector by way of preparation of project reports and market studies and by conducting training programmes for entrepreneurship development.
. It is the implementing agency for the Department of Industries, Government of Kerala.
Directorate of Industries and Commerce . It provides infrastructure facilities for the small scale sector by acquiring land and developing facilities such as roads, water supply, electricity and civil works.
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Agency Description
. It provides infrastructure facilities to the small-scale sector through its major and mini industrial estates.
Small Industries Development Corporation . It owns and operates production units, raw materials depots, industrial estates/mini industrial estates, marketing cell/emporia/centres, civil construction division, IT&TC division, export & import/project division and industrial parks.
. Purpose:
. Formed in 1961 with an objective of promoting, stimulating, financing and facilitating the development of large- and medium-scale industries in Kerala.
. Acts as a promotional agency, involved in catalysing the development of physical and social Kerala State Industrial Development infrastructure required for the constant growth of industry. Corporation (KSIDC): the single-window clearance and monitoring agency . Composition: . Consists of a group of professionals from various fields including engineering, management, finance and law.
. Services offered include project lending, single-window clearance, equipment purchase loans and consultancies.
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Agency Contact information
Vikas Bhavan P O Thiruvananthapuram Kerala-695 033 Directorate of Industries and Commerce Phone: 91-471-2302 774 Fax: 91-471-2305 493 E-mail: [email protected] T C XI/266, Keston Road, Kowdiar, Kerala State Industrial Development Thiruvananthapuram-695 003 Corporation Limited Phone: 91-471-2318 922 (KSIDC) Fax: 91-471-2315 893 E-mail: [email protected] P B No 4407, Puthiya Road, NH Bypass, Vennala, Cochin-682 028 KITCO Limited Phone: 91-484 -4129 000 / 2805 033 Fax: 91-484 -2805 066 E-mail: [email protected] KINFRA HOUSE, TC 31/2312 Sasthamangalam, Thiruvananthapuram - 695 010 Kerala Industrial Infrastructure Development Phone: +91-471-2726 585 Corporation (KINFRA) Fax: +91-471-2724 773 E-mail: [email protected] Housing Board Building, 6th floor, Santhi Nagar, P B No 50 Thiruvananthapuram- 695 001 Kerala Small Industries Development Phone: 91-471-2330 401, 2330 413, 2330 818, Corporation Fax: 91-471- 2330 904 E-mail: [email protected]
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Approvals and clearances required Department Estimated time Incorporation of the company Registrar of Companies District Industries Centre for small scale Registration, Industrial Entrepreneurs industries and KSIDC for large and medium Memorandum, Industrial Licences industries Allotment of land State Department of Industries/KSIDC/KINFRA Single window clearance:
State Department of Industries, Permission for land use The state’s single-window facility clears Kerala Town and Country Planning Department investment proposals in 45 to 60 days on an Kerala State Pollution Control Board and Central average; the single-window mechanism helps Environment approval for the site Ministry of Environment and Forests obtain all approvals necessary for the investment proposals within the specified time No-objection certificate and consent under Kerala State Pollution Control Board frame. Water and Pollution Control Act
Approval of construction activity and building Kerala Town and Country Planning Department plan Sanction of power Kerala State Electricity Board (KSEB)
Registration under State’s Sales Tax Act and Sales Tax Department, Central and State Excise Central and State Excise Act Departments
67 KERALA For updated information, please visit www.ibef.org KEY APPROVALS REQUIRED … (2/2)
Approvals and clearances required Time to Complete (Days)
Approval for director identification number (DIN) from the Ministry of Corporate Affairs portal (National)-Online 1
Approval of digital signature certificate from private agency authorized by the Ministry of Corporate Affairs 3 (National)
Approval for reserve a company name with the Registrar of Companies (ROC) (National)-online 2
Stamp the company documents at the State Treasury (State) 5
Obtain a Permanent Account Number (PAN) from an authorised franchise or agent appointed by the National Securities Depository Ltd (NSDL) or the Unit Trust of India (UTI) Investors Services Ltd, as 15 outsourced by the Income Tax Department (National)
Obtain a Tax Account Number (TAN) for income taxes deducted at the source from an authorized franchise or 14 agent appointed
Register with the Office of Inspector, Shops and Establishment Act (State/ Municipal) 14
Register for Value-Added Tax (VAT) at the Commercial Tax Office (State) 25
Register for Profession Tax at the Profession Tax Office (State) 9
Source: Kerala Economic Review 2014-15, World Bank Group
68 KERALA For updated information, please visit www.ibef.org COST OF DOING BUSINESS IN KERALA
Cost parameter Cost estimate Source
Industrial land (per sq m) US$ 33–190 (Cochin) Industry sources
Five-star hotel US$ 120–300 per room per night Leading hotels in the state
Office space rent (per sq ft) US$ 0.6–3 per month Industry sources
Residential space rent (2,000 sq ft house) US$ 350–750 per month Industry sources
Domestic: 1.1 to 3.3 cents (US) Kerala State Electricity Regulatory Commission, as of Fixed Power Tariff (per kWh) Commercial: 3.3 to 13 cents (US) March 2015 Industrial: 5.5-6.9 cents (US)
Labour (minimum wages per day) US$ 6.8–15 Ministry of Labour and Employment, Government of India
Commercial and industrial: US 22 Water (1,000 litres) Kerala Water Authority cents to US 55 cents
Source: Kerala Government websites and Industry sources, Ministry of Labour and Employment, Government of India, Kerala Electricity Regulatory Commission, Kerala Water Authority
69 KERALA For updated information, please visit www.ibef.org STATE ACTS & POLICIES … (1/5)
Objectives
. To ensure the development of athletes as leaders and role models in sports and society. Kerala Sports Policy . Sports related sectors to incorporate sports intentionally to achieve social development. 2015 . To ensure that sports events are designed to benefit the host community and local economics. Read more
. To promote Kerala as a prime destination for industrial investments with environmental protection. Kerala Industrial & Commercial Policy . Revamp Kerala into an entrepreneurial state by encouraging private investment in all sectors, particularly agro Amended 2015 processing, services and commerce, and new emerging sectors. Read more
. The farm lands are to be protected and should not be put for any other use than farming activities Kerala Agricultural Development Policy . The agriculturally potential land is to be identified and demarcated using modern technologies such as remote 2015 sensing, satellite imagery, etc., and a database is to be made. Read more
. Purpose of this policy is to inaugurate minimum ten technology business incubators for different sectors of the Kerala Technology state. Startup Policy 2014 . Government also aims to attract foreign investments. Read more
. Target installed capacity of 2,500 MW by 2030. Kerala Solar Energy . Set up floating and off-shore generation units. Policy 2013 . Make use of solar energy compulsory for industries; incentive to be provided for solar power Read more
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Objectives
. To create an environment for investment. Kerala Tourism Policy . To market Kerala as a visible global brand in domestic and international markets. 2012 . To ensure quality visitor experience. Read more
Kerala Small Hydro . To harness green and clean natural resources in the state for environmental benefits and energy security. Power Policy 2012 Read more
Kerala IT Policy 2012 . To plan, develop and market the state as the most preferred IT/ITeS investment/business destination in India.
Read more
. To offer affordable and adequate housing for the state’s citizens Kerala State Housing . To meet the housing needs of the landless tribal, fishermen, traditionally employed and poor citizens of the state Policy- 2011 Read more
SEZ Policy 2008 . To make Kerala’s economy more export-oriented by granting various exemptions and concessions.
Read more
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Objectives
. The purpose of this policy is the promotion and development of micro, small and medium enterprises. The policy is The Micro, Small And also enhancing the competitiveness between micro, Medium Enterprises Development Act, 2006 . Small and medium enterprises. Read more
Kerala Biotechnology . The policy focuses on catalysing the development and application of biotechnology while taking advantage of the Policy 2003 state’s resources and keeping global requirements in perspective. Read more
Kerala State Training . To strengthen governance in the state by building capacity amongst various categories of civil servants Policy . To impart training to every state civil servant once in every five years Read more
. Purpose of the policy is to legalize the production, transportation and consumption value of liquor in the state. The policy also covers transparent licensing system for intoxicating products. Kerala liquor policy
Read more
72 KERALA For updated information, please visit www.ibef.org EXCHANGE RATES
Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year)
Year INR INR Equivalent of one US$ Year INR Equivalent of one US$
2004–05 44.95 2005 44.11
2005–06 44.28 2006 45.33
2006–07 45.29 2007 41.29 2007–08 40.24 2008 43.42 2008–09 45.91 2009 48.35 2009–10 47.42 2010 45.74 2010–11 45.58 2011 46.67 2011–12 47.95 2012 53.49 2012–13 54.45 2013 58.63 2013–14 60.50 2014 61.03 2014-15 61.15
2015-16 65.46 2015 64.15
2016-17 67.09 2016 67.21
2017-18 64.45 2017 65.12
Source: Reserve bank of India, Average for the year
73 KERALA For updated information, please visit www.ibef.org DISCLAIMER
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74 KERALA For updated information, please visit www.ibef.org