BEKAL FORT IN KASARGOD, KERALA KERALA GOD S OWN COUNTRY

Transcription

1 BEKAL FORT IN KASARGOD, GOD S OWN COUNTRY September 2018

2 Table of Content Executive Summary....3 Introduction Economic Snapshot....9 Physical Infrastructure..15 Social Infrastructure Infrastructure Infrastructure...26 Key Sectors Key Procedures and Policies...38 Annexure

3 EXECUTIVE SUMMARY Cultural diversity and well developed tourism sector Kerala is known as God s own country. It is one of the few states to have marketed its natural beauty successfully to the leisure tourism sector. The state s unique heritage and cultural diversity have helped attract tourists from the world over. Highest literacy and sex ratio As of census 2011, Kerala has the highest literacy rate of per cent and sex ratio of 1,084 women for 1,000 men, in India. Male literacy rate in the state stands at per cent, highest among all states. Ranks second in Investment Climate Index First international container transhipment terminal Presence of world class technology park Kerala holds second rank in the Investment Climate Index, as per a policy research working paper by the World Bank. The state stands second due to its world-class infrastructure and well-trained human resource pool. Kerala has the 1st international transhipment terminal in India, having a design capacity of around 4 million TEUs & providing better connectivity between Kerala & other ports in India. 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 worldclass IT campus in Thiruvananthapuram. Cargo Traffic in Cochin Port The cargo traffic handled by Cochin port stood at million tonnes during * Note: * - Up to August 2018 Source: Economic Review of Kerala and , Kerala IT Policy, TEU s = Twenty-foot Equivalent Unit Rubber Board, Ministry of Commerce and Industry, Cochin Port Trust, New Indian Express, State budget , Migration And Development Brief 27 by World Bank, SLBC Kerala, Indian Port Trust. 3

4 INTRODUCTION

5 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 Capital Kerala Thiruvananthapuram Geographical area (sq km) 38,863 Administrative districts (No) 14 Source: Maps of India Kerala is located along the coastline to the extreme south-west of the Indian peninsula, flanked by the Arabian Sea on the west and the mountains of the Western Ghats on the east. The state has a 580 km long coastline. Malayalam is the most commonly spoken language. Hindi, English and Tamil are the other languages used. Kochi, Kozhikode, Kollam, Thrissur, Alappuzha, Palakkad, Thalassery, Ponnani and Manjeri are some of the key cities in the state. Population density (persons per sq km) 860 Total population (million) Male population (million) Female population (million) Sex ratio (females per 1,000 males) 1,084 Literacy rate (%) Source: Kerala at a glance, Economic Review of Kerala, , Government of Kerala website, Census 2011, Central Statistics Office 5

6 ADVANTAGE: High economic growth Kerala s gross state domestic product (GSDP) surged at a compound annual growth rate (CAGR) of per cent between and Kerala is the leader in rubber production; high demand of rubber has opened up immense opportunities for the state in the rubber industry. The GSDP of Kerala for * is estimated at Rs 6.86 trillion (US$ billion). For the year **, it is estimated at Rs 7.73 trillion (US$ billion). Leader in tourism During 2017(P), million domestic tourists and 1.09 million foreign tourists arrived in Kerala. In 2015, Kerala was rewarded as the winner of PATA awards by Macau Government Tourism Office (MGTO) BBC Travel survey has rated Kerala as the top favourite tourist destination among foreign travellers. Advantage Kerala Rich pool of skilled labour Kerala has a large base of skilled labour, making it an ideal destination for knowledge-intensive sectors. The state has the highest literacy rate in the country. It has a large pool of semi-skilled and unskilled labourers. Policy and infrastructure support Kerala has a wide range of fiscal and policy incentives for businesses under the Industrial and Commercial Policy and has well-drafted sector-specific policies. 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. Note: * - Revised Estimates, ** - Budget Estimates, Conversion rate used as per slide 52, P - Provisional Source: Economic Review of Kerala , Tourism Vision 2030, Kerala Tourism 6

7 VISION 2030 Green, sustainable and safe transport. Affordable and clean power to all. Exploit the full potential of hydro-electric generation. 100 per cent electrified households with 24*7 availability. Growth oriented labour welfare policy. Connecting labour supply with demand. Increasing employment opportunities. Increase the share of manufacturing to 10 per cent of the GSDP by Sustained increase in employment in manufacturing. Labour Industry Transport Forestry Vision 2030 Energy Agriculture & livestock Education Health Provide high quality education at affordable rates. Create a global brand name in education and develop into a knowledge hub by Increase health expenditure to GSDP ratio from 0.6 per cent in 2012 to 4-5 per cent by Set up three medical cities by Provide health insurance cover to all. Increase the share of forestry in GSDP to 0.5 per cent. Increase the productivity of forests through improved management of resources. Shift from subsistence farming to highly knowledge intensive, competitive farming. Self sufficiency in supply of fish, meat, milk and other dairy products to the local market. Source: Government of Kerala 7

8 IN FIGURES Kerala s Contribution to Indian Economy ( ) Parameter Kerala India Physical Infrastructure in Kerala Parameter Kerala India GSDP as a percentage of all states GSDP Installed power capacity (MW) 5, , GSDP growth rate (%) Per capita GSDP (US$) 1, , Social Indicators Parameter Kerala India Literacy rate (%) Wireless subscribers (No) 43,047,735 1,157,044,508 Internet subscribers (million) (No) National highway length (km) 1, ,435 Major and minor ports (No) Birth rate (per 1,000 population) Airports (No) Industrial Infrastructure Investments (as of June 2018) Parameter Kerala India PPP projects operational (No) Exporting SEZs (No) Parameter Kerala India FDI* equity inflows (US$ billion) PPP: Public-Private Partnership, SEZ: Special Economic Zone, SRS: Sample Registration System, * - Including Lakshadweep 8

9 ECONOMIC SNAPSHOT

10 ,538 49, , , ,044 68,359 1,081 72,535 ECONOMIC SNAPSHOT GSDP GSDP of Kerala at current prices Per Capita GSDP of Kerala at current prices CAGR 11.13% ,100 1,050 1, CAGR (In Rs) 10.69% US$ billion Rs trillion US$ Rs At current prices, Kerala s GSDP was about Rs 6.17 trillion (US$ billion) in The state s GSDP recorded a CAGR of per cent between and The GSDP of Kerala for * is estimated at Rs 6.86 trillion (US$ billion). For the year **, it is estimated at Rs 7.73 trillion (US$ billion). The state s per capita GSDP^ stood at Rs 72,535 (US$ 1,081) during as compared to Rs 45,538 (US$ 971) during Per capita GSDP increased at a CAGR of per cent between and Note: * - Revised Estimates, ** - Budget Estimates, Conversion rate used as per slide 52, Update for to be expected in 2019 Source: Directorate of Economics and Statistics of Kerala, Per Capita GSDP^ - calculated using GSDP million US$/Population in million 10

11 ECONOMIC SNAPSHOT NSDP NSDP of Kerala at current prices NSDP per capita of Kerala at current prices CAGR (In Rs) 11.23% CAGR (In Rs) 10.69% 1,80,000 1,60,000 1,40,000 1,20,000 1,00,000 80,000 60,000 40,000 20,000 0 US$ billion Rs trillion US$ Rs At current prices, Kerala s NSDP was about Rs 5.58 trillion (US$ billion) in NSDP of the state grew at a CAGR of per cent between and Kerala s per capita NSDP was Rs 162, (US$ 2,425.37) in compared to Rs 2,041.9 (US$ ) during Per capita NSDP of the state grew a CAGR of per cent between and Note: Conversion rate used as per slide 52, Update for to be expected in 2019 Source: Advanced Estimates provided by Directorate of Economics and Statistics of Kerala, 11

12 ECONOMIC SNAPSHOT PERCENTAGE DISTRIBUTION OF GSDP In , the tertiary sector contributed per cent to the state s GSDP at current prices, followed by the secondary sector contributing per cent and primary sector contributing per cent. The tertiary sector grew at a CAGR of per cent between and Growth was driven by storage, transport, financial and real estate segments. The secondary sector grew at an average rate of 6.94 per cent, between and Growth was led by manufacturing, construction, electricity, gas & water supply. The primary sector expanded at an average rate of 7.46 per cent between and , mainly supported by growth across agriculture and mining & quarrying segments. 100% 90% 80% 70% 60% 50% 40% 30% 20% Visakhapatnam GSDP composition port traffic by (million sector tonnes) 53.08% CAGR 56.13% 25.26% 12.38% 6.94% 20.85% 10% 14.04% 7.46% 11.87% 0% Primary Sector Secondary Sector Tertiary sector Note: Update for to be expected in 2019 Source: Directorate of Economics and Statistics of Kerala Economic Survey 12

13 ** ECONOMIC SNAPSHOT FDI INFLOWS & INVESTMENTS According to DIPP, during April 2000 to June 2018, FDI inflows into the state* reached US$ 1.97 billion. The state government has sanctioned investments of US$ 100 million, US$ 156 million & US$ 8.3 million for the Vizhinjam International Seaport project, Kochi Metro Rail Project & for land acquisition for Kozhikode & Thiruvananthapuram international airports respectively. In January 2018, the Chief Minister of Kerala proposed a chamber of commerce using which expatriate businessmen will be able to invest funds into profitable and job-generating mercantile ventures in Kerala. In 2018^, three investment intentions under IEMs worth Rs 154 crore (US$ million) have been proposed in the state Visakhapatnam FDI* equity port inflows traffic (US$ (million billion) tonnes) Cumulative from April 2000-June Annual FDI inflow Note: * - Including Lakshadweep, ^ - Up to July 2018, Conversion rate: US$ = Rs 67.04, ** - Upto June 2018 Source: DIPP - Department of Industrial Policy & Promotion, Government of Kerala, 13

14 ECONOMIC SNAPSHOT S EXPORT TRENDS Export Trend (US$ billion) Composition of Major Item Exported from Kerala ( ) % % % 1.55% 1.72% 6.18% % 7.31% 13.27% Total exports from the state stood at US$ 7.31 billion during Major items exported from the state of Kerala are gold and other precious metal jewellery, marine products, spices, petroleum products etc. During , exports of gold and other precious metal jewelry, the most exported items from Kerala, stood at US$ 2, million which was per cent of the total exports. Note: RMG Ready Made Garments Source: Directorate General of Commercial Intelligence and Statistics 14

15 PHYSICAL INFRASTRUCTURE

16 PHYSICAL INFRASTRUCTURE ROADS Expenditure on road works under PMGSY in Kerala (US$ million) Roads in Kerala Road type National highways (Upto February 2018) Road length (km) 1,782 State highways 4, Major district roads 27, Road development activities in the state are undertaken under three broad categories of roads and bridges, road transport and other transport services. To improve efficiency of transportation to Kannur International Airport, the state government has decided to convert six roads into four-lane highways. The preparation of a Detailed Project Report (DPR) is currently underway. As of September 2018, the state has 444 eligible habitation out of which 404 are cleared and 391 are further connected under PMGSY. As of June 2018, 26 road project works have been completed in the state under PMGSY. Road work completion under PMGSY Year Road works (No) * 26 Note: PMGSY Pradhan Mantri Gram Sadak Yojana, * - Upto June 2018 Source: Kerala State Industrial Development Corporation Ltd.; Ministry of Road Transport & Highways, Government of Kerala, State budget , NHAI, omms.nic.in 16

17 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. Railway divisions in Thiruvananthapuram, Palakkad and Madurai jointly carry out railway operations in Kerala. As per Budget , approval for 42 new ROB has been obtained from Railway Ministry. Construction will begin from As of August 2018, 25 km Metro Rail Project is under construction in Kochi with sanctioned cost of Rs 5, crore (US$ 804 million) to be completed in December Source: Maps of India Note: Conversion rate: US$ = Rs Source: Economic Review of Kerala, , Kerala State Industrial Development Corporation Ltd, Government of Kerala, State Budget 17

18 PHYSICAL INFRASTRUCTURE AIRPORTS Passenger handled at the airport Airports * Cochin 7,749,901 8,955,441 10,172,839 4,033,739 Thiruvananthapuram 3,470,788 3,881,509 4,393,469 2,070,363 Aircraft movement at the airport Airports * Cochin 56,180 61,688 68,772 27,180 Thiruvananthapuram 26,001 29,117 33,738 15,001 Freight handled at the airport (MT) Airports * Cochin 79,233 81,485 76,274 26,564 Thiruvananthapuram 35,570 28,450 28,715 10,061 Kerala has 3 airports handling domestic & international flights, located at Thiruvananthapuram, Kochi & Kozhikode. An international airport at Kannur is upcoming and is expected to be operational by September This airport will be the 4th to have a runway of 4,000 metres. Kannur is airport at the final stage of completion and inauguration to be announced soon. The passenger traffic handled by the state during * stood at 4,033,739 from Cochin airport and 2,070,363 from Thiruvananthapuram airport. Note: * - Upto August 2018 Source: Airports Authority of India, Kerala State Industrial Development Corporation Ltd. 18

19 * PHYSICAL INFRASTRUCTURE PORTS Traffic handled at Cochin Port Cochin port trafic (million tonnes) Existing Ports Major ports Cochin Kerala has 18 ports, of which, Cochin is the major one. Furthermore, there are three intermediate and 14 minor ports. The development activities of the port are taken care of by the Department of Ports, Harbour Engineering Department and Harbour Engineering Department. The cargo traffic handled by Cochin port was million tonnes during * Traffic handled by minor ports in the state during stood at 131,000 tonnes. Intermediate ports Minor ports Neendakara Alappuzha Kozhikode Vizhinjam Valiyathura Vadakara Ponnani Thankasserry Kayamkulam Manakkodam Munambam Beypore Thalasserry Manjeswaram Neeleswaram Kannur Azhikkal Kasaragode Note: * - Up to August 2018 Source: Cochin Port Trust, News articles, Economic Survey , India Port Association 19

20 * 3, , , , , , , , , , , PHYSICAL INFRASTRUCTURE POWER Installed power capacity (MW) Breakup of Installed Capacity as per the source 6, , , , % 48.02% Thermal Power Nuclear Power 2,000.0 Renewable Energy 1, % Hydro Power % Kerala is among the prominent Indian states to have achieved 100 per cent rural electrification. As of August 2018, the state had a total installed power generation capacity of 5, MW, of which 2, MW was accounted for by state utilities, 1, MW by central utilities and MW under private sector. Thermal power contributed 2, MW (48.02 per cent) to total installed power generation capacity, hydropower contributed 1, MW (36.85 per cent), nuclear power MW (7.09 per cent), and renewable power MW (8.03 per cent). Note: * - Upto August 2018 Source: State Budget , Central Electricity Authority 20

21 PHYSICAL INFRASTRUCTURE TELECOM Telecom Infrastructure (As of July 2018) Performance status of Bharat Net Project (As of July 2018) Wireless subscribers 43,047,735 No. of GPs in Phase-I* 977 Wire-line subscribers 1,926,432 Cables laid (km) 830 Tele density (in%) GPs for which cable laid 1,129 Internet subscribers^ (million) No. of GPs (service ready) 1,129 As of July 2018, Kerala had an overall tele-density of per cent. According to the Telecom Regulatory Authority of India (TRAI), as of July 2018, Kerala had million wireless subscribers and 1.93 million wire-line subscribers. By the end of July 2018, 9.45 million subscribers had submitted requests for mobile number portability in Kerala. As of March 2018, Kerala has million internet subscribers. Note: ^ - data upto March 2018, * - As of April 2018 Source: Telecom Regulatory Authority of India, 2 As of March 2016, Ministry Of Communications And Information Technology, GP - Gram Panchayat 21

22 PHYSICAL INFRASTRUCTURE URBAN DEVELOPMENT List of cities in Kerala covered under AMRUT Cities Area (sq. km) Kochi Kollam Kozhikode 128 Thiruvananthapuram 2,192 Thrissur Alappuzha 1,414 Palakkad 1,363 Guruvayur Kannur 2,961 Projects & Programmes Cumulative expenditure (US$ million)* Urban Transport Improvement Solid Waste Management Project 4.23 Water Supply Sewage and Sanitation Community Development Fund The Kerala urban area comprises of five Municipal Corporations and 60 Municipalities. The Kerala Sustainable Urban Development Project (KSUDP) is an Asian Development Bank-assisted project covering the five municipalities of Thiruvananthapuram, Kochi, Kozhikode, Kollam and Thrissur. The project focuses on urban infrastructure improvement, community upgrading, local government infrastructure development and capacity building, and implementation assistance. Along with smart cities, 9 cities of Kerala have also been selected for infrastructure development under the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) scheme. As of April 2018, Rs 2, crore (US$ million) has been allocated to Kerala under the scheme. Major infrastructure projects such as Kannur Air Port, GAIL Pipeline, Kochi-Edamon Electric line and Bypasses at Kollam and Alappuzha will be inaugurated in As of August 2018, under Smart City Mission, five out of seven projects have been completed or are under implementation in the state. Note*- as on August Source: JNNURM, Ministry of Urban Development, State Budget , , Business Standard 22

23 SOCIAL INFRASTRUCTURE

24 SOCIAL INFRASTRUCTURE EDUCATION Kerala has the highest literacy rate among all states in the country. Kerala has 3,021 higher secondary schools as of Of these, 1,162 (38.46 per cent) were government schools, 1,406 (46.54 per cent) aided schools & the remaining 453 (15 per cent) unaided schools. As per budget , 45,000 hi-tech class rooms and IT labs will be established in 4,775 schools. The digitalisation will be completed in 3 phases with 20,000 class rooms being completed before the end of February, 10,000 class rooms in March and remaining 15,000 class rooms in the months of April May. In Budget US$ 5.10 million is allocated for Kerala Infrastructure and Technology for Education which is heading the digitalisation programme. Educational infrastructure (2017) Schools 12,981 Engineering institutions 180 Arts and science colleges 217 Polytechnics 51 Sub sectors Budget (US$ million) School education Higher education Technical education Total 3, Nature of schools ( P) P: Provisional Source: State Budget , Converted 1US$ = Rs 64.74, Economic Review of Kerala, Economic Survey Student strength (in million) Share of total student strength (%) Government Government-aided Unaided Total

25 SOCIAL INFRASTRUCTURE HEALTH Health infrastructure (as of September 2018) Health indicators (2017) Primary health centres 956 Birth rate (1) 14.3 Sub-centres 5,864 Death rate (1) 7.6 Infant mortality rate (2) 10 Community health centres 234 Life expectancy at birth (years) ( ) District hospitals 58 Male 71.4 Sub District Hospitals 373 Female 76.3 The departments that offer health services in the state & are responsible for development activities are namely, Health Services Department, Medical Education Department, Ayurveda Department (ISM), Ayurveda Medical Education Department, Homoeopathy Department & Homoeopathy Medical Education Department. As per budget , an amount of Rs 837 crore (US$ million) has been allocated for National Health Mission. State share for the said mission is Rs 335 crore (US$ million). As of September 2018, the state had 234 community health centres, 956 primary health centres and 5,864 sub-centres. Note: (1) Per thousand persons, (2) Per thousand live births Source: Economic Review of Kerala, 2017, State Budget , , NHRM, Sample Registration System (SRS) 25

26 INDUSTRIAL INFRASTRUCTURE

27 INDUSTRIAL INFRASTRUCTURE (1/2) 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 Technopark Phase-II has been declared an SEZ by the Government of India. The technology park is spread across 7.2 million sq. ft. built-up space (completed) and 3.5 million sq. ft. (work-inprogress) 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. Infopark The Infopark at Kochi is best suited for ITeS due to its proximity to the submarine optical-cable landings. The total land available with Infopark is acres, of which 75 acres has been notified as an SEZ by the Ministry of Commerce, Government of India. Special Economic Zones 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 Kochi; a food processing SEZ near Calicut; a pulp and paper SEZ at Kottayam; and a non-conventional energy sources SEZ at Kalamassery. Source: sezindia.nic.in 27

28 INDUSTRIAL INFRASTRUCTURE INDUSTRIAL CLUSTERS (2/2) District Kannur Alappuzha Idukki Thiruvananthapuram Thrissur Palakkad Kollam Kozhikode Wayanad Kasargod Kottayam Ernakulam Industries Handlooms, power looms, beedi Coir products Agriculture and forest based Handlooms, IT Power looms, handlooms, textile, timber, tile, canning Power looms, sericulture Minerals and mining Rubber Minerals and mining Minerals and mining Rubber, food products, engineering IT 28

29 SPECIAL ECONOMIC ZONES (SEZ) (1/3) Kerala State Information Technology Infrastructure Limited (KSITI), Kannur KSITI, Kasargod Kerala Industrial Infrastructure Development Corporation Limited (KINFRA) KINFRA, Kakkancherry Sutherland Global Services Infopark Cochin Port Trust, Puthuvypeen Cochin Port Trust, Vallapadom KINFRA, Kochi Unitech Real Estate Parsavnath Developers Smart City Infrastructure Carborundum Universal Limited MM Tech Towers, Alwaye Emmar MGF, Alwaye KSITI, Kollam Hindustan News Print Limited KSITI, Pallipuram KSITI, Purakkad Electronics Technology Park KINFRA Techno Park SEZ - I Technopark Pallipuram Techno Park SEZ - II Source: Ministry of Commerce & Industry, Government of India, 29

30 SPECIAL ECONOMIC ZONES (SEZ) (2/3) 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 30

31 SPECIAL ECONOMIC ZONES (SEZ) (3/3) 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 KINFRA Kazhakoottam, Thiruvananthapuram Electronics Industries Smart City (Kochi) Infrastructure Pvt Ltd Kakkanad, Ernakulam IT/ITeS Kerala State Information Technology Infrastructure Ltd (KSITIL) Pantheerankavu and Nellikode, Kozhikode IT/ITeS Infoparks, Kerala Kunnathunad, Ernakulam IT/ITeS Cochin International Airport Ltd Ernakulam Airport-based Under SEZ Act, 2005, Kerala has 29 formally approved SEZs, 25 notified SEZs and 19 exporting SEZs. Source: Ministry of Commerce & Industry, Department of Commerce, SEZ: Special Economic Zone 31

32 KEY SECTORS Agriculture and Allied Sectors IT and Electronics Tourism Fishery

33 KEY SECTORS AGRICULTURE AND ALLIED SECTORS Kerala is one of the leading pepper and rubber producers in the country. Kerala is the leader in rubber production in the country. State accounted for about per cent share in the total natural rubber production in Natural Rubber production in Kerala stood at thousand MT during Kerala can be termed as the land of spices, considering the large variety of spices grown in the state. Kerala is the largest producer of pepper in India and accounts for a lion s share in India s production. Apart from pepper, other spices produced in the state include ginger, cardamom, nutmeg, tamarind, etc. Crop Spice* Annual production ( 000 MT) Total food grains^ Fruits* 2, Rice** Plantation* 5, Pulses** 1.0 Mango (P) Nutmeg^ Grapes^ Vegetables* 2, Pepper^ Cocoa^ 7.15 As per the Budget , government has allocated funds worth US$ 1.70 million for cultivation of pepper in the state. During April-July 2018 (E), tea production in Kerala stood at million kg. As of April 2018, tea exports from the state were 14.5 thousand tonnes. Note: * - 1st Advance Estimates, * *- 2 nd Advance Estimates, ^ - production , P Provisional, E - Estimated Source: Department of Economics and Statistics, Kerala, Department of Agriculture Cooperation And Farmers Welfare 33

34 KEY SECTORS IT AND ELECTRONICS (1/2) 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. Kerala possesses a cost-effective and highly skilled human resource base with the lowest attrition rate (less than 5 per cent). Around 11 per cent of the national IT pool is contributed by skilled human resources from Kerala. The state also has ample availability of skilled and semi-skilled workers for the electronics industry. Operational costs in the state are among the lowest in India (40 per cent lower as compared to other major IT locations in India). Also, rental/real estate costs are lower than major IT cities in the country. Export and investment from IT/ITES CSEZs (US$ million) Exports , Investment The state has a techno park in Thiruvananthapuram which has been instrumental in attracting global electronics manufacturers, an info park in Kochi, and a cyber park in Kozhikode As per ASSOCHAM, Kerala ranked 3rd in attracting the highest total investments in IT sector worth US$0.33 millon among all Indian states. Kerala also has a strong e- governance infrastructure and is a leading state in e-governance. The electronic hub proposed at Kochi is a prestigious project of the Government of Kerala to promote electronic hardware manufacturing and assembling units and R&D centres, and to support infrastructure for the same. Source: Kerala IT Policy 2012, Economic Review of Kerala , State Annual Plan, sezindia.nic.in, State budget , Business Standard 34

35 KEY SECTORS IT AND ELECTRONICS (2/2) Traco Cable Co Ltd Traco Cable Company Limited commenced operations in 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 Kochi and has factories in Ernakulam, Kannur and Thiruvalla. Transformers and Electricals Kerala Ltd (TELK) 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. TELK provided its first 400 KV Class Transformer, 315 MVA Auto Transformer and Generator Transformer to India's first 500 MW Thermal Unit. Kerala State Electronics Development Corp (Keltron) 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 solutions, process automation, ID card projects, power electronics, electronic components and TE units. 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. Collabera 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 worldclass delivery centres in the US, the UK, India, Singapore and Philippines. The company has an office at Technopark, Thiruvananthapuram. Source: Company website and annual report 35

36 KEY SECTORS TOURISM Foreign tourist arrivals in Kerala (in million) Domestic tourist arrivals in Kerala (in million) (P) (P) 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 , US$ 6.18 million is allocated for various tourism institutions and Muziris Heritage Project and the Thalassery, Alappuzha spice route are being implemented. Under the State Budget , US$ million is allocated for Tourism marketing and US$ 4.05 million for Kerala Tourism Development Corporation, Kerala Tourism Infrastructure Ltd, Bekal Resort Development Corporation, District Tourism Promotion Councils etc. During 2017 (P), million domestic tourists and 1.09 million foreign tourists arrived in Kerala. Note: P - Provisional Source: Economic Review of Kerala, , , State Budget ,

37 KEY SECTORS FISHERY The state has a long coastline of over 580 km & innumerable water bodies, generating a huge potential for inland & marine fishing & providing it a prominent position in fish cultivation. Kochi & Neendakara are the two major fishing harbours for mechanized sector and the Thankasserry fishing harbour is the only one for the traditional sector. The state government has allocated US$ million for fisheries sector and coastal area development under annual budget The budget includes schemes such as conservation & management of fish resources, motorisation of traditional fishing crafts & insurance coverage to fishing implements, integrated fisheries development, inland fish production, fishing harbours, modernisation of fish markets & value addition, etc. In April 2018, Fish Farmers Development Agency for Aquaculture Development in Kerala will be implementing umbrella project Development of Inland Fisheries worth Rs core (US$ 1.08 million) launched by Fisheries Department. Marine fish production in Kerala ( 000 tonnes) Source: Economic Review of Kerala, , 2016, Department of Animal Husbandry, Dairying and Fisheries, Annual Budget ,

38 KEY PROCEDURES & POLICIES

39 SINGLE-WINDOW APPROVAL MECHANISM A Single-Window Clearance Mechanism (SWM) was established in 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. 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 Manager of the Board; the District Industries Centre (DIC) is the 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 of District Collector, is Chairman of each Board, with the Designated Authority of the Industrial Area as Convenor. The stipulated time frame for obtaining the clearances is 30 days. SWM structure in Kerala State Board District Boards Industrial Area Board Chief Secretary District Collector An officer not below the rank of District Collector Source: KSIDC 39

40 KEY INVESTMENT PROMOTION OFFICES (1/2) Agency Description The aim of the organisation is to speed up industrial growth in Kerala through infrastructure support. Kerala Industrial Infrastructure Development Corporation (KINFRA) It operates industrial parks in various sectors. It has three newly operational parks: Kera Park (in Thrissur), Spices Park (Idukki) and Rubber 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. KITCO Limited (formerly, Kerala Industrial and Technical Consultancy Organisation Limited) The organisation is involved in providing technical consultancy assistance to banks by appraisal of projects for priority sector lending and to entrepreneurs in the Small & Medium Enterprises (SMEs) sector by way of preparation of project reports and market studies and by conducting training programmes for entrepreneurship development. Directorate of Industries and Commerce It is the implementing agency for the Department of Industries, Government of Kerala. It provides infrastructure facilities for the small scale sector by acquiring land and developing facilities such as roads, water supply, electricity and civil works. 40

41 KEY INVESTMENT PROMOTION OFFICES (2/2) Agency Small Industries Development Corporation Description It provides infrastructure facilities to the small-scale sector through its major and mini industrial estates. 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. Kerala State Industrial Development Corporation (KSIDC): the single-window clearance and monitoring agency Acts as a promotional agency, involved in catalysing the development of physical and social infrastructure required for the constant growth of industry. 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. 41

42 CONTACT LIST Agency Directorate of Industries and Commerce Kerala State Industrial Development Corporation Limited (KSIDC) KITCO Limited Kerala Industrial Infrastructure Development Corporation (KINFRA) Kerala Small Industries Development Corporation Contact information Vikas Bhavan P O Thiruvananthapuram Kerala Phone: Fax: tvm_dindust@sancharnet.in T C XI/266, Keston Road, Kowdiar, Thiruvananthapuram Phone: Fax: ksidc@vsnl.com P B No 4407, Puthiya Road, NH Bypass, Vennala, Cochin Phone: / Fax: mail@kitco.in KINFRA HOUSE, TC 31/2312 Sasthamangalam, Thiruvananthapuram Phone: Fax: kinfra@vsnl.com Housing Board Building, 6th floor, Santhi Nagar, P B No 50 Thiruvananthapuram Phone: , , , Fax: sidcoho@yahoo.com 42

43 KEY APPROVALS REQUIRED (1/2) Approvals and clearances required Department Estimated time Incorporation of the company Registration, Industrial Entrepreneurs Memorandum, Industrial Licences Allotment of land Permission for land use Environment approval for the site No-objection certificate and consent under Water and Pollution Control Act Approval of construction activity and building plan Sanction of power Registration under State s Sales Tax Act and Central and State Excise Act Registrar of Companies District Industries Centre for small scale industries and KSIDC for large and medium industries State Department of Industries/KSIDC/KINFRA State Department of Industries, Kerala Town and Country Planning Department Kerala State Pollution Control Board and Central Ministry of Environment and Forests Kerala State Pollution Control Board Kerala Town and Country Planning Department Kerala State Electricity Board (KSEB) Sales Tax Department, Central and State Excise Departments Single window clearance: The state s single-window facility clears investment proposals in 45 to 60 days on an average; the single-window mechanism helps obtain all approvals necessary for the investment proposals within the specified time frame. 43

44 KEY APPROVALS REQUIRED (2/2) Approvals and clearances required Time to Complete (Days) Approval for director identification number (DIN) from the Ministry of Corporate Affairs portal (National)-Online 1 Approval of digital signature certificate from private agency authorized by the Ministry of Corporate Affairs (National) 3 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 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 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 , World Bank Group 44

45 COST OF DOING BUSINESS IN Cost parameter Cost estimate Source Industrial land (per sq m) US$ (Cochin) Industry sources Five-star hotel US$ per room per night Leading hotels in the state Office space rent (per sq ft) US$ per month Industry sources Residential space rent (2,000 sq ft house) US$ per month Industry sources Fixed Power Tariff (per kwh) Domestic: 1.1 to 3.3 cents (US) Commercial: 3.3 to 13 cents (US) Industrial: cents (US) Kerala State Electricity Regulatory Commission, as of March 2015 Labour (minimum wages per day) US$ Ministry of Labour and Employment, Government of India Water (1,000 litres) Commercial and industrial: US 22 cents to US 55 cents Kerala Water Authority Source: Kerala Government websites and Industry sources, Ministry of Labour and Employment, Government of India, Kerala Electricity Regulatory Commission, Kerala Water Authority 45

46 STATE ACTS & POLICIES (1/3) Objectives Kerala Sports Policy 2015 To ensure the development of athletes as leaders and role models in sports and society. Sports related sectors to incorporate sports intentionally to achieve social development. To ensure that sports events are designed to benefit the host community and local economics. Read more Kerala Industrial & Commercial Policy Amended 2015 To promote Kerala as a prime destination for industrial investments with environmental protection. Revamp Kerala into an entrepreneurial state by encouraging private investment in all sectors, particularly agro processing, services and commerce, and new emerging sectors. Read more Kerala Agricultural Development Policy 2015 The farm lands are to be protected and should not be put for any other use than farming activities The agriculturally potential land is to be identified and demarcated using modern technologies such as remote sensing, satellite imagery, etc., and a database is to be made. Read more Kerala Technology Startup Policy 2014 Purpose of this policy is to inaugurate minimum ten technology business incubators for different sectors of the state. Government also aims to attract foreign investments. Read more Kerala Solar Energy Policy 2013 Target installed capacity of 2,500 MW by Set up floating and off-shore generation units. Make use of solar energy compulsory for industries; incentive to be provided for solar power Read more 46

47 STATE ACTS & POLICIES (2/3) Objectives Kerala Tourism Policy 2012 To create an environment for investment. To market Kerala as a visible global brand in domestic and international markets. To ensure quality visitor experience. Read more Kerala Small Hydro Power Policy 2012 To harness green and clean natural resources in the state for environmental benefits and energy security. 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 Kerala State Housing Policy To offer affordable and adequate housing for the state s citizens To meet the housing needs of the landless tribal, fishermen, traditionally employed and poor citizens of the state Read more SEZ Policy 2008 To make Kerala s economy more export-oriented by granting various exemptions and concessions. Read more 47

48 STATE ACTS & POLICIES (3/3) Objectives The Micro, Small And Medium Enterprises Development Act, 2006 The purpose of this policy is the promotion and development of micro, small and medium enterprises. The policy is also enhancing the competitiveness between micro, Small and medium enterprises. Read more Kerala Biotechnology Policy 2003 The policy focuses on catalysing the development and application of biotechnology while taking advantage of the state s resources and keeping global requirements in perspective. Read more Kerala State Training Policy To strengthen governance in the state by building capacity amongst various categories of civil servants To impart training to every state civil servant once in every five years Read more Kerala liquor policy 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. Read more 48

49 ANNEXURE

50 ANNEXURE (1/2) - SOURCES Data Sources GSDP (state) Per capita GSDP figures GSDP (India) Advanced Estimates provided by Directorate of Economics and Statistics of Kerala Advanced Estimates provided by Directorate of Economics and Statistics of Kerala Advanced Estimates provided by Directorate of Economics and Statistics of Kerala Installed power capacity (MW) Central Electricity Authority, as of August 2018 Wireless subscribers (No) Telecom Regulatory Authority of India, as of July 2018 Internet subscribers (Mn) Telecom Regulatory Authority of India, as of March 2018 National highway length (km) Major and Minor Ports (No) Airports (No) NHAI & Roads and Building Department State Planning Board, Kerala Airports Authority of India Literacy rate (%) Census, 2011 Birth rate (per 1,000 population) SRS Bulletin September 2017 Cumulative FDI equity inflows (US$ billion) Department of Industrial Policy & Promotion, From April 2000 to June 2018 Operational PPP projects (No) DEA, Ministry of Finance, Government of India, September 2018 Notified SEZs (No) SEZ India, as of July

51 ANNEXURE (2/2) - EXCHANGE RATES Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year) Year INR INR Equivalent of one US$ Year INR Equivalent of one US$ Q Source: Reserve Bank of India, Average for the year 51

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