Kerala, a dream tourist destination, becomes an attractive destination for industrial development, international trade and commerce. In which IT sectors are gaining popularity.
Kerala, which has been traditionally backward in the filed of industrial development, is taking serious efforts to identify new opportunities and to equip it to meet the emerging challenges. The Industrial Policy, IT Policy, establishment of INKEL are all intended towards the enhancement of investment in the State especially in the industrial sector with the objective of creating more income and employment. The role of Government has been changed from a provider to that of a facilitator for industrial investment. In the 11th Five Year Plan a number of schemes have been evolved and being implemented with a view to attract more and more private investment to the State. Efforts at maintaining the tempo of investment in the traditional sector are continuing with the aim of bringing about its technology upgradation, diversification and modernisation.
In the case of PSUs, Government is taking steps to restructure and revive the SLPEs by a comprehensive policy initiative through upgradation of technology, performance contract agreement, inter-PSU tie up, capacity building and effective corporate governance. As a result of the concerted efforts made by the Government in this direction it is seen that the net profit of the PSUs during 2006-07 comes to Rs.92.05 crore.
Industrial and Commercial Policy 2007
To achieve high and sustainable economic growth, with specific thrust to social objectives, through rapid industrialization and big leap in commercial activities, with out affecting ecology and environment and to create large-scale employment opportunities for the people of Kerala and ensuring them fair wages and to convert Kerala into an investment friendly destination is the vision of the Industrial & Commercial Policy announced by the Government during 2007. The main features of the Industrial Policy 2007 are as follows:
Industrial growth recorded from 2000-01 to 2006-07 was positive except in 2001-02, which were (-) 4.44 per cent and (-) 2.88 per cent in the year 2001-02 respectively at constant and current prices. The average growth rate for the period from 1999-2000 to 2006-07 was 2.9 per cent and 6.99 per cent at constant and current prices respectively. The contributions of manufacturing sector to GSDP at constant and current prices are 7.86 per cent and 6.61 per cent respectively during 2006-07. Growth of manufacturing sector (GSDP) of Kerala from 1999-2000 to 2006-07 both at constant and current prices are given below.
of Manufacturing sector in Kerala (GSDP)
P:Provisional, Q:Quick Estimates
Index of Industrial Production (IIP)
The Index of Industrial production measures the impact of development in the filed of industrial sector over a period of time in the State in comparison with a selected previous year. It gives a comprehensive view of the industrial development of the State. So far the index used to cover only the production in the manufacturing and electricity generation and transmission sectors in the State. But now the mining and quarrying industry also falls within the purview of IIP. In order to ensure more accuracy and better reliability of the data the base year has been shifted from 1980-81 to 1993-94.
The General Index for the year 2006-07 increased to 262.37 from 208.31 in 2005-06 showing an increase of 26 per cent. Negative growth was recorded in products such as jute & other vegetable fibre textiles. All other items showed positive growth.
Foreign Direct Investment (FDI)
Foreign Direct Investment (FDI) is a means to supplement domestic investments and bridge the investment - savings gap. The role of Foreign Direct Investment in the upgradation of technology, skills and managerial capabilities is now well accepted. Additional investments over and above the investments possible with the available domestic resources help in providing much needed employment opportunities. The flow of Foreign Direct Investment to Kerala including Lakshadeep from January 2000 to March 2006 comes to Rs.333.45 crores which constitutes only 0.34 per cent to total FDI inflows in India and during 2006-07 this inflow to our State is only Rs.60.72 crores totaling to Rs.394.17 crores by diminishing the share of the State to 0.26 per cent compared to the previous year.
Performance of the export of Cashew Kernels during 2006-07 has recorded a negative growth of 16 per cent compared to the previous year. At the same time export of Tea, Coir products, Coffee etc. recorded positive growth. Details of major commodities exported from Kerala (through Cochin Port) for 2005-06 and 2006-07 are given in Table 8.2.
from Kerala (through Cochin Port)
Working Factories and Employment
Even though the number of public working factories has been reduced to 528 in 2006 from 529 in 2005 the number of private working factories has been increased to 17883 in 2006 from 17837 in 2005 and hence the total number of working factories registered a small hike of only 46 showing a marginal increase of 0.25 per cent. Similarly in the case of number of employment no change is seen in the public working factories and a marginal increase of 1454 was witnessed in the private working factories.
In ten districts a marginal increase was recorded in the distribution of factories in which the highest increase registered was in Ernakulam District and it remained same in Thrissur, Wayanad and Kasaragod Districts. In Kollam district this was diminished from 1940 to 1930 in 2006. As in other years Ernakulam District has the highest number of working factories followed by Thrissur, Wayanad and Kasaragod districts.. As in other years Ernakulam District has the highest number of working factories followed by Thrissur, Kollam, Palakkad and it was least in Wayanad district. But in the case of distribution of employment Kollam district stands first with 132490 followed by Ernakulam, Thrissur, Alappuzha and it is least in Kasaragod.
Joint Stock Companies
The total number of Joint Stock Companies in Kerala as on March 2007 is 15549 in which 1422 are public limited and 14127 are private limited. This shows an increase of only 39 companies (0.25 per cent). During 2006-07, 1247 companies were newly registered in the State of which 1124 were private limited and 79 were public limited and only two private limited companies were transferred from other States and at the same time seven companies were transferred to other States from Kerala. The net addition to the total number of companies thus comes to only 39. The total number of Government companies stood at 109 with 58 private and 51 public limited.
Central Sector Investment
As against the Central Sector Investment of Rs.712819 crore in India Rs.17848 crore was invested in Kerala as on March 2006 which constitutes only 2.50 per cent. Even though the increase in total investment in the country is 9.79 per cent, the investment in the State indicates a decrease of 0.10 per cent and Kerala stands in 17th position among Indian States which was in 15th position during the previous year. This shows that proportionate increase in investment is not being made in all States and also the increase in investment is only in non - manufacturing units like BSNL, Indian Oil Corporation etc.
As per the State-wise distribution of investment in fixed assets Maharashtra was at the forefront in investment in CPSEs with a total investment of Rs.125642 crore followed by Uttar Pradesh Rs.53222 crore, Gujarat Rs.52058 crore and Chandigarh had the least investment in fixed assets in CPSEs with Rs.95.80 crores. In the Central Sector PSUs in Kerala as in the previous year only 42000 people are working which accounts only 2.55 per cent of the total employment in the CPSEs. In the case of number of employment Maharashtra ranks first and Kerala ranks 14th.
Micro, Small and Medium Enterprises Development Act (MSMED Act) 2006
With the enactment of the MSMED Act, 2006 which came into force on the 2nd October 2006, the system of SSI registration has been done away with and the new system of filing of Entrepreneurs Memorandum (EM) has been introduced. Also the earlier concept of “Industries” has been changed to “Enterprises”.
Classification of Enterprises under MSMED Act 2006
Enterprises engaged in the manufacture or production of goods is classified
Enterprises engaged in providing or rendering of services is classified
Performance of Public Sector Undertakings 2006-07
Bureau of Public Enterprises (BPE)
A new website has been launched by Bureau of Public Enterprises. A system for internet based performance monitoring system for PSUs under the control of departments other than Industries Department is being introduced. Regional workshops were conducted at Thiruvananthapuram, Ernakulam and Kozhikode for the Information Officers of PSUs on ‘Right to Information Act’. A training programme for Energy Managers on Energy Conservation in PSUs has been formulated.
Small-scale Industry (SSI)
The 3rd All India Census of Small-scale Industries conducted during 2002 – 2003 with reference year 2001 – 2002, covering all the registered units as on 31.03.2001, revealed that there are only 146988 units are actually working in Kerala.. Later, 48972 number of SSI units were registered in Kerala for the period up to 1.10.2006 and the system of SSI registration has been discontinued with the enactment of MSMED Act, 2006. Out of the total number of registered working SSI units 195960 units, 41305 units are promoted by women, 6834 by SCs, 1414 by STs and 146407 by others. The additional investment made by the SSI units during 2006-07 (up to 1.10.2006) is Rs.8815 lakh and the employment provided is 12352.
Trade Technology Business Show 2007
The Trade Technology Business Show (TTBS) 2007 is conducted by Department of Industries and Commerce in association with Kerala Bureau of Industrial Promotion (K-Bip), KSIDC and KINFRA at Kochi on September 2007. TTBS 2007 created a platform for industrialists in Kerala to have in-depth interaction and one to one meetings with Business Houses/Buyers/Trade Associates/Trade Representatives of Foreign Embassies from all over the country and abroad. Food and Agro-processing, Ayurveda and Herbal, Coir, Handlooms, Handicrafts, Bamboo and Screwpine, Rubber and Rubber products are the seven SME sectors showcased at the TTBS 2007. This Meet was a part of Kerala Government’s effort to promote the SME sector in the global markets and help the manufacturing sector to access larger markets, to introduce latest technology and machinery for their products and to know about international product standards.
Bank Credit to SSI Sector
8.42 The outstanding bank credit to various sectors at the end of March 2007 was Rs.64273 crore as against Rs. 51919 crore in the previous year. The flow of credit to SSI sector showed a considerable increase in absolute terms from Rs. 3708 crore in 2006 to Rs.4391 crore in 2007.
KINFRA Food Parks
Government has given special thrust to promotion of food processing industry due to the enormous potential of the sector for development. With the objective of boosting industrial growth, KINFRA has been promoting the concept of Theme Parks, which have been set up for the exclusive growth and development of chosen and specified industrial sectors. Food Processing Parks, Apparel Park, Film and Video Park, Herbal and Ayurveda Parks are some examples of the theme parks already implemented by KINFRA. Two Food Processing Parks had already been set up by KINFRA, one at Kakkancherry near Kozhikode and the other at Mazhuvannur near Ernakulam. A third Food Park at Adoor is under implementation at present. 85 acres of land has been acquired for developing the specific infrastructure for the same. MOFPI, Government of India proposes to set up 10 mega food parks in the country. Under the scheme, KINFRA proposes to develop a Mega Food Park in Wayanad district. Further, KINFRA has a plan to develop a Spices Park at Idukki for the processing of spices.
Among the Traditional Industries of Kerala, Handloom sector stands second to the coir industry in providing employment to the tune of 1.75 lakh persons. The Industry in the State is highly concentrated in Thiruvananthapuram and Kannur districts. Palakkad, Kozhikode, Trissur, Ernakulam, Kollam and Kasargod districts also have some concentration of the Industry. Out of the total number of looms, the co-operative sector occupies 94 per cent and the rest, industrial entrepreneurs and both consists of factory type and cottage type societies. By the end of March 2007, there were 758 PHWCS consisting of 155 factory type societies. The district wise details of handloom societies in the state are given in Appendix 8.26.
Kannur district has 11050 looms with 73 registered weavers’ co operative societies and 79 private handloom units. Lungi, grey sari, furnishing material and dhothies are the major handloom items produced in the state and which accounts 67 per cent of the total production in the Industry.
Hantex and Hanveev
Handloom Industry is also assisted by an another agency called the Kerala State Handloom Development Corporation (Hanveev) which is outside the purview of the co operative fold. The Hanveev is acting as a link between the weavers and consumers and to eliminate the middlemen. The Corporation supplies raw materials to the weavers at a reasonable price and helps to market their products also. There are 33 production centres/ clusters and three regional offices (Thiruvananthapuram, Ernakulam and Kannur) presently working under the Corporation. The company has a strength of 6500 registered weavers. The sales turnover of the Corporation has been increased from Rs.1486.65 lakh in 2005-06 to Rs.1500.98 lakh in 2006-07. The accumulated loss of the Corporation has increased from Rs.2753.42 lakh in 2005-06 to Rs.3132.49 lakh in 2006-07.
Hantex and Hanveev are the two State level agencies dealing with the procurement and marketing of handloom fabrics. Hantex is an apex body of handloom co-operatives established for the supply of raw materials for the primary weaver’s societies and for the marketing of their products. There are 152 sales depots, two weaving factories, two garment units and one cloth processing unit and four regional offices working under this apex organization. The value of yarn purchased is Rs.5.39 crore and value of cloth procured is Rs.6.39 crore during 2006-07 as against Rs.6.56 crore and Rs.7.11 crore respectively during the previous year. Out of the total produce of the societies, 80 per cent is marketed through Hantex and the rest is through own retail shops.
Kerala Garments Ltd., registered in 1974 is a fully owned subsidiary of Hanveev. Stitching and sale of readymade garments are the main activities of the company. The Company produced 33000 pieces of readymade garments valued at Rs.23 lakh during 2006-07 (up to December 2006) against the production of 34000 garments valued at Rs.24 lakh in the previous year. It realized stitching charges around Rs.19.41 lakh and sold ready-made garments worth Rs.7.54 lakh. The loss of the company during the year under report was Rs.22 lakh compared to Rs.28.59 lakh in 2005-06. The accumulated loss of the company increased to Rs 31.32 crore and it was closed on December 2006. Out of the total number of 3800 power looms in the State during 2006 – 07, 1381 looms are in the co-operative sector (36.34%). There are 33 power loom co-operative societies in the State with a membership of 6600 persons, of which 1223 are women.
The Handicrafts Development Corporation is a Government of Kerala undertaking established in 1968 with the objective of developing handicrafts sector in Kerala. The Corporation is procuring and marketing handicraft products by giving fair returns to the artisans through its 18 Kairali emporia, spread all over India. The sales turnover of the Corporation increased to Rs.1113 lakh in 2006-07 from Rs.1064.73 lakh in 2005-06. The accumulated loss of the Corporation as on 31st 2007 was Rs.810.18 lakh.
The Corporation has submitted project proposals with a total cost of Rs.687.52 lakh to the Development Commissioner (Handicrafts) for the following programmes.
-Setting up of State Handicrafts Marketing Mall at Thiruvananthapuram.
-Conservation of Heritage Building SMSM Institute, Thiruvananthapuram.
-Opening of new showrooms at Palakkad, Kozhikkode, Mumbai and Mangalore.
-Raw Material Bank for wood, fiber, cane & Bamboo etc. at C.F.S.C., Thiruvananthapuram.
-Integrated Design & Technology Development project in Wooden Crafts at C.F.S.C., Thiruvananthapuram.
State Handicrafts Apex Co-operative Society (SURABHI), Handicrafts Development
Corporation and Artisans Development Corporation are the major promotional
agencies of the Industry.
The Kerala State Bamboo Mission was constituted in 2003 with the aim of marshalling the scattered resources of the State and adopting a focused approach to revitalise the sector. The State Bamboo Mission under K-Bip is designated as the Bamboo Development Agency (BDA) of the State for the implementation of the National Bamboo Mission Programmes. The major activities undertaken by the State Bamboo Mission during 2006-07 are: Kerala Bamboo Fest 2007 at Kozhikode; Screw pine Cluster at Vaikom; Technological tie-up with NMBA; Manual on Bamboo Cultivation; and Skill Upgradation Training Workshop for Screw pine Artisans.
The Kerala State Bamboo Corporation was set up in 1971 by Government to ensure a steady supply of raw material to the artisans and reeds to cooperative societies and traditional users. At present, the major activities of the Corporation are conversion of reeds collected from forest into bamboo mat by traditional bamboo workers, manufacture and sale of bamboo ply, and sale of bamboo mats. About 21 Procurement Depots with its sub centres, nine Reeds Collection centres, 13 Reed Distribution Centres and one manufacturing unit for the production of Bamboo Ply are working under the corporation. During 2006-07, the total turnover of the Corporation was Rs.912.59 lakh, which includes Rs.642.82 lakh towards sale of bamboo ply. The loss of the Corporation during 2006-07 was Rs.196.81 lakh as against Rs.195.71 lakh in 2005-06 enhancing the cumulative loss to Rs.1132.73 lakh. The Corporation introduced the use of “Thick Core Mat” in the place of core mats now using in the production of bamboo ply and started the production of Flattened Bamboo Board with financial assistance from National Mission of Bamboo Applications (NMBA).
Coir Industry is one of the major traditional industries in Kerala, consisting of three major sub-sectors, viz. fibre extraction sector, spinning sector, and weaving sector. Among the twenty three varieties of coir produced, Anjengo yarn is the finest yarn produced in Kerala. The industry employs 3.75 lakh workers and 76 per cent of them are women.A comprehensive Geo-textile Programme has been launched for popularizing the concept and application of coir Geo-textiles.
The coir Geo-textiles has been identified as a major coir product, with huge market potential in the multidisciplinary Geo-textile engineering applications. Coirfed, Kerala State Coir Corporation (KSCC) and Foam Mattings (India) Limited have been implementing many pilot projects and demonstration schemes for the popularization of coir Geo-textiles.
COIRFED, the Apex Federation of Primary Co-operative Societies, is engaged in the manufacture of coir fiber, coir yarn and coir products. The major portion of coir yarn produced by the Primary Coir Co-operatives is marketed by the Coirfed.
Khadi and Village Industries
The Khadi and Village Industries Board (KVIB) carries out its activities through co-operatives societies, registered institutions and departmental units by availing financial assistance from State Government, Khadi Commission and Nationalised Banks. Products worth Rs.157.86 crore were produced through the aided units of the Khadi and Village Industries Board and products worth Rs.194.52 crores were sold and employment has been provided to 156310 persons. During 2006-07, under Rural Employment Generation Programme (REGP) of Government of India, Khadi Board has disbursed an amount of Rs.776.84 lakh to 503 units as margin money grant by providing employment to 14312 persons. Three awareness camps, two district level exhibitions and State level exhibitions were organized by the Board during 2006-07.
As part of popularizing Khadi / Handloom, the State Government introduced Khadi/ Handloom uniform in schools once in a week. Khadi Board supplied 54,019 uniforms to students in 141 schools. The Board has 218 sales outlets for the products of Khadi and Village Industries and sold goods worth of Rs.1217.13 lakh during 2006-07.
State Sericulture Co-operative Federation (SERIFED) is the nodal agency for promoting sericulture activities. It is an apex body of Sericulture Co-operative Societies formed with the objective of developing sericulture and silk industry in the State through the member co-operative societies.8.83 During the period under review the cocoon production has increased to 101294 KGs in 2006-07 as against 92083 KGs in 2005-06 by showing a growth of 10 per cent.
The Kerala State Cashew Development Corporation (KSCDC) and Cashew Workers Apex Cooperative Society (CAPEX) are the two State agencies engaged in the cashew processing sector in Kerala. KSCDC owns 30 cashew factories spread out in the District of Thiruvananthapuram, Kollam, Alappuzha, Thrissur and Kannur. In KSCDC there are about 15000 workers and majority of them are women. KSCDC exports cashew kernels and cashew shell liquid. Raw nuts are mainly imported to supplement the local availability. During 2006-07 the Corporation provided employment for 195 days as against 230 days in 2005-06.
The total export of cashew kernels from India during 2006-07 was 118540 MT, valued at Rs.2455.15 crore in comparison with the export of 114143 MT cashew kernels valued at Rs.2514.86 crore during 2005-06.
Government encourages all sorts of investments on mutually beneficial terms which will positively contribute for the growth of the economy, employment generation and increase in tax revenue. Important agencies / departments engaged in the promotion industry in the State are the following.
Kerala Financial Corporation (KFC)
For the SSI segment, Corporation sanctioned an amount of Rs.5030 lakh for 239 projects, which is much higher than that of the previous year. But in the case of non – SSI segment the corporation sanctioned Rs.8553 lakh for 222 cases with a variation of Rs.41 lakhs compared to 2005-06. The total sanctioned amount for 2006-07 is Rs.13583 lakhs as against Rs.12113 lakhs during 2005-06. The Corporation disbursed a total amount of Rs.9725 lakhs for 364 projects as against Rs.7852 lakh during 2005-06 which is 24 per cent higher than that of the previous year. The operating profit of the Corporation increased from Rs.1138 lakh to Rs.1254 lakh in 2006-07. The total recovery for the year was Rs.199.07 crore as against Rs.213.89 crore during 2005-06. The Corporation continued its efforts on reducing NPA by adopting effective strategy to bring down the net NPAs to 48.52 per cent during the year as against 56.89 per cent last year. Capital to Risk Assets Ratio (CRAR) improved from 18.88 per cent to 20.35 per cent as on March 2007. The Corporation redeemed SLR bonds of Rs.43.31crores during the year and the balance outstanding was Rs.143.63 crore. An amount of Rs.1.33 crore was paid to the State Government as commission for guarantee extended for SLR Bonds and fixed Deposits.
Kerala State Industrial Development Corporation (KSIDC)
KSIDC is a nodal agency for the Single Window Clearance scheme at State level, conducting exhibitions and seminars in order to create investor awareness about the State, organising business delegations to foreign countries to attract investments providing term loan financing and equity participation and facilitating infrastructure development for industry.
Major Initiatives of KSIDC are: Integrated Industrial Township at Kinalur, Kozhikode with assistance from Malasian Government; Electronic Hub at Kochi & Thiruvananthapuram; Free Trade and Warehousing Zone at Kochi Ornamental Fish Park with State Fisheries Resource Management ( FIRMA); Knowledge City at Kochi; Life Sciences Park, Thiruvananthapuram; Petro Chemical Complex and Gas Pipeline; and Health Care Park, Thiruvananthapuram.
It is estimated that the Mega projects of KSIDC amounting to Rs.32260 crore will provide employment to 153500 persons in the State. The Industrial Growth Centres of KSIDC are under various stages of development and thrust is giving for improving essential infrastructural facilities in these IGCs, in order to attract entrepreneurs. Out of the total area of 1109 acres only 45 acres are allotted to industrialists. Seven units are functioning in these IGCs with an investment of Rs.5375 lakh providing employment to 665 persons.
During 2006-07, KSIDC completed six projects with a total investment of Rs.47.00 crore and direct employment potential for 306 persons as against an investment of Rs.248 crore and employment of 1543 persons during 2005-06. 35 projects with an aggregate cost of Rs.516 crore are under implementation which will provide employment to 6176 persons on completion.
The total financial sanction comprising share capital and loan for various industries during 2006-07 amounted to Rs.112 crore and sanctioned financial assistance to 16 projects with an estimated investment of Rs.217 crore providing employment to 1010 persons. The total disbursement during the year was Rs.103 crores and the total recovery of principal and interest on loan from assisted units amounted to Rs.49 crore. The operating profit of the Corporation was Rs.42 crore as against Rs.22 crore in the previous year.
The major initiatives of KSIDC includes: Integrated Industrial Township at Kinalur, Kozhikode with assistance from Malasian Government; Electronic Hub at Kochi & Thiruvananthapuram; Free Trade and Warehousing Zone at Kochi Ornamental Fish Park with State Fisheries Resource Management ( FIRMA); Knowledge City at Kochi; Life Sciences Park, Thiruvananthapuram; Petro Chemical Complex and Gas Pipeline; and Health Care Park, Thiruvananthapuram.
Small Industries Development Bank of India (SIDBI)
SIDBI, the principal financial institution for the promotion, financing and development of industries in the SME sector, has emerged as a direct finance provider to eligible MSMEs and acts as the nodal agency for the following schemes sponsored by Government of India. The schemes are: Technology Upgradation Fund Scheme for Textile Industries (TUFS); Integrated Infrastructure Development Scheme (IIDS); Credit Linked Capital Subsidy Scheme (CLCSS); Integrated Development of Leather Sector Scheme (IDLSS); Vendor Development Scheme (VDS); and SME – IT Loan Schemes. SIDBI extends indirect financial assistance also, by way of refinance facilities to primary lending institutions namely KFC, KSIDC and Commercial Banks against their loans granted to small scale units.
SIDBI, Kochi sanctioned Rs.780.81 crore and disbursed Rs.749.23 crore under its various schemes of assistance during the finance year 2006-07 to small scale sector including service sector in the State. Of the total amount disbursed, Rs.380 lakh was spent under micro credit scheme in the State. The Rural Industries Programme (RIP) of SIDBI aims at creation of rural employment through enterprise promotion in rural and semi-urban areas and addresses problems such as rural unemployment, urban migration, under-utilisation of know-how and latent rural resources. Through the intervention of SIDBI’s implementing agency APITCO, Rural Industries Programme has been implementing in the districts of Malappuram, Wayanad, Thrissur and Palakkad. As on March 31, 2007, around 2000 units have been promoted under RIP by sanctioning and disbursing an amount of Rs.33.92 lakh in all the four RIP districts of Kerala, put together.
SME Rating Agency of India Limited (SMERA)
SIDBI along with D&B, CIBIL, and many leading banks has launched the country’s first rating agency viz. SME Rating Agency of India Limited (SMERA) that focuses primarily on the Indian SME segment. SMERA’s primary objective is to provide ratings that are comprehensive, transparent and reliable. This would facilitate greater and easier flow of credit from the banking sector to SMEs.
Kerala Industrial Infrastructure Development Corporation (KINFRA)
Since inception, KINFRA has mainly identified itself with land acquisition and development of industrial infrastructure in the form of parks / townships / zones. Kinfra enjoys the authority to acquire land at strategic locations and this facility can be utilized in the systematic development of industries by balancing social, regional and ecological requirements.
Kinfra has industrial parks in various sectors with 292 operating units with an investment of Rs. 50467 lakh by providing employment to 16966 persons.
New projects of KINFRA are: Industrial Park in 70.85 acres of land in Kidangoor, Kottayam district; Mega Food Park in Wayanad which will offer an integrated backward and forward linkages and post management facilities in addition to a world class supply chain, state of art basic and specific infrastructure facilities for processing of food and a close interface between research and industry; Knowledge Parks in Thrissur and Kozhikode to accelerate the development of a Knowledge – Based – Economy in Kerala; and Spices Park in Idukki as a joint venture between KINFRA and Spices Board.
Infrastructure Kerala Limited (INKEL)
A public private enterprise, INKEL has a paid up capital of one billion rupees with Government holding 26 per cent stake and 74 per cent private participation. It was set up by the Government of Kerala with the unique objective of increasing the pace of industrial infrastructure development in the State.
Directorate of Industries and Commerce (DIC)
DIC provides infrastructure facilities for small scale sector by acquiring land and developing it into development area/ plots with facilities like developed land, road, water supply, electricity etc. At present there are 36 DAs/DPs under the Industries Department having a total acquired area of 2471.634 acres and allotable area of 2254.08 acres. An area of 1975.575 acres has been allotted which accounts for 88 percent of the allotable area. The total number of SSI units in DAs/DPs in the State is 2115 of which 1819 units are working and 296 units are closed ones. DA Kanjikode is the biggest one in the State having 512.75 acres of allotted land with the largest number of working units (264). 110 Mini Industrial Estates also exist in all districts except in Wayanad, under the Industries Department with 619 working SSI units employing 2959 persons.
Kerala Small Industries Development Corporation (SIDCO)
The major activities of SIDCO are distribution of raw materials to SSI units, marketing its products, providing infrastructure facilities by setting up industrial estates, mini industrial estates and industrial parks, execution of construction works to Industries Department and public sector units etc. SIDCO has seven emporia and seven marketing centres for the procurement and supply of 28 items produced by SSI units and assisted 100 SSI units during 2006-07. There are 17 conventional industrial estates, 36 mini industrial estates and nearly 950 working units in these estates. These units provided nearly 3450 direct and 10000 indirect employment opportunities.
SIDCO has earned a profit of Rs.78.52 lakh during 2006-07 and imported 450 Metric Tones of Paraffin Wax worth Rs.2.00 crore from China under Japanese Debt Relief Grant Assistance Scheme.
Human Resource Development
Micro, Small and Medium Enterprises Development Institute, Thrissur (formerly SISI) is a promotional and developmental agency under the Small Industries Development Organisation (SIDO), Ministry of Small-Scale Industry, Government of India. The Institute provides a wide range of need based support services for promotion, development and modernization of small scale industries in the State of Kerala and Union Territory of Lakshadweep.
During 2006-07, 18 Motivation Campaigns (MCs) were organized for various categories like educated unemployed youth, weaker sections of the society, women, technocrats etc. Two motivation campaigns were conducted exclusively for OBC categories with preference to women and one was conducted exclusively for women. A total of 1627 persons actively participated and availed benefit of the campaigns.
A total of 403 persons were trained under 16 Entrepreneurship Development Programmes (EDPs) conducted during 2006-07. Of the 16 EDPs, 13 are product & process oriented and the others are general. Among the 11 Management Development Programmes organized during the year, seven MDPs are arranged exclusively for SME clusters in Kerala.
Kerala Industrial and Technical Consultancy Organisation (KITCO)
Kerala Industrial and Technical Consultancy Organization caters to the consultancy needs of entrepreneurs in the small and medium industries in the State. During the year under review, KITCO earned a total revenue of Rs.792.06 lakh as against Rs.598.32 lakh during 2005-06. The company achieved a growth rate of 33 per cent during 2006-07 as against 36 per cent during the previous year. The company involved in a variety of activities rendering consultancy services in different fields, but mainly in the fields of detailed engineering and human resources development. The other activities include preparation of detailed project reports, valuation of assets, energy audit, industrial and infrastructure projects.
Kerala Bureau of Industrial Promotion (K-BIP)
Kerala Bureau of Industrial Promotion (K-BIP), set up in 1991, provides operational flexibility and acts as support mechanism for the Industries Department of the State Government. The Bureau functions as an interface between the prospective entrepreneurs and other State agencies. It is the repository of information regarding SSIs, Infrastructure and Technology databases. K-BIP conducted the following programmes during 2006-07.
Centre for Management Development (CMD)
During 2006-07, Centre for Management Development (CMD) undertook several research assignments for Government of India, Government of Kerala as well as the corporate enterprises and development agencies.
The Cluster Development Programme was initiated in the State through Kerala Bureau of Industrial Promotion (K-BIP); based on the UNIDO (United Nations Industrial Development Organisation) guidelines for cost reduction, value addition, technology upgradation, market widening, skill upgradation, research and development etc. Development Commissioner (MSME), Development Commissioner (Handicrafts), Small Industries Development Bank of India, State Bank of India, NABARD etc. are the various government agencies involved in Cluster Development Programme.
In Kerala, the MSME Development Institute also actively participates in Small Industry Cluster Development Programme (SICDP) of Government of India. During 2006-07, Government of India sanctioned Rs.3.00 lakh to the Institute for preparation of diagnostic study reports of six clusters in Kerala and Rs.1.04 lakh was expended for diagnostic studies of five clusters.
During 2006-07, the Institute rendered assistance to these clusters: Cherkala Potters Cluster, Kasaragod; Electric Fans and Mixies Cluster, Kannur; Light Engineering Cluster, Perinjanam; Wood Cluster, Perinthalmanna; Machinery Manufactures Cluster, Thrissur; Rice Millers Consortium, Palakkad; Light Engineering Industries Cluster, Kannur; General Engineering Cluster, Kannur; Agricultural Implements Cluster, Shoranur; and Rubber Cluster, Changanacherry.
Special Economic Zone
In India, the total number of valid formal approvals of Special Economic Zone as on August 2007 is 366 of which 142 are notified SEZs. The total investment made in the notified Special Economic Zones comes to Rs.46705 crore with an employment of 40153 during 2006-07. The export from these Special Economic Zones was for Rs.34787 crore with a growth of 52 per cent over the previous year.
The units operating in Special Economic Zones are excluded from the sectoral restrictions prevalent in the conventional manufacturing sector. Apart from this, these units also enjoy other benefits like single – window clearance, 100 per cent exemption of income tax for the first five years, self certificate of activities exemption from routine customs check etc.
Cochin Special Economic Zone (CSEZ)
CSEZ is a multi product zone with 81 working units and four under implementation units as on March 2007 in sectors as varied as software, hardware, engineering, readymade garments, food processing, rubber products, gem and jewellery, manufacturing and with more than 7800 employees making it the single largest employment destination in the State. Both Multi National Corporations and domestic corporates have set up their units in this zone.
There is a growth rate of 49.07 per cent in the export during 2006-07 with Rs.1037.52 crore as against Rs.696.00 crore during 2005-06. The Cochin Special Economic Zone (CSEZ) is one of the seven Special Economic Zones of Central Government. It was set up as a Multi – Product Export Processing Zone in 1984 to boost exports from the State. The Cochin Export Processing Zone was converted into a Special Economic Zone in November 2000. Spread over an area of 103 acres in the newly emerging Kakkanad, mere five kilometers away from the city center, on the Cochin Seaport Airport Highway, it is well connected to the National Highway network.
Five Special Economic Zones have been notified in Kerala during 2006- 07, of which three are IT / ITES zones and two Port Based Zones.