REPORT NO. 200

PARLIAMENT OF RAJYA SABHA

DEPARTMENT-RELATED PARLIAMENTARY STANDING COMMITTEE ON TRANSPORT, TOURISM AND CULTURE

TWO HUNDREDTH REPORT Development of Tourism, National Highways and Water Transport in and Limited

(Presented to the Rajya Sabha on 27th August, 2013) (Laid on the Table of Lok Sabha on 27th August, 2013)

Rajya Sabha Secretariat, New Delhi August, 2013/Bhadrapada, 1935 (Saka) Website:http://rajyasabha.nic.in E-mail:[email protected] 59

Hindi version of this publication is also available

PARLIAMENT OF INDIA RAJYA SABHA

DEPARTMENT-RELATED PARLIAMENTARY STANDING COMMITTEE ON TRANSPORT, TOURISM AND CULTURE

TWO HUNDREDTH REPORT

Development of Tourism, National Highways and Water Transport in Kerala and Cochin Shipyard Limited

(Presented to the Rajya Sabha on 27th August, 2013) (Laid on the Table of Lok Sabha on 27th August, 2013)

Rajya Sabha Secretariat, New Delhi August, 2013/Bhadrapada, 1935 (Saka)

CONTENTS

PAGES

1. COMPOSITION OF THE COMMITTEE ...... (i)-(ii)

2. INTRODUCTION ...... (iii)

3. LIST OF ABBREVIATIONS ...... (iv)-(v)

4. REPORT ...... 1—34

5. OBSERVATIONS/CONCLUSIONS/RECOMMENDATIONS — AT A GLANCE ...... 35—43

6. ANNEXURES (I&II) ...... 45—52

7. MINUTES ...... 53—58

COMPOSITION OF THE DEPARTMENT-RELATED PARLIAMENTARY STANDING COMMITTEE ON TRANSPORT, TOURISM AND CULTURE (2012-13)

1. Shri Sitaram Yechury — Chairman

RAJYA SABHA 2. Shri Satish Sharma 3. Prof. Alka Balram Kshatriya 4. Shri V. Hanumantha Rao 5. Shrimati Bimla Kashyap Sood 6. Shri Aayanur Manjunatha 7. Shri Narendra Kumar Kashyap 8. Shrimati Vasanthi Stanley 9. Shri Kunal Kumar Ghosh 10. Shri Shashi Bhusan Behera

LOK SABHA 11. Shri Sisir Kumar Adhikari 12. Yogi Adityanath 13. Shri Ghanshyam Anuragi 14. Shri Subrata Bakshi 15. Shrimati Tabassum Hasan 16. Dr. Mahesh Joshi 17. Shri M. Krishnaswamy 18. Shri G.V. Harsha Kumar 19. Shri S. Pakkirappa 20. Shri Prabodh Panda 21. Shri Deoraj Singh Patel 22. Shri Adhalrao Shivaji Patil 23. Shri Nilesh N. Rane 24. Shri Modugula Venugopala Reddy 25. Shri Madan Lal Sharma 26. Shri Dushyant Singh 27. Shri Rakesh Singh 28. Shri Shatrughan Sinha 29. Shri K. Sudhakaran 30. Shri Dinesh Trivedi 31. Vacant

(i) (ii)

SECRETARIAT Shri N.K. Singh, Joint Secretary Shri Swarabji B., Joint Director Dr. (Shrimati) Subhashree Panigrahi, Joint Director Shrimati A.S. Chakravani, Assistant Director Shri T. Kennedy Jesudossan, Committee Officer Shri P.P. Raumon, Committee Officer INTRODUCTION

I, the Chairman, Department-related Parliamentary Standing Committee on Transport, Tourism and Culture, do hereby present on its behalf this Two Hundredth Report on ‘Development of Tourism, National Highways and Water Transport in Kerala and Cochin Shipyard Limited’. 2. Kerala, with its uniqueness has become one of the major popular tourist destinations of the world. The tourism industry’s contribution to the state’s economy is also commendable. However, a need was evident to channalise Kerala’s tourism potential into a customized revenue harnessing source without disturbing natural environment and by enhancing the cultural integrity of local people. The Committee, in continuation to its special focus on promotion of Tourism in various regions of India, took up the study visit to a few of tourist destinations in Kerala i.e., , and , between 24th to 31st May, 2013. The Committee made similar studies previously on North-East region and Jammu and Kashmir. 3. The Committee examined various issues such as Cruise, Wellness, Medical, Wildlife, Tea and Eco tourism of Kerala, route and heritage projects, Rationalization of Inter-State tourist permits, Heavy taxation, Comprehensive waste management, National Highways issues, River tourism and linking of ports on NW3, IWT connectivity to ICTT. The Committee noted the difficulties in achieving these objectives viz., Non-availability of Visa-on arrival, Promoting of tourist destinations of Kerala nationally and internationally, Limited air connectivity, Maintenance and construction of national highways, Rail-road-waterway linkages, Maintenance dredging, etc. 4. The Committee also took up the study of Cochin Shipyard Limited and examined the challenges it is facing in Shipbuilding and Ship repair sectors. 5. The Committee expresses its gratitude to the officers of the Ministry of Tourism, Ministry of Road Transport and Highways, Ministry of Shipping, National Highways Authority of India, Inland Waterway Authority of India, Cochin Shipyard and Officers of State , Tour-Travel and Hotelier Associations of the State and others for their cooperation in furnishing the required feedback and information in connection with the examination of the subject and also for making valuable suggestions for improving the tourism scenario in these States. 6. The Committee considered and adopted the Report in its meeting held on the 23rd August, 2013.

SITARAM YECHURY NEW DELHI; Chairman, 23 August, 2013 Department-related Parliamentary 1 Bhadrapada, 1935 (Saka) Standing Committee on Transport, Tourism and Culture.

(iii) LIST OF ABBREVIATIONS

AD Amphibian Dredger ASI Archaeological Survey of India AYUSH Department of , Yoga and Naturopathy, Unani, and Homeopathy BOT Build, Operate and Transfer BPCL Bharat Petroleum Corporation Limited CAD Computer-aided Design CALA Central Authority of Land Acquisition CAM Computer-Aided Manufacturing CDs Compact Disks CFA Central Financial Assistance CIFNET Central Institute of Fisheries, Nautical and Engineering Training CISF Central Industrial Security Force CSEZ Cochin Special Economic Zone CSL Cochin Shipyard Limited DCI Dredging Corporation of India DPP Defence Procurement Policy DTVs Domestic Tourist Visits EDC Eco-Development Committees EXIM Export-Import FACT The Fertilizer and Chemicals Limited FAM Familiarization Tours FITUR International Tourism Trade Fair FSI Fisheries Survey of India FTVs Foreign Tourist Visits GRSE Garden Reach Shipbuilders and Engineers Limited GSI Geological Survey of India GSL Goa Shipyard Limited, Goa HPCL Hindustan Petroleum Corporation Limited HSL Hindustan Shipyard Limited OEM Original Equipment Manufacturers PAP Project Affected Persons PATA Pacific Asia Travel Association India Chapter PSU Public Sector Undertaking PTR Tiger Reserve

(iv) (v)

R&R Rehabilitation and Resettlement ROW Right of Way SALUs State Land Acquisition Units SCI Shipping Corporation of India TEUs Twenty Foot Equivalent Units TRIBON Naval Architecture Programme Originally Developed by Kockum Computer System TVOA Tourism Visa on Arrival UNESCO United Nations Educational, Scientific and Cultural Organization UNWTO United Nations World Tourism Organization USP Unique Selling Point VAT Value Added Tax VoA Visa-on-Arrival

1

REPORT

CHAPTER-I

TOURISM IN KERALA

Kerala is slender strip of land in the southern tip of Indian subcontinent. Beautiful and benign, this Indian state lies along a sun drenched coastline flanked by the Arabian Sea on the West and mountains of the on the east. Sun blanched, white seashore, endless beaches, incessant blue waves mostly clam but sometimes boisterous clamouring and vanishing among white splashes, green groves of just stop short and border the beaches with frills. Lurking in the backdrop a network of lagoons and backwaters, boats and country crafts moving along, quite a lot of rivers and countless rivulets flowing through hills and paddy fields of the midland, emptying themselves into the backwater, cascading delicately down the hills to the golden coasts covered by verdant and spice groves and thick forests and the far off dark blue mountains. This is what the eyes meet about Kerala.

2. With the Arabian Sea in the west, the Western Ghats towering 500-2700 m in the east and networked by 44 rivers, Kerala enjoys unique geographical features that have made it one of the most sought after tourist destinations in Asia. An equable climate, a long shoreline with serene beaches, tranquil stretches of emerald backwaters, lush hill stations and exotic wildlife, magnificent waterfalls, sprawling plantations and paddy fields, ayurvedic health holidays, enchanting art forms, magical festivals, historic and cultural monuments, an exotic cuisine... All of which offer a unique experience. Its unique culture and traditions, coupled with its varied demography, has made Kerala one of the most popular tourist destinations in the world. The tourism industry is a major contributor to the state’s economy. The vital statistics of the State’s economy reveal that it has a GDP growth rate of 9%; the revenue generated from Tourism in 2012 is Rs. 20430 crore showing a growth of 7.32% over the previous year; Foreign Exchange Earnings in 2012– Rs. 4571.69 crore (growth of 8.28% over the previous year); Employs about 12 lakh persons, etc.

3. Due to its unique climatic conditions, cultural diversities and natural advantages, Kerala was able to transform itself into one of the prime tourist destinations in India. The tag line “Kerala- God’s Own Country” was adopted in its tourism promotions and became a global superbrand. Kerala is regarded as one of the destinations with the highest brand recall. Kerala is an established tourist destination for both Indians and non-Indians alike. Kerala is famous especially for its initiatives, which focuses on the local culture, wilderness adventures, volunteering and personal growth of the local population. Efforts are taken to minimize the adverse effects of traditional tourism on the natural environment, and enhance the cultural integrity of local people.

4. The Government’s New Tourism Policy, 2012 envisages to ensure quality visitor experience, focus on benefits for the community from tourism, create enabling environment for investment, market Kerala as a visible global brand in domestic and international markets and to develop quality human resources in tourism and hospitality. The materialization of these ideal objectives are, however, mired with growth related challenges viz., availability of Visa-on-Arrival (VoA) service at only two airports in Kerala ( and Kochi); Applicability of VoA to tourists only from 11 countries (Japan, Singapore, Finland, Luxembourg, New Zealand, Philippines, Cambodia, Laos, Vietnam, Myanmar and Indonesia); Kerala is also competing with Asian countries like , Sri Lanka, Malaysia, etc; Promotion of international destinations aggressively by the International Tourism Boards in India; Seasonality factor – limited occupancy during off-season; 2

Non-widening of the geographical spread especially Western Europe, , Scandinavia, etc; Infrastructure Development (Regular Road Maintenance and Basic amenities); Cleanliness and Hygiene; Waste Management, Limited air connectivity to key cities in India and European sectors, etc. 5. To look into these aspects relating to , the Committee decided to take up the issue relating to development of tourism in the State in detail for consideration and report. The Committee conducted on-the-spot study and visited Kochi, Munnar and Thekkady between 24th to 31st May, 2013. The Committee had detailed interaction with the representatives of travel, tour, transport and hoteliers associations and other stakeholders in the private sector as well as with the Ministries of Tourism, Road Transport and Highways, Shipping and organizations like Trust, Cochin Ship Yard Ltd., Inland Waterways Authority of India, National Highways Authority of India and the Tourism Department and PWD of Government of Kerala and concerned officials of the State Government. It also heard various stakeholders of the Tea Industry. 6. During the deliberations, the Ministry of Tourism informed the Committee that the development and promotion of tourism is primarily the responsibility of the respective State Government/Union Territory (UT) Administration. The Ministry of Tourism functions as the nodal agency for the development of tourism in the country. It plays a crucial role in coordinating and supplementing the efforts of the State/Union Territory Governments, catalyzing private investment, strengthening promotional and marketing efforts and in providing trained manpower resources. It provides Central Financial Assistance (CFA) for tourism infrastructure development projects identified in consultation with them, subject to availability of funds, inter-se-priority and adherence to Scheme Guidelines.

Tourist Arrivals 7. Kerala encompasses only 1.18% of the country’s land but attracted 1,00,76,854 domestic tourist arrivals in 2012 (recording a growth of 7.41% over the previous year) and 7,93,696 international tourist arrivals in 2012 (a growth of 8.28% over the previous year). The data on Domestic Tourist Visits (DTVs) and Foreign Tourist Visits (FTVs) to Kerala for the last 5 years is as under:–

Year DTVs FTVs 2007 6642941 515808 2008 7591250 598929 2009 7789378 548737 2010 8595075 659265 2011 (Provisional) 9381455 732985

Tourism Projects in Kerala 8. Details were also provided of the tourism development projects/Centrally Sponsored Schemes sanctioned during last three years viz., 2010-11, 2011-12 and 2012-13, projects submitted for revalidation during 2013-14 and Status of projects prioritized for the year 2013-2014. The tabulated data is given in Annexure-I. 9. Development of Muziris Circuit Project, Development of Munnar into a tourist destination, Development of Cruise Passenger Facilitation Centre at Cochin Port, Kochi, Development of Backwater Circuit in , etc. are some of the projects financed by the Ministry of Tourism. 3

Tourist Circuits identified for development 10. The Committee was informed that the following circuits have been identified by the National Level Consultant (NLC) for integrated development during the Twelfth Five year Plan:– (i) Northern Regional Circuit : – – – Wayanad – - – Kozhikode.; (ii) Central Regional Circuits : Kochi--- Thekkady-Munnar – – – Guruvayoor – – Kochi (or Kozhikode); (iii) Southern Regional Circuit : Thiruvananthapuram – – – – – – Pathanamittha – Alappuzha – Kochi.

Cruise Tourism 11. It was informed that ‘Cruise Shipping’ is one of the most dynamic and the fastest growing components of the leisure industry worldwide. It is fast emerging as a new marketable product. India with its vast and beautiful coastline, undisturbed idyllic islands, rich historical and cultural heritage, can be a fabulous tourist destination for cruise tourists. With the Indian economy developing at a steady pace, middle class growing in number and increasingly possessing disposable incomes which could be spent on leisure activities, Indians could also take on cruise shipping in a big way. 12. The Cruise Shipping Policy of the Ministry of Shipping was approved by the on 26th June, 2008. The objectives of the policy are to make India an attractive cruise tourism destination with the state-of-the-art infrastructure and other facilities at various parts of the country to attract the right segment of the foreign tourists to cruise shipping in India and to popularize cruise shipping with Indian tourists.

Cruise Tourism Facilities at Cochin Port 13. Tourists visiting Cochin Port essentially arrive by luxury cruise liners and the Cochin Port has made available necessary hardware (cruise terminal infrastructure) and software (single window facilitation centre) to ensure that the tourists are not put to any hassles while they are at Kochi and make most of their visit. The details of the facilities available to tourists at Cochin Port are as follows:– · A dedicated cruise terminal ‘Samudrika’ has been created admeasuring 1500 sq.m. This terminal is fully air-conditioned and is equipped with modern amenities such as X-Ray scanner, Customs and Immigration Counters, rest room, waiting lounge, etc under one roof. This terminal has been built with the financial assistance provided by the Ministry of Tourism and the Kerala Tourism Department. · This terminal is at close proximity of the BTP berth which has been identified as the dedicated berth to handle cruise ships upto 250m LOA (Length Overall). · Cochin Port has dedicated cruise facilitation cell which is a single window facility intended to address the requirements of cruise liners and tourists, tour operators, vessel agents, tour guides, taxi-auto-rickshaw pre-paid counter, money exchange, etc. · Cochin Port is ably supported by the Cochin Customs, Port Health Organisation, Tourism Police and Local Police, CISF and Immigration Department in providing a swift and convenient service to the cruise liners/tourists, in order to ensure that the tourists visiting the Port are not put to any inconvenience and they can make most of their short stay at the port. 4

· Cruise vessels are accorded walk-in priority berthing and neat and clean berth is made available (there are times when the Port receives more than one cruise ship at the Port) · CISF provide security to the cruise vessel both on land and water side during the stay of the vessel at the Port. The cruise Terminal is under camera surveillance to increase safety profile. · A dedicated boat terminal has been built to exclusively cater to the cruise passengers opting for backwater boat ride. · There is a marina within the port limits operated by Kerala Tourism Development Corporation where luxury yachts visit. This has been developed through Central Financial Assistance provided by Ministry of Tourism. 14. The Committee visited the dedicated Cruise Terminal ‘Samudrika’ built at the Cochin Port. Though non-operational during the time of Committee’s visit, it was built for providing all the amenities for cruise passengers viz., Immigration, Customs, waiting lounge, rest rooms, facilitation cell, security, dedicated boat terminal, Marina for luxury yachts etc. The Committee feels that this is the potential area of tourism development for Cochin as well as other ports. The Committee recommends that the cruise potential of Cochin Port may be included in the ‘ Campaign’ to give maximum publicity to attract cruise tourists. Further, the Committee emphasizes that more training/workshops should be organised by concerned ports to train the employees/agents in cruise tourism so that the ports are equipped to deal in this new opportunity. Further, Government can contemplate to extend this new avenue to other major ports as well.

Development of Backwater Tourism in Kerala (River Cruise) 15. Ministry of Tourism has sanctioned an amount of Rs. 4762.48 lakh to the Government of Kerala for the Development of Back Water Circuit in Alappuzha as a Mega Circuit in Kerala. The various components of work covered under this project include the development of House Boat Terminals, Development of night halt terminals, development of micro destination connected with the circuit, development of beaches connected with the circuit, scheme for development of Alappuzha town as the central destination of the circuit and establishing sewerage treatment plants. 16. The Committee notes that Alappuzha and the adjoining regions have great potential in backwater cruise tourism. The Committee recommends that the Ministry of Tourism, Government of India should give all out efforts to provide adequate infrastructure for backwater tourism and provide the necessary finances for the purpose.

Wellness Tourism 17. Wellness Tourism is about travelling for the primary purpose of achieving, promoting or maintaining maximum health and a sense of well-being. It is about being pro-active in discovering new ways to promote a healthier, less stressful lifestyle or finding balance in one’s life. Health Tourism holds immense potential in India. The Indian systems of medicine, that is Ayurveda, Yoga, Panchakarma, Rejuvenation Therapy, etc, are among the most ancient systems of medical treatment in the world. Kerala is termed the ‘Home’ of Ayurveda and wellness tourism has been the USP of the State. In order to address the issue concerning the mushrooming of wellness centres, the guidelines for accreditation of wellness centres were developed by National Board for Accreditation of Hospitals and Healthcare Providers (NABH) in consultation with the Department of Ayurveda, Yoga and Naturopathy, Unani, Siddha and Homeopathy (AYUSH) and released during the workshop on wellness tourism organized by the Ministry of Tourism in February, 2011. The Ministry of 5

Tourism organized a sensitization workshop in August, 2011 in Kochi to encourage wellness centres to adopt the accreditation. The Government of Kerala also has a system of approving the wellness centres. 18. The Ministry of Tourism also provides financial assistance under the Market Development Assistance Scheme (MDA) to approved wellness centres i.e., representatives of wellness centres accredited by NABH or the State Governments. The MDA assistance is for participation in medical/ tourism fair, medical conferences, wellness conferences, wellness fairs and allied road shows. Under the scheme, the following Wellness Tourism Service Providers from Kerala have availed support:– · Amala Ayurvedic Hospital and Research Centre, Thrissur has participated in FITUR, International Tourism Trade Fair, Madrid held from 30 January – 3 February, 2013. · M/s. Rajah Beach Ayurveda Hospital, Akalad, Thrissur has participated in PATA India Chapter Road Show – 2012 at Auckland, Sydney and Melbourne Held from October 1-5, 2012. 19. In addition, the steps taken by the Government to promote medical/health tourism include promotion in overseas markets through road shows, participation in travel marts and production of brochures, CDs, films and other publicity material. Wellness tourism has been specifically promoted at various international platforms such as World Travel Mart, London, ITB, Asia, Arabian Travel Mart, Dubai, PATA India Chapter Road Show, Australia in October, 2012, etc. Yoga/Ayurveda/ Wellness have been promoted in the past years in the print, electronic, internet and outdoor medium under the Ministry of Tourism’s “Incredible India Campaign”. 20. The Committee appreciates the initiatives taken by the Central/State Governments for providing wellness tourism and accreditation of wellness centres. The responsibility of the Government and stakeholders adhering to the conditionalities speaks volumes about the importance being accorded to tourists’ safety and clean business ethics by the tourism fraternity in Kerala. Further, the drive undertaken for providing financial assistance under the Market Development Assistance Scheme (MDA) and giving exposure to Wellness Tourism Service Providers shows the pro-local people and pro-entrepreneurial approach. The Committee would like the State/Central Governments and all concerned to come up with such solution-providing ideas so that the wellness tourism in Kerala is developed as brand of its own to attract tourists from world over.

Medical Tourism and Medical Visa 21. Ayurveda is one of the well developed disciplines in the State of Kerala and it is practised everywhere. Qualified doctors are plenty; the potential is immense. Therefore, Ayurveda and wellness tourism has great potential. It should be explored to the maximum. 22. One of the emerging tourism products in the state of Kerala is Medical Tourism. But large scale support from the Union Government is required to develop this potential. There have to be efforts from the Ministry of Tourism to promote Medical Tourism including Ayurveda, Sidha, Unani etc. in association with Kerala Tourism. The issues relating to issuing Medical Visa also need to be addressed.

Wildlife and Eco-tourism 23. The Committee was informed that the growing tourist demand is already exerting pressure on our natural and other resources. Unless, attention is paid now for developing tourism in ecologically sustainable manner and maintaining environmental integrity, it may cause irreparable 6 damage. Ecotourism (also known as ecological tourism) is responsible travel to fragile, pristine and usually protected areas that strives to be low impact and (often) small scale. It purports to educate the traveller, provide funds for ecological conservation, directly benefit the economic development and political empowerment of local communities and foster respect for different cultures and for human rights. Eco-tourism is held as important by those who participate in it so future generations may experience aspects of the environment relatively untouched by human intervention. 24. The Ministry has been laying a lot of stress on maintenance of environmental integrity considering the importance of developing tourism in an ecologically sustainable manner. The Ministry recognizes the following cardinal principles for development of ecotourism:– · It should involve the local community and lead to the overall economic development of the area. · It should identify the likely conflicts between resource use for eco-tourism and the livelihood of local inhabitants and attempt to minimize such conflicts. · The type and scale of eco-tourism development should be compatible with the environment and socio-cultural characteristics of the local community; and · It should be planned as a part of the overall area development strategy, guided by an integrated land-use plan while avoiding inter-sectoral conflicts and ensuring sectoral integration associated with commensurate expansion of public services. 25. Development, promotion and implementation of tourism projects including eco-tourism projects at identified tourism spots, are primarily the responsibility of State Government/Union Territory (U.T) Administrations concerned. The Ministry of Tourism, grants Central Financial Assistance to projects promoting eco-tourism, to the State Governments/UT Administrations in consultation with them, subject to availability of funds, utilization of funds sanctioned earlier, inter- se priority and adherence to Scheme Guidelines. Details of the two eco-tourism projects in Kerala for which Central Financial Assistance was provided are as follows:

Year Name of project Amount sanctioned (Rs.in lakh) 2007-08 Development of Eco-Tourism Programme in Gavi, 20.05 District. 2008-09 Malabar Mangrove Eco-Tourism circuit in 349.36 Malappuram, Kozhikode, Kannur and Kasargode Districts

26. The Committee visited Gavi Eco-tourism Project conceived and implemented by the Kerala Forest Development Corporation Ltd. (KFDC) in the reserved forests of the Periyar Tiger Reserve. The Committee was impressed by the institutional mechanism under the aegis of Eco-Development Committees (EDC), wherein the partnership of forest dependent communities. The Forest Department has successfully developed a replicable working model of managing natural resources for livelihood improvement. The Committee also observed that the visitation is managed within the carrying capacity of the forest location, a task that poses challenges elsewhere. 27. The cardinal principles for development of eco-tourism are really laudable. The Committee appreciates the efforts of Kerala Government in maintenance of environmental integrity and development of tourism in an ecologically sustainable manner. During its visit to , Munnar, Periyar Wild Life Sanctuary and Gavi National Park, Thekkady, the Committee got a first-hand experience of the functioning module as to how 7 the pristine beauty of the locations were maintained and development of eco-tourism’s way was paved.

Thekkady 28. Snuggled in the Western Ghats, one of the world’s richest bio-diversity spot, is the fascinating natural wildlife sanctuary of Thekkady—the protected Periyar Tiger Reserve (PTR). Noted for its geomorphology, diversity of wildlife and scenic beauty, the reserve attract visitors from all over the world. The very sound of the word “Thekkady” conjures up images of elephants, unending terrain of hill and spice-scented plantations. Periyar forests of Thekkady is one of finest wildlife reserves in India and spread across the entire district of Idukki are picturesque planations and hill towns that hold great opportunity for treks and mountains walks. 29. The splendid artificial lake formed by the across the Periyar River adds to the charm of the park. This is the only sanctuary in India where one can have the unique experience of viewing wildlife at close quarters from the safety of a boat. The greatest attractions of Periyar, however, are the herds of wild elephants that come down to play in the lake. 30. Periyar Tiger reserve with an area of 925 Km2 is the real representative of the Western Ghats and has all the elements of tropical with high species riches and endemism. It is the oldest and largest protected area (PA) in Kerala, zealously guarded and efficiently managed. Originally constituted as Nellkampetty Game Sanctuary in 1934, it evolved as Periyar Wildlife Sanctuary in 1950 and Periyar Tiger Reserve in 1978. Through the implementation of India eco- development projects from 1996 to 2004, PTR has emerged as a national role model for participatory conservation. 31. PTR is located in Idukki, Pathanamthitta and Revenue districts of Kerala State. PTR has undulating terrain with a chain of rolling hills and forested valleys. The highest peak is Kottamala (2019m.) and the lowest elevation is 100 m at Pambavalley. Most of the area lies between 750m-1500m. 32. PTR is one of the single largest compact forest blocks in the Southern Western Ghats and plays a key role in maintaining regional connectivity with other forest tracts. It forms one of the richest assemblages of evergreen forests in the entire Western Ghats which is rich in biodiversity with a high degree of endemism. Rivers originating from the forested tracts of PTR, namely, Periyar, Pamba and Azhutha form the lifeline for millions of people of Kerala and . The unique man-made Periyar Lake (26 Km2) is an important water source for Tamil Nadu for irrigation, drinking and power generation. PTR is a globally renowned tourism destination. Sighting of wild animals in close quarter from the boats is a memorable experience for tourists. Apart from providing sizeable revenue to the State Government, the livelihood of thousands of people is also dependent on tourism in Periyar. The Lord Ayyappa shrine at and Mangaladevi Shrine on the northern boundary of PTR are the two temples of enormous religious significance, attracting millions of pilgrims annually. 33. The presence of diverse animal groups with as many as 63 species of mammals, 323 species of , 44 species of reptiles, 28 species of amphibians, 38 species of fishes and 160 species of butterflies make this part of the world extremely rich in faunal diversity. Elephant, , Tiger, Panther, Sambar, Barking deer, Wild boar, , Nilgiri langur, Lion-tailed macaque, Otter, Malabar giant squirrel, Wild dog. etc. are the major mammals. Fourteen endemic species of brids have been reported from Southern Western Ghats including the Malabar grey hornbill (Tockus griseus), the Nilgiri wood pigeon (Columba elphinstoni) Bluewinged parakeet (Psittakula columboides), Crimson throated barbet (Megalaina rubricapila) Rufous babbler (Turdoides sabrafous) and Whitebreasted laughing thrush (C. Cachinnas). The Black and orange flycatcher 8

(Muscicapa nigrorulfa), Nilgiri flycatcher (M. albicaudata), Whitebellied blue flycatcher (M.pallipes), Broadtailed grass warbler (Schoericola plotyura) Nilgiri pipit (Anthus nilghirienses) Whitebellied shortwing (Brachypteryx major) and small sunbird (Nectarinia minima) are also found in the Reserve. PTR is the only home for seven fresh water fishes namely Nemacheilus menonii, Nemacheilus periyarensis, Puntius ophicephalus, Hypselobarbus micropogon periyarensis, Lepidopygopsis tyus, Crossocheilus periyarensis and Garra periyarensis. 34. The tribal communities of the Reserve include Mannans, Paliyans, Uralis, Ulladans, Malampandarams and Malarayans. Around 58 villages are situated on the fringes of the Tiger Reserve. It is estimated that around 2.25 lakhs of people live within the 2 km radius of the Tiger Reserve. These communities have partial or complete dependency on the forests. About 22 estates situated along the boundary of Tamil Nadu harbour nearly 3000 labourers, with more than 1000 of them having been identified as dependent on the Tiger Reserve for various purposes. To empower these communities and to reduce the dependencies on forests, various eco-development activities were launched in the mid 1990s. Now due to these initiatives, PTR has become national model in participatory management of Protected Areas. 35. The Committee interacted with the stakeholders, hotelier associations, representatives of the Government of Kerala and Ministry of Tourism, Government of India at Thekkady. 36. One of the main problems brought before the Committee was that Thekkady has saturated itself and there is no space for further development. The stakeholders demanded that there are umpteen number of satellite areas which can be developed as tourist destinations but the Government is not doing much to develop those areas. Another problem brought before the Committee was that there is lack of parking space in the Periyar Sanctuary. And due to the overcrowding of vehicles inside the sanctuary the pollution levels are increasing and there are lot of disturbance. As a suggestion, the stakeholders informed the Committee that there is a need to restrict the vehicle movement inside the Periyar sanctuary. 37. There is heavy rush for getting tickets for boat ride as the number of tickets are limited due to the limited number of boats. 38. Waste management in and around is another problem the stakeholders are facing: Sewage water from Kumily town and surrounding areas are discharged in to the Periyar Tiger Reserve (Periyar Lake.) 39. Thekkady is the Centre of spice plantations and there is a need to develop a botanical garden to exhibit all the spice plants available in the region to give a first hand experience to the tourists. Yet another requirement of the region was a Musuem which can be a repository of information on all the social, cultural, traditional and historical aspects of the region. The Museum should educate the visitors. 40. On the basis of interaction with various stakeholders and its first-hand experience, the Committee feels that various satellite towns adjoining Thekkady have immense tourism potential. In view of the fact that Thekkady and the adjoining Kumily towns are already saturated, the Committee emphasises the need to develop the satellite towns/villages as tourist destinations. The Committee further recommends that the Union Ministry of Tourism and Government of Kerala should cooperate with each other to ensure that satellite villages of Thekkady are provided with adequate infrastructure to develop as tourist destinations. 41. The Committee feels that there is an urgent need to establish a full fledged museum in Thekkady to have first hand experience to the tourists about the social, cultural, traditional and historical aspects of the region. This will give authentic information on the 9 people and culture of the area. The Committee also recommends that museums should be established at all the tourist destination. 42. The Committee was told that there is a state-owned vegetable farm near Kumily. The Committee recommends that a Botanical Garden may be established in Kumily, if need be, the State owned farm may be converted into a Botanical Garden. 43. The Committee further recommends that vehicular traffic may be restricted inside Periyar Wild Life Sanctuary. The present parking area which is inside the forest area may be shifted out of the sanctuary. Only the battery operated vehicles may be permitted from the parking lot to the sanctuary/boat landing area. At Eravikulam National Park, Munnar, the Committee observed that battery operated vehicles are used for transporting tourists to the National Park. The same model can be adopted in Periyar Sanctuary also. 44. The Committee also recommends that comprehensive waste management system may be introduced in Kumily and Thekkady. At no stage the sewage may be allowed to be dumped in the Periyar Tiger Reserve (Periyar lake). The Government of Kerala and the Ministry of Tourism Government of India should take initiative in this regard. 45. The Committee also recommends that adequate number of modern boats which are pollution free and less noisy may be provided at the Periyar sanctuary so that the wild life is not disturbed. This will also avoid the mad rush for boat tickets. Ministry of Tourism should cooperate in this regard. 46. The Committee was informed that the tourists were being charged exorbitantly and the authorities of Periyar Tiger Reserve were permitting the tourists arbitrarily. In case of boat-tickets also, there are great variations in price between those bought from the counter and the online bookings. The representations received in this regard have been forwarded to the Ministry of Tourism, Government of India and Kerala Tourism for appropriate remedial measures. The Committee hopes that the appropriate authorities will look into these complaints and take remedial measures. 47. The Committee recommends that necessary efforts may also be made for training of a team of naturalists recruited from the local Eco-development Committees; Setting up of training facilities for forest dependent communities in responsible tourism initiatives; setting up of eco-shops for marketing of value added products developed by local communities; developing nature trails as an integral part of jungle camping linking gardens and hamlets, etc. 48. The Committee feels that there is a need for establishment of Tribal Culture and Art Museum at Kumily and developing the existing Rajiv Gandhi Museum of Flora and Fauna at Kumily into a full fledged museum. The Committee found that the Forest Department has tried its best to preserve the folk culture of the area by providing a platform to the folk artists of the region and encouraged the musicians and dancers to carry on the precious legacy. This gesture is appreciated by the Committee as this initiative enabled them to retain their talents without disturbing their livelihood. The Committee feels that this initiative could be further encouraged and many more artists would be benefitted if it is taken up in a large scale. The Government is not only bound for development of tourism but also for preservation and transfer of the knowledge of wild, natural and cultural heritage to the future generations. The Committee wants them to take a considerate view on the problems being faced by the stakeholders in these Park/Sanctuaries. The Committee directs the Ministry of Tourism to offer patronage and extend necessary financial support for the proposals. It also recommends that they should study the feasibility of introducing ropeways without hindering the ecology at Thekkady and Munnar. 10

Tea Tourism

49. The old tea plantations, stretched over thousands of acres, now remain part of the hill stations across the country, including Kerala. Being situated at high altitudes with cool climates, these warm and welcoming places can be ideally promoted as a special experience to the tourists. Today, connectivity to such properties has also increased and this is paving the way for converting the “bunglows” of the owners and managers of tea and coffee plantations as alternate places of stay so as to experience the lifestyles and legacy of a bygone era.

50. Many of the plantations and homesteads are over a century old with the bunglows possessing fine wood work and furniture, while others are mid-twentieth century pieces of good architecture, very often build along the same lines and located in the scenic locales. Besides providing a special lodging experience, these tea estates also offer a wide range of experience to tourists to take part in activities like tea picking, tasting and processing of the plantation crops like Tea in the Nilgiris and Munnar, in Southern India.

51. The Ministry of Tourism promotes tea and plantation tourism through its Incredible India campaign.

52. The Committee visited the Tea plantations, Tea Museum and Tea Factory of Kanan Devan Hills Plantations Company Private Limited (KHDP) at Munnar. The Committee felt that the spread of tea plantations from top to bottom of the hillocks really offered a special experience to tourists, which instantly makes it as its Unique Selling Proposition. The tea estates and bungalows just add another tweak to this perfect serenity. The Committee observes that this experiential tourism would certainly carve a niche for itself, the State / Central Governments have to make concerted efforts to coordinate with each other in maintaining the pristine beauty of the area and campaign hard at every level to promote Munnar as one of the prime tourist destination of India.

Spice Route and Muziris Heritage Projects

53. Secretary, Kerala Tourism during his presentation before the Committee submitted that the Spice Route is perhaps the most historic trade route ever navigated by mankind. More than a century before the Christian era, pepper was the preferred cargo that sailed in the route from India to . For a long period, the Romans considered India as their destination for spices. Indian ports were home for spices traded between China and Arabs. The spice route so developed also touched the Kerala coast.

54. Kerala is well-known for the exotic spices it owns. , pepper, , tea, coffee, , , turmeric etc. are abundantly available in Kerala. It has historically generated an international interest and trade relations due to the abundance of varied spices. Kerala Tourism has proposed to explore the opportunity to redevelop the ancient spice route for the modern travellers across the globe by connecting 31 identified spice destination countries in Europe, Asia and Far East to create a new experience of travel. UNESCO and UNWTO have endorsed and are helping mount this global project.

55. The Spice Route proposes to adapt the theme of ‘Silk Route’, which collaborated nations across the world which traded silk. The proposed Spice route destination countries identified in the ‘Spice Route’ includes Afghanistan, Myanmar, China, Denmark, Egypt, Eritrea, Ethiopia, France, Germany, Greece, India, Indonesia, Iran, Iraq, Italy, Jordan, Lebanon, Malaysia, Mozambique, , Oman, Pakistan, , Saudi Arabia, Somalia, Spain, Sri Lanka, Syria, Turkey, United Kingdom and Yemen, with which it had maritime relations for trade of spices. 11

56. This Committee fully supports this global Spice Route Tourism initiative proposed by Kerala Tourism which not only revives India’s glorious heritage as a destination for travellers and traders but would give a larger foothold for garnering world tourism revenue. The Committee further calls upon all the related Ministries of the Government of India to fully support this initiative. Especially, Ministry of Tourism is recommended to endorse the project by taking a leeway.

Muziris Heritage project 57. Muziris (the present day Kodungalloor and the adjoining areas) is reputed to be the ancient world’s greatest trading centre in the East. As the focal point of commerce for over 2500 years, this bustling sea port traded in everything from spices to precious stones with the Greeks, Romans and the rest of the world. It was also the doorway to India for varied cultures and races: Buddhists, Arabs, Chinese, Jews, Romans, Portuguese, Dutch and even the British. 58. The representatives of Kerala Tourism informed the Committee that the Muziris Heritage project is in the active stage of implementation and they are planning to link it with the spice route project. The Committee is fully in agreement with the Kerala Tourism initiative to club it with the Muziris Heritage project, one of the biggest conservation projects in India showcasing a culture of 3000 years or more, which is already partnered by various departments of State Government of Kerala, Central Government and the UNESCO. This would make Kochi, Muziris and Malabar the Heritage Circuit of Kerala. The Committee recommends that Ministry of Tourism, Government of India should give all the support required for promoting spice route and Muziris Heritage Project.

Ropeway and Railway System in Munnar 59. The Committee was informed that there existed a railway system and ropeway connecting many hills and areas of Munnar. The place called Top Station was connected by the Ropeway with many parts of Munnar till the 1920s. Due to various reasons like floods, etc., this became extinct. 60. The Committee recommends that the Ropeway and the Railway System can be revived by the Government on its own or with the help of KDHPL which is the owner of most of the land in Munnar. The Ropeway can offer a unique experience to the tourists without interfering with the environment.

Munnar - Eravikulam Ropeway 61. Lofty mountain ranges with misty peaks, sprawling tea estates and a serene climate make Munnar one of Kerala’s most remarkable tourist spots. This little sleepy village atop the Western Ghats is situated at the confluence of three mountain streams, namely Mudrapuzha, Nallathanni and Kundala. Panoramic views of low-flying clouds and mist-filled valleys make it a pretty little haven with a cool, bracing climate. Munnar is also famous for the wild orchids locally called Neelakurinji which blooms once in 12 years. 62. Eravikulam National Park is a 97 sq. km. national park located just 15 km. away from Munnar town. The Park holds the largest viable population of the endangered (Hemitragus hylocrius). Apart from Tahr, the Park is the abode of other little known fauna such as Nilgiri marten, ruddy mongoose, small clawed otter, dusky striped squirrel etc. Eravikulam is the most visited tourist spot in Munnar. 63. The Kanan Devan Hills Plantations Company Private Limited (KDHP) succeeded Tata Tea Limited on 1st April 2005, when the latter exited most of its plantations in Munnar to focus on 12 the growth of its branded tea business. With its 7 extensive gardens covering approximately 24,000 hectares, the company is today the largest tea corporate in with an annual production of 21 million kg of tea. The company owns almost a major share of land available in Munnar region and has plans to get into tourism activities as part of diversifying its activities. 64. It is understood that KDHP Company is planning to construct a Ropeway from Munnar to Eravikulam. The Department of Tourism, Government of Kerala is willing to support the project. While the Ropeway will be an additional attraction to Munnar, it will also help in decongesting the Munnar central area. 65. The Committee was apprised of the tea plantation history by Kanan Devan Hills Plantations Company Private Limited (KHDP) which was the pioneer of tea plantation in Munnar. The Tea Museum showcased the traversity of the Company from materialisation of the streak idea of an enterprenuer to full-fledged company of today. It was brought before the Committee that the Kanan Devan Hills Plantations Company Private Limited (KDHP) succeeded Tata Tea Limited on 1st April 2005, when the latter exited most of its plantations in Munnar to focus on the growth of its branded tea business. The Committee recommends the Ministry of Tourism to consider the proposal of the Ropeway connecting from Munnar to Eravikulam, suitably. This can be constructed by the Government agencies or in collaborations with KDHPL. The Ropeway will be an added attraction in Munnar. It may also reduce human intervention inside the Eravikulam National Park.

Rationalisation of Inter-state Tourist Permit Charges 66. Promotion of Domestic Tourism is the established policy of Government of India as it encourages national integration through mutual understanding of people and their cultures. Therefore, both Government of India as well as the States encourages domestic tourism. But many of the southern states knowingly or unknowingly follow a regressive policy of interstate taxation which is seriously affecting domestic tourist traffic in the southern region. 67. The tourism industry in Kerala brought to the notice of the Committee, the disparity and irrational approach followed by different south Indian states vis-a-vis inter-state tourist permit. An example given below will explain the irrationality of the tax structure:- 68. While operating a South India package, tourists have to pay heavy tax on entering each state–eg. : the vehicle has to pay the following tax : Entry to Karnataka charges Rs.745/- per seat + 1050 per coach To Tamil Nadu charges Rs.660/- per seat + 350 per coach To Andhra charges Rs.745 /- per seat + 1050 per coach 69. Hence, a 35-seat coach has to pay Rs. 77,700/- for a round trip irrespective of the number of tourists travelling in that coach. Also instead of counting the number of passengers, the authorities are charging the inter-state tax based on the number of seats in the vehicle. This places additional burden on the tourist, apart from the higher rates they charge individually. An interesting factor is that Kerala is not charging any entry fee for the tourist vehicles. 70. This is a serious issue having larger connotations in the promotion of tourism. Ministry of Tourism is requested to convene an urgent inter-state discussion on the subject. The Committee feels that tourism is not a high end product only for the rich domestic and foreign tourists; it could be made easily affordable to the rising upper and lower middle classes of the neighbouring states. Resolution of these smaller issues will lead to tourism development. 13

71. The Committee further emphasise that all the southern states should join hands to promote tourism. The “ Module” as existing in north India for promotion of Tourism can be replicated as a “Golden Quadrangle” in southern region. Further, Ministry of Tourism should strive to replicate the successful tourism modules of Kerala in other southern states as well. The matter may be taken up with the Chief Secretaries of all the Southern States.

Heavy Taxation in Tourism 72. Tourism contributes 9% of the GDP of Kerala. The revenue from tourism in the State during 2012 was Rs. 20430 crore with a foreign exchange earnings of Rs. 4,548.66 crore. Tourism provides employment to over 15 lakhs persons in the state. These figures indicate the need for encouraging tourism in the state by both Government of Kerala and the Government of India. Unfortunately the taxation policy followed by the Government has invited severe criticism from the tourism trade of Kerala. The following are the major issues that need attention.

Higher Luxury Tax 73. At present, the taxation via luxury tax which comes to nearly 25%, overburdens the tourism trade in the state. 19.92% tax for rooms (Luxury tax + service tax) + 3.09 % service tax on packages for tour operators make it a total of Rs. 23.01% tax for tour packages. In short, a tourist who chooses a package for Rs.10,000/- needs to pay Rs.2,310/- tax which is very high and needs to be reduced considerably in order to sustain the tourism industry. 74. There is no luxury tax for properties with less than 04 rooms. As Kerala Tourism has a scheme of approval of “Serviced Villa” properties up to 06 rooms, it would be helpful if Serviced Villas are exempted from luxury tax. This will encourage more boutique properties to come up at tourist destinations.

Bundling of Service tax 75. Tour operators are allowed an abatement of 75% on tour packages and the remaining 25% is taxable @ 3.09%. Normally a tour package is the bundling of hotel room product and transport charges, with the tour operator paying service tax on this product. Recently there has been an additional tax on hotels, with 7% service tax on hotel rooms and 5% service tax on transportation. Hence, a tour operator pays an additional 3.09% tax on the total product, even after both products are taxed separately.

Wrong Taxation practices affecting MICE Tourism 76. Meetings, Incentives, Conferences and Events (MICE) segment is highly taxed and the biggest hurdle to promote MICE tourism is the exorbitant tax structure. 24.86% is the tax for Banquet hall (luxury tax 12.5% and 12.36% service tax) and banquet food has 22.15% tax (13.5% Vat and 8.65% service tax). Together, the tax comes to 47.01% and this is one of the highest in the country. This is another serious issue affecting the MICE sector in the state including investment. 77. The Committee found that presently the Central and State Governments are levying different taxes on hotel industry. This disincentive of high expense of stay compared to other states may hinder the tourism prospects. The cost accounting to visit to Srilanka, Malaysia, Singapore, etc. works out less as it comes to Kerala. The Committee requests the State and the Central Governments to make an effort to re-workout their respective taxation structures so that the tourism of state of Kerala is not a causality. 14

78. On the issue of bundling of service tax, the Committee observed that a customer is taxed 3 times for a single product. Since this tour product is taxed on the first part, the Committee feels that the second part i.e., tax paid by the tour operator may be exempted to avoid the product being taxed three times. Kerala Tourism should take initiative to ensure that multiple taxes are not acting as a stumbling block for growth of Tourism in Kerala. 79. Regarding granting of bar license to eligible three star hotels and above, the Committee observes that the matter has already been heard by the Supreme Court and directions have been issued, State Government is bound by these directions.

Comprehensive Waste Management Schemes at Tourist Locations 80. One of the major challenges faced by Kerala Tourism is the waste management at the tourist destinations which is not only a mandatory requirement for the success of tourism but also for enhancing the quality of life of the inhabitants in terms of sanitation and public health. 81. Kerala Tourism has initiated comprehensive waste management programmes at few important tourist locations, but need active support from the state and Central Government. 82. The Committee recommends that the Ministry of Tourism, Government of India may come out with a special scheme to support the waste management projects of the States at the tourist destinations. Waste management collection, disposal and management may also be included in the works to be taken under Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS). 83. Representatives of Kerala tourism informed the Committee that they have a proposal to supply empty bags to collect wastes generated by the tourist vehicles once they enter a particular tourist location on payment of a security deposit. The security deposit will be returned to the vehicle on their return journey after the vehicle return the bag containing the waste generated by them. 84. The Committee notes that it is a novel idea which can be implemented with cooperation of the stakeholders. The Ministry of Tourism, Government of India may promote such initiatives whole heartedly through advertisements which may add to their efforts of “Clean India Campaign”.

‘Visa on Arrival’ at International Airports in Kerala 85. Secretary Tourism, Government of Kerala informed that Government of India have recently announced a scheme of granting “Tourist Visa on Arrival” for citizens from Japan, Finland, Luxemburg, New Zealand, Singapore, Cambodia, Vietnam, Philippines, Laos, Indonesia and Myanmar who arrive at Thiruvananthapuram and Cochin Airports in Kerala. This visa is aimed at foreign tourists from these countries who plan their trips on a short notice. The scheme is valid for citizens of the countries mentioned above who plan to visit India on single entry strictly for the purpose of tourism and for a short period of up to 30 days. But these countries are not big markets of Kerala Tourism not many tourists from these countries are visiting Kerala. Therefore the use of VOA facility granted for the citizens of these countries is not much help to the tourism sector in Kerala. 86. Tourism Visa on Arrival (TVOA) scheme of the Government continuous to be popular with foreign tourist. It registered a growth of 23.5% during April, 2013 as compared to April, 2012. Kerala witnessed around 7.5 lakhs international arrivals in 2012 and the tourist arrival rate has increased by 8.28 % compared to 2011. The State could record a sustainable growth in the 15 international tourist arrivals even during the period of economic recession. It has been estimated that around 40% of the international tourists are arriving in Kerala through any one of the three airports in the State. Kerala’s prominent tourism markets in the world are basically from UK and other European countries, and USA, more countries from this sector would be ideally to be included in the VOA facility. According to tourist statistics, UK, USA, France, Germany, Australia, Malaysia, Canada, Netherland, UAE and Italy are the first ten countries in the top list of international tourist arrivals to the state of Kerala and are not covered in the Visa on Arrival scheme.

Reducing the time required for procuring Indian Visa 87. It was brought to the notice of the Committee that the foreign traveller has to deposit the passport 15 days to 20 days with the Indian Consulate to obtain a Visa. For business travellers, this is a big problem as they are frequently travelling and their passport is blocked in embassies. This especially affects the Gulf traffic as they frequently travel between the Gulf countries. If we adopt a paper visa system just like what Singapore and Dubai are issuing now, this holding time of passport can be avoided. 88. The Committee evidently observed that the present Visa on Arrival (VOA) provides only a limited advantage to the State. The Committee, therefore, recommends that a second list of countries needs to be considered for inclusion in the VOA facility extending it to the said European countries USA, UK, France, Germany, Australia, Malaysia, Canada, Netherland, UAE and Italy which are in the top list of international tourist arrivals to the state of Kerala. The Ministry of Tourism and the Government of Kerala may take up the matter with Ministry of External Affairs to initiate suitable action in this regard. The Committee also recommends that the Ministry of External Affairs and Ministry of Home Affairs should take appropriate favourable action on the relaxation of visa norms suggested by the Government of Kerala for the sake of development of tourism. 89. On the issue of reducing the time required for procuring Indian Visa, Ministry of Tourism may take up the matter with the Ministries of Home and External Affairs. If necessary, the present procedure of issuing visa may be reviewed to reduce time and the embassy officials may be sensitized to the requirements of foreign tourists.

Permission to State Level Tourist Guides to Enter into ASI Monuments: 90. The Committee was apprised by the Secretary, Kerala Tourism that the Department of Tourism, Government of Kerala is conducting local/state level guide training programme in the state through the Kerala Institute of Tourism and Travel Studies (KITTS), established in 1988 under the Department of Tourism, Government of Kerala. KITTS has conducted several state/local level guide training programmes as per the guidelines issued by the Department of Tourism, Government of Kerala. The certificates were to be issued after it is endorsed by the Director of Tourism, Government of Kerala and Archaeological Survey of India (ASI), Thrissur Circle Office so that they can take tourists at locations including ASI monuments in the state. But, ASI Thrissur Circle Office has refused to endorse the certificates. 91. Meanwhile, the Kerala Tourist Guide Association has submitted representation to KITTS informing the stand taken by Superintendent Archaeologist, Thrissur Circle Office, for permitting only the regional level guides approved by the Indian Tourism inside ASI monuments. This results in restricting the services of state level guides licensed by the Dept. of Tourism, Government of Kerala. It is also stated in the letter issued by the Superintending Archaeologist, ASI, Thrissur Office that it has been decided to refer the matter to the Director General, Archaeological Survey of India, New Delhi for further clarification in this regard and till such time a clarification is 16 received from the Directorate, they have requested the Asst. Superintending Archaeologist, ASI, Mattanchery Palace Museum to permit only the Indian Tourism approved guides inside the museum and to put up the matter on the notice board. Hence, the state level tour guides approved by the Dept. of Tourism, Government of Kerala, feel that the stand taken by ASI, Thrissur Circle Office is totally unfavourable to them and they would not be allowed from entering the said monuments as guides. In this context, KITTS had submitted a request to the Director General of Archaeological Survey of India, Government of India to intervene in the issue and allow the approved guides by the state also to enter the ASI monuments. 92. The Committee observes that in the scenario of acute shortage of trained guides, this is a serious omission on the part of ASI. The Director General, Archaeological Survey of India may be directed to intervene in the issue to enable the approved state level guides by the State Department of Tourism to undertake guiding activities in all ASI monuments as in the case of Government of India approved guides.

Promoting Kerala for Film Shooting 93. Kerala has one of the most beautiful landscapes enchanting and mesmerising scenic beauty in the country with evergreen hill stations, the world heritage site of western ghats, unique backwaters and serene beaches and qualifies as one of the best locations for promoting film shooting. Thousands of areas of tea plantations are another attraction. This will indirectly help in promoting the destination and in attracting more visitors. Unfortunately, not may film shootings take place in Kerala. 94. The Committee recommends that the state should come out with a directory of potential locations for film shooting. The state should also hold workshops/FAM tours to film production executives. There should be a single window clearance for film shooting. 95. The Committee further recommends that the Ministry of Tourism, Government of India should support film shooting as a special scheme. 17

CHAPTER-II

NATIONAL HIGHWAYS IN KERALA

96. The Committee was apprised by the Ministry of Road Transport and Highways and NHAI authorities that there is 1534 km length of National Highways traversing through the State of Kerala which is 2.18% of total length of National Highways in the Country. Out of this, the two major National Highways (old No. NH-17 and 47) with a length of 829 km is entrusted to National Highways Authority of India for widening of 4 lane under NHDP Phase-II and III. (The combination of old NH-17 and part of old NH-47 with a length of 669 km connecting Karnataka Border at north and Tamil Nadu border at south is re-numbered as NH-66 and the remaining portion of NH-47 which connects at Kochi with Walayar at Tamil Nadu Border is re-numbered as NH-544.) Development of these 2 National Highways by NHAI is far behind the schedule due to issues related to land acquisition. Further, it was also submitted that a new 4-lane road connectivity to International Container Transhipment Terminal (ICTT), has also been entrusted for widening to NHAI under NHDP.

NDHP Projects in Kerala

Programme Length (km.) NHDP Phase-II (North-South Corridor) 149 NHDP Phase-II 616 Port Connectivity 34

TOTAL: 799

Overview of State’s National Highways 97. Out of the remaining 7 National Highways in the State, two are NH-47A and NH-47C, with short length of 5.92 km. and 17 km. and the following 5 are major National Highways traversing across the State:- · NH-49 (new NH-85) Kundannor – : 167.67 km. in Kerala : The NH-49 is a National Highway from the Coast in Kochi, Kerala to Coast in Rameswaram, Tamil Nadu. A portion of this highway traverse through high range areas in Kerala and one of the famous tourism destination “Munnar” Length of this Highway in Kerala is 167.67 km. · NH-208 (new NH-744) Kollam – Kazhuthuruthy 81.28 Km. in Kerala : The NH-208 links Madura in Tamil Nadu with Kollam in Kerala. Most of its length in Kerala is through hilly terrain. · NH-212 (new NH-766) Kozhikode – Muthanga : 117.60 Km. in Kerala : NH-212 connects Kozhikode in Kerala with Kollegal in Karnataka via Mysore. At Kollegal, it joins National Highway 209, which connects Bengaluru and Dindigal. Hence, it provides easy accessibility for people in Kerala to Mysore and Bangaluru.

17 18

· NH-213 (new NH-966) Kozhikode – Palakkad : 125.304 Km. in Kerala : The NH 213 connects Palakkad, Malappuram and Calicut district head quarters in Kerala. At , near Calicut, it joins NH-17. NH-47 also passes through Palakkad, which connects and Cochin through Palakkad. In effect, NH-213 connects NH-47 and NH-17. · NH-220 (new NH-183) Kollam – Theni : 190.30 Km. in Kerala: It connects Kollam in Kerala with Theni in Tamil Nadu. Starting from NH 47 in Kollam it runs northwards and turns east at Kottayam and runs along the northern border of Periyar Wildlife Sanctuary before crossing the border into Tamil Nadu and end at Theni, where it joins NH-49 (Kochi-Rameswaram) and NH-45 (-Theni). 98. All the above 5 National Highways are connecting the State with neighbouring States of Tamil Nadu and Karnataka and with many tourism destinations. These highways are of 2 lane roads with narrow bridges, passing through hilly terrain and lacks in road safety measures. The present traffic intensity is much more than the permissible limit in 2 lane highways. Fatal road accidents are common in these highways.

Development of National Highways 99. Two major issues which are blocking the development of National Highways in Kerala at present are the problems related to land acquisition and decision of Ministry on stopping of funds for IRQP/PR/FDR/OR from this financial year onwards for those National Highways transferred to NHAI for development under NHDP.

Land acquisition scenario 100. During the meeting at Kochi, NHAI submitted before the Committee that it has been mandated to take development of National Highways-17 and 47 in the State of Kerala for widening them from existing 2-lane highway to 4/6 lanes. Obviously, for this, additional land is inevitably required to be acquired. 101. Presently, only 3 packages on NH-47 from Walayar to Edappally have been possible for implementation that too consequent upon much of public resistance for years together still going on resulting in non-vacating the possession and not willing to pay the toll fee. 102. 3 packages on NH-17 from Karnataka/Kerala Border to Kannur Section, Kannur-Vengalam- Kuttipuram Package-I and Kannur-Vengalam-Kuttipuram Package-II were awarded to the Concessionaires on 13.05.10 and 20.07.09 and Concession Agreements have also been signed on 14.2.10 and 16.04.12 respectively. But it has not been possible to actually take up the work on ground for these long years due to non-acquisition of required land for RoW. The other 4 packages of Kuttipuram-Edappally on NH-17 and Cherthali-Ochira, Ochira-Thiruvananthapuram and Thiruvananthapuram to Kerala/Tamil Nadu Border are yet to be bidded out for want of land acquisition. No response was either received in these projects or withdrawn due to land acquisition problems in 2009-10. 103. The land acquisition process has remained too slow despite taking up the matter at various levels of the Kerala Government by the NH-AI. Desired progress in this regard has not been achieved, resulting in non-implementation of projects. Only 3 stand alone bypass projects have recently been approved by the Ministry for which land was acquired many years back by the Government of Kerala. But this step cannot mitigate the problems of traffic congestion on NH-17 and NH-47 and will only help in easing the traffic in local pockets. Particularly, the 3 projects on NH-17 which stand awarded to the concessionaires and Concession Agreements have also been 19 signed required focused attention to avoid contractual complications and exiting out of the concessionaries from these projects.

Land acquisition status from 2004-2012 · Salem – Cochin section of NH-47 was included as part of NHDP Phase-II (North- South Corridor); · Initially in 2004-05, land acquisition process in the stretch from Walayar (Tamil Nadu/Kerala border) to was initiated with 60.0m Right–of-Way (ROW) as per the guidelines of the Ministry of Road Transport and Highways; · In January 2006, Ministry has approved reduction of ROW to 45.0m for Kerala State based on the request of Government of Kerala, due to unique geographical condition and thick population; · Subsequently, LA process for NHDP Phase-II with 45.0m ROW was initiated except in the Stretch from Vadakkancherry to Thrissur which was proposed for six laning; · It took nearly 7 years to achieve the completion of the LA process for this section with lot of resentment and resistance from the public and work taken up for 3 packages; · In the year 2009, LA process was initiated for NHDP Phase-III Projects (NH-17 and Chertala – Thirvananthapuram – Kerala/TN Border section of NH-47) with 45.0 ROW; · Notifications under section 3A(1) of the NH Act published in the Gazette of India during October, 2009 to March, 2010; · However, there was public resentment against adoption of 45.0m ROW and implementation of projects under BOT Scheme due to which further process of land acquisition could not be carried out; · In the All Party Meeting held on 20.04.10, Government of Kerala decided to request Government of India to adopt 30.0m ROW in the State and stop all LA activities; · In the subsequent All Party Meeting held on 17.08.10, Government of Kerala accepted to adopt 45.0m ROW and also implementation of NHDP projects under BOT Scheme; · However, the State Government proposed an R&R package to pay higher compensation to the Project Affected Persons (PAP) and a Memorandum on these lines submitted to Government of India on 07.09.10; · On 26.10.10, Hon’ble Union Minister of Road Transport and Highways informed Hon’ble Chief Minister of Kerala that compensation for land as fixed by the Competent Authority, who is appointed by the State Government, be paid to the land owners as per the prevalent practice in the entire country; · Though on 26.10.10 itself, State Government issued orders to resume the LA process with 45.0m ROW, on 09.11.10, fresh orders were issued to all District Collectors to suspend the LA process until the R&R package is sanctioned by Government of India; · In a meeting held by Hon’ble Union Minister of Road Transport and Highways with Hon’ble Chief Minster of Kerala on 19.11.10, it was made clear that no separate rehabilitation package for the State is possible and desired that CALA may fix the compensation on realistic grounds; 20

· Third All Party Meeting was held on 10.01.11 wherein it has been decided to discuss the issue of R&R package with Hon’ble Union Minister of RT and H. However, no decision regarding resumption of LA process taken in the meeting; · Due to stoppage of LA process by Government of Kerala in April 2010, all 3A(1) Notifications published earlier got lapsed; · After 1½ years of suspension, Government of Kerala lifted the ban on LA on 09.11.11 and LA activity resumed; · Consequently, fresh 3A(1) Notifications published in the Gazaette during early 2012; · However, further process to publish 3D Notification could not be initiated by Government of Kerala during the last 1½ years, which resulted in lapse of 3A(1) Notification for the second time.

Status of deployment of special staff for LA for NHDP Phase-III · Since 2009, following establishment of special revenue staff is functioning for acquisition of land for NHDP Phase-III Projects in Kerala No. of CALAs - 14 No. of SLAUs - 25 Total No. of staff - 430 · Total expenditure incurred by NHAI towards establishment expenditure of CALAs and SLAUs – Rs. 9.50 Crore. 104. The Committee would like to know whether the CALA staff is deliberately delaying the process to cling on to the posts. They should be terminated immediately if no activity is undertaken. This will avoid wastage of resources.

Progress of LA achieved from 2009-2013 · Total extent of land to be acquired-1337.54Ha · Extent for which possession taken-8.770 Ha · Extent for which 3D published-245.285 Ha · Extent for which 3A(1) lapsed for second time-750 Ha

Major Problem in implementation of the NHDP Projects · Abnormal delay in completion of the Land Acquisition Process; · Fixation of value of land by the District Level Purchase Committee (DLPC) constituted by Government of Kerala, which is in violation of the provisions of the National Highways Act, 1956; · Demands from public for change in the alignment and for deletion or addition of Bypasses, Flyovers, VUPs, PUPs, Service Roads, etc; · Resistance from the public to vacate the land and structures even after receipt of compensation awarded by CALA, demanding higher compensation; 21

· Though, Government of Kerala announced one R&R Package for giving more compensation to the project affected facilities, Government of India has been requested to bear the expenditure towards implementation of the package which is not as per provisions of NH Act.; · Implementation of vital road infrastructure projects costing more than Rs. 8000 crore (as per original cost) held up; · Cost of land acquisition and other preconstruction activities escalated by more than 300%; · Civil cost of the Projects is expected to increase considerably due to escalation in the cost of material, machinery and manpower; · Facilitate early completion of the LA process for 3 Packages on NH-17 from Karnataka/Kerala border to Kuttipuram section for which contracts already awarded; · For other projects, LA process to be expedited in a time bound manner before inviting fresh bids;

Funds for maintaining NH-17 and NH-47 (new NH-66 and 544) 105. Even though the National Highways from ‘Thalappadi to Parasala’ and ‘Walayar to Kochi’ has been transferred to NHAI for 4 laning vide Government of India Gazette Notification, the development works in these stretches has not yet started due to the issues related to LA. The length of National Highways in Kerala constitutes only 2.3% of the total National Highways network, whereas it carried about 40% of the total traffic in the State that too heavily loaded and multi-axle vehicles. This results to frequent deterioration of the road surface and hence continuous maintenance of the NHs is highly necessary. During discussions with the officials of the Ministry of Road Transport and Highways, Government of India, it has been revealed that from this financial year onwards funds for the routine maintenance works like IRQP/PR/FDR/OR will not be granted for the above NHs by the Ministry and the responsibility for maintaining these NHs shall be vested with NHAI only by way of executing these works directly by NHAI or considering the State as their agency for doing it. In this context, it is observed that even in stretches where NHAI have commenced the works; they are not being maintained to good trafficable condition like Mannuthy – Vadakkenchey stretch of NH-554. 106. The following written comments/suggestions were forwarded to the Committee by the State Government of Kerala:

(i) Land acquisition for widening of National Highways 107. The major stumbling block in the development of National Highways in the State is the issues related to Land Acquisition. The Government have already decided that the State will go ahead with 45 metres development of National Highways, as this falls in the premises of religious structures like temples, mosques, churches, etc. and some serious complaints regarding fixing of alignment to save some affluent persons/institutions at the cost of poor house owners. State Government have made arrangements to look into the land value fixed by DLPC comparing the value with the current market value and to examine the award of competent authority for LA. Further, State Government have constituted a Committee with Chief Secretary as Chairman and Secretary, Public Works Department, Secretary Revenue, Local Self Government Department, Chief Engineer (National Highway), District Collectors concerned, Project Directors of NHAI concerned as members for rectifying the mistake in the alignment fixed, if any, at places, where there is serious problems and for protecting the places of worship from demolition. NHAI may be directed to resolve the problems in the Land Acquisition in consultation with the State Government. 22

(ii) Maintenance of National Highways 108. It has been observed that those National Highways which have been transferred to NHAI for development are not maintained properly by them. This invites large public criticism and much inconvenience to the commuters. During the past years, Ministry was allotting meagre funds for maintaining these roads assuming that NHAI will start development works in NH-47 and NH-17 in the near future. Even though these roads are very heavily loaded and continuous maintenance is very much warranted, the MORTH allocation for these roads in the current year is negligible. 109. Urgent action is warranted for attending timely repairs for making the roads trafficable. It may be noted that in Mannuthy – Vadakanchery stretch of NH-47, Government of Kerala was forced to allot Rs. 5.19 crores for attending urgent pot hole filling works at ‘’ to make the road trafficable, even though this stretch has already been transferred to NHAI concessionaire for development. Further, the torrential rain during the last three to four weeks created heavy damage to National Highways making the situation vulnerable. NHAI may be directed to attend routine maintenance works in these roads and making them trafficworthy.

(iii) Funding of roads projects through PPP model vis-à-vis undertaking NHDP by Government of Kerala itself with the help from NHAI 110. The policy of NHDP is to develop the NH’s by them as it has to be developed as per their specification and is to be maintained as such for a long period since these roads are being tolled perpetually. Recently, they have permitted to construct the balance length of and Alappuzha Bypass as stand alone project to develop them by Government of Kerala. This was possible only because the entire land of 45m width for this project was available with us. Government of Kerala has recently requested Ministry to delink five National Highways such as NH-49, NH-208, NH-212, NH-213 and NH-220 from NHDP Phase 4A due to the following reasons: (1) The proposal of the Ministry was to develop these roads to two line with paved shoulders and with tolling; (2) Most of the stretches in these roads were already developed into two line with paved shoulders wherever land was available; (3) The condition of NHDP Phase 4 A was that Right of Way (ROW) should be maintained to 18 metres throughout; (4) Since the major portion of these roads are traversing through forest and hilly terrain it was more difficult to acquire land at 18 metres width; (5) As per the prevailing political and social scenario, tolling of roads without much development will invite protest until such roads are developed with divided carriage ways and shoulders.

(iv) Details of Rehabilitation and Resettlmenet (R&R) packages contemplated and expectations from Central Government in this regard: 111. State Government have taken decision to make applicable the new comprehensive Rehabilitation and Resettlement (R&R) package of the State for LA in the case of NH widening also. Government have also decided that the State would bear the expenses for the items which NHAI/MORTH would not meet. As per the D.O. letter dated 19.12.11 from the then Chief Secretary, State Government have requested MORTH to examine the R&R policy of Government to determine what items of R&R policy could be met by NHAI/MORTH. Further, Government of Kerala requested the NHAI to commission a social impact study to determine the number of project 23 affected persons in accordance with R&R Policy so as to enable to determine how much alternate land needs to be required for rehabilitation and also to determine the financial burden of the State due to R&R package. But there is no response in this regard from NHAI/MORTH so far.

(v) Reluctance of the public to pay toll fee 112. NHAI has completed their development works in certain reaches of the National Highways and started collecting tolls from two toll plazas, namely Paliyekkara and Kumbalam. The pot holes developed in these reaches are not being attended timely. This invited huge public criticism from different sections of the people. Reluctance in paying toll is observed only where the toll rates are very high and the roads are not maintained properly. NHAI may be directed to take timely action to keep these stretches of the road in good trafficable condition with all agreed facilities before the commencement of toll collection. 113. Moreover, Kerala Government is undertaking certain transport development projects viz., construction of metro rail and mono rail in certain cities. The alignment for these projects falls along/intersects with that of NHDP Schemes. Therefore, NHAI may be directed to provide necessary sanction/approval for undertaking the construction of these projects along the NHAI alignment. 114. After going through the submissions made to the Committee especially on the topics of ‘Land Acquisition status from 2004-12’ by the NHAI and the ‘Land Acquisition for widening of National Highways’ and ‘Funding of road projects through PPP model vis-à-vis undertaking NHDP by Government of Kerala with the help from NHAI’ by the State Government of Kerala, the Committee feels that the Kerala Government is neither interested in funding of road projects through PPP model nor wants to take up the projects themselves. It further implies that the State Government does not want to fully gear up to the prevailing situation. It should understand that with half-hearted efforts full results cannot be achieved. If the State Government wants highways (which is on ‘Union’ list) for holistic development of the State in general and tourism development in particular, it has to evolve a middle-path between appeasing the general public, bearing burden on the exchequer in terms of R&R Package and working with NHAI and MORTH under NHAI Act. A clear intent of reaching at a workable proposition to the problem is the only solution available here. National Highways Authority of India has already incurred an expenditure of Rs.9.50 crores for establishing the paraphernalia and it also has to bear the burnt of escalations in land acquisition and civil costs. This cannot go on perpetually. Ministry of RTH is recommended to take up the issue with the State Government of Kerala accordingly. 115. The Committee notes that the condition of is very poor. The Committee also notes that the State of Kerala is 10 year behind the schedule compared to other States as regards construction of roads are concerned. This has happened mainly because of the problems related to land acquisition for widening and construction of roads. Initially there were problems with the width of the roads. Now it has been settled at 45m. Then, there are problems of alignment and design of roads. NHAI needs to do their work on a professional way rather can coming under pressure from the rich and powerful as far as alignment and design are concerned. The issue need to the settled in close coordination with the Government of Kerala. 116. The Committee observes that Kerala has a peculiar pattern of demographic settlement and most of the land is heavily cultivated and both sides of the roads are heavily constructed and inhabited by the people. Therefore, any road widening project has to be supported by adequate compensation and resettlement package. The principles adopted at the National level for compensation and resettlement should not be applied to Kerala due 24 to the very peculiarities available in Kerala. Government of Kerala should be the best authority to decide on such matters and the NHAI and the Ministry of RTH should liberally cooperate with the State in finding solutions.

117. Another aspect brought to the notice of the Committee was that NHAI is not maintaining the NH-47 and NH-17 properly. The climatic condition of Kerala is that throughout the year there will be rain and during Monsoon it will be heavily raining for months together. Therefore, the Committee feels that it is the duty of the NHAI to make the life line of Kerala-NH-47 and NH-17- traffic worthy throughout the year. The Committee recommends that NHAI should allocate adequate funds for the repair and maintenance of NH-47 and NH-17.

118. Yet another aspect brought to the notice of the Committee is that public is refusing to pay toll fee wherever there are poor maintenance and repair of the roads or the toll fee is high. The Committee, therefore, opines that NHAI has to blame themselves for the refusal of toll payment by the public.

119. Yet another aspect noticed by the Committee is that the Ministry of Road Transport and Highways is giving only meagre allocations for maintenance of National Highways in Kerala. The Committee feels this is highly inappropriate and it is the duty of Ministry of Road Transport and Highways to maintain the National Highways traffic worthy. The Committee recommends that adequate allocation may be made for maintenance of National Highways in Kerala.

120. The Department-related Parliamentary Standing Committee on Transport, Tourism and Culture had earlier raised the issue of delay in acquisition of land for national highways projects and release of share of central funds to Kerala in its 193rd Report for which Action Taken Replies from Ministry of Road Transport and Highways are still awaited.

Gaps in Road Connectivity

121. , where the main Port facilities of the Cochin Port are located, is connected to NH-47 (-Kochi-Salem) and NH-49 (Kochi-) through NH-47-A. The Committee had identified the following gaps in the road connectivity to Port area. (a) Widening of existing 2-lane carriageway of the link NH-47A (-CoPT) in to 4-lane and strengthening of existing 2-lane

122. The Cochin Port area on Willingdon island is linked to the NH-47 through the link highway NH-47A. The existing highway is only of two lane width. As this being the main connection of the Port area to NH-47 and NH-49, it is essential for widening to 4-lane and strengthening of existing 2-lane carriageway taking into consideration of forthcoming Port developments like Development of General Cargo Berth, Re-construction of Q1 to Q3 berths, Free Trade Warehousing Zone and ever growing Cruise Tourism in Cochin Port.

(b) Upgradation of existing two lane NH-17 (Cochin-Panavel) in to IRC/NHAI standards

123. NH-17 is considered as coastal highway running from to Cochin. Since major cities of Kerala situated in coastal, this perhaps is the only highway connecting all major cities. As of now, this highway is totally undeveloped, not even meeting the standard of 2 lane in most of its stretch in Kerala. Development of this highway is extremely essential to facilitate cargo movement from the northern cities of Kerala to Cochin Port Trust. 25

(c) Upgradation of existing two lane NH-49 (Cochin-Madurai) in to IRC/NHAI standards 124. NH-49 connects Cochin with Madurai, which is an important cargo centre. As the existing NH-49 is not conforming to the standards, this has to be upgraded to meet the IRC/NH standards. d) Flyovers at Kundannoor (NH-47–NH-49), (NH-47), (NH-47) and Edappally (NH-17–NH-47) Junctions to ease out traffic congestion 125. The four busiest junctions identified in the NH-47 are at Kundannoor (NH-47-NH-49), Vyttila (NH-47), Palarivattom (NH-47) and Edappally (NH-17–NH-47). 126. The Committee recommends that in order to solve traffic congestions in the road connectivity to the Port, these four fly-overs are essential to be constructed. For a better port connectivity, the Committee also recommends the followings:– ➢ To provide last mile connectivity to the Cochin Port with NHDP Grid from Kundannoor to Willingdon Island, Committee recommends that the length of about 5.9 Km is required to be widened to 4 lane. ➢ The Committee feels that it may also facilitate to establish good land link between State ports like , Azhikal etc. NH-17 meets the NH-47 at Edappally. ➢ The Committee observes that such upgradations will facilitate industrial developments in the adjoining areas of highway and generate cargo to the Port. ➢ The Committee came to know that the Government of Kerala has initiated action in this regard. Ministry of Road Transport and Highways and NHAI may provide active financial support for the development of these projects before further proceeding in the matter. 26

CHAPTER-III

NATIONAL WATERWAYS IN KERALA

127. There are six National Waterways in India. The National Waterway no. 3 i.e., West Coast Canal System (205 km.) which falls in Kerala comprises of West Coast Canal between Kottappuram – Kollam (168 km.), Udyogmandal Canal between Kochi – (23 km.) and Champakkara Canal between Kochi – (14 km.). This is the only waterway in Kerala which can be developed as a lifeline and alternative mode of transportation in Kerala. 128. The development works in NW-3 for providing fairway of 2m Least Available Depth (LAD), width of 38/32 m with 24 hours navigational facilities and terminals equipped with mechanical cargo handling equipments are being carried out by Inland Waterways Authority of India (IWAI) in a phased manner.

River Tourism on NW-3 129. Kerala is one of the most preferred tourism destinations. Tourism in Kerala cannot be seen detached from the unique house boats of the State. The tourists get an opportunity to experience the scenic beauty, village life and traditional food of Kerala during their cruise along the backwaters. The National Waterway stretching from Kottappuram to Kollam (NW-3) is host to nearly 90% of house boats of Kerala. 130. Apart from IWAI developing and maintaining the National Waterway to certain standards of minimum width and depth and providing navigational aids to facilitate day and night navigation all along the National Waterway, it has notified and circulated among all waterway users two central regulations namely; (i) Rules and Regulations for Prevention of Collision on NWs and (ii) Rules and Regulations for Safety in Navigation in NWs. More importantly, the Government of Kerala, in consultation with the IWAI, has made rapid strides towards notifying its updated and unified Inland Vessels Act applicable to the whole state, aimed at achieving orderly and safe navigational practices. It is felt that a renewed commitment to create awareness on safety aspects and preservation of the natural streams from pollution combined with systematic enforcement of regulations is the most important need of the hour for sustainable water brone tourism. 131. IWAI is willing to share its cargo terminals located at strategic places along the NW-3 for tourist operations also. The impetus in systematic development of navigation provided by IWAI through the National Waterway-3 will open up immense business opportunities in tourism, water sports and allied spheres.

Linking Ports with NW-3 132. IWT linkage to the Ports is one the thrust areas to give boost to the water transport system in Kerala, which will also encourage the environment friendly mode of transport. 133. The State of Kerala in the South-West corner of the Indian Peninsula has a coastal length of 585 Km. In this coast line one major port at Kochi and 17 non major ports (Annexure-II) are being considered for development, whereas the major port is under the administration of Ministry of Shipping, Government of India and non-major ports are under the administration of Government of Kerala. Geographically, the State of Kerala is having an advantage that the International Steamer

26 27 route is very close to the Kerala Coastal line. The status of connectivity of Ports with IWT also has been mentioned in Annexure-II. 134. With the framing of Rules of River-Sea vessel criteria by Ministry of Shipping, the IWT interlinkage with ports will have significant growth where the minor / medium sized coastal vessel can directly go into the hinterland through rivers, estuaries and canals. The eco-friendly water transport system will get major boost when such linkages are firmed up and considered for development. However, the linkage from port side and the waterway side should have a synchronized development, so as to have the effective interlinkage. 135. The major port in Kerala i.e., Kochi is already well connected with NW 3. IWT linkage with non-major Ports of Kerala within the stretch of NW-3 are (Kottappuram), and Kollam/. The status of these three non-major port with regard to the IWT linkage is given below:

MUNAMBAM (KOTTAPPURAM) 136. Kottappuram (Munambam is the port and the sea opening is connected to the NW 3 and Kottappuram IWT Terminal). IWT terminal has already been developed with the required infrastructure by IWAI as river port on the river Periyar. This can be used with additional required infrastructure for River Sea Vessel handling. 137. In 1341 A.D., the profile of Pariyar river basin in the coast had a major transformation due to flood/earthquake and the port of Muzris was dropped off the map. The excavations by Kerala Council for Historical Research (KCHR) in 2007 and 2008 unearthed a huge information. It is found that, through the Muziris trade channels, the people of South India were afforded connections and opportunities with many civilizations in Western Asia, the near East, Europe and further. This excavation project has proved to be a turning point, as the wealth of information, now available is not only on the port, but also on its hinterland, the whole Periyar Basin and the historic town of Kodungallor, and Paravur. These sites are near Kottapuram IWT Terminals and well connected with NW 3.

KAYAMKULAM 138. Kayamkulam sea mouth is well connected with National Waterway. A fishing harbour is under consideration for development.

KOLLAM/NEENDAKKARA 139. at Thangassery is presently under operation with the required infrastructure and the operation will be effectively considered. The interlinkage of IWT is possible with open canal of 240 m length to connect to Kollam Thodu, which is presently being developed by Govt. of Kerala. 140. The Neendakara Port is already connected with National waterway. 141. Backwater experience is one the most sought after tourism products in Kerala. The southern side of Alappuzha has been not tapped fully linking it with the mainstream tourism destinations and circuits. It is essential to expedite the development of NW-3 and is also necessary to connect this stretch to the nearest tourist attractions. Especially the Kodungalloor – Muziris area needs to be well connected by the waterway and necessary development work needs to be taken up. The Committee notes that the entire NW3 is not fully navigable as per IWAI standards. It is a fact that Kerala is facing acute road connectivity problem and construction of national highways is not coming up to appreciable 28 levels, in this context, if the waterways is cleared for substantial chunk of traffic then it could considerably reduce the pressure on the roads. 142. The Committee recommends that IWAI and Ministry of Shipping may look into connecting Kodungalloor, the Centre of Muziris Heritage project with NW 3, assistance of State Government on this issue could be sought. 143. The Committee also recommends that with regard to IWT interlinkage with ports, the linkages from port side and waterway side should have a synchronized development, so as to have the effective interlinkage.

Fairway Development and Capital and Maintenance Dredging: 144. National Waterway No. 3 (NW-3) is a tidal canal. At present, out of 205 Km length of the waterway, 2m LAD has been made available for 155 Km {(Kottappuram – Kochi – 30 km. + Udyogmandal Canal – 23 km. + Champakkara Canal – 14 km. + Kochi- Thakazhi (South of Alappuzha) – 88 km.)} continuous stretch after dredging a length of 73.4 km. (31 lakh Cu.M). In the balance sections (50 km.), there are 13.80 km. shallow/narrow patches to be improved for mechanized barge movement. The capital dredging for deepening of the canal and widening work is in progress in these sections to provide a minimum width of 32 mtr and minimum depth of 2 mtr. The balance capital dredging (9.4 Lakh Cu.M) is expected to be completed by December, 2013. Often the dredging and widening work is hampered due to resistance by local fishermen as they place their fishing nets in the fairway. Disposal of dredged material poses problem due to the resistance from the local residents, who oppose dumping of material on the banks of the canal. 145. The Committee was informed by IWAI at Alappuzha that Capital Dredging work at Kottapuram-Kochi has been completed. At the Udyogmandal Canal/Champakkara Canal/Kochi- Allappuzha Stretch, development activities are completed and maintenance dredging is being attended on need basis. Maintenance dredging at on Chapakkara canal is to be taken up. The Committee was informed that at the Edappallikotta – Kollam Stretch, hard patches at certain locations have been a problem. A pilot project to remove the hard strata by High Pressure Gas (CO2) was not found viable. In order to mitigate the problem of hard strata, IWAI procured an Amphibian Dredger (AD) Manimala and deployed in this stretch, which is working with Hydraulic Hammer to crumble the hard strata. In order to expedite the activity one more Amphibian Dredger Narmada has been procured and deployed apart from departmental dredgers. 146. Through a subsequent communication, the Ministry of Shipping informed the Committee that the problems being faced in the completion of the National Waterways-3 at various sectors are:– (i) Non availability of adequate space along the banks of the canal for disposal of dredged materials. (ii) Frequent stoppage of dredging work by local people due to infighting over sharing of dredged soil. The District Administration is also finding it difficult to resolve the issues. (iii) Objections frequently raised by local people demanding disposal of dredged soil in their small courtyards. This is causing frequent interruption in the dredging process thereby reducing the efficiency of the dredgers. (iv) High incidence of litigations relating to the work being done on NW-3. (v) Demanding bank protection beyond the contract provision in areas where no dredging is being carried out by IWAI. A meeting was convened on 14th June, 2013 by the 29

Additional Chief Secretary, Government of Kerala wherein all pending issues relating to dredging and bank protected work were discussed with the concerned district collectors.

Navigational Aids 147. Navigational aids comprising navigational buoys and solar operated navigational lights have been installed on the entire stretch of NW-3 covering 205 Km to facilitate 24 hours navigation. This is the first National Waterway in the country having 24 hours navigational facilities on the entire stretch. 148. The Committee feels that IWAI is actively undertaking the dredging work and it has also done a commendable work in installation of navigational aids and fairway development. National Waterway No. 3 has an excellent potential in cruise tourism, cargo shipment, linking ports, international steamer route, etc. Ministry of Shipping should strive to reap all the potential revenue sources anticipated with the Waterway No. 3. The Committee recommends that M/o. Shipping should take proper measures to depute adequate staff for IWAI. 149. Further, Ministry of Shipping should also look into the aspect of dredging and widening work being hampered due to resistance by local fishermen by placing their fishing nets in the fairway. Also, the problem pertaining to the disposal of dredged material on the banks of canal without raising the local sentiments also needs an apt solution. The Committee recommends the Ministry of Shipping to give impetus to the progress of dredging work as it is essential for the development of NW-3.

Terminals 150. Permanent terminals at 11 locations viz., Kottappuram, , CSEZ (), , Vaikkom, Thanneermukkom, and Kollam are proposed on NW-3, out of which eight (8) terminals at Kottappuram, Aluva, Maradu, Vaikkom, Thanneermukkom, , Kayamkulam and Kollam have already been constructed. The land acquisition process for the 9th terminal at Alappuzha has been completed during December 2010 and Terminal construction is in progress. The remaining 2 terminals at Chavara and CSEZ (Kakkanad) will be taken up subsequently after assessing the utilization of terminals which have already been constructed.

IWT Connectivity to ICTT 151. In view of the development of International Container Transshipment Terminal (ICTT) at Vallarpadam in Cochin Port Area, tremendous potential was anticipated for transport of containerized cargo through NW-3. To capture this potential, terminals at Willingdon and Bolgatty Islands have been constructed at a cost of Rs.16.60 Cr with RO-RO (Roll On – Roll Off) and LO- LO (Lift on – Lift Off) facilities specially for transportation of containers between ICTT Vallarpadam and Willlingdon Island (3.5 Km). The operation of RO-RO service has been commenced from 23rd February, 2011. Till March, 2013, 70,541 Twenty Foot Equivalent Units (TEUs) has been moved. 152. The IWT terminals at Willingdon and Bolgatty Islands are providing the linkage of NW-3 to the port logistics chain. This mode of water bridging avoids a road transit of 35 Kms through the very congested Kochi City road to Vallarpadam. 153. Further, the Govt. of India has notified SEZ status for Puthuvypeen and Vallarpadam. An industrial cluster with thrust on energy related units focusing on value added exports are planned 30 in the SEZ area. Some of the units like LPG project have already been allotted land. A modern logistics park is also planned in the proximity to the ICTT, where supply chain consolidation and warehousing activities will take place. These developments will generate demand for transit of containerized goods through waterways.

Cargo Movement 154. The major cargo being moved at present through NW-3 are sulphur, Rock Phosphate, Phosphoric Acid, Salt, Coal, Zinc, Furnace oil and Fertilizers from FACT to Kochi Port along Udyogmandal Canal (23 Kms) and Champakkara Canal (14 Km). 155. However, once the developmental work being undertaken in NW-3 are complete, cargo such as POL products from IOC, HPCL and BPCL, Rare Earths and mineral sand from M/s IRE Ltd and KMML, coir products, cashew Kernel and container cargo are expected to move in NW-3. 156. During 2011-2012, 13.44 Lakhs Tonne of cargo was moved through NW 3, which is the highest record in 20 years of the mobility. The same has been reduced to 12.36 Lakhs Tonne of cargo during 2012-13. The reduction mainly due to the reduction in the container volumes moved through ICTT, Vallarpadam. 157. The Committee notes that the development of terminals along the National Waterways is progressing well. There is a need to give adequate publicity to the advantages of moving containers through NW so that it can regain the container volumes. The terminals also need to be equipped to handle all types of cargos. Committee hopes that the Government of India and Government of Kerala will coordinate together to ensure that the entire NW3 is navigable. 31

CHAPTER-IV

COCHIN SHIPYARD LIMITED

158. Cochin Shipyard Limited (CSL) is a fully owned Government of India company which is the major player in shipbuilding and ship repair industries.

Business Profile – Ship Building 159. Since inception, the CSL has been pursuing a diversified business profile consisting of Shipbuilding and Ship Repair. Marine Engineering Training was added since 1993. The products in shipbuilding range from Double Hull Tankers, Bulk Carriers to Port Crafts, Offshore Supply Vessels, Passenger Ships, Dredgers and Tugs. Recently, shipyard has delivered high end Offshore Support Ships to discerning clients from Western Europe, US and Shipping Corporation of India. Presently, the yard has orders for 25 ships consisting of 3 Platform Support Vessels for international owners, 20 Fast Patrol vessels for the Indian Coast Guard, the prestigious Aircraft carrier for the and buoy tender vessel for the Department of Lighthouses and Lightships. 160. CSL moved into the International Market in a modest way by building a Jacket Launch Barge for National Petroleum Construction Company, Abu Dhabi, in the year 2002. Since then CSL has built and delivered 40 ships for owners based at various parts of the world viz., Bahamas, Norway, Netherlands, Greece, USA and Saudi Arabia. 161. Cochin Shipyard has one of the best infrastructures in India. It has 80 cranes with capacities ranging from 10T to 300T, two of the biggest dry docks in the country which can take in Aframax tankers, two marine coating shops for quality painting under controlled conditions, modern steel cutting facilities, TRIBON design software and CAD/CAM facilities are some of the major infrastructures which give Cochin Shipyard its unique competitive edge. These facilities add quality to construction and go a long way in ensuring customer satisfaction. Other facilities like transporters, movable outfit shops, etc. have enhanced the efficiency and productivity of the yard. Recently, CSL has set up separate facilities for construction of small commercial ships. This facility help the yard to undertake concurrent construction of small commercial ships with the Indigenous Aircraft Carrier Project thus providing the flexibility to pursue a diversified product profile. 162. Regarding placing of orders on Cochin Shipyard by PSUs and Shipping Corporation of India, it has submitted the following issues:– (i) In order to sustain the force levels of Indian Navy and Indian Coast Guard, Ministry of Defence, Government of India has time and again placed Orders on nomination basis for building front line warships and submarines on Defence PSU shipyards such as Mazagon Dock Limited, Mumbai (MDL), Garden Reach Shipbuilders and Engineers Limited (GRSE), Kolkata, Goa Shipyard Limited, Goa (GSL) and Hindustan Shipyard Limited (HSL). Similarly Cochin Shipyard is building the indigenous Aircraft Carrier (IAC-Project-71) for the Navy on nomination basis. However, given the sheer diversity and number of warships which are required by both Navy and Coast Guard, there is a definitive case for considering Cochin Shipyard on par with other Defence PSU shipyards by Ministry of Defence as mentioned above and be provided with orders for

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building warships and fleet auxiliary vessels on Nomination basis, so as to maximize utilisation of the capacity and capability of Cochin Shipyard in the service of the nation. (ii) Inclusion of CSL as an entity amongst Indian companies for invoking 30% Offset clause as per Defence Procurement Policy (DPP) guidelines would certainly help CSL in bidding for defence contracts. At the moment this facility has been extended to only Defence PSUs by the Government. CSL being a PSU should also be included for invoking 30% offset clause. (iii) Given the down turn in world-wide shipbuilding scenario, there is a need to support the indigenous shipbuilding industry with confirmed orders by other PSUs, SCI and Government entities. Price discovery can be on transparent process using Open Book Estimate (OBE) method. (iv) CSL be given the right of refusal to match L1 price/delivery period, if CSL is within 10% of L1 price, discovered through open tendering process, before proceeding with final award of contract on the tender. (v) Exim Bank/other Commercial Banks to be urged to provide soft loans on long term basis to Indian Shipping companies including SCI and DCI for placing orders on Indian shipyards. Similar approach exists in most countries. 163. The Committee recommends that PSUs and Government entities viz. SCI, DCI Ports, Ministry of Earth Sciences, DRDO, Fisheries Survey of India (FSI), Geological Survey of India (GSI), etc, be encouraged and advised to place order with CSL on nomination basis, if the yard meets experience, infrastructure and technical requirements. CSL should be included for invoking 30% offset clause as part of DPP, applicable to other Defence PSUs. Long-term loans are another issue where Government intervention is required and necessary directions is issued to EXIM/commercial banks.

Ship Repair 164. CSL entered into the ship repair business in the year 1981 and since then has gained expertise in undertaking complex and sophisticated repairs to various types of ships including bulk carriers, tankers, passenger ships, oil rigs, etc. CSL’s main clients in ship repair are Oil and Natural Gas Corporation of India Ltd., Indian Navy, Coast Guard, Shipping Corporation of India and Administration of Union Territory of . CSL has successfully completed two major ship conversion projects, one for a Singapore based owner and the other for National Institute of Oceanography, Goa. 165. On the issue of tax concessions to ship manufacturing vis-à-vis import of ship, CSL informed the Committee that:– (i) Ship construction and delivery is a “manufacturing” activity as per Central Excise Act and a “sale” as per VAT Act. Until 31.3.2011, there was no excise duty on indigenous sale of ships and as per Central Excise Tariff Chapter heading 89, rate of duty was ‘Nil’. From 1st April, 2011 excise duty was introduced at 5% as per Tariff, on indigenous sale of ships and for the year 2012-13, the rate was increased to 6%. For the year 2013-14, indigenous sale of ship has been extempted from Excise Duty. Export of ships is extempted from excise duty. Excise Duty is payable on the raw materials and components procured indigenously for shipbuilding, except for steel. As per Kerala Vale Added Tax Act, the sale of ship is subject to levy of VAT@5%. Though the item imported for construction of ships in Bond under section 65 of the Customs Act are exempted from payment of custom duty (Prevailing exemption, vide 33

notification No.12/2013 cus., dated 01.03.2013, Sl. No.469), the Customs Department is insisting for payment of customs duty and additional duty on the items imported in respect of the vessels sold to owners within India, deeming the same as “sale to Domestic Traff Area”. CSL also submitted that while the Department is insisting for payment of customs duty in such cases, at the same time vide item Sl. No.461 of the above referred notification, ships and other vessels falling under Chapter heading Nos.8901, 8902 00 10, 8905 10 00, 8906, 8907 10 00 when imported into India, are exempted from the whole of customs duty. This is in stark contradiction to the stand taken by the Customs Department in the case referred previously. Capital goods imported for shipbuilding including renewals and replacement of yard facilities are presently not exempted from levy of Customs Duty. 166. In view of the various problems faced by the Cochin Ship Yard Ltd., (CSL), the Committee recommends the following:- (i) Consideration of an amendment to Central Excise Tariff to make the rate of duty as “Nil” as per Tariff for ships and other vessels. (ii) Excise duty exemption on all materials procured for shipbuilding, from indigenous sources. (iii) Total exemption from levy of VAT on sale of ships. (iv) Recommend issuance of a notification clarifying exemption of Customs duty and additional duty on the items imported for manufacturing of the vessels sold to owners within India. (v) Consideration of Customs duty exemption for the capital goods imported for shipbuilding activities. (vi) Invoking ‘shipbuilding subsidy’ as prevalent earlier to foster shipbuilding activities in the country. 167. The extant procedures related to customs clearance for release of cargo either for shipbuilding or for ship repair also need to be analyzed and fine-tuned for early release of the same and thus provide an impetus to both shipbuilding and ship repair activities in the country.

Marine Engineering Training 168. In the Marine Engineering training front, the Committee was apprised that CSL trains graduate engineers to be Marine Engineers who later join ships, both Indian and foreign, as fifth engineers. The yard has a capacity to train 140 graduate engineers every year. CSL’s Marine Engineering Training Institute has been rated excellent by Credit Rating Agency (CARE) since 2004.

Concessions to CSL 169. On being queried on the concession given to CSL for increasing its competitiveness with Dockyard, Srilanka, its direct competitor in ship repair business segment, CSL informed that following are admissible taxes for undertaking repairs of ships at CSL: (a) Kerala Value Added Tax: Ship repair is a work contract activity under Kerala Value Added Tax Act/Rules and works contract VAT is applicable on the taxable turnover (i.e. value of materials transferred by the repairer to the ship owners in the course of ship repair) @14.5% 34

(b) Service Tax: Ship Repair will fall under the head “Maintenance or Repair Service” under the Service Tax Act and service tax is payable @12.36% on the value of services excluding the value of materials involved in the services on which VAT is paid. Government of India has introduced levy of service tax on all services except those services specifically exempted vide Notification No.25/2012-S dated 20 June 2013 (Negative List of services) with effect from 1 July, 2012. As per Sl. No.25(b) of the above Notification, the services provided to Government by way of repair or maintenance to Government vessels are exempted from levy of Service Tax. Hence, Service Tax is not applicable on the repair of vessels belonging to Government(such as Navy, Coast Guard, Fisheries Survey of India, CIFNET, Ports, LDCL etc.) (c) while executing the ship repair works on the exempted vessels, certain works are outsourced by the yard to sub-contractors. Since the vessel is exempted from levy of service tax and the services are rendered by the sub-contractors on the Government vessels, such services are eligible for exemption. (d) The ship repair services rendered on vessels owned by the private parties and PSUs (owned by the Government of India) are not exempted from levy of service tax. 170. Further, Sl.No.29(h) of the notification provides exemption to “the services provided by sub-contractor by way of works contract to another contractor providing works contract services which are exempt,”. 171. The Central Excise Department is refusing to grant the above benefits to the sub- contractors. 172. The Committee observed that ship repair market is highly competitive and in order to secure orders against stiff international competition, the prevailing tax provisions negatively impacts the competitiveness of CSL. The Committee recommends that work contracts related to ship repair may be exempted from VAT and ship repair activities may be exempted from Service Tax, if otherwise it is not hampering the economy. The Government of India and Government of Kerala should re-evaluate the various taxes imposed on the ship repair industry to enable the Cochin Shipyard Limited to compete with other major ship repair dockyards.

Cluster Concept 173. Cochin Shipyard authorities explained to the Committee that shipbuilding world over is developed in a cluster concept. Most OEMS (Original Equipment Manufacturers) and raw material suppliers are ideally located in and around a shipyard, which gives the yard logistical advantage and competitive strength. 174. The Committee would like to know from the Ministry of Shipping why such cluster concept could not take off in India. The Government should create a business environment for the growth of Original Equipment Manufacturers (OEMS) and raw material supplier in nearby localities of the shipyards. The Committee sincerely feels that it would go a long way in strengthening our ship building and ship repair industry. 35

OBSERVATIONS/CONCLUSIONS/RECOMMENDATIONS — AT A GLANCE

Chapter – I : Tourism in Kerala

Cruise Tourism

The Committee visited the dedicated Cruise Terminal ‘Samudrika’ built at the Cochin Port. Though non-operational during the time of Committee’s visit, it was built for providing all the amenities for cruise passengers viz., Immigration, Customs, waiting lounge, rest rooms, facilitation cell, security, dedicated boat terminal, Marina for luxury yachts etc. The Committee feels that this is the potential area of tourism development for Cochin as well as other ports. The Committee recommends that the cruise potential of Cochin Port may be included in the ‘Incredible India Campaign’ to give maximum publicity to attract cruise tourists. Further, the Committee emphasizes that more training/workshops should be organised by concerned ports to train the employees/agents in cruise tourism so that the ports are equipped to deal in this new opportunity. Further, Government can contemplate to extend this new avenue to other major ports as well. (Para 14)

Development of Backwater Tourism in Kerala (River Cruise)

The Committee notes that Alappuzha and the adjoining regions have great potential in backwater cruise tourism. The Committee recommends that the Ministry of Tourism, Government of India should give all out efforts to provide adequate infrastructure for backwater tourism and provide the necessary finances for the purpose. (Para 16)

Wellness Tourism

The Committee appreciates the initiatives taken by the Central/State Governments for providing wellness tourism and accreditation of wellness centres. The responsibility of the Government and stakeholders adhering to the conditionalities speaks volumes about the importance being accorded to tourists’ safety and clean business ethics by the tourism fraternity in Kerala. Further, the drive undertaken for providing financial assistance under the Market Development Assistance Scheme (MDA) and giving exposure to Wellness Tourism Service Providers shows the pro-local people and pro-entrepreneurial approach. The Committee would like the State/Central Governments and all concerned to come up with such solution-providing ideas so that the wellness tourism in Kerala is developed as brand of its own to attract tourists from world over. (Para 20)

Medical Tourism and Medical Visa

One of the emerging tourism products in the state of Kerala is Medical Tourism. But large scale support from the Union Government is required to develop this potential. There have to be efforts from the Ministry of Tourism to promote Medical Tourism including Ayurveda, Sidha, Unani etc. in association with Kerala Tourism. The issues relating to issuing Medical Visa also need to be addressed. (Para 22)

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Wildlife and Eco-tourism The cardinal principles for development of eco-tourism are really laudable. The Committee appreciates the efforts of Kerala Government in maintenance of environmental integrity and development of tourism in an ecologically sustainable manner. During its visit to Eravikulam National Park, Munnar, Periyar Wild Life Sanctuary and Gavi National Park, Thekkady, the Committee got a first-hand experience of the functioning module as to how the pristine beauty of the locations were maintained and development of eco-tourism’s way was paved. (Para 27)

Thekkady On the basis of interaction with various stakeholders and its first- hand experience, the Committee feels that various satellite towns adjoining Thekkady have immense tourism potential. In view of the fact that Thekkady and the adjoining Kumily towns are already saturated, the Committee emphasises the need to develop the satellite towns/villages as tourist destinations. The Committee further recommends that the Union Ministry of Tourism and Government of Kerala should cooperate with each other to ensure that satellite villages of Thekkady are provided with adequate infrastructure to develop as tourist destinations. (Para 40) The Committee feels that there is an urgent need to establish a full fledged museum in Thekkady to have first hand experience to the tourists about the social, cultural, traditional and historical aspects of the region. This will give authentic information on the people and culture of the area. The Committee also recommends that museums should be established at all the tourist destination. (Para 41) The Committee was told that there is a state-owned vegetable farm near Kumily. The Committee recommends that a Botanical Garden may be established in Kumily, if need be, the State owned farm may be converted into a Botanical Garden. (Para 42) The Committee further recommends that vehicular traffic may be restricted inside Periyar Wild Life sanctuary. The present parking area which is inside the forest area may be shifted out of the sanctuary. Only the battery operated vehicles may be permitted from the parking lot to the sanctuary/boat landing area. At Eravikulam National Park, Munnar, the Committee observed that battery operated vehicles are used for transporting tourists to the National Park. The same model can be adopted in Periyar Sanctuary also. (Para 43) The Committee also recommends that comprehensive waste management system may be introduced in Kumily and Thekkady. At no stage the sewage may be allowed to be dumped in the Periyar Tiger Reserve (Periyar lake). The Government of Kerala and the Ministry of Tourism Government of India should take initiative in this regard. (Para 44) The Committee also recommends that adequate number of modern boats which are pollution free and less noisy may be provided at the Periyar sanctuary so that the wild life is not disturbed. This will also avoid the mad rush for boat tickets. Ministry of Tourism should cooperate in this regard. (Para 45) The Committee was informed that the tourists were being charged exorbitantly and the authorities of Periyar Tiger Reserve were permitting the tourists arbitrarily. In case of boat-tickets also, there are great variations in price between those bought from the counter and the online bookings. The representations received in this regard have been forwarded to the Ministry of Tourism, Government of India and Kerala Tourism for appropriate 37 remedial measures. The Committee hopes that the appropriate authorities will look into these complaints and take remedial measures. (Para 46) The Committee recommends that necessary efforts may also be made for training of a team of naturalists recruited from the local Eco-development Committees; Setting up of training facilities for forest dependent communities in responsible tourism initiatives; setting up of eco-shops for marketing of value added products developed by local communities; developing nature trails as an integral part of jungle camping linking spices gardens and hamlets, etc. (Para 47) The Committee feels that there is a need for establishment of Tribal Culture and Art Museum at Kumily and developing the existing Rajiv Gandhi Museum of Flora and Fauna at Kumily into a full fledged museum. The Committee found that the Forest Department has tried its best to preserve the folk culture of the area by providing a platform to the folk artists of the region and encouraged the musicians and dancers to carry on the precious legacy. This gesture is appreciated by the Committee as this initiative enabled them to retain their talents without disturbing their livelihood. The Committee feels that this initiative could be further encouraged and many more artists would be benefitted if it is taken up in a large scale. The Government is not only bound for development of tourism but also for preservation and transfer of the knowledge of wild, natural and cultural heritage to the future generations. The Committee wants them to take a considerate view on the problems being faced by the stakeholders in these Park/Sanctuaries. The Committee directs the Ministry of Tourism to offer patronage and extend necessary financial support for the proposals. It also recommends that they should study the feasibility of introducing ropeways without hindering the ecology at Thekkady and Munnar. (Para 48)

Tea Tourism The Committee visited the Tea plantations, Tea Museum and Tea Factory of Kanan Devan Hills Plantations Company Private Limited (KHDP) at Munnar. The Committee felt that the spread of tea plantations from top to bottom of the hillocks really offered a special experience to tourists, which instantly makes it as its Unique Selling Proposition. The tea estates and bungalows just add another tweak to this perfect serenity. The Committee observes that this experiential tourism would certainly carve a niche for itself, the State/Central Governments have to make concerted efforts to coordinate with each other in maintaining the pristine beauty of the area and campaign hard at every level to promote Munnar as one of the prime tourist destination of India. (Para 52)

Spice Route and Muziris Heritage Projects This Committee fully supports this global Spice Route Tourism initiative proposed by Kerala Tourism which not only revives India’s glorious heritage as a destination for travellers and traders but would give a larger foothold for garnering world tourism revenue. The Committee further calls upon all the related Ministries of the Government of India to fully support this initiative. Especially, Ministry of Tourism is recommended to endorse the project by taking a leeway. (Para 56)

Muziris Heritage project Muziris (the present day Kodungalloor and the adjoining areas) is reputed to be the ancient world’s greatest trading centre in the East. As the focal point of commerce for over 2500 years, this bustling sea port traded in everything from spices to precious stones with 38 the Greeks, Romans and the rest of the world. It was also the doorway to India for varied cultures and races: Buddhists, Arabs, Chinese, Jews, Romans, Portuguese, Dutch and even the British. (Para 57) The representatives of Kerala Tourism informed the Committee that the Muziris Heritage project is in the active stage of implementation and they are planning to link it with the spice route project. The Committee is fully in agreement with the Kerala Tourism initiative to club it with the Muziris Heritage project, one of the biggest conservation projects in India showcasing a culture of 3000 years or more, which is already partnered by various departments of State Government of Kerala, Central Government and the UNESCO. This would make Kochi, Muziris and Malabar the Heritage Circuit of Kerala. The Committee recommends that Ministry of Tourism, Government of India should give all the support required for promoting spice route and Muziris Heritage Project. (Para 58)

Ropeway and Railway System in Munnar The Committee recommends that the Ropeway and the Railway System can be revived by the Government on its own or with the help of KDHPL which is the owner of most of the land in Munnar. The Ropeway can offer a unique experience to the tourists without interfering with the environment. (Para 60)

Munnar - Eravikulam Ropeway The Committee was apprised of the tea plantation history by Kanan Devan Hills Plantations Company Private Limited (KHDP) which was the pioneer of tea plantation in Munnar. The Tea Museum showcased the traversity of the Company from materialisation of the streak idea of an enterprenuer to full-fledged company of today. It was brought before the Committee that the Kanan Devan Hills Plantations Company Private Limited (KDHP) succeeded Tata Tea Limited on 1st April 2005, when the latter exited most of its plantations in Munnar to focus on the growth of its branded tea business. The Committee recommends the Ministry of Tourism to consider the proposal of the Ropeway connecting from Munnar to Eravikulam, suitably. This can be constructed by the Government agencies or in collaborations with KDHPL. The Ropeway will be an added attraction in Munnar. It may also reduce human intervention inside the Eravikulam National Park. (Para 65)

Rationalisation of Interstate Tourist Permit Charges This is a serious issue having larger connotations in the promotion of tourism. Ministry of Tourism is requested to convene an urgent inter-state discussion on the subject. The Committee feels that tourism is not a high end product only for the rich domestic and foreign tourists; it could be made easily affordable to the rising upper and lower middle classes of the neighbouring states. Resolution of these smaller issues will lead to tourism development. (Para 70) The Committee further emphasise that all the southern states should join hands to promote tourism. The “Golden Triangle Module” as existing in north India for promotion of Tourism can be replicated as a “Golden Quadrangle” in southern region. Further, Ministry of Tourism should strive to replicate the successful tourism modules of Kerala in other southern states as well. The matter may be taken up with the Chief Secretaries of all the Southern States. (Para 71) Wrong Taxation practices affecting MICE Tourism The Committee found that presently the Central and State Governments are levying 39 different taxes on hotel industry. This disincentive of high expense of stay compared to other states may hinder the tourism prospects. The cost accounting to visit to Srilanka, Malaysia, Singapore, etc. works out less as it comes to Kerala. The Committee requests the State and the Central Governments to make an effort to re-workout their respective taxation structures so that the tourism of state of Kerala is not a causality. (Para 77) On the issue of bundling of service tax, the Committee observed that a customer is taxed 3 times for a single product. Since this tour product is taxed on the first part, the Committee feels that the second part i.e., tax paid by the tour operator may be exempted to avoid the product being taxed three times. Kerala Tourism should take initiative to ensure that multiple taxes are not acting as a stumbling block for growth of Tourism in Kerala. (Para 78) Regarding granting of bar license to eligible three star hotels and above, the Committee observes that the matter has already been heard by the Supreme Court and directions have been issued, State Government is bound by these directions. (Para 79)

Comprehensive Waste Management Schemes at Tourist Locations The Committee recommends that the Ministry of Tourism, Government of India may come out with a special scheme to support the waste management projects of the states at the tourist destinations. Waste management collection, disposal and management may also be included in the works to be taken under Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS). (Para 82) Representatives of Kerala tourism informed the Committee that they have a proposal to supply empty bags to collect wastes generated by the tourist vehicles once they enter a particular tourist location on payment of a security deposit. The security deposit will be returned to the vehicle on their return journey after the vehicle return the bag containing the waste generated by them. (Para 83) The Committee notes that it is a novel idea which can be implemented with cooperation of the stakeholders. The Ministry of Tourism, Government of India may promote such initiatives whole heartedly through advertisements which may add to their efforts of “Clean India Campaign”. (Para 84)

Reducing the time required for procuring Indian Visa The Committee evidently observed that the present Visa-on-arrival (VOA) provides only a limited advantage to the State. The Committee, therefore, recommends that a second list of countries needs to be considered for inclusion in the VOA facility extending it to the said European countries USA, UK, France, Germany, Australia, Malaysia, Canada, Netherland, UAE and Italy which are in the top list of international tourist arrivals to the state of Kerala. The Ministry of Tourism and the Government of Kerala may take up the matter with Ministry of External Affairs to initiate suitable action in this regard. The Committee also recommends that the Ministry of External Affairs and Ministry of Home Affairs should take appropriate favourable action on the relaxation of visa norms suggested by the Government of Kerala for the sake of development of tourism. (Para 88) On the issue of reducing the time required for procuring Indian Visa, Ministry of Tourism may take up the matter with the Ministries of Home and External Affairs. If necessary, the present procedure of issuing visa may be reviewed to reduce time and the embassy officials may be sensitized to the requirements of foreign tourists. (Para 89) 40

Permission to State Level Tourist Guides to Enter into ASI Monuments The Committee observes that in the scenario of acute shortage of trained guides, this is a serious omission on the part of ASI. The Director General, Archaeological Survey of India may be directed to intervene in the issue to enable the approved state level guides by the State Department of Tourism to undertake guiding activities in all ASI monuments as in the case of Government of India approved guides. (Para 92)

Promoting Kerala for Film Shooting The Committee recommends that the state should come out with a directory of potential locations for film shooting. The state should also hold workshops/FAM tours to film production executives. There should be a single window clearance for film shooting. (Para 94) The Committee further recommends that the Ministry of Tourism, Government of India should support film shooting as a special scheme. (Para 95)

Chapter – II : National Highways in Kerala

The Committee would like to know whether the CALA staff is deliberately delaying the process to cling on to the posts. They should be terminated immediately if no activity is undertaken. This will avoid wastage of resources. (Para 104) After going through the submissions made to the Committee especially on the topics of ‘Land Acquisition status from 2004-12’ by the NHAI and the ‘Land Acquisition for widening of National Highways’ and ‘Funding of road projects through PPP model vis-à-vis undertaking NHDP by Government of Kerala with the help from NHAI’ by the State Government of Kerala, the Committee feels that the Kerala Government is neither interested in funding of road projects through PPP model nor wants to take up the projects themselves. It further implies that the State Government does not want to fully gear up to the prevailing situation. It should understand that with half-hearted efforts full results cannot be achieved. If the State Government wants highways (which is on ‘Union’ list) for holistic development of the State in general and tourism development in particular, it has to evolve a middle-path between appeasing the general public, bearing burden on the exchequer in terms of R & R Package and working with NHAI & MORTH under NHAI Act. A clear intent of reaching at a workable proposition to the problem is the only solution available here. National Highways Authority of India has already incurred an expenditure of Rs.9.50 crores for establishing the paraphernalia and it also has to bear the burnt of escalations in land acquisition and civil costs. This cannot go on perpetually. Ministry of RTH is recommended to take up the issue with the State Government of Kerala accordingly. (Para 114) The Committee notes that the condition of roads in Kerala is very poor. The Committee also notes that the State of Kerala is 10 year behind the schedule compared to other States as regards construction of roads are concerned. This has happened mainly because of the problems related to land acquisition for widening and construction of roads. Initially there were problems with the width of the roads. Now it has been settled at 45m. Then, there are problems of alignment and design of roads. NHAI needs to do their work on a professional way rather can coming under pressure from the rich and powerful as far as alignment and design are concerned. The issue need to the settled in close coordination with the Government of Kerala. (Para 115) 41

The Committee observes that Kerala has a peculiar pattern of demographic settlement and most of the land is heavily cultivated and both sides of the roads are heavily constructed and inhabited by the people. Therefore, any road widening project has to be supported by adequate compensation and resettlement package. The principles adopted at the National level for compensation and resettlement should not be applied to Kerala due to the very peculiarities available in Kerala. Government of Kerala should be the best authority to decide on such matters and the NHAI and the Ministry of RTH should liberally cooperate with the State in finding solutions. (Para 116) Another aspect brought to the notice of the Committee was that NHAI is not maintaining the NH-47 and N.H.-17 properly. The climatic condition of Kerala is that throughout the year there will be rain and during Monsoon it will be heavily raining for months together. Therefore, the Committee feels that it is the duty of the NHAI to make the life line of Kerala-NH 47 and NH 17- traffic worthy throughout the year. The Committee recommends that NHAI should allocate adequate funds for the repair and maintenance of NH 47 and NH 17. (Para 117) Yet another aspect brought to the notice of the Committee is that public is refusing to pay toll fee wherever there are poor maintenance and repair of the roads or the toll fee is high. The Committee, therefore, opines that NHAI has to blame themselves for the refusal of toll payment by the public. (Para 118) Yet another aspect noticed by the Committee is that the Ministry of Road Transport and Highways is giving only meagre allocations for maintenance of National Highways in Kerala. The Committee feels this is highly inappropriate and it is the duty of Ministry of Road Transport and Highways to maintain the National Highways traffic worthy. The Committee recommends that adequate allocation may be made for maintenance of National Highways in Kerala. (Para 119) The Department-related Parliamentary Standing Committee on Transport, Tourism and Culture had earlier raised the issue of delay in acquisition of land for national highways projects and release of share of central funds to Kerala in its 193rd Report for which Action Taken Replies from Ministry of Road Transport and Highways are still awaited. (Para 120)

Gaps in Road Connectivity The Committee recommends that in order to solve traffic congestions in the road connectivity to the Port, these four fly-overs are essential to be constructed. For a better port connectivity, the Committee also recommends the followings:– ➢ To provide last mile connectivity to the Cochin Port with NHDP Grid from Kundannoor to Willingdon Island, Committee recommends that the length of about 5.9 Km is required to be widened to 4 lane. ➢ The Committee feels that it may also facilitate to establish good land link between State ports like Beypore, Azhikal etc. NH17 meets the NH47 at Edappally. ➢ The Committee observes that such upgradations will facilitate industrial developments in the adjoining areas of highway and generate cargo to the Port. ➢ The Committee came to know that the Govt. of Kerala has initiated action in this regard. Ministry of Road Transport and Highways and NHAI may provide active financial support for the development of these projects before further proceeding in the matter. (Para 126) 42

Chapter III – National Waterways in Kerala

Linking Ports with NW3 Backwater experience is one the most sought after tourism products in Kerala. The southern side of Alappuzha has been not tapped fully linking it with the mainstream tourism destinations and circuits. It is essential to expedite the development of NW-3 and is also necessary to connect this stretch to the nearest tourist attractions. Especially the Kodungalloor – Muziris area needs to be well connected by the waterway and necessary development work needs to be taken up. The Committee notes that the entire NW3 is not fully navigable as per IWAI standards. It is a fact that Kerala is facing acute road connectivity problem and construction of national highways is not coming up to appreciable levels, in this context, if the waterways is cleared for substantial chunk of traffic then it could considerably reduce the pressure on the roads. (Para 141) The Committee recommends that IWAI and Ministry of Shipping may look into connecting Kodungalloor, the Centre of Muziris Heritage project with NW 3, assistance of State Government on this issue could be sought. (Para 142) The Committee also recommends that with regard to IWT interlinkage with ports, the linkages from port side and waterway side should have a synchronized development, so as to have the effective interlinkage. (Para 143)

Navigational Aids The Committee feels that IWAI is actively undertaking the dredging work and it has also done a commendable work in installation of navigational aids and fairway development. National Waterway No. 3 has an excellent potential in cruise tourism, cargo shipment, linking ports, international steamer route, etc. Ministry of Shipping should strive to reap all the potential revenue sources anticipated with the Waterway No. 3. The Committee recommends that M/o. Shipping should take proper measures to depute adequate staff for IWAI. (Para 148) Further, Ministry of Shipping should also look into the aspect of dredging and widening work being hampered due to resistance by local fishermen by placing their fishing nets in the fairway. Also, the problem pertaining to the disposal of dredged material on the banks of canal without raising the local sentiments also needs an apt solution. The Committee recommends the Ministry of Shipping to give impetus to the progress of dredging work as it is essential for the development of NW-3. (Para 149)

IWT Connectivity to ICTT The Committee notes that the development of terminals along the National Waterways is progressing well. There is a need to give adequate publicity to the advantages of moving containers through NW so that it can regain the container volumes. The terminals also need to be equipped to handle all types of cargos. Committee hopes that the Government of India and Government of Kerala will coordinate together to ensure that the entire NW3 is navigable. (Para 157)

Chapter IV – Cochin Shipyard Limited

Shipbuilding: The Committee recommends that PSUs and Government entities viz. SCI, DCI Ports, 43

Ministry of Earth Sciences, DRDO, Fisheries Survey of India (FSI), Geological Survey of India (GSI), etc, be encouraged and advised to place order with CSL on nomination basis, if the yard meets experience, infrastructure and technical requirements. CSL should be included for invoking 30% offset clause as part of DPP, applicable to other Defence PSUs. Long-term loans are another issue where Government intervention is required and necessary directions is issued to EXIM/commercial banks. (Para 163)

Ship Repair In view of the various problems faced by the Cochin Ship Yard Ltd., (CSL), the Committee recommends the following:- (i) Consideration of an amendment to Central Excise Tariff to make the rate of duty as “Nil” as per Tariff for ships and other vessels. (ii) Excise duty exemption on all materials procured for shipbuilding, from indigenous sources. (iii) Total exemption from levy of VAT on sale of ships. (iv) Recommend issuance of a notification clarifying exemption of Customs duty and additional duty on the items imported for manufacturing of the vessels sold to owners within India. (v) Consideration of Customs duty exemption for the capital goods imported for shipbuilding activities. (vi) Invoking ‘shipbuilding subsidy’ as prevalent earlier to foster shipbuilding activities in the country. (Para 166) The extant procedures related to customs clearance for release of cargo either for shipbuilding or for ship repair also need to be analyzed and fine-tuned for early release of the same and thus provide an impetus to both shipbuilding and ship repair activities in the country. (Para 167)

Concessions to CSL The Committee observed that ship repair market is highly competitive and in order to secure orders against stiff international competition, the prevailing tax provisions negatively impacts the competitiveness of CSL. The Committee recommends that work contracts related to ship repair may be exempted from VAT and ship repair activities may be exempted from Service Tax, if otherwise it is not hampering the economy. The Government of India and Government of Kerala should re-evaluate the various taxes imposed on the ship repair industry to enable the Cochin Shipyard Limited to compete with other major ship repair dockyards. (Para 172)

Cluster Concept: The Committee would like to know from the Ministry of Shipping why such cluster concept could not take off in India. The Government should create a business environment for the growth of Original Equipment Manufacturers (OEMS) and raw material suppliers in nearby localities of the shipyards. The Committee sincerely feels that it would go a long way in strengthening our ship building and ship repair industry. (Para 174)

ANNEXURES

ANNEXURE-I Projects Sanctioned During Last Three Years

Sl. Name of the Name of the Date of Date of Current No. project tourism project proposal status of development submitted sanctioned the scheme along with with project amount amount sought by allocated State by Government Ministry 12 3 4 5 6 2010-11 1. Development Product 10.02.2010 17.05.2010 Work in of Muziris Infrastructure Progress Heritage Circuit Development Rs.7200.00 Rs.4052.83 Connecting Destination lakh lakh historically and and archaeologically Circuit important places (PIDDC) of Kodungalloor in Kerala 2. Development of PIDDC 27.09.2010 27.12.2010 An amount of Rs.147.77 Aruvikara and lakh has been adjusted in Rs.244.00 Rs.184.71 project Development of Sites in to lakh lakh Kappil Beach and Boat Tourist Club as tourist Destination destination in Kerala sanctioned during the year 2012-13 3. Celebration of Domestic 28.09.2010 27.12.2010 Festival Completed Utsavam 2010-11 promotion (Rs.96.00 lakh and Nishangandhi Publicity and for Rs.50.00 Festival-2011 Hospitality Utsavam+ Rs.65.50 lakh (Rs.25.00 (DPPH) for lakh for Nishagandhi each festival) festival) 2011-12 1. Development of PIDDC 13.09.2010 29.06.2011 Work in Progress Munnar into a Tourist Rs.610.00 Rs.488.51 Destination in lakhs lakh Kerala

47 48

12345 6

2. Development of PIDDC 13.09.2010 29.6.2011 Work in Progress into a Tourist Rs.467.00 Rs.309.62 Destination in lakh lakh Kerala 3. Developing Information 01.10.2010 29.6.2011 Work in Progress Mobile Based Technology service and IT Rs.94.00 Rs.46.00 based projects (IT) lakh lakh for the Promotion of Kerala Tourism 4. Development Assistance to 23.08.2011 02.11.2011 Work in Progress of Cruise Central Passenger Agency Rs.700.00 Rs.491.53 Facilitation lakhs lakh Centre at cochin Port, Cochin 5. Development PIDDC 30.8.2011 08.12.2011 Work in Progress of Peruvannamuzhi Rs.648.00 Rs.500.00 and Kakkayam lakh lakh Dam Sites in in Kerala 6. Developing of PIDDC 29.10.2011 08.12.2011 Work in Progress Karappuzha Dam site and Rs.828.00 Rs.492.03 Surroundings lakh lakh into a major destination in Kerala 7. Developing IT 29.09.2011 30.11.2011 Work in Progress Mobile Based Services and Rs.96.00 Rs.48.00 IT based lakh lakh projects for the promotion of Kerala Tourism 49

12 3 4 5 6

2012-13 1. Development PIDDC 29.10.2011 02.05.2012 Progress report yet to of be received from the Thumboormozhi Rs.184.00 Rs.146.99 State Government Dam sites and lakh Surrounding into a major destination in Kerala 2. Grant of CFA DPPH 19.04.2012 18.06.2012 Progress report yet to for First World be received from the Drum Festival Rs.70.00 24.00 State Government of India 2012 lakh 3. Development of Assistance to 04.08.2012 28.12.2012 Progress report yet to dedicated cruise Central Agency be received from the berthing Rs.2490.00 Rs.2243.32 Cochin Port Trust facilities at lakh Cochin Port 4. Development of PIDDC 30.08.2011 31.03.2013 Sanctioned recently Back-water circuit in Rs.7200.00 Rs.4762.48 Alappuzha in lakhs lakh Back-water Region as a Mega Circuit in Kerala 5. Development of PIDDC 13.02.2012 31.03.2013 Adjustment from Kappil Beach Development of and Boat Club Rs.349.00 Rs.322.70 Aruvikkara and Peppara as a tourist lakh Dam Sites into a Tourist destination in destination Kerala 6. Development of PIDDC 29.10.2011 31.03.2013 Adjustment from Palaikari Fish Development of Farm and Rs.350.00 Rs.327.04 Muzhippilangad Beach as surrounding lakhs lakh a major tourism areas in destination Chempu Village into a major destination 50

Project for revalidation during 2013-14 Sl. Name of the Amount Amount Status No. Project Sanctioned Released 1. Development of 324.39 64.87 File submitted to HM (T) for Kochi as a tourist revalidation destination 2. Development of 235.04 47.08 File submitted to HM (T) for revalidation. as a tourist destination

Status of projects prioritized for the year 2013-14 Sl. No. Name of the projects Status CARRY FORWARD PROJECTS 1. Development of Munnar Hill Clarifications sought from the State Government is still awaited. 2. IHM at Alappuzha/Kottayam including hostel facility, provided the land is transferred in advance to the Department of Tourism, Kerala or Society. NEW PROJECTS Integrated Mega Circuit 1. Northern Tourism Circuit Development, Kerala Not Received subject to approval of competent Authority. Mega Tourism Circuit 1. Vagmon-Thekkady Eco-Tourism Circuit Not received Circuit 1. Spice Route Circuit-Malabar Zone Not received 2. Backwater Circuit-Varkala to Kottappuram Not received 3. Eco-Camping circuits and caravan parks Clarifications sought from the State Government is still awaited Destinations 1. Conservation of Heritage Properties-Mascot, Bolghatty and Lake Palace Not Received 2. Kochi Marine Drive Water Front Development Not Received 3. Destination Not Received 4. Destination Kumarakom Not Received 5. Destination Kannur Not Received 51

Rural Tourism 1. Rural Tourism Cluster at Idayar Island - Scheme yet to be approved by (Thiruvallam, Kovalam and surrounding village Planning Commission clusters)-subject to the approval of the Scheme. 52

ANNEXURE-II

Minor/Non-Major

1 Vizhinjam/Kovalam 1 km. away from State Waterway 2 Trivandrum () 400 m away from State Waterway 3 Kollam (Thankassery) Connected through Neendakara 4 Neendakara Well connected with Kayamkulam Well connected with National Waterway 6 Alappuzha Alappuzha canal is very near 7 Munambam Well connected with National Waterway. 8 Connected with State Waterway 9 Beypore Connected with State Waterway 10 Calicut Not connected with waterway 11 Badagara Not connected with waterway 12 Connected with State Waterway 13 Kannur Connected with State Waterway 14 Azhikkal (Parassinikadavu) Connected with State Waterway 15 Kasargod Connected with State Waterway 16 Manjeswaram Connected with State Waterway 17 Neeleswaram Connected with State Waterway

52 53

MINUTES 54 55

XII TWELFTH MEETING

The Committee met at 4.00 P.M. on Monday, the 20th May, 2013 in Room No. 63, First Floor, Parliament House, New Delhi.

MEMBERS PRESENT 1. Shri Sitaram Yechury — Chairman

RAJYA SABHA 2. Shrimati Bimla Kashyap Sood 3. Shri Aayanur Manjunatha 4. Shri Narendra Kumar Kashyap 5. Shrimati Vasanthi Stanley 6. Shri Shashi Bhusan Behera

LOK SABHA 7. Dr. Mahesh Joshi 8. Shri M. Krishnaswamy 9. Shri G.V. Harsha Kumar 10. Shri S. Pakkirappa 11. Shri Prabodh Panda 12. Shri Deoraj Singh Patel 13. Shri Adhalrao Shivaji Patil 14. Shri Modugula Venugopala Reddy 15. Shri Shatrughan Sinha 16. Shri Dinesh Trivedi

SECRETARIAT Shri N.K. Singh, Joint Secretary Shri Swarabji B, Joint Director Dr. (Shrimati) Subhashree Panigrahi, Joint Director Shrimati A.S. Chakravani, Assistant Director Shri T. Kennedy Jesudossan, Committee Officer

Indian National Ship-owners Association, Mumbai Capt. Ranjeet Singh

2. * * *

*** Relates to other matter.

55 56

3. * * *

4. * * *

5. * * *

6. The meeting adjourned at 5.00 P.M. after some discussion on proposed study visit to the Kochi-Munnar-Thekkedy-Kochi scheduled from 24th to 31st May, 2013.

*** Relates to other matter. 57

XV FIFTEENTH MEETING

The Committee met at 3.30 P.M. on Friday, the 23rd August, 2013 in Room No. 63, First Floor, Parliament House, New Delhi.

MEMBERS PRESENT 1. Shri Sitaram Yechury — Chairman

RAJYA SABHA 2. Shri Satish Sharma 3. Prof. Alka Balram Kshatriya 4. Shri V. Hanumantha Rao 5. Shrimati Bimla Kashyap Sood 6. Shri Aayanur Manjunatha 7. Shri Narendra Kumar Kashyap 8. Shrimati Vasanthi Stanley 9. Shri Shashi Bhusan Behera

LOK SABHA 10. Yogi Adityanath 11. Shri Prabodh Panda 12. Shri Rakesh Singh 13. Shri Dinesh Trivedi

SECRETARIAT Shri N.K. Singh, Joint Secretary Shri Swarabji B, Joint Director Dr. (Shrimati) Subhashree Panigrahi, Joint Director Shrimati A.S. Chakravani, Assistant Director Shri T. Kennedy Jesudossan, Committee Officer Shri P.P. Raumon, Committee Officer 2. The Chairman welcomed the Members of the Committee and requested them to offer their comments/suggestions on the following draft Reports circulated to them: (i) * * * (ii) * * * (iii) 200th Report on “Development of Tourism, National Highways and Water Transport in Kerals and Cochin Shipyard Limited”.

*** Relates to other matter.

57 58

3. After some discussion, the Committee adopted the Reports with minor modifications.

4. The Committee authorized the Chairman and in his absence Shri Shashi Bhusan Behera, M.P. to present the Reports in the Rajya Sabha and S/Shri Prabodh Panda, M.P. and M. Krishnaswamy, M.P. to lay the Reports in the Lok Sabha on the 27th August, 2013.

5. * * *

6. The meeting adjourned at 4.10 P.M.

*** Relate to other matters. Printed at : Bengal Offset Works, 335 Khajoor Road, Karol Bagh, New Delhi-110005.