GOD’S OWN COUNTRY
For updated information, please visit www.ibef.org September 2017 Table of Content
Executive Summary……………….….…….3
Advantage State …………………..….…….5
Kerala Vision 2030 …………………..……..6
Kerala – An Introduction……….…….……..7
Budget 2016-17…………...………………..18
Infrastructure Status...... 19
Key Industries…….………...... …………….46
Doing Business in Kerala…….………...... 65
State Acts & Policies…….………...... ……..73 EXECUTIVE SUMMARY … (1/2)
Cultural diversity and . Kerala is known as God’s own country. It is one of the few states to have marketed its natural beauty well developed tourism successfully to the leisure tourism sector. The state’s unique heritage and cultural diversity have helped sector attract tourists from the world over.
Highest literacy and sex . As of census 2011, Kerala has the highest literacy rate of 94.0% and sex ratio of 1,084 women for 1,000 men, ratio in India. Male literacy rate in the state stands at 96.10%, among all states.
Largest recipient of . In 2015-16, Kerala received NRI remittances of US$ 20.17 billion. In 2014-15, NRI remittances of the state foreign remittances in were US$ 16.50 billion, up by 24%. Remittances to the state are estimated at 36.3% of the net state domestic the country product. As of December 2016, Kerala had US$ 22.98 billion of non-resident deposits.
Ranks second in . Kerala holds second rank in the Investment Climate Index followed by Karnataka, as per a policy research Investment Climate working paper by the World Bank. The state stands second due to its world-class infrastructure and well- Index trained human resource pool.
Source: Economic Review of Kerala 2014-15 , NRI Achievers Bureau, MIGRATION AND DEVELOPMENT BRIEF 27 by World Bank, SLBC Kerala
3 KERALA For updated information, please visit www.ibef.org EXECUTIVE SUMMARY … (2/2)
Strong agricultural . Kerala is a leading agricultural state in the country & the largest producer of rubber, pepper, coconut & coir. As per budget 2017-18, Government of Kerala has proposed an outlay of US$ 326.88 million for the sector agriculture sector,
First international . Kerala has the 1st international transshipment terminal in India, having a design capacity of around 4 million container transhipment TEUs & providing better connectivity between Kerala & other ports in India. terminal
Presence of world class . Kerala has been promoting knowledge-based industries such as IT/ITeS, computer hardware & biotechnology. It is the first state having a technology park with CMMI level 4 quality certification & a world- technology park class IT campus in Thiruvananthapuram.
Cargo Traffic in Cochin . The total cargo traffic handled by Cochin port during 2016-17 was 25 million tonnes, recording an increase of Port 13.16% against 22.09 million tonnes for the year 2015-16.
Source: Economic Review of Kerala 2014-15 , Kerala IT Policy, TEU’s = Twenty-foot Equivalent Unit Rubber Board, Ministry of Commerce and Industry, Government of India, Department of Economics and Statistics, Kerala, Kerala State Co-operative Rubber Marketing Federation, Cochin Port Trust, New Indian Express, State budget 2017-18
4 KERALA For updated information, please visit www.ibef.org ADVANTAGE: KERALA
2016 2021E
Foreign High economic growth Leader in tourism Foreign tourist tourist . Kerala’s gross state domestic product (GSDP) surged at . In 2015, Kerala was rewarded as the winner of PATA arrivals: arrivals: a compound annual growth rate (CAGR) of 11.18% awards by Macau Government Tourism Office (MGTO) 1.04 million between 2005-06 and 2015-16. 3 million . BBC Travel survey has rated Kerala as the top favourite . Kerala is the leader in rubber production; high demand tourist destination among foreign travellers. of rubber has opened up immense opportunities for the . Foreign tourist arrivals increased by 5.71% during 2016 state in the rubber industry. over 2015.
Advantage Kerala
Rich pool of skilled labour Policy and . Kerala has a large base of skilled labour, making it an infrastructure support ideal destination for knowledge-intensive sectors. . Kerala has a wide range of fiscal and policy incentives . The state has the highest literacy rate in the country. for businesses under the Industrial and Commercial . It has a large pool of semi-skilled and unskilled Policy and has well-drafted sector-specific policies. labourers. . It has a well-developed social, physical and industrial infrastructure and virtual connectivity, and good power, airport, IT, and port infrastructure. E-governance initiatives will further strengthen transparency and bridge digital divide.
Source: Economic Review of Kerala 2014-15, Tourism Vision 2030, kerala Tourism
5 KERALA For updated information, please visit www.ibef.org KERALA VISION 2030
. Affordable and clean power to all. . Exploit the full potential of hydro-electric . Green, sustainable and safe generation. transport. . 100% electrified households with 24*7 availability.
. Growth oriented labour welfare policy. Transport Energy . Provide high quality education at . Connecting labour supply with affordable rates. demand. . Create a global brand name in . Increasing employment Labour education and develop into a opportunities. Education knowledge hub by 2030. Vision 2030 . Increase health expenditure to . Increase the share of Industry Health GSDP ratio from 0.6% in 2012 to 4- manufacturing to 10% of the GSDP 5% by 2027−31. by 2030. . Set up three medical cities by 2030. . Sustained increase in employment Agriculture & Forestry . Provide health insurance cover to in manufacturing. livestock all.
. Increase the share of forestry in . Shift from subsistence farming to GSDP to 0.5%. highly knowledge intensive, competitive farming. . Increase the productivity of forests through improved management of . Self sufficiency in supply of fish, resources. meat, milk and other dairy products to the local market.
Source: Government of Kerala
6 KERALA For updated information, please visit www.ibef.org KERALA FACT FILE
. There are 44 rivers flowing through Kerala, the major ones being Periyar (244 km), Bharathapuzha (209 km) and Pamba (176 km). Out of these 44 rivers 41 are west flowing and 3 are east flowing.
Parameters Kerala
Capital Thiruvananthapuram
Geographical area (sq km) 38,863
Administrative districts (No) 14
Source: Maps of India Population density (persons per sq km) 860 . Kerala is located along the coastline to the extreme south-west of the Total population (million) Indian peninsula, flanked by the Arabian Sea on the west and the 33.41 mountains of the Western Ghats on the east. The state has a 580 km Male population (million) 16.02 long coastline.
. Malayalam is the most commonly spoken language. Hindi, English Female population (million) 17.38 and Tamil are the other languages used. Sex ratio (females per 1,000 males) 1,084 . Kochi, Kozhikode, Kollam, Thrissur, Alappuzha, Palakkad, Thalassery, Ponnani and Manjeri are some of the key cities in the Literacy rate (%) 94.6 state.
Source: Kerala at a glance, Economic Review of Kerala,2014-15 , Government of Kerala website, Census 2011, Central Statistics Office
7 KERALA For updated information, please visit www.ibef.org KERALA IN FIGURES … (1/2)
Parameter Kerala All states Source
Economy 2015-16 2015-16
“Advanced Estimates” provided by Directorate of GSDP as a percentage of all states’ GSDP 4.31 100.0 Economics and Statistics of Kerala
“Advanced Estimates” provided by Directorate of GSDP growth rate (%) 2.85 8.71 Economics and Statistics of Kerala
“Advanced Estimates” provided by Directorate of Per capita GSDP (US$) 2,677 1,546 Economics and Statistics of Kerala
Physical Infrastructure
Installed power capacity (MW) 4,998.94 329,226.27 Central Electricity Authority, as of August 2017
Telecom Regulatory Authority of India, as of June Wireless subscribers (No) 39,823,618 1,186,840,884 2017
Telecom Regulatory Authority of India, as of March Internet subscribers (No) 16,550,000 422,190,000 2016
National highway length (km) 1,811.52 100,087.08 NHAI & Roads and Building Department
Major and minor ports (No) 1+17 13+187 India Ports Association
Airports (No) 3 125 Airports Authority of India
8 KERALA For updated information, please visit www.ibef.org KERALA IN FIGURES … (2/2)
Parameter Kerala All states Source
Social Indicators
Literacy rate (%) 94.6 73.0 Census, 2011
Birth rate (per 1,000 population) 14.8 20.8 SRS Bulletin December 2016
Investments
Department of Industrial Policy & Promotion, From FDI equity inflows (US$ billion) 1.75 332.11 April 2000 to March 2017
Industrial Infrastructure
DEA, Ministry of Finance, Government of India, PPP projects completed & operational (No) 29 1,246 July 2016
Exporting SEZs (No) 19 222 SEZ India, as of September 2017
PPP: Public-Private Partnership, SEZ: Special Economic Zone, SRS: Sample Registration System
9 KERALA For updated information, please visit www.ibef.org ECONOMIC SNAPSHOT – GSDP
GSDP of Kerala at current prices (US$ billion) Per Capita GSDP of Kerala at current prices (US$)
100 3000 CAGR 11.18% CAGR 11.09%
90
2500
80 89.4
70 2,677
2000
60
68.5
66.6 65.7
50 64.3 1500
1,961
1,907
1,892
1,841
57.8
40 1,678
48.9 1000
1,430
43.9
43.5
30
1,294
1,291 31
20 34.1 935
500 1,019 10
0 0
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
. At current prices, Kerala’s GSDP* was about US$ 89.44 billion . The state’s per capita GSDP^ stood at US$ 2677 during 2015- in 2015-16. 16 as compared to US$ 935 during 2005-06. . The state’s GSDP was recorded at a CAGR of 11.18% . Per capita GSDP increased at a CAGR of 11.09% between between 2005-06 and 2015-16. 2005-06 and 2015-16. . Growth was mainly driven by secondary and tertiary sectors.
Source: “Advanced Estimates” provided by Directorate of Economics and Statistics of Kerala, GSDP* - Government of Kerala – With Medium Term Fiscal Plan for Kerala 2016-17 to 2018- 19 , Per Capita GSDP^ - calculated using GSDP million US$/Population in million
10 KERALA For updated information, please visit www.ibef.org ECONOMIC SNAPSHOT – NSDP
NSDP of Kerala at current prices (US$ billion) NSDP per capita of Kerala at current prices (US$)
80 2,500 CAGR 11.34% CAGR 9.57%
70
2,000
60
68.5
2,050
58
57
50 1,500
58.3
1,713 51.1
40 1,672
1,668
1,630
1,483 43.5
30 39 1,000
38.2
1,270
1,150 1,135
20
895
29.9 822 27.2 500
10 23.4
0 0
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
. At current prices, Kerala’s NSDP# was about US$68.5 billion in . Kerala’s per capita NSDP& was US$ 2,049.9 in 2015-16 2015-16. compared to US$822 during 2005-06. . NSDP of the state grew at a CAGR of 11.34% between 2005- . Per capita NSDP of the state grew a CAGR of 9.57% between 06 and 2015-16. 2005-06 and 2015-16.
Source: “Advanced Estimates” provided by Directorate of Economics and Statistics of Kerala, NSDP# - calculated using per capita NSDP x Population in million, per capita NSDP& - Geometric mean of YoY calculation from 2004-05 to 2014-15
11 KERALA For updated information, please visit www.ibef.org ECONOMIC SNAPSHOT – PERCENTAGE DISTRIBUTION OF GSDP
µ . In 2015-16, the tertiary sector contributed 67.8% to the state’s VisakhapatnamGSDP composition port traffic by (million sector tonnes) GSDP at current prices, followed by the secondary sector contributing 19.51%. 100% . The tertiary sector grew at a CAGR of 15.55% between 2004-05 and 59.60% CAGR 68.70% 2015-16. Growth was driven by storage, transport, financial and real 90% estate segments. 80% . The secondary sector grew at an average rate of 12.53%, between 2004-05 and 2015-16. Growth was led by manufacturing, 70% construction, electricity, gas & water supply. 15.55% 60% . The primary sector expanded at an average rate of 10.92% between 2004-05 and 2015-16, mainly supported by growth across agriculture 50% and mining & quarrying segments. 40% 22.50% 30% 12.53% 19.51%
20% 17.90% 10% 10.92% 12.69%
0% 2004-05 2015-16
Primary Sector Secondary Sector Tertiary sector
Source: Directorate of Economics and Statistics of Kerala Economic Survey, Sector-wise %share of GSDPµ -Geometric mean of YoY calculation from 2004-05 to 2014-15
12 KERALA For updated information, please visit www.ibef.org ECONOMIC SNAPSHOT – AGRICULTURAL PRODUCTION
. Agriculture, Forestry and Fishing contributed 12.24 per cent to Crop Annual production – 2015-16 (‘000 MT) Kerala’s gross state value added in 2015-16. Kerala is one of the Onion 200 Wheat 37,300(1) leading pepper and rubber producers in the country. Rubber 655,000(1) Raw cashew 29,715(1) . As per budget 2017-18, the state government allocated US$ 326.88 million for agricultural sector, US$ 15.83 million for soil and water Total food grains 698,600 Pulses 1,000 conservation sector, US$ 47.81 million for animal husbandry, US$ Rice 697,300 Drumstick 15,976(1) 15.06 million for dairy development and US$ 90.91 million for fisheries. On other hand, under the 12th Five Year Plan, US$ 1.46 Fruits* 2,467.92 Groundnut 500 billion was allocated for agriculture and allied sectors in the state. Plantation* 5,347.87 Cane gur 14,853(1)
. In November 2016, Kerala agreed to implement Food Security Law Mango 386,380 Vegetables* 1,907.72 in the state. As per the law, the government will make available 5 (1) kg of highly subsidized food grain at Rs 1-3 per kg, to each person Grapes 1,880 Cocoa 14,186 in the state per month. Coffee 68,650 Turmeric 6,820(1)
Tea 4.51(2) Nutmeg 14,193(1)
Pepper 40,690(1)
Note: (1)2014-15; (2)m.kg, *2nd advance estimates for 2016-17 Source: Department of Economics and Statistics, Kerala, Department of Agriculture Cooperation And Farmers Welfare
13 KERALA For updated information, please visit www.ibef.org ECONOMIC SNAPSHOT – EXPORTS
. Value exports from Kerala increased from US$ 4,028 million in 2013- Total exports turnover from CSEZs (US$ million) 14 to US$ 4,220 million in 2014-15.
. Exports of non-basmati rice from the state increased from US$ 28.96 7,000.0 million in 2015-16 to US$ 33.52 million in 2016-17. In 2015-16,
6,000.0 exports of non-basmati rice from Cochin SEZ were valued at US$ 28.92 million. 5,000.0
4,000.0
6,108.64
5,998.80
3,000.0 Exports break-up, Cochin Special Economic Zone Port (2014- 2,000.0 1,486.54 15) 4,109.16 3,709.03 740.06
1,000.0 334.17 2,532.19 Sectors (US$ million) - Agricultural products 252.22(1)
2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 Electronics hardware 76.84 2008-09 Engineering 4.39 Gem & jewellery 47.25 . Exports of basmati rice from the state, in value terms, increased IT and ITeS 77.73 from US$ 112.44 thousand in 2014-15 to US$ 175.82 thousand in Miscellaneous 59.16 2015-16. Exports of floriculture products from the state stood at US$ 3.64 million in 2016-17 while exports of fruits and vegetable Plastic and rubber products 14.36 seeds from the state was recorded at US$ 11.53 million, during Textiles & garments 15.21 the same period. Trading 11.25 . Exports from Electronics Technology Parks – Kerala, increased 22.55% in 2015-16 to reach US$ 970 million.
Source: Office of the Development Commissioner, CSEZ - Cochin Special Economic Zone (1)2015-16, APEDA, Kerala Economic Review 2016
14 KERALA For updated information, please visit www.ibef.org ECONOMIC SNAPSHOT – FDI INFLOWS & INVESTMENTS
. According to DIPP, during April 2000 to March 2017, FDI inflows FDIVisakhapatnam equity inflows, port2008 traffic-09 to (million2016-17 tonnes)(US$ million) into the state (including Lakshadweep) totaled to US$ 1.75 billion.
500
. As per budget 2016-17, the Kerala Infrastructure Investment
400 471
Fund Board will be provided with an envisioned resource 454 envelope of US$ 4.58 million during 2016-17, in order to enable 300 and provide more investments in the state. 200
. The state government has sanctioned investments of US$ 100 230
100 72 70
million, US$ 156 million & US$ 8.3 million for the Vizhinjam 37
128
82 90 International Seaport project, Kochi Metro Rail Project & for land 0 acquisition for Kozhikode & Thiruvananthapuram international
airports respectively.
2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 . The Government of Kerala is also planning to launch “Magnificent Canals” program during 2016-17, for controlling the . Further, the state government has also decided to propose a tax investments & capitalising on the potential of tourism sector in reduction from 14.5% to 5% for attracting investments across the state. The program would deal with the development of automated robotic car parking system, during 2016-17. select canal stretches under the PPP# model in order to boost . In March 2017, Kerala Infrastructure Investment Board (KIIB) tourism in the state. cleared basic development projects worth US$ 1.19 billion, which . In January 2017, several companies have planned to make include development projects for physical infrastructure such as investments worth USD446.23 million in, Infopark Phase-II & roads, bridges, potable water, health, education, SC/ST generate employment for around 20000 IT professionals development and power transmission grid.
Note #: Public-private partnership Source: DIPP - Department of Industrial Policy & Promotion, 1Including Lakshadweep, Government of Kerala,
15 KERALA For updated information, please visit www.ibef.org KERALA STATE BUDGET 2017-18
Annual Budget 2017-18
Sector Investment (US$ million) Sector Investment (US$ million)
Agriculture 326.88 Small scale modern industries 19.87
Soil and water conservation 15.83 Drinking water 164.22
Animal husbandry 47.81 Public Health 112.37
Dairy development 14.59 Science, technology & environment 21.73
Fisheries 90.91 School education 133.95
Soil and water conservation 15.83 Roads and bridges 209.69
Handloom and Powerloom sector 11.18 Information Technology and e-Governance 85.21
Rural development and allied sectors 602.07 Medical Education 72.95
Education 3136.24 Public works 2017.78
Heavy and Medium Industries 74.81 Khadi and Village Industries 2.64
Source: Finance Department, Government of Kerala, India
16 KERALA For updated information, please visit www.ibef.org PHYSICAL INFRASTRUCTURE – ROADS … (1/2)
. As per the state budget 2016-17, under the scheme of PPP annuity model and loan from NABARD, construction work on 20 mega projects was to be initiated in the state during 2016-17. Some of these projects include: Cherupuzha–Payyavur–Ulickal–Vallithod – 59.42 km hill highway, construction of 1st phase of Kodimatha, Kundannoor flyover, Ramanattukara Flyover, etc.
. During 12th Five Year Plan the state government proposed to develop 290 kilometers of roads under various scheme. As per the state budget 2016-17, under Kerala State Road Transportation Corporation, the state government has planned an allocation of US$ 2.99 million for purchasing new single/multi axle buses which are energy efficient during 2016-17. Further, US$ 1.37 million and US$ 1.68 million have been allocated for modernisation of depots & Source: Maps of India workshops and infrastructure development as well as computerisation purpose, respectively. . Road development activities in the state are undertaken under three broad categories of roads and bridges, road transport and Road type Road length (km) other transport services. In the annual budget 2017-18, a total outlay of US$ 209.69 million has been proposed by the state National highways 1,811.52 government for improving roads and bridge infrastructure. State highways 4,341.65 . An outlay of US$ 3.81 million was proposed by the state Major district roads 27,469.9 government for development and improvement of state highways including relaying of a 600 km length road during 2016-17.
Source: Economic Review of Kerala, 2014-15, Kerala State Industrial Development Corporation Ltd.; Ministry of Road Transport & Highways, Government of Kerala, State budget 2017-18
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. Pradhan Mantri Gram Sadak Yojana (PMGSY) was launched in National highway length completed (km) 2000 with the objective of connecting eligible rural habitants. As of February 2017, about 590,104.62 km of road network was completed across India, of which 3,534.89 km was completed in 35.0 Kerala. 30.0 25.0 29.00 20.0 Pradhan Mantri Gram Sadak Yojana (PMGSY) (2017) 21.40 15.0 10.0 5.72 Habitations benefitted 380 5.0 0.0 2012-13 2013-14 2014-15 Length completed 2,917.81
Total expenditure (US$ million) 225.32 Expenditure on road works under PMGSY in Kerala (US$ million) Source: PMGSY 40.00 . As per budget 2016-17, construction work on Seaport Airport Road 35.00 between Kalamassery NAD junction as well as Nedumbassery 30.00 34.75 airport was in its completion phase, with the construction of 3rd 25.00 29.12 phase was expected to be initiated during 2016-17. The state 20.00 24.86 government had allocated an amount of US$ 53.46 million for the 15.00 18.51 construction of 3rd phase. 10.00 5.00 0.00 2013-14 2014-15 2015-16 2016-17
Source: NHAI, omms.nic.in
18 KERALA For updated information, please visit www.ibef.org PHYSICAL INFRASTRUCTURE – RAILWAYS
. Kerala is well connected to other parts of the country via railways. The State Government has appointed Kerala State Industrial Development Corporation Ltd (KSIDC) as the nodal agency for developing a project to establish a north-south High-speed Rail Corridor (HSRC) to facilitate smooth and speedy passenger movement between various cities and towns in the state. As per state budget 2016-17, the state government approved US$ 10.88 billion for constructing a 570-km corridor from Thiruvananthapuram to Kasaragod. As per budget 2017-18, the Kerala Rail Development Corporation is going to undertake construction work of nine rail lines and detailed project reports of Thiruvananthapuram Light Metro for US$ 654.84 million and Kozhikode Metro for US$ 389.43 million have been prepared.
. Railway divisions in Thiruvananthapuram, Palakkad and Madurai jointly carry out railway operations in Kerala.
. Under the major infrastructure development projects, for ongoing and new projects, including Kochi Metro, Suburban Rail Corridor, and various others, the state government has decided to provide these projects with a common pooled amount of US$ 387.42 million during 2016-17.
. The government announced the launch of Kochi Metro Rail’s
Source: Maps of India commercial services of the 13-km Aluva-Palarivattom section of the 27-km Line-1. Over 600 women from the ‘Kudumbasree Mission’ have been employed & trained for smooth run of the 1st phase of the metro.
Source: Economic Review of Kerala, 2014-15, Kerala State Industrial Development Corporation Ltd, Government of Kerala, State Budget
19 KERALA For updated information, please visit www.ibef.org PHYSICAL INFRASTRUCTURE – AIRPORTS
. Kerala has 3 airports handling domestic & international flights, located at Thiruvananthapuram, Kochi & Kozhikode. Aircraft movement from Cochin airport increased from 56,180 in 2015-16 to 61,688 in 2016-17. Aircraft movement from Thiruvananthapuram airport increased from 26,001 in 2015-16 to 29,117 in 2016-17. During March 2017, aircraft movement from Cochin & Thiruvananthapuram airports stood at 5,461 & 2,412, respectively.
. Passenger traffic from Cochin airport increased from 7,749,901 in 2015-16 to 8,955,441 in 2016-17, while passenger traffic from Thiruvananthapuram airport increased from 3,470,788 in 2015-16 to 3,881,509 in 2016-17. During March 2017, passenger traffic from Cochin & Thiruvananthapuram airport stood at 709,717 & 306,591, respectively.
. Freight traffic from Cochin airport increased from 79,233 tonnes in 2015-16 to 81,485 tonnes in 2016-17, while freight traffic from Thiruvananthapuram airport decreased from 35,570 tonnes in 2015- 16 to 28,450 tonnes in 2016-17. During March 2016, freight traffic from Cochin & Thiruvananthapuram airports stood at 6,828 tonnes & 2,696 tonnes, respectively.
. An international airport at Kannur is upcoming and is expected to be operational by mid-2018. This airport will be the 4th to have a
Source: Maps of India runway of 4,000 metres. . In February 2017, Government of Kerala approved setting up of an airport at Erumely. This step is expected to benefit religious tourism as lakhs of devotees visit Pathanamthitta district every year. Source: Airports Authority of India, Kerala State Industrial Development Corporation Ltd.
20 KERALA For updated information, please visit www.ibef.org PHYSICAL INFRASTRUCTURE – PORTS … (1/4)
. Kerala has 18 ports, of which, Cochin is the major one. Furthermore, Existing Ports there are three intermediate and 14 minor ports.
. The development activities of the port are taken care of by the Major ports Cochin Department of Ports, Harbour Engineering Department and Harbour Engineering Department. Neendakara Intermediate ports Alappuzha . Under the 12th Five Year Plan from 2012 to 2017, the State Kozhikode Government approved an investment of US$ 364.9 million for development of port infrastructure facilities for handling cargo and Vizhinjam passenger transport. Valiyathura . Vizhinjam International Port Phase-I, with an outlay of US$ 1.05 Vadakara billion, is the largest harbour project in Kerala. Ponnani Thankasserry Head Budget 2017-18 Kayamkulam Manakkodam Ports US$ 29.83 million Minor ports Munambam Beypore Thalasserry Manjeswaram Neeleswaram Kannur Azhikkal Kasaragode
Source: Cochin Port Trust, Kerala Ports, Kerala Budget 2016-17, 2017-18
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. During 2016-17, the cargo traffic handled by Cochin port was 25 Cochin port traffic (million tonnes) million tonnes. However, in 2015-16, the total traffic handled at Cochin port was 22.90 million tonnes. 30
. The Cochin Port handled 12.078 million tonnes of crude oil, 816 25
20
thousand tonnes of cement 491,087 Twenty Foot Equivalent Units
15 25.00
(TEUs) in 2016-17.
22.09
21.60
20.90 20.10
10 19.80
17.90
17.40 15.80 . In addition, the state government has been focussing on 5 15.20
development of minor ports. 0
2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
Source: Cochin Port Trust, News articles, Economic Survey 2014-15, India Port Association
Ports to be developed Budget 2016-17 (US$ million)
Beypore and Kozhikode ports 1.97
Ponnani port 0.25
Vizhinjam cargo harbour 3.75 Thangassery (Kollam) port/cargo 2.39 harbour Kodungallur port 1.75
Azhikkal port 1.54
Source: State Budget 2016-17
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. The Cochin port is a favourite port-of-call for luxury cruise liners from Number of cruise vessel arrivals at Cochin port around the world.
. During 2016-17, total number of cargo vessels that entered Cochin 50
Port were recorded to be 1,666.
40
46
45
44
43
42
41
39
30 38
. Around 28,342 cruise passengers embarked in Kochi in 2014-15. 36
34 33 20 . The arrival of a cruise vessel has an added impact on the regional 26 10 economy as cruise tourists are high end passengers. On an average, 0 each tourist is estimated to spend US$ 200 during the stopover of
less than a day.
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
Year Passenger
2011-12 34,768
2012-13 37,389
2013-14 24,535
2014-15 28,342
Source: Cochin Port Trust
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Category Wise Distribution Of Vessels Entering The Cochin Port
Year Number of Vessels General Containers Coal Fertilizers & raw materials Others Food Grains Tankers Total Vessels Cargo 2005-06 421 4 38 8 0 109 383 1225
2006-07 382 7 27 15 5 92 382 225
2007-08 350 6 15 11 2 73 352 269
2008-09 334 6 22 23 0 63 305 293
2009-10 390 5 17 36 0 45 381 359
2010-11 360 2 18 28 0 39 372 396
2011-12 390 2 15 33 0 37 361 504
2012-13 439 1 12 47 0 24 354 449
2013-14 501 0 11 62 0 41 382 399
2014-15 529 2 15 62 0 33 356 440
2015-16 643 2 8 73 3 42 398 418
2016-17 696 1 9 83 7 29 394 403
Source: Cochin Port Trust, New Indian Express
24 KERALA For updated information, please visit www.ibef.org PHYSICAL INFRASTRUCTURE – POWER … (1/3)
. As of August 2017, the state had a total installed power generation Installed power capacity (MW) capacity of 4,998.94 MW, of which 2,168.48 MW was accounted for by state utilities, 1,829.76 MW by central utilities and 982.70 MW 6,000.0 under private sector.
5,000.0
. Thermal power contributed 2,416.72 MW to total installed power
4,000.0
generation capacity. Hydropower (1,881.50 MW), nuclear power 3,000.0 (362.00 MW), and renewable power (338.72 MW) are the other main 4,998.94
2,000.0 4,172.00 4,106.00
energy sources. 3,892.00
3,856.40
3,827.70
3,718.80 3,553.70 1,000.0 3,514.00 . Kerala’s state utilities, which account for 53.21% of overall capacity, 0.0 generate 83.99% of the energy through hydroelectric power plants,
and the remaining 16.01% through thermal and renewable power
2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 generation plants. 2008-09
. Under the 12th Five Year Plan valid from 2012 to 2017, the State Government proposed an outlay of US$ 1,380.72 million for the state’s energy sector, which is taken care of by the Kerala State Sub Sectors Budget 2017-18 (US$ million) Electricity Board (KSEB), Agency for Non-conventional Energy and Agency for Non-conventional 7.45 Rural Technology (ANERT), Meter Testing and Standards Energy and Rural Technology Laboratory (MTSL) and Energy Management Centre (EMC). Energy Management Centre 1.24
Source: State Budget 2016-17, Central Electricity Authority
25 KERALA For updated information, please visit www.ibef.org PHYSICAL INFRASTRUCTURE – POWER … (2/3)
. Kerala is among the prominent Indian states to have achieved 100% Status of rural electrification in Kerala (As of July 2017) rural electrification.
. The rural areas or villages in the state were electrified under a Area type Nos. scheme launched in 2015, “Deendayal Upadhyaya Gram Jyoti Total villages 1,017 Yojana”. The operational electrification scheme, that is, Rural Electricity infrastructure and Household. Electrification, was Electrified villages 1,017 subsumed in the new scheme. Total rural households 71,03,000 . As on July 31 2017, a total sum of US$ 33.8 million was sanctioned and US$ 32.97 million was disbursed under the DDUGJY scheme Electrified rural households 71,03,000 for rural electrification of 29 projects in the state. Un-electrified rural households Nil . Under Deendayal Upadhyaya Gram Jyoti Yojana scheme, 14 new projects have been sanctioned for US$ 76.16 million as of July 2017. Status of rural electrification in Kerala under DDUGJY scheme (as of July 2017)
Area type Nos.
Intensively electrified villages 1,087
Electrified BPL households 1,50,305
Source: Deendayal Upadhyaya Gram Jyoti Yojana
26 KERALA For updated information, please visit www.ibef.org PHYSICAL INFRASTRUCTURE – POWER … (3/3)
. Budget Highlights - 2017-18:
• Total amount of US$ 242.91 million provided for Kerala State Electricity Board (KSEB).
• New 15 small scale hydroelectric power projects to be taken up in FY18 and US$ 41.59 million allocated for hydroelectric projects.
• Transgrid 2.0 with project cost of US$ 1.46 billion, waiting to be sanctioned by KIFB.
• US$ 46.56 million allocated for revamping the transmission networks in urban areas under integrated power development.
• Hydel Tourism Centre will be restructured as a subsidiary company of KSEB and the scope of hydel tourism will be effectively utilized.
• The 200 MW solar plant in Kasargode district expected to be completed in FY18.
• US$ 6.2 million allocated for solar and windmill projects.
Source: Finance Department, Government of Kerala, India
27 KERALA For updated information, please visit www.ibef.org PHYSICAL INFRASTRUCTURE – TELECOM
. As of May 2017, Kerala had an overall tele-density of 115.67% as Telecom Infrastructure (As of June 2017) against an all-India average of 93.61%.
. According to the Telecom Regulatory Authority of India (TRAI), as of Wireless subscribers 39,823,618 June 2017, Kerala had 39.82 million wireless subscribers and 2.08 Wire-line subscribers 2,080,498 million wire-line subscribers. (1) . As of April 2017, the state recorded 46,164 new telephone wireless Internet subscribers 16,550,000 connections of Idea, 6,868 new connections of Vodafone and 7,590 (2) Post offices 5,067 new wireless connections of Reliance.
. By the end of May 2017, 7,656,724 subscribers had submitted Tele density (in %) 115.67
requests for mobile number portability in Kerala. Source: Telecom Regulatory Authority of India, 1As of March 2017, 2As of March 2016 . As per state budget 2017-18, free internet connections will be provided to two million poor families in Kerala under the Kerala Fibre Optic Network (K-FON). WiFi transmission centres will be Performance status of NOFN Project (As of August 2017) established at Akshaya Centres, Friends Janasevana Kendras, government offices, libraries, and public places under the control of No. of GPs in Phase-I 977 government. Pipe laid (km) 746 Cables laid (km) 830 GPs for which cable laid 1,129 No. of GPs Lit 1,129
Source: Ministry Of Communications And Information Technology, GP - Gram Panchayat
28 KERALA For updated information, please visit www.ibef.org DEVELOPMENT PROJECTS: URBAN INFRASTRUCTURE
. The Kerala urban area comprises of five Municipal Corporations and Projects & Programmes Budget 2016-17 (US$ million) 60 Municipalities for which the State Government proposed an outlay Solid Waste Management Project 2.76 of US$ 11.2 billion under the 12th five year plan 2012-17. The Kerala Sustainable Urban Development Project (KSUDP) is an Asian Kannur City Improvement 1.53 Development Bank-assisted project covering the five municipalities Programme of Thiruvananthapuram, Kochi, Kozhikode, Kollam and Thrissur. With Swachh Bhavanam 0.15 an investment of US$ 221.2 million, the project focuses on urban infrastructure improvement, community upgrading, local government Suchithwa Mission 3.82 infrastructure development and capacity building, and implementation assistance. Operation Anantha 3.82
. The Kerala Water Authority (KWA) is responsible for the design, construction, execution, operation and maintenance of most of the . The state government launched Haritha Keralam Mission in water supply schemes, and the collection and disposal of waste December 2016, to make Kerala clean and protect its water water in Kerala. As per state budget 2016-17, in addition to the 12th resources and soil. Five Year Plan, the state government proposed an outlay of US$ 106.01 million for urban development sector. . As per budget 2017-18, US$ 23.28 million will be invested for establishing 14 septage units, one in each district. . In May 2017, the state government proposed to spend about US$ 2.97 billion for various urban development projects. The package will include construction of big roads, IT parks and welfare schemes for poor and backward sections of the society. The funds are to be arranged by the Kerala Infrastructure Investment Fund Board (KIIFB).
Source: JNNURM, Ministry of Urban Development, State Budget 2016-17, 2017-18, Business Standard
29 KERALA For updated information, please visit www.ibef.org DEVELOPMENT PROJECTS: KEY PUBLIC-PRIVATE PARTNERSHIP (PPP) PROJECTS … (1/2)
Project name PPP type Sector Stage Project cost (US$ million) Road Upgradation (Kottayam- (DBFOT) Transport Under construction 20 Thiruvananthapuram) Project Annuity LNG Port & Terminal Facility (Puthuvypeen) Operation and (BOT) Annuity Transport 649.1 Project maintenance stage Multi-User Liquid Terminal (Puthuvypeen) (BOLT) Transport Under construction 26.38 Project Clinker handling jetty at Azhicode/Kodungallur (BOOT) Transport Pre-construction 7.76 Port
Ponnani Port Project - Phase I (BOT) Transport Under construction 118.43
Operation and Road Upgradation (Thiruvananthapuram) Project (BOT) Annuity Transport 16.29 maintenance stage Development and operation of an international ship repair facility at W/island with private sector (BOT) Transport Under construction 77.6 participation International Container Transhipment Terminal (DBFOT) Transport Under construction 328.74 (Cochin Port) Project Vizhinjam International Deepwater Multipurpose (DBFOT) Transport Under construction 634.67 Seaport Operation and Tindivanam to Ulunderpret on NH-45 Road (BOT) Transport 137.75 maintenance stage
Source: DEA, Ministry of Finance, Government of India, BOT: Build-Operate-Transfer, BOLT: Build-Own-Lease-Transfer, BOOT: Build-Own-Operate-Transfer, DBFOT: Design-Build- Finance-Operate-Transfer,
30 KERALA For updated information, please visit www.ibef.org DEVELOPMENT PROJECTS: KEY PUBLIC-PRIVATE PARTNERSHIP (PPP) PROJECTS … (2/2)
Project name Sector PPP type Stage Project cost (US$ million) Operation and Thavakkara Bus Station (BOT) Transport 5.12 maintenance stage Road Upgradation (Walayar-Vadakkancherry) Operation and (DBFOT) Transport 122.62 Project maintenance stage Operation and Crude Oil Handling for Kochi Refineries Ltd (Lease) Transport 109.168 maintenance stage Operation and Cochin International Airport (BOO) Transport 47.03 maintenance stage
Bus Terminal Complex (Thiruvalla) Project (BOT) Transport Under construction 6.42
Operation and Bus Terminal (Angamaly) Project (BOT) Transport 5.18 maintenance stage
Aircraft Maintenance Hangar (Kochi) (BOO) Transport Under construction 18.62
Source: DEA, Ministry of Finance, Government of India, BOT: Build-Operate-Transfer, BOO: Build-Own-Operate, DBFOT: Design-Build-Finance-Operate-Transfer
31 KERALA For updated information, please visit www.ibef.org DEVELOPMENT PROJECTS: SEZS … (1/3)
Kerala State Information KSITI, Kasargod Technology Infrastructure Limited . Kerala Industrial Infrastructure Development Corporation Limited (KINFRA) (KSITI), Kannur
KINFRA, Kakkancherry
Sutherland Global Services Hindustan News Print Infopark Limited Cochin Port Trust, Puthuvypeen Cochin Port Trust, Vallapadom KSITI, Pallipuram KINFRA, Kochi KSITI, Purakkad Unitech Real Estate Electronics Parsavnath Developers Technology Park Smart City Infrastructure KINFRA Carborundum Universal Limited Techno Park SEZ - I KSITI, Kollam MM Tech Towers, Alwaye Technopark Pallipuram Emmar MGF, Alwaye Techno Park SEZ - II
Source: Ministry of Commerce & Industry, Government of India,
32 KERALA For updated information, please visit www.ibef.org DEVELOPMENT PROJECTS: SEZS … (2/3)
. As of September, Kerala has 19 exporting SEZs.
Name/Developer Location Primary industry Cochin SEZ Cochin Multi-product Cochin Port Trust Vallapadom Port-based Cochin Port Trust Puthuvypeen Port-based Infopark Kakkanad IT/ITeS Electronics Technology Parks - Kerala Attipura IT/ITeS KINFRA Ayiroopara Animation & Gaming KINFRA Chelembra Agro-based food processing Electronics Technology Parks- Kerala Thiruvanthapuram IT/ITeS KINFRA Thrikkakara Electronics industries Kerala State Information Technology Infrastructure Limited Pallipuram IT/ITeS Electronics Technology Parks Kerala (Technopark) Attipura IT/ITeS Kerala State Information Technology Infrastructure Limited Mulavana IT/ITeS Carborundum Universal Ltd. Thrikkakara North Solar Photovoltaic Sutherland Global Services Private Limited Thrikkakara North IT/ITeS Kerala State Information Technology Infrastructure Limited (KSITIL) Pantheerankavu and Nellikode IT/ITeS Infoparks Kerala Puthencruz and Kunnathunadu IT/ITeS Smart City (Kochi) Infrastructure Limited Kakkanad IT/ITeS Kerala State IT Infrastructure Ltd. (KSITIL) Thrissur IT/ITeS Uralungal Labour Contract Cooperative Society Limited (ULCCS LTD) Kozhikode IT/ITeS
Source: Ministry of Commerce & Industry, Department of Commerce, SEZ: Special Economic Zone
33 KERALA For updated information, please visit www.ibef.org DEVELOPMENT PROJECTS: SEZS … (3/3)
. As of April 2017, Kerala had 29 SEZs with formal approval and 25 notified SEZs.
Some of formally approved SEZs in Kerala
Name/Developer Location Primary industry
Cochin Port Trust Vallarpadam Port-based Cochin Port Trust Puthuvypeen, Ernakulam Port-based Kazhakoottam, KINFRA Electronics Industries Thiruvananthapuram Smart City (Kochi) Infrastructure Pvt Ltd Kakkanad, Ernakulam IT/ITeS Pantheerankavu Kerala State Information Technology Infrastructure Ltd (KSITIL) IT/ITeS and Nellikode, Kozhikode Infoparks, Kerala Kunnathunad, Ernakulam IT/ITeS Cochin International Airport Ltd Ernakulam Airport-based
Source: Ministry of Commerce & Industry, Department of Commerce, SEZ: Special Economic Zone
34 KERALA For updated information, please visit www.ibef.org SOCIAL INFRASTRUCTURE – EDUCATION … (1/2)
. Kerala has the highest literacy rate among all states in the country. Educational infrastructure (2016) As of 2016, the state has a literacy rate of 94.57%; male & female literacy rates stood at 96.61% & 92.52%, respectively. Schools 12,882 . Kerala has 3,021 higher secondary schools as of 2016. Of these, Universities 14 1,162 (38.46%) were government schools, 1,406 (46.54%) aided Engineering institutions 183 schools & the remaining 453 (15%) unaided schools. Arts and science colleges 213 . As of February 2017, the state was planning to equip its 4,775 government & aided schools with hi-tech ICT (Information Polytechnics 51 Communication Technology) facilities, at an estimated budget of Source: Economic Review of Kerala US$ 79.28 million.
. In June 2017, the University of Kerala decided to restore private Sub sectors 12th Five Year Plan (US$ million) registrations at undergraduate level. A University Institute of School education 401.0 Management (UIM) and eight University Institutes of Technology (UITs) are to be established in various cities of the state this fiscal Higher education 306.9 year. Technical education 163.2
Sub sectors Budget 2017-18 (US$ million)
School education 133.95
Higher education 90.56(1)
Technical education 22.11
Total 203.29(1)
Source: State Budget 2017-18, (1) 2016-17
35 KERALA For updated information, please visit www.ibef.org SOCIAL INFRASTRUCTURE – EDUCATION … (2/2)
Kerala primary education statistics (2014-15)
Lower primary: 6,882 Schools (No) Upper primary: 2,979 High schools: 3,021 Lower primary: 0.35 School dropout rate (%) (2013-14) Upper primary: 0.21 High school: 0.44 Pupil-teacher ratio 22.5:1
Nature of schools (2016-17P) Student strength (in million) Share of total student strength (%) Government 1.12 30.42 Government-aided 2.15 58.27 Unaided 0.41 11.30 Total 3.70 100.0
P: Provisional Source: Economic Survey of Kerala 2014-15, 2016-17
36 KERALA For updated information, please visit www.ibef.org SOCIAL INFRASTRUCTURE – HEALTH
. The departments that offer health services in the state & are Health indicators (2016) responsible for development activities are namely, Health Services Department, Medical Education Department, Ayurveda Department Birth rate(1) 14.8 (ISM), Ayurveda Medical Education Department, Homoeopathy Death rate(1) 6.6 Department & Homoeopathy Medical Education Department. Infant mortality rate(2) 12 . In budget 2017-18, the state government announced plans to invest US$ 112.37 million for development of public health and US$ 72.95 million for medical education. Also, an amount of US$ 0.31 was provided for setting up of a modern blood bank in Trivandrum. Life expectancy at birth (years) (2014-15)
. Under the 12th Five Year Plan, the state proposed an outlay of US$ Male 71.4 650.71 million for health sector, of which US$ 295.05 million was proposed for the Directorate of Health Services, US$ 272.61 million for Female 76.3 Directorate of Medical Education & US$ 28.02 million for Indian System of Medicines. Health infrastructure (as of March 2017) . Government of Kerala announced plans to invest US$ 1.68 million for the establishment of a cath lab in the district hospital at Kollam & the Primary health centres 824 general hospital of Kozhikode as per the annual state budget 2016-17. Further, the state government also allocated US$ 79.7 million to the Sub-centres 4,575 Directorate of Health Services to facilitate implementation of different schemes. Community health centres 225 . As of November 2016, the state was declared as the 3rd Open District hospitals 18 Defecation Free state in the country.
. In March 2017, True North, a leading PE fund, announced plans to invest over US$ 200 million in Kerala Institute of Medical Sciences. Note: (1)Per thousand persons, (2)Per thousand live births Source: Economic Review of Kerala, 2017, State Budget 2016-17, 2017-18, NHRM, Sample Registration System (SRS)
37 KERALA For updated information, please visit www.ibef.org CULTURAL INFRASTRUCTURE … (1/2)
. Kerala has been rated as one of the 13 Paradises of the World by Popular tourist locations National Geographic Traveller; it has been promoted as ‘God’s Own Country’. Beaches Kovalam, Varkala, Marari, Bekal and Kannur . Sri Padmanabhaswamy temple makes the state one of the attractive religious tourism spots in India. Other temples in Kerala, such as Kumarakom, Alappuzha, Kollam, Kochi and Backwaters Guruvayoor & Sabarimala, are also major religious attractions. Kozhikode . US$ 2.32 million was allocated in budget 2017-18 for the promotion Hill stations Ponmudi, Munnar, Wyanad and Vagamon of Nishagandhi dance and music festivals, Onam celebration, tribal dance festival, Pooram, Theyyam festivals and boat race etc. Periyar Wildlife Sanctuary, . US$ 15.52 million will be invested by Kerala Infrastructure Eraviikulam National Park, Wildlife reserves Investment Fund Board in Kerala State Film Development Thattekad Bird Sanctuary Corporation for the construction of modern theatre complexes on Parambikulam Wildlife Sanctuary commercial basis.
. In June 2015, Kerala organized a road show in Shanghai & Budget 2016-17 Departments participated in Beijing International Tourism Expo (BITE) 2015. The (US$ million) BITE 2015 witnessed participation of 70 buyers from the Chinese travel & tourism industry. The main objective of the initiative was to Construction of cultural complex as headquarters of various cultural institutions at 1.52 strengthen the Spice Route heritage with other countries & promote Vyloppilly Bhavan compound. sustainable tourism aimed at achieving world peace. . In June 2017, the state government started a campaign ‘Anuyatra’, Kerala State Film Development Corporation 0.61 for people with special needs. In this campaign, 23 children suffering State Central Library, Thiruvananthapuram 0.55 from various challenges will become brand ambassadors of the initiative. Museums and zoos 2.80
5 historical museums 0.15
Source: State budget
38 KERALA For updated information, please visit www.ibef.org CULTURAL INFRASTRUCTURE … (2/2)
. Art and culture are being fostered and promoted through various New sports infrastructure projects in Kerala
bodies such as: . New hockey stadium at Kollam • Kerala Sahitya Academy – To promote Malayalam literature. . Rajiv Gandhi Indoor Stadium, Kochi • Kerala Sangeetha Nataka Akademi – To promote traditional arts. . Shooting range at Vattiyoorkkavu, Thiruvananthapuarm • Kerala Lalithkala Academy – To promote painters and sculptors. . Corporation Stadium, Kollam • Kerala Folklore Academy – To promote Kerala folklore. • Kerala State Chalachitra Academy – Academy for motion . V.K.N. Indoor Hall, Thrissur pictures. . VKK Menon Stadium, Kozhikode • Kerala Kalamandalam – To teach traditional dances. . CSN Stadium, Thiruvananthapuram . The state government proposed an outlay of US$ 90.40 million for . New football stadium at medical college ground, Kozhikkode art and culture under the 12th Five Year Plan, 2012-17, and on the other hand proposed an outlay of US$ 40.44 million under annual . New multipurpose hall, Kannur budget 2017-18. . Kariavattom main stadium, Thiruvananathapuam . On November 1, 2016, the state celebrated the 60th year of its formation. . Synthetic Athletic track at University of Calicut, Malapuram (Approved under Urban Sports Infrastructure Scheme (USIS))
Source: Department of Tourism, Government of Kerala, Economic Review of Kerala 2014-15
39 KERALA For updated information, please visit www.ibef.org INDUSTRIAL INFRASTRUCTURE … (1/3)
. As of April 2017, Kerala had 29 SEZs with formal approval and 25 notified SEZs. A cyber-park spread over a 68 acre campus is being developed in Kozhikode.
Infrastructure Project description
. The Technopark at Thiruvananthapuram is spread over 760 acres.
. It currently hosts over 300 IT and ITeS companies, employing over 46,000 IT professionals.
. Technopark Phase-II has been declared an SEZ by the Government of India. Technopark . The technology park is spread across 7.2 million sq. ft. built-up space (completed) and 3.5 million sq. ft. (work-in- progress)
. As a part of the Phase-IV, named Technocity, Technopark is developing 431 acres of land in Pallippuram, 5 km north of the main campus on the National Highway-47 to Kollam.
. The Infopark at Kochi is best suited for ITeS due to its proximity to the submarine optical-cable landings.
Infopark . The total land available with Infopark is 98.25 acres, of which 75 acres has been notified as an SEZ by the Ministry of Commerce, Government of India.
. Apart from the SEZs in Technopark and Infopark, the other SEZs in Kerala include the KINFRA Electronics Park SEZ in Kalamassery; a multi-product SEZ at Kochi; two port-based SEZs at Vallarpadam and Puthuvypeen at Special Economic Zones Kochi; a food processing SEZ near Calicut; a pulp and paper SEZ at Kottayam; and a non-conventional energy sources SEZ at Kalamassery.
Source: http://www.technopark.org/ , sezindia.nic.in
40 KERALA For updated information, please visit www.ibef.org INDUSTRIAL INFRASTRUCTURE – INDUSTRIAL CLUSTERS … (2/3)
Symbol Industries
IT
Engineering
Minerals and mining
Handlooms and power looms
Textile
Tiles
Canning
Coir products
Agriculture and forest-based
Sericulture
Rubber
Food products
Beedi Source: Maps of India
41 KERALA For updated information, please visit www.ibef.org INDUSTRIAL INFRASTRUCTURE – INDUSTRIAL CLUSTERS … (3/3)
District Industries
Kannur Handlooms, power looms, beedi
Alappuzha Coir products
Idukki Agriculture and forest based
Thiruvananthapuram Handlooms, IT
Thrissur Power looms, handlooms, textile, timber, tile, canning
Palakkad Power looms, sericulture
Kollam Minerals and mining
Kozhikode Rubber
Wayanad Minerals and mining
Kasargod Minerals and mining
Kottayam Rubber, food products, engineering
Ernakulam IT
42 KERALA For updated information, please visit www.ibef.org SMART CITIES
. As of June 2017, Kochi and Thiruvananthapuram are proposed to be developed as smart cities in Kerala. The Kochi smart city would be spread over an area of 246 acres. . Along with the smart cities, 9 cities of Kerala have also been selected for infrastructure development. The infrastructure development will be done under the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) scheme. In July 2015, the state government allocated US$ 1.47 million for administrative and office expenses for service level improvement plan or capacity building under AMRUT scheme. . As per budget 2016-17, the state government is planning to inaugurate 650 thousand square feet space in Kochi smart city, for Thrissur providing employment to around 90,000 unemployed youth of Kerala. . SmartCity Kochi has set a revenue target of US$ 41.79 million for 2017, and US$ 2.40 billion by 2021 Ernakulam List of cities in Kerala covered under AMRUT Kochin Cities Area (sq. km) Kochi 94.88 Tiruvalla Kollam 58.18 Kollam Kozhikode 128 Thiruvananthapuram 2,192 Thrissur 101.4 Thiruvananthapuram Alappuzha 1,414 Palakkad 1,363 Guruvayur 29.66 Kannur 2,961
43 KERALA For updated information, please visit www.ibef.org KEY INDUSTRIES
. Kerala’s strategic location on the trans-national trade corridor, Key industries in Kerala
rich natural resources & simple & transparent procedures are . Handlooms and power looms favourably suited for investments in key sectors like tourism, IT/ITeS, manufacturing & mining. . Rubber
. Kerala’s traditional industries include handloom, cashew, coir . Bamboo and handicrafts. . Coir . KINFRA, KITCO Limited (formerly, Kerala Industrial and . Khadi and village industry Technical Consultancy Organisation Limited), the Directorate of Industries & Commerce & the Small Industries Development . Sericulture Corporation are jointly responsible for the development of . Seafood and other marine products industrial infrastructure in the state.
. Forming industrial clusters & developing infrastructure (such as . Cashew rubber parks, electronic hardware park, coconut industrial park, . Mining organic industrial park & food processing parks) have been integral to the state’s strategies to attract investments in various . Tourism
industries. . Food processing . As per budget 2016-17, the MSME sector accounted for higher . Spices and spice extracts growth rate in comparison with other industrial sectors during 2015-16. For the development of MSME infrastructure, an . IT & electronics amount of US$ 6.96 million was allocated by the state government during 2016-17
. The amount allocated to small scale modern industries by the state government during 2017-18 is US$ 19.86 million.
Source: Economic Review of Kerala, 2014-15, News articles, State budget 2017-18
44 KERALA For updated information, please visit www.ibef.org KEY INDUSTRY – COIR AND COIR PRODUCTS … (1/2)
. Kerala accounts for 85% of total coir production in India and its coir No. of coir units registered in Kerala as on March 2015 industry provides employment to around 375,000 people. . The Coir Co-operative Marketing Federation (COIRFED) is the apex 10000.0 federation of 842 primary coir co-operatives societies. 8000.0 8,814 8,811 . The US is the largest importer of coir products from India, followed by the Netherlands, the UK, Germany, Italy and Spain. 6000.0
. The Coir Kerala trade fair held in February 2015 witnessed the 4000.0 participation of around 170 foreign buyers from over 53 countries. . The Coir Board of India facilitates setting up of coir defibering units 2000.0 3 and coir manufacturing industries in each of the states under various 0.0 schemes such as Coir Udyami Yojana, Development of Production Total Private Public Infrastructure and Mahila Coir Yojana. . As per budget 2017-18, defibering machines will be provided to coir co-operative societies at 90% subsidy, to self help groups at 75% Growth trend of coir units registered in Kerala subsidy and to individuals at 50% subsidy. The state has a target of 9200.0 opening 100 husk processing mills in 2017-18
9100.0 . As part of the second restructuring scheme, the coir cooperative
societies taken up for revival will be provided with working capital 9000.0 9,108 and managerial subsidy. 8900.0
8800.0
. Under state budget 2017-18, US$ 19.87 million is allocated for the
coir sector. 8700.0
8,814
8,790 8,773
8600.0 8,744 8500.0 2011-12 2012-13 2013-14 2014-15 2015-16
Source: Economic Review of Kerala, 2014-15, Government of Kerala, Coir Board, News articles, State Budget 2017-18
45 KERALA For updated information, please visit www.ibef.org KEY INDUSTRY – COIR AND COIR PRODUCTS … (2/2)
. Exports of curled coir, coir fibre, coir pith, coir rope, coir yarn, coir Exports of coir industry of India (‘000 metric tonnes) geo-textile, handloom matting, power loom mats and rubberised coir from India increased in terms of quantity and value over past years. During 2015-16 value exports from the state was recorded at US$ 1200.0 282.82 million. . Total outlay of US$ 17.87 million was proposed under the Annual Plan of 2016-17 for the development of coir industry in the state with 1000.0 implementation of 12 schemes through Coir Geo-textiles Development Programme, Margin Money Loan to Entrepreneurs, Production and Marketing Incentives (PMI), 8 Cluster Development 800.0 957.00
Programme in coir sector, etc.
. The National Coir Research & Management Institute (NCRMI), a
600.0 752.02 State Government organisation, is following up on a potential deal
with Saudi Aramco for a new technology that can help cultivate crops 626.60
in saline and arid conditions. In the budget 2015-16, the State
400.0 537.00 Government announced plans to invest US$ 0.16 million for
facilitating scholarships to the coir worker’s children who secure
429.50
admission in professional courses. 410.90
200.0
321.00
. Coir pith and coir fibre are the major contributors in the export of coir 294.50
products with more than 80% share. China is the major customer 199.90 base for India’s coir products with 28.6% share in value and 39% 187.60 0.0 share in volume.
. With an allocation of US$ 2.2 million in December 2016, for procuring
2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 raw material and carrying out repair works, public sector spinning 2007-08 mills in Kerala are anticipated to be operational soon. This would in turn propel growth in the textile sector of the state.
Source: Economic Review of Kerala, 2014-15, Coir Board, Government of India, Business Line
46 KERALA For updated information, please visit www.ibef.org KEY INDUSTRIES – HANDLOOM AND POWER LOOM
. Among the traditional industries of Kerala, the handloom sector Funds released under handicraft schemes (2016-17) stands second to the coir sector in providing employment. The (in US$ ‘000) industry is concentrated in Thiruvananthapuram and Kannur Ambedkar Hastshilp Vikas Yojna 31.64 districts and in some parts of Kozhikode, Palakkad, Thrissur, Design 44.7 Ernakulam, Kollam and Kasaragod districts. Human Resource Development Scheme 23.12 . Under the Budget Scheme 2017-18, the state government has allocated a sum of US$ 11.75 million for the handloom and power Total 99.46 loom industries and US$ 2.64 million for khadi and village industries.
Exports of textile & garments from Cochin SEZ Funds released for Upliftment of Handloom Sector under (US$ million) National Handloom Development Programme (2014-16) (in US$ ‘000) 20.0
2014-15 31.52 16.0 17.44 2015-16 400.24 15.03 15.21 12.0 12.61
Budget Allocated for Weaver Service Centres (WSCs) 8.0 (2014-16) (in US$ ‘000) 4.0 2014-15 176.06 - 2015-16 171.09 2011-12 2012-13 2013-14 2014-15
Source: Economic Review of Kerala, 2014-15, Kerala State Handloom Development Corporation Ltd, Office of the Development Commissioner, State budget
47 KERALA For updated information, please visit www.ibef.org KEY INDUSTRIES – IT … (1/3)
. Kochi has emerged as a unique IT destination and is connected by two submarine cables and satellite gateways that directly support major IT cities, including Bengaluru. According to 2017-18 Annual Plan, an outlay of US$ 85.26 million has been allocated for the development of information technology.
. As per state budget 2017-18, almost all government transactions are expected to become IT-based.
. In June 2017, Kerala government signed a memorandum of understanding (MoU) with India Electronics and Semiconductor Association (IESA) in a bid to attract more investments from IT and electronics.
. Kerala possesses a cost-effective and highly skilled human resource base with the lowest attrition rate (less than 5%).
. The state has a techno park in Thiruvananthapuram, an info park in Kochi, and a cyber park in Kozhikode. It also has private IT parks such as Smart City (Kochi), L&T Park (Kochi), Leela Info Park (Thiruvananthapuram), Brigade Park (Kochi) and Muthoot Pappachan Techno Polis (Kochi).
. Software exports from registered units in Kerala through Software Technology Parks of India (STPI) reached US$ 467 million in 2015-16.
. As of April 2017, Kerala had twelve operational IT/ITeS SEZs which are located in Kakkanad, Thiruvanthapuram, Pallipuram Village, etc.
. The IT industry of the state is growing at a higher pace. Leading IT companies such as TCS, Infosys and UST are providing job opportunities and the industry is expected to add 23,500 new jobs by 2017.
. Exports of IT and ITeS products from Cochin Special Economic Zone increased from US$ 55.5 million in 2010-11 to US$ 77.7 million in 2014-15.
. As per ASSOCHAM, Kerala ranked 3rd in attracting the highest total investments in IT sector worth US$0.33 millon among all Indian states.
. In May 2017, Kerala government and Information and Communication Technology (ICT), United Nations struck a deal to setup the country’s first UN Technology Innovation Lab in the state to develop programmes for achieving sustainable development goals.
Source: Kerala IT Policy 2012, Economic Review of Kerala 2014-15, State Annual Plan, sezindia.nic.in, State budget 2017-18, Business Standard
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. IT exports from Kerala increased at a CAGR of 11.2% between Exports from IT industry (US$ million) 2007-08 and 2014-15. 800 CAGR 11.2% . Operational costs in the state are among the lowest in India (40% 700
lower as compared to other major IT locations in India). Also,
600
rental/real estate costs are lower than major IT cities in the country. 500
676.6
644.4
626.5
400 . Around 11% of the national IT pool is contributed by skilled human
300
resources from Kerala. 454.6
413.4 412.6
200 392.7
100 298.3 . Kerala has a strong e-governance infrastructure and is a leading 0
state in e-governance.
08 09 10 11 12 13 14 15
2008- 2009- 2010- 2011- 2012- 2013- 2014- . The state government is planning to provide job opportunities to 0.5 2007- million people in the IT sector by 2020. Exports of IT & ITeS from Cochin SEZ (US$ million) . As of June 2017, the state has 19 notified IT/ITeS SEZs.
. In December 2016, since demonetisation, Kerala government has 100.0 90.0 taken steps for enabling online payment of land registration fees. 80.0 87.26 82.85 85.57 The National Informatics Centre (NIC) has been tasked with the 70.0 77.73 process of automation of the same, by the state's Chief Minister. 60.0 50.0 55.45 40.0 30.0 20.0 10.0 - 2010-11 2011-12 2012-13 2013-14 2014-15
Source: Economic Survey of Kerala, 2014-15, sezindia.nic.in
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Tata Consultancy Services (TCS) is among the largest providers of IT and Business Process Outsourcing (BPO) services in India. TCS employed more than 315,000 IT consultants in 122 countries and generated revenue of US$ 18.3 billion in 2016-17 and US$ 4.74 billion during April-June 2017. TCS provides IT consulting and services in
financial services, healthcare and life sciences, insurance, manufacturing, media, entertainment, transportation etc. It Tata Consultancy Services has a software development and training centre at Technopark in Thiruvananthapuram and plans to set up the world’s largest corporate learning centre in Thiruvananthapuram.
Established in 1981, Infosys employs more than 176,187 people. The company generated US$ 9.68 billion in revenue in 2016-17. It is engaged in IT consulting, modular global sourcing, process re-engineering, and BPO services. The company has operations in Australia, China and the US, and marketing and technological alliances Infosys with Informatica, IBM, HP, Microsoft, Oracle, etc. Infosys has offices in 30 countries and development centres in India, China, Australia, the UK, Canada, Japan, etc. It has a centre at Technopark, Thiruvananthapuram.
Collabera is a fast-growing, end-to-end information technology services and solutions provider, working with leading global 2,000 organisations from banking & financial services, communications, media, manufacturing, retail, energy and utilities domains. The company employs over 9,000 professionals across more than 25 offices and four world- Collabera class delivery centres in the US, the UK, India, Singapore and Philippines. The company has an office at Technopark, Thiruvananthapuram.
Founded in 1995, RR Donnelley Global BPO has 7,700 employees in 28 delivery and 41 onsite operation centres across nine countries and had a revenue of US$ 6.896 billion in 2016. It is a subsidiary of RR Donnelley (RRD), a global provider of integrated communications, business services and supply chain solutions. RR Donnelley is a US$ RR Donnelley India 11 billion Fortune 300 company, with around 65,000 employees across the world. The company has an office at Outsource Pvt Ltd Co Technopark, Thiruvananthapuram. India
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. The self contained Electronics Technology Park at Technopark, Exports of electronic hardware from Cochin SEZ Thiruvananthapuram, has been instrumental in attracting global (US$ million) electronics manufacturers. 90.0 80.0 . Exports from Electronics Technology Parks – Kerala, increased 70.0 76.84 22.55% in 2015-16 to reach US$ 970 million. 70.67 60.0 66.47 64.73 50.0 54.72 . The state has ample availability of skilled and semi-skilled workers 40.0 for the electronics industry. 30.0 20.0 . The electronic hub proposed at Kochi is a prestigious project of the 10.0 Government of Kerala to promote electronic hardware manufacturing - and assembling units and R&D centres, and to support infrastructure 2010-11 2011-12 2012-13 2013-14 2014-15 for the same.
. As per Budget 2017-18, US$ 240.89 million is allocated for mega projects in the state, which include Kochi Electronic Hardware Park. Key players
. This hub is a high-priority area, which would promote a large number . Traco Cable Company Limited of small-, medium- and large-scale industries in the state. It would . Transformers and Electricals Kerala Ltd (TELK) also form a National Investment & Manufacturing Zone (NIMZ) for manufacturing electronic hardware items. . Kerala State Electronics Development Corporation Ltd (Keltron)
. Between 2010-11 and 2014-15, electronic hardware exports from Cochin Special Economic Zone grew at a CAGR of 8.86% to reach US$ 76.8 million in 2014-15.
Source: Economic Review of Kerala, 2014-15, 2016 Government of Kerala,
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Traco Cable Company Limited commenced operations in 1964. It manufactures high-quality cables and wires in technical collaboration with Kelesey Engineering Co Ltd, Canada. TRACO currently meets the needs of public sector
undertakings in India such as railways and the electricity boards of various states. The company is headquartered in Traco Cable Co Ltd Kochi and has factories in Ernakulam, Kannur and Thiruvalla.
TELK was incorporated in 1963 under an agreement with the Government of Kerala, Kerala State Industrial Development Corporation, and Hitachi Limited, Japan. It manufactures transformers, bushings and tap changing gears. The factory and corporate office are located in Angamally, near Kochi. Transformers and Electricals Kerala Ltd TELK provided its first 400 KV Class Transformer, 315 MVA Auto Transformer and Generator Transformer to India's (TELK) first 500 MW Thermal Unit.
Founded in 1973, Keltron is a state-owned electronics enterprise, employing around 1,800 people and has 10 manufacturing centres. It provides technical manpower to leading organisations such as Oil and Natural Gas Corporation Limited (ONGC). The company’s products span categories including aerospace electronics, security and surveillance systems, intelligent transportation systems, strategic electronics products, IT solutions, IT infrastructure Kerala State Electronics Development Corp solutions, process automation, ID card projects, power electronics, electronic components and TE units. (Keltron) Keltron is headquartered in Thiruvananthapuram and has training centres in 30 locations across Kerala with a strong infrastructure spread over 700,000 sq ft of built up area.
Source: Company website and annual report
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. The tourism sector of Kerala is a significant contributor to the state economy. As per Kerala’s economic review 2016, revenue from the tourism sector accounted for 10% share of the state’s GDP. Total revenue (including direct and indirect) from tourism surged by about 12.11% to US$ 4.1 billion in 2014. Kerala earned US$ 4.14 billion from tourism in 2015.
. Popular tourist destinations in Kerala include beaches of Kovalam, Varkala, Marari, Bekal and Kannur; backwaters of Kumarakom, Alappuzha, Kollam, Kochi and Kozhikode; and hill stations of Ponmudi, Munnar, Wayanad and Wagamon.
. Kerala has a number of well-known wildlife reserves, including the Periyar Wildlife Sanctuary, the Eravikulam National Park, the Thattekkad Bird Sanctuary and the Parambikulam Wildlife Sanctuary.
. The State Tourism Department is developing eco-friendly, rural tourism packages in Kumarakom, Wayanad, Kovalam and Muziris heritage circuit.
. Under state budget 2017-18, US$ 3.41 million is allocated for various tourism institutions and Muziris Heritage Project and the Thalassery, Alappuzha spice route are being implemented.
. Under budget 2016-17, the state government made a total allocation of US$ 47.59 million for 24 schemes for development of Tourism sector in the state. Further, an allocation of US$ 2.74 million and US$ 420.10 thousand has been proposed by the state government for the Heritage and Spice Route project as well as Infrastructure Development of Varkala, respectively, during 2016-17.
. Total outlay of US$ 11.89 million was proposed under the Annual Plan of 2017-18 for the infrastructure development of the tourist destinations at Kovalam, Kumarakam, Thekkady, Munnar, Fort Kochi, Athirappally, Wayanad, Varkala, Neyyar, Ashtamudi, Thenmala, Sabarimala, Vembanad, Vagamon, Cherai, Peechi, etc. and US$ 4.46 million for the construction of new blocks at Guruvayoor, Thiruvananthapuram, Sulthanbathery, Peerumedu, Kozhikkode, Ponmudi and Munnar and for the upgradation of tourism guest houses
. Kerala Blog Express (KBE), a campaign initiative from Kerala Tourism, was flagged off in Ernakulum, comprising 30 online bloggers from 29 countries such as Modova, Gibraltar, UK, Italy and Spain, Germany, etc,. The group will be visiting numerous destinations in the state for a fortnight to share their experiences with the audience, internationally. The destinations would include backwaters, beaches, hills & experience the life in cities & the villages.
Source: Economic Review of Kerala, 2014-15, 2016-17, State Budget 2016-17, 2017-18
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. Major initiatives of Kerala Tourism - 12th FYP: Domestic tourist arrivals in Kerala (in million) • An investment of US$ 0.67 million was announced for Kerala 14.0 waste free destination scheme. 12.0 13.2 12.5 • An investment of US$ 2.47 million was announced for the 11.7 10.0 10.9 promotion and marketing activity of Kerala tourism sector. 10.1 8.0 9.4 • For the sea plane project, an investment of US$ 1 million was 6.0 announced. 4.0 • For the strengthening and modernisation of tourism institutions an 2.0 investment of US$ 0.24 million was announced. 0.0 2011 2012 2013 2014 2015 2016
Description Budget 2017-18 (US$ million) Foreign tourist arrivals in Kerala (in million)
Alappuzha spice route 5.94 1.2 1.0 1.04 0.98 0.8 0.92 Kerala Tourism Development 0.86 3.27 0.79 Corporation (KTDC) Ltd. 0.6 0.73
District Tourism Promotion 0.4 1.78 Councils (DTPC) and DMC 0.2 0.0 2011 2012 2013 2014 2015 2016
Source: Kerala Economic Review, Kerala Tourism
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. Kerala is the leader in rubber production in the country. State Exports of natural rubber from India (‘000 tonnes) accounted for about 77.9% share in the total natural rubber production in 2015-16. 35 30 . Rubber production in Kerala stood at 507.70 thousand MT during 30.59 2014-15, in comparison with 648.220 thousand MT during 2013-14. 25 20 The area under rubber production in Kerala increased from 548.2 thousand hectares in 2013-14 to 549.9 thousand hectares in 2014- 15 15. The production of natural rubber in Kerala was 438 thousand MT 10 20.03 in 2015-16. 5 1.00 0.86 0 . In the budget 2017-18, the state government allocated US$ 77.6 2012-13 2014-15 2015-16 2016-17 million for Rubber Production Incentive Scheme of Government of Kerala.
. In June 2015, the state government announced the launch of a price Exports of rubber & plastic products from Cochin SEZ support scheme to offer an assured price of US$ 2.48 per kg, to the (US$ million) small rubber producers who grow rubber in an area of 2 hectares or 16.00 less. The state government allocated US$ 49.76 million for 14.00 14.36 implementation of this scheme. 12.00 12.45 12.51 12.44 . In December 2016, All India Rubber Industries Association (AIRIA) 10.00 8.00 collaborated with Tripura University (TU) for imparting education for 9.33 6.00 7.46 7.30 programs in Rubber Technology to improve rubber education, rubber 4.00 skills training and research co-operation. 2.00 - 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
Source: Economic Review of Kerala, 2015-16, 2016-17, Rubber, Board, Ministry of Commerce and Industry, Government of India, state annual budget 2017-18
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. Kerala can be termed as the land of spices, considering the large Exports of spices from Kerala variety of spices grown in the state. During 2016-17, overall (through Cochin ports) in US$ million production of spices in Kerala stood at 140.7 thousand tonnes and area under cultivation was recorded at 166.7 thousand hectares. 160
. Kerala is the largest producer of pepper in India and accounts for a 148.05 lion’s share in India’s production. 140
• In 2015-16, the state accounted for a pepper production of 42,132 120 tonnes with only 85,948 hectares of land under pepper cultivation. 100 103.99 . Apart from pepper, other spices produced in the state include ginger, cardamom, nutmeg, tamarind, etc. 80 88.95 . Spices exports from Kerala (through Cochin port) stood at US$ 49.03
million in 2015-16 . 60 61.40 . As per the Budget 2017-18, government has allocated funds worth US$ 1.55 million for cultivation of pepper and cardamom in the state. 40 49.03 . The state also plans to setup a spices park each in Idukki and Wayana. 20
. Under State Budget 2016-17, the state government allocated an amount of US$ 3.05 million in order to produce and distribute various 0 2011-12 2012-13 2013-14 2014-15 2015-16 quality planting materials.
Source: Economic Review of Kerala, 2015-16, 2016, Department of Agriculture Cooperation & Farmers Welfare, State budget
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. As of 2013-14, the overall exports of spices from India was recorded Volume of exports through Cochin Port (tons) as 8,17,250 tons that reached 8,93,920 tons in 2014-15, with Kerala being the major contributor. In 2016-17 the figure was 947,790 Spices 2013-14 2014-15 tonnes. Ginger 2,125.3 1,750.8 . In terms of value, pepper exports from Cochin port were recorded at US$ 183.6 million during 2014-15. For the same period of time, the export values of cardamom, nutmeg, ginger and turmeric were Cardamom 858.3 1,607.7 recorded as US$ 20.56 million, US$ 16.30 million, US$ 7.93 million and US$ 7.57 million respectively. Chilies 4,425.3 5,565.4
. In 2015-16, 49,706 MT of spices worth US$ 49.03 million were exported from the Cochin port. Nutmeg 1,822.9 1,997.9
Pepper 15,978.7 16,203.6
Turmeric 3,607.7 4,444.6
Source: Economic Review of Kerala, 2014-15, 2016, Spice Board of India News articles, indianspices.com
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. Khadi and village industries have been an integral part of the Production in Khadi and village industries sector of Kerala traditions of Kerala. The Kerala Khadi and Village Industries Board is (in US$ million) the statutory body in the state. As per budget 2016-17, the State 25.00 Government proposed an outlay of US$ 2.13 million for khadi and 24.00 24.53 24.29 village industries. Moreover, the Kerala Khadi and Village Industries 23.00 Board has been provided with a financial assistance of US$ 152.76 22.00 22.18 thousand for the establishment of Gandhi-Khadi Museum at 21.00 Payyannur. As per budget 2017-18, the state government has 20.00 20.82 20.72 allocated US$ 2.64 million for khadi and village industries and a new 19.00 scheme called ‘Khadi Grama Programme’ will be launched. 18.00 2011-12 2012-13 2013-14 2014-15 2015-16 . As of 2013-14, under Income Support Scheme, an investment of US$ 0.21 million had been approved to 6,274 khadi spinners and 4,014 weavers. This investment was approved as a production incentive. The scheme also supports 11,193 khadi artisans with an Khadi sales value from Kerala (in US$ thousands) investment of US$ 3 million in order to ensure minimum wages.
29.00
28.00 28.38 28.00 28.28 27.00 26.00 26.98 25.00 24.00 24.64 23.00 22.00 2011-12 2012-13 2013-14 2014-15 2015-16
Source: Ministry of Micro, Small & Medium Enterprises, State budget 2017-18
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. There are vast opportunities for investment in the field of Ayurvedic products due to higher demand for natural products for skin, hair, body and dental care.
. Kerala is the land of Ayurveda, with numerous medicinal plants. Herbs with good potency provide the continuity and consistency of Ayurvedic medicines needed for effective treatment procedures.
. Kerala has the highest number of Ayurveda colleges and practitioners in the world. As per budget 2016-17, the state government allocated an amount of US$ 1.09 million for the development of global Ayurveda in Thiruvanthapuram. As per state budget 2017-18, the government has allocated US$ 7.6 million for Ayurvedic system of medicine and US$ 4.81 million for homoeopathy.
. Thrissur (Kerala) is emerging as one of the largest hubs for Ayurvedic drug manufacturing in the country.
. Kerala has 850 Ayurvedic drug manufacturing units, including some major ones such as Oushadhi, Vaidyaratnam Oushadhasala and KP Namboodiris. There are 815 dispensaries, 127 hospitals and 20 sub centres active for Ayurvedic treatment under ISM Department and the state government has proposed an amount of US$ 5.21 million for the development and strengthening of ISM Department of the state under the annual budget 2016-17. Another US$ 381.91 thousand and US$ 2.02 million were proposed for the strengthening of Ayurveda dispensaries and upgradation of ISM institutions, in the state, respectively.
. Under annual budget 2016-17, the state government proposed an investment of US$ 458.29 thousand for expansion of Oushadhi Kerala Ltd. (The Pharmaceutical Corporation (IM) Kerala Ltd.). Oushadhi Kerala is the 65th largest manufacturer of Ayurveda medicines in India.
Note: ISM- Indian Systems of Medicine Department, Government of Kerala Source: Economic Review of Kerala, 2014-15, State budget 2017-18, News articles
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. The state has a long coastline of over 580 km & innumerable water Total fish production in Kerala (in million tonnes) bodies, generating a huge potential for inland & marine fishing & providing it a prominent position in fish cultivation. . Among maritime states in India, Kerala ranks 2nd in marine fish 0.74
production. In 2015-16, total fish production in the state stood at 0.73
million tonnes. 0.72 0.730
. As of 2016, the state government had finished construction of 14
fishing harbours and 10 are in progress. 0.7 0.708
. As per state budget 2016-17, the Government of Kerala proposed
0.68
allocations of US$ 6.04 million and US$ 5.87 million for the
0.693
0.687
implementation of social security schemes for fishermen as well as 0.686
0.68
0.681 0.678 for inland fisheries, respectively. 0.66 0.677 . Further, an allocation of US$ 4.58 million for the University of Fisheries & Ocean Studies, US$ 4.12 million for NABARD assisted 0.64
RIDF schemes and US$ 4 million for ‘Development of Marine Fisheries Infrastructure & Post-harvest Operations’, has also been 0.62 proposed by the state government during 2016-17. 0.632
. The state government has allocated US$ 90.95 million for the 0.6 fisheries sector and coastal area development under annual budget 2017-18. 0.58 . The budget includes schemes such as conservation & management
of fish resources, motorisation of traditional fishing crafts & insurance
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 coverage to fishing implements, integrated fisheries development, inland fish production, fishing harbours, modernisation of fish markets & value addition, etc. Source: Economic Review of Kerala, 2015-16, 2016, Department of Animal Husbandry, Dairying and Fisheries, Annual Budget 2016-17, 2017-18
60 KERALA For updated information, please visit www.ibef.org KEY INDUSTRIES – RICE
. Under the 12th Five Year Plan (2012-17), the Government of Kerala Total rice production in Kerala (in ‘000 tonnes) targeted to increase the production of rice to 650 thousand tonnes. For the same, a comprehensive State Food Production project was 800.00
sanctioned with the help of an investment of US$ 18.4 million in 700.00
600.00
2012-13 and US$ 18.6 million in 2013-14. Further during, 2015-16,
500.00
an outlay of US$ 17.2 million was proposed by the state government 697.30
400.00 598.34
for the same scheme. 590.24
568.99
564.33 562.09
300.00 522.74 508.30 . As per budget 2016-17, for rice development, the state government 200.00 allocated an amount of US$ 5.34 million during 2016-17. 100.00 0.00
. Further, as per budget 2016-17, the state government also decided
09 10 11 12 13 14 15 16
2009- 2010- 2011- 2012- 2013- 2014- 2015- to provide free rice through ration shops to the BPL/AAY families in 2008- the state. Due to this initiative, the total subsidy granted was expected to reach US$ 76.38 million during 2016-17. Funds allocated in budget 2016-17 (US$ million) . In state budget 2017-18, US$ 108.65 million has been allocated for procurement of paddy. Rice development 5.34
Operational support to padasekhara 0.68 samithies for group farming
Source: Economics & Statistics Department, Kerala, State Budget 2016-17, 2017-18
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. Being a leading tourist hub in the country, Kerala is making rapid strides in the hotel, retail and entertainment sector. . The sector is attracting investments in projects such as world-class spas, entertainment centres, mega shopping malls, multiplexes, business convention centres and theme parks. Hospitality, leisure and . The state has world-class infrastructure and perfect climate for Ayurveda health centres. . Hotel projects under development include Mfar Hotels and Resorts Ltd’s 5-star hotel and Banyan Tree Hotels & entertainment Resorts. . UAE based Western Marine Service and Techlink Systems plans to invest US$ 10.41 million in hospitality sector of Kerala, by setting up a hotel chain under the brand name - Springstay. . The Kerala State Film Development Corporation will build 100 more theatres in the state using funds from Kerala Infrastructure Investment Fund Board
. Food processing is a sunrise sector that has gained prominence over the years in the state. . FPI in Kerala constituted organised as well as unorganised units. . Spices, pickles and marine products are the major food product exports from Kerala. . Kerala has India’s first food processing industrial park in Malappuram and seafood processing park in Alappuzha. The state also has a coconut-based food processing plant in Kinalur. Food processing . An amount of US$ 2.44 million was sanctioned to establish a mega food park at Cherthala for processing of seafood products as per budget 2016-17. . During 2015-16, under the plan scheme for technology modernisation/ upgradation/ establishment of food processing units in the state, 20 units were assisted in the state of Kerala with an outlay of US$ 4.48 thousand. . Further, under National Mission on Food Processing (NMFP) scheme, 23 projects were sanctioned during 2015- 16, by the state government. Moreover, a total of 2 projects each were sanctioned under the Mega Food Parks scheme, Food Testing Laboratory Scheme as well as Research & Development Scheme, during 2015-16.
Note: FPI - Food Processing Industry Source: State Annual Budget 2016-17
62 KERALA For updated information, please visit www.ibef.org SINGLE-WINDOW APPROVAL MECHANISM
. A Single-Window Clearance Mechanism (SWM) was established in SWM structure in Kerala June 2000, with an aim to expedite clearances for new industrial projects.
. A state-level board, headed by the Chief Secretary, issues clearances within a time frame of 45 days to medium and large scale industries. State Board Chief Secretary . KSIDC is the single point of contact and convenor of the state board.
. District-level boards have been constituted for issuing clearances required by small scale industries.
. The District Collector of each district is the Chairman and General District Boards District Manager of the Board; the District Industries Centre (DIC) is the Collector convenor for such boards. The stipulated time frame for clearances is 60 days.
. Industrial Area Boards have been set up in various industrial areas of the state for the clearance of projects. An officer, not below the rank An officer not of District Collector, is Chairman of each Board, with the Designated Industrial Area below the rank Authority of the Industrial Area as Convenor. The stipulated time Board of District frame for obtaining the clearances is 30 days. Collector
Source: KSIDC
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Agency Description
. The aim of the organisation is to speed up industrial growth in Kerala through infrastructure support.
Kerala Industrial Infrastructure Development . It operates industrial parks in various sectors. Corporation . It has three newly operational parks: Kera Park (in Thrissur), Spices Park (Idukki) and Rubber (KINFRA) Park (Pathanamthitta).
. KINFRA’s four upcoming projects include a marine park in Beypore, a technology park in Ramanattukara, a food park at Wayanad and an industrial park in Palakkad.
. The organisation is involved in providing technical consultancy assistance to banks by KITCO Limited appraisal of projects for priority sector lending and to entrepreneurs in the Small & Medium (formerly, Kerala Industrial and Technical Consultancy Organisation Limited) Enterprises (SMEs) sector by way of preparation of project reports and market studies and by conducting training programmes for entrepreneurship development.
. It is the implementing agency for the Department of Industries, Government of Kerala.
Directorate of Industries and Commerce . It provides infrastructure facilities for the small scale sector by acquiring land and developing facilities such as roads, water supply, electricity and civil works.
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Agency Description
. It provides infrastructure facilities to the small-scale sector through its major and mini industrial estates.
Small Industries Development Corporation . It owns and operates production units, raw materials depots, industrial estates/mini industrial estates, marketing cell/emporia/centres, civil construction division, IT&TC division, export & import/project division and industrial parks.
. Purpose:
. Formed in 1961 with an objective of promoting, stimulating, financing and facilitating the development of large- and medium-scale industries in Kerala.
. Acts as a promotional agency, involved in catalysing the development of physical and social Kerala State Industrial Development infrastructure required for the constant growth of industry. Corporation (KSIDC): the single-window clearance and monitoring agency . Composition: . Consists of a group of professionals from various fields including engineering, management, finance and law.
. Services offered include project lending, single-window clearance, equipment purchase loans and consultancies.
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Agency Contact information
Vikas Bhavan P O Thiruvananthapuram Kerala-695 033 Directorate of Industries and Commerce Phone: 91-471-2302 774 Fax: 91-471-2305 493 E-mail: [email protected] T C XI/266, Keston Road, Kowdiar, Kerala State Industrial Development Thiruvananthapuram-695 003 Corporation Limited Phone: 91-471-2318 922 (KSIDC) Fax: 91-471-2315 893 E-mail: [email protected] P B No 4407, Puthiya Road, NH Bypass, Vennala, Cochin-682 028 KITCO Limited Phone: 91-484 -4129 000 / 2805 033 Fax: 91-484 -2805 066 E-mail: [email protected] KINFRA HOUSE, TC 31/2312 Sasthamangalam, Thiruvananthapuram - 695 010 Kerala Industrial Infrastructure Development Phone: +91-471-2726 585 Corporation (KINFRA) Fax: +91-471-2724 773 E-mail: [email protected] Housing Board Building, 6th floor, Santhi Nagar, P B No 50 Thiruvananthapuram- 695 001 Kerala Small Industries Development Phone: 91-471-2330 401, 2330 413, 2330 818, Corporation Fax: 91-471- 2330 904 E-mail: [email protected]
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Approvals and clearances required Department Estimated time Incorporation of the company Registrar of Companies District Industries Centre for small scale Registration, Industrial Entrepreneurs industries and KSIDC for large and medium Memorandum, Industrial Licences industries Allotment of land State Department of Industries/KSIDC/KINFRA Single window clearance:
State Department of Industries, Permission for land use The state’s single-window facility clears Kerala Town and Country Planning Department investment proposals in 45 to 60 days on an Kerala State Pollution Control Board and Central average; the single-window mechanism helps Environment approval for the site Ministry of Environment and Forests obtain all approvals necessary for the investment proposals within the specified time No-objection certificate and consent under Kerala State Pollution Control Board frame. Water and Pollution Control Act
Approval of construction activity and building Kerala Town and Country Planning Department plan Sanction of power Kerala State Electricity Board (KSEB)
Registration under State’s Sales Tax Act and Sales Tax Department, Central and State Excise Central and State Excise Act Departments
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Approvals and clearances required Time to Complete (Days)
Approval for director identification number (DIN) from the Ministry of Corporate Affairs portal (National)-Online 1
Approval of digital signature certificate from private agency authorized by the Ministry of Corporate Affairs 3 (National)
Approval for reserve a company name with the Registrar of Companies (ROC) (National)-online 2
Stamp the company documents at the State Treasury (State) 5
Obtain a Permanent Account Number (PAN) from an authorised franchise or agent appointed by the National Securities Depository Ltd (NSDL) or the Unit Trust of India (UTI) Investors Services Ltd, as 15 outsourced by the Income Tax Department (National)
Obtain a Tax Account Number (TAN) for income taxes deducted at the source from an authorized franchise or 14 agent appointed
Register with the Office of Inspector, Shops and Establishment Act (State/ Municipal) 14
Register for Value-Added Tax (VAT) at the Commercial Tax Office (State) 25
Register for Profession Tax at the Profession Tax Office (State) 9
Source: Kerala Economic Review 2014-15, World Bank Group
68 KERALA For updated information, please visit www.ibef.org COST OF DOING BUSINESS IN KERALA
Cost parameter Cost estimate Source
Industrial land (per sq m) US$ 33–190 (Cochin) Industry sources
Five-star hotel US$ 120–300 per room per night Leading hotels in the state
Office space rent (per sq ft) US$ 0.6–3 per month Industry sources
Residential space rent (2,000 sq ft house) US$ 350–750 per month Industry sources
Domestic: 1.1 to 3.3 cents (US) Kerala State Electricity Regulatory Commission, as of Fixed Power Tariff (per kWh) Commercial: 3.3 to 13 cents (US) March 2015 Industrial: 5.5-6.9 cents (US)
Labour (minimum wages per day) US$ 6.8–15 Ministry of Labour and Employment, Government of India
Commercial and industrial: US 22 Water (1,000 litres) Kerala Water Authority cents to US 55 cents
Source: Kerala Government websites and Industry sources, Ministry of Labour and Employment, Government of India, Kerala Electricity Regulatory Commission, Kerala Water Authority
69 KERALA For updated information, please visit www.ibef.org STATE ACTS & POLICIES … (1/5)
Objectives
. To ensure the development of athletes as leaders and role models in sports and society. Kerala Sports Policy . Sports related sectors to incorporate sports intentionally to achieve social development. 2015 . To ensure that sports events are designed to benefit the host community and local economics. Read more
. To promote Kerala as a prime destination for industrial investments with environmental protection. Kerala Industrial & Commercial Policy . Revamp Kerala into an entrepreneurial state by encouraging private investment in all sectors, particularly agro Amended 2015 processing, services and commerce, and new emerging sectors. Read more
. The farm lands are to be protected and should not be put for any other use than farming activities Kerala Agricultural Development Policy . The agriculturally potential land is to be identified and demarcated using modern technologies such as remote 2015 sensing, satellite imagery, etc., and a database is to be made. Read more
. Purpose of this policy is to inaugurate minimum ten technology business incubators for different sectors of the Kerala Technology state. Startup Policy 2014 . Government also aims to attract foreign investments. Read more
. Target installed capacity of 2,500 MW by 2030. Kerala Solar Energy . Set up floating and off-shore generation units. Policy 2013 . Make use of solar energy compulsory for industries; incentive to be provided for solar power Read more
70 KERALA For updated information, please visit www.ibef.org STATE ACTS & POLICIES … (2/5)
Objectives
. To create an environment for investment. Kerala Tourism Policy . To market Kerala as a visible global brand in domestic and international markets. 2012 . To ensure quality visitor experience. Read more
Kerala Small Hydro . To harness green and clean natural resources in the state for environmental benefits and energy security. Power Policy 2012 Read more
Kerala IT Policy 2012 . To plan, develop and market the state as the most preferred IT/ITeS investment/business destination in India.
Read more
. To offer affordable and adequate housing for the state’s citizens Kerala State Housing . To meet the housing needs of the landless tribal, fishermen, traditionally employed and poor citizens of the state Policy- 2011 Read more
SEZ Policy 2008 . To make Kerala’s economy more export-oriented by granting various exemptions and concessions.
Read more
71 KERALA For updated information, please visit www.ibef.org STATE ACTS & POLICIES … (3/5)
Objectives
. The purpose of this policy is the promotion and development of micro, small and medium enterprises. The policy is The Micro, Small And also enhancing the competitiveness between micro, Medium Enterprises Development Act, 2006 . Small and medium enterprises. Read more
Kerala Biotechnology . The policy focuses on catalysing the development and application of biotechnology while taking advantage of the Policy 2003 state’s resources and keeping global requirements in perspective. Read more
Kerala State Training . To strengthen governance in the state by building capacity amongst various categories of civil servants Policy . To impart training to every state civil servant once in every five years Read more
. Purpose of the policy is to legalize the production, transportation and consumption value of liquor in the state. The policy also covers transparent licensing system for intoxicating products. Kerala liquor policy
Read more
72 KERALA For updated information, please visit www.ibef.org ANNEXURE
Exchange Rates (Fiscal Year)
Year INR equivalent of one US$
2004-05 44.81
2005-06 44.14
2006-07 45.14
2007-08 40.27
2008-09 46.14
2009-10 47.42
2010-11 45.62
2011-12 46.88
2012-13 54.31
2013-14 60.28
2014-15 60.28
2015-16 65.46
2016-17 67.09
Q1 2017-18 64.46
Source: Reserve Bank of India
73 KERALA For updated information, please visit www.ibef.org DISCLAIMER
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74 KERALA For updated information, please visit www.ibef.org