KERALA GOD'S OWN COUNTRY - BEKAL FORT IN KASARGOD, KERALA - IBEF

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KERALA GOD'S OWN COUNTRY - BEKAL FORT IN KASARGOD, KERALA - IBEF
BEKAL FORT IN KASARGOD, KERALA

 KERALA
 GOD’S OWN COUNTRY

For updated information, please visit www.ibef.org                          March 2018
KERALA GOD'S OWN COUNTRY - BEKAL FORT IN KASARGOD, KERALA - IBEF
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
KERALA GOD'S OWN COUNTRY - BEKAL FORT IN KASARGOD, KERALA - IBEF
EXECUTIVE SUMMARY … (1/2)

     Cultural diversity and                  Kerala is known as God’s own country. It is one of the few states to have marketed its natural beauty
     well developed tourism                   successfully to the leisure tourism sector. The state’s unique heritage and cultural diversity have helped
     sector                                   attract tourists from the world over.

     Highest literacy and sex                As of census 2011, Kerala has the highest literacy rate of 94.0% and sex ratio of 1,084 women for 1,000 men,
     ratio                                    in India. Male literacy rate in the state stands at 96.10%, among all states.

     Largest recipient of
                                             In 2016-17, Kerala received NRI remittances of US$ 22.71 billion. Remittances to the state are estimated at
     foreign remittances in
                                              36.3% of the net state domestic product in 2016.
     the country

     Ranks second in                         Kerala holds second rank in the Investment Climate Index followed by Karnataka, as per a policy research
     Investment Climate                       working paper by the World Bank. The state stands second due to its world-class infrastructure and well-
     Index                                    trained human resource pool.

    Source: Economic Review of Kerala 2014-15 , NRI Achievers Bureau, MIGRATION AND DEVELOPMENT BRIEF 27 by World Bank, SLBC Kerala

3        KERALA                                                                                             For updated information, please visit www.ibef.org
KERALA GOD'S OWN COUNTRY - BEKAL FORT IN KASARGOD, KERALA - IBEF
EXECUTIVE SUMMARY … (2/2)

                                                 Kerala is a leading agricultural state in the country & the largest producer of rubber, pepper, coconut & coir.
     Strong agricultural
                                                  As per budget 2018-19, Government of Kerala has proposed an outlay of US$ 1,131.75 million for the
     sector                                       Agriculture, Animal Husbandry and Co-operation.

     First international
                                                 Kerala has the 1st international transhipment terminal in India, having a design capacity of around 4 million
     container transhipment
                                                  TEUs & providing better connectivity between Kerala & other ports in India.
     terminal

                                                 Kerala has been promoting knowledge-based industries such as IT/ITeS, computer hardware &
     Presence of world class
                                                  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.

                                                 The total cargo traffic handled by Cochin port during 2016-17 was 25 million tonnes, recording an increase of
     Cargo Traffic in Cochin
                                                  13.16% against 22.09 million tonnes for the year 2015-16. Cargo Traffic during April-February 2018 reached
     Port                                         26.57 million tonnes.

    Source: Economic Review of Kerala 2014-15 , Kerala IT Policy, TEU’s = Twenty-foot Equivalent Unit Rubber Board, Ministry of Commerce and Industry, Government of India, Department
    of Economics and Statistics, Kerala, Kerala State Co-operative Rubber Marketing Federation, Cochin Port Trust, New Indian Express, State budget 2018-19

4        KERALA                                                                                                        For updated information, please visit www.ibef.org
KERALA GOD'S OWN COUNTRY - BEKAL FORT IN KASARGOD, KERALA - IBEF
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:              a compound annual growth rate (CAGR) of 11.18%                      awards by Macau Government Tourism Office (MGTO)
                                                                                                                                                                  arrivals:
      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.                                                                            Provide high quality education at
                                                                                  Transport           Energy
                      Connecting labour supply with                                                                                      affordable rates.
                       demand.                                                                                                           Create a global brand name in
                      Increasing employment opportunities.          Labour                                                               education and develop into a
                                                                                                                     Education            knowledge hub by 2030.
                                                                                           Vision
                                                                                           2030                                          Increase health expenditure to
                     Increase the share of manufacturing           Industry                                           Health             GSDP ratio from 0.6% in 2012 to 4-
                      to 10% of the GSDP by 2030.                                                                                         5% by 2027−31.
                     Sustained increase in employment                                                                                   Set up three medical cities by 2030.
                      in manufacturing.                                                              Agriculture &
                                                                                  Forestry                                               Provide health insurance cover to
                                                                                                      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)                               33.41
       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
                                                                                                   Male population (million)                              16.02
       long coastline.

      Malayalam is the most commonly spoken language. Hindi, English                              Female population (million)                            17.38
       and Tamil are the other languages used.
                                                                                                 Sex ratio (females per 1,000 males)                      1,084
      Kochi, Kozhikode, Kollam, Thrissur, Alappuzha, Palakkad,
       Thalassery, Ponnani and Manjeri are some of the key cities in the
                                                                                                 Literacy rate (%)                                        94.6
       state.

    Source: Kerala at a glance, Economic Review of Kerala,2014-15 , Government of Kerala website, Census 2011, Central Statistics Office

7         KERALA                                                                                                        For updated information, please visit www.ibef.org
KERALA IN FIGURES … (1/2)

    Parameter                                      Kerala       All states                             Source

    Economy                                        2016-17       2016-17

                                                                                “Advanced Estimates” provided by Directorate of
       GSDP as a percentage of all states’ GSDP      4.05         100.0
                                                                                Economics and Statistics of Kerala

                                                                                “Advanced Estimates” provided by Directorate of
       GSDP growth rate (%)                         10.59          10.8
                                                                                Economics and Statistics of Kerala

                                                                                “Advanced Estimates” provided by Directorate of
       Per capita GSDP (US$)                       2,679.65       1,548
                                                                                Economics and Statistics of Kerala

    Physical Infrastructure

       Installed power capacity (MW)               5,019.23     334,146.91      Central Electricity Authority, as of February 2018

                                                                                Telecom Regulatory Authority of India, as of
       Wireless subscribers (No)                  41,141,883   1,151,936,422
                                                                                January 2018

                                                                                Telecom Regulatory Authority of India, as of
       Internet subscribers (No)                  18,930,000   445,960,000
                                                                                December 2017

       National highway length (km)                 1,782        115,435        NHAI & Roads and Building Department

       Major and minor ports (No)                   1+17         13+187         India Ports Association

       Airports (No)                                  3            125          Airports Authority of India

8      KERALA                                                                  For updated information, please visit www.ibef.org
KERALA IN FIGURES … (2/2)

     Parameter                                                           Kerala                    All states                         Source

     Social Indicators

         Literacy rate (%)                                                94.6                       73.0        Census, 2011

         Birth rate (per 1,000 population)                                14.3                       20.4        SRS Bulletin September 2017

     Investments

                                                                                                                 Department of Industrial Policy & Promotion, From
         FDI equity inflows (US$ billion)                                 1.93                     368.053
                                                                                                                 April 2000 to December 2017

     Industrial Infrastructure

                                                                                                                 DEA, Ministry of Finance, Government of India,
         PPP projects completed & operational (No)                         152                       9,068
                                                                                                                 February 2018

         Exporting SEZs (No)                                               19                         222        SEZ India, as of December 2017

    PPP: Public-Private Partnership, SEZ: Special Economic Zone, SRS: Sample Registration System

9        KERALA                                                                                                 For updated information, please visit www.ibef.org
ECONOMIC SNAPSHOT – GSDP

                 GSDP of Kerala at current prices (US$ billion)                                        Per Capita GSDP of Kerala at current prices (US$)

       100.00                                                                                     2800
                                           CAGR 3.44%                                                                                  CAGR 2.94%
         90.00                                                                                    2700

                                                                              92.0
         80.00

                                                                   85.2
                                                         85.03

                                                                                                                                                                         2,680
                                                                                                  2600
                      77.66

         70.00                                 77.15
                                 75.92

         60.00                                                                                    2500

                                                                                                                                                    2,502

                                                                                                                                                              2,496
         50.00                                                                                    2400
         40.00                                                                                    2300

                                                                                                               2,318
         30.00

                                                                                                                                          2,281
                                                                                                                             2,255
                                                                                                  2200
         20.00
         10.00                                                                                    2100
          0.00                                                                                    2000

                                                                                                               2011-12

                                                                                                                             2012-13

                                                                                                                                          2013-14

                                                                                                                                                    2014-15

                                                                                                                                                              2015-16

                                                                                                                                                                         2016-17
                      2011-12

                                 2012-13

                                               2013-14

                                                         2014-15

                                                                   2015-16

                                                                              2016-17

         At current prices, Kerala’s GSDP* was about US$ 92.0 billion                             The state’s per capita GSDP^ stood at US$ 2,680 during 2016-
          in 2016-17.                                                                               17 as compared to US$ 2317.965 during 2011-12.
         The state’s GSDP recorded a CAGR of 3.44% between 2011-                                  Per capita GSDP increased at a CAGR of 2.94% between
          12 and 2016-17.                                                                           2011-12 and. 2016-17
         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$)

       90.00                                                                                   2,500
                                          CAGR 3.54%                                                                             CAGR 3.04%
       80.00

                                                                               83.24
                                                                                               2,400

                                                                                                                                                                  2,425
                                                                    76.98
                                                        76.41
       70.00
                                                                                               2,300
                     69.97

                                             69.22
                                68.38

       60.00

                                                                                                                                                        2,254
                                                                                                                                              2,248
       50.00                                                                                   2,200

       40.00                                                                                   2,100

                                                                                                        2,089
       30.00
                                                                                               2,000

                                                                                                                                    2,047
                                                                                                                       2,031
       20.00
       10.00                                                                                   1,900

         0.00                                                                                  1,800
                                             2013-14
                     2011-12

                                2012-13

                                                        2014-15

                                                                    2015-16

                                                                               2016-17

                                                                                                        2011-12

                                                                                                                       2012-13

                                                                                                                                    2013-14

                                                                                                                                              2014-15

                                                                                                                                                        2015-16

                                                                                                                                                                  2016-17
         At current prices, Kerala’s NSDP# was about US$ 83.24 billion                         Kerala’s per capita NSDP& was US$ 2,425.37 in 2016-17
          in 2016-17.                                                                            compared to US$ 2088.58 during 2011-12.
         NSDP of the state grew at a CAGR of 3.54% between 2011-12                             Per capita NSDP of the state grew a CAGR of 3.04% between
          and 2016-17.                                                                           2011-12 and 2016-17.

 Source: “Advanced Estimates” provided by Directorate of Economics and Statistics of Kerala,

11     KERALA                                                                                                     For updated information, please visit www.ibef.org
ECONOMIC SNAPSHOT – PERCENTAGE
                  DISTRIBUTION OF GSDP

      In 2016-17, the tertiary sectorµ contributed 56.13% to the state’s                                 Visakhapatnam
                                                                                                                GSDP composition
                                                                                                                        port trafficby
                                                                                                                                    (million
                                                                                                                                       sectortonnes)
       GSDP at current prices, followed by the secondary sector
       contributing 20.85%.
                                                                                                 100%
      The tertiary sector grew at a CAGR of 12.38% between 2011-12 and                                               53.08%            CAGR            56.13%
       2016-17. Growth was driven by storage, transport, financial and real                       90%
       estate segments.
                                                                                                  80%
      The secondary sector grew at an average rate of 6.94%, between
       2011-12 and 2016-17. Growth was led by manufacturing,                                      70%
                                                                                                                                       12.38%
       construction, electricity, gas & water supply.
                                                                                                  60%
      The primary sector expanded at an average rate of 7.46% between
                                                                                                  50%
       2011-12 and 2016-17, mainly supported by growth across agriculture
       and mining & quarrying segments.                                                           40%                 25.26%
                                                                                                                                                        20.85%
                                                                                                  30%                                   6.94%

                                                                                                  20%

                                                                                                  10%                 14.04%            7.46%           11.87%

                                                                                                   0%
                                                                                                                     2011-12                            2016-17

                                                                                                           Primary Sector       Secondary Sector        Tertiary sector

 Source: Directorate of Economics and Statistics of Kerala Economic Survey, Sector-wise%share of GSDPµ -Geometric mean of YoY calculation from 2004-05 to 2014-15

12      KERALA                                                                                                    For updated information, please visit www.ibef.org
ECONOMIC SNAPSHOT – AGRICULTURAL
                  PRODUCTION

      Agriculture, Forestry and Fishing contributed 12.24% to Kerala’s                      Crop                         Annual production – 2016-17 (‘000 MT)
       gross state value added in 2015-16. Kerala is one of the leading                                                                 Total food
                                                                                             Onion                        0.28                             450.3
       pepper and rubber producers in the country.                                                                                       grains
                                                                                             Fruits*                    2,451.27           Rice            448.4
      As per budget 2017-18, the state government allocated US$ 326.88
       million for agricultural sector, US$ 15.83 million for soil and water                 Plantation*                5,324.24          Pulses            1.7
       conservation sector, US$ 47.81 million for animal husbandry, US$
                                                                                             Mango                       376.08          Nutmeg            14.19
       15.06 million for dairy development and US$ 90.91 million for
       fisheries. On other hand, under the 12th Five Year Plan, US$ 1.46                     Grapes                      15.50         Vegetables*        1,907.72
       billion was allocated for agriculture and allied sectors in the state.
                                                                                             Pepper                      30.47            Cocoa             7.15
      In November 2016, Kerala agreed to implement Food Security Law
                                                                                             Tea                          5.47           Turmeric           6.50
       in the state. As per the law, the government will make available 5
       kg of highly subsidized food grain at Rs 1-3 per kg, to each person
       in the state per month.

 Note: (2)m.kg 2017E, *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, and were US$
                                                                                              6,000.0
       25.21 million for the period April-November, 2017. In 2015-16,

                                                                                                                                               6,108.64

                                                                                                                                                          5,998.80
       exports of non-basmati rice from Cochin SEZ were valued at US$                         5,000.0
       28.92 million.                                                                         4,000.0

                                                                                                                                    4,109.16
                                                                                                                         3,709.03
                                                                                              3,000.0
     Exports break-up, Cochin Special Economic Zone Port (2014-

                                                                                                           2,532.19
                                                                                              2,000.0                                                                                        1,486.54
     15)                                                                                                                                                             740.06
                                                                                              1,000.0                                                                            334.17
     Sectors                                             (US$ million)                             -

                                                                                                                                                                                   2014-15
                                                                                                           2008-09

                                                                                                                         2009-10

                                                                                                                                    2010-11

                                                                                                                                               2011-12

                                                                                                                                                          2012-13

                                                                                                                                                                       2013-14

                                                                                                                                                                                                2015-16
                                                                       (1)
     Agricultural products                                    252.22
     Electronics hardware                                      76.84
     Engineering                                                4.39
                                                                                          Exports of basmati rice from the state, in value terms, increased from US$
     Gem & jewellery                                           47.25
                                                                                           112.44 thousand in 2014-15 to US$ 175.82 thousand in 2015-16, and were
     IT and ITeS                                               77.73                       US$ 36.17 thousand for the period April-November, 2017. Exports of
     Miscellaneous                                             59.16                       floriculture products from the state stood at US$ 3.64 million in 2016-17
                                                                                           and were US$ 2.30 million for the period April-November, 2017, while
     Plastic and rubber products                               14.36
                                                                                           exports of fruits and vegetable seeds from the state was recorded at US$
     Textiles & garments                                       15.21                       0.83 million during the same period.
     Trading                                                   11.25                      Exports from Electronics Technology Parks – Kerala, increased 22.55% in
                                                                                           2015-16 to reach US$ 970 million.

 Source: Office of the Development Commissioner, CSEZ - Cochin Special Economic Zone (1)2015-16, APEDA, Kerala Economic Review 2016

14      KERALA                                                                                                        For updated information, please visit www.ibef.org
ECONOMIC SNAPSHOT – FDI INFLOWS &
                  INVESTMENTS

      According to DIPP, during April 2000 to December 2017, FDI                                       FDIVisakhapatnam
                                                                                                            equity inflows, port
                                                                                                                            2008-09
                                                                                                                                 traffic
                                                                                                                                      to (million
                                                                                                                                         2016-17 tonnes)
                                                                                                                                                  (US$ million)
       inflows into the state (including Lakshadweep) reached US$ 1.93
       billion.
                                                                                                  500
      The state government has sanctioned investments of US$ 100

                                                                                                                                              471

                                                                                                                                                                                                454
       million, US$ 156 million & US$ 8.3 million for the Vizhinjam                               400
       International Seaport project, Kochi Metro Rail Project & for land
                                                                                                  300
       acquisition for Kozhikode & Thiruvananthapuram international
       airports respectively.                                                                     200

                                                                                                                                                                            230
      The Government of Kerala is also planning to launch

                                                                                                                                                                                                          171
                                                                                                  100                                                   72        70

                                                                                                                       128
       “Magnificent Canals” program during 2016-17, for controlling the                                                             37

                                                                                                                                                                                      90
                                                                                                             82
       investments & capitalising on the potential of tourism sector in                             0

                                                                                                                                                                  2013-14
                                                                                                             2008-09

                                                                                                                       2009-10

                                                                                                                                    2010-11

                                                                                                                                              2011-12

                                                                                                                                                        2012-13

                                                                                                                                                                            2014-15

                                                                                                                                                                                      2015-16

                                                                                                                                                                                                2016-17

                                                                                                                                                                                                          2017-18*
       the state. The program would deal with the development of
       select canal stretches under the PPP model in order to boost
       tourism in the state.

      In January 2017, several companies have planned to make
                                                                                                Further, the state government has also decided to propose a tax
       investments worth US$ 446.23 million in, Infopark Phase-II &
                                                                                                 reduction from 14.5% to 5% for attracting investments across
       generate employment for around 20000 IT professionals
                                                                                                 automated robotic car parking system, during 2016-17.
      In January 2018, the Chief Minister of Kerala proposed a                                 In March 2017, Kerala Infrastructure Investment Board (KIIB)
       chamber of commerce using which expatriate businessmen will                               cleared basic development projects worth US$ 1.19 billion, which
       be able to invest funds into profitable and job-generating                                include development projects for physical infrastructure such as
       mercantile ventures in Kerala.                                                            roads, bridges, potable water, health, education, SC/ST
                                                                                                 development and power transmission grid.

 Note #: Public-private partnership, 2017-18* - April – December 2017
 Source: DIPP - Department of Industrial Policy & Promotion, 1Including Lakshadweep, Government of Kerala,

15      KERALA                                                                                                                   For updated information, please visit www.ibef.org
KERALA STATE BUDGET 2018-19

         Annual Budget 2018-19

          Sector                                            Investment (US$ million)     Sector                         Investment (US$ million)

                           Education                                   3,170.82              Roads and bridges                    224.59

                  Medical and Public Health                            1,339.51               Ports Department                     16.99

                    Other Social Services                              1,892.07               Electricity Sector                  286.38

           Agriculture, Animal Husbandry and Co-
                                                                       1,131.75             Arts and Cultural Field                22.24
                          operation

                            Irrigation                                  194.08                    Coir Industry                    32.59

                         Public Works                                   754.24                    Fishery Sector                   92.68

             Industries, Labour and Employment                          362.79                      Forest                        110.14

               Transport and Communication                               68.83                      Others                       1,224.31

 Source: Finance Department, Government of Kerala, India, Converted using 1USD=64.74Rs

16    KERALA                                                                                            For updated information, please visit www.ibef.org
PHYSICAL INFRASTRUCTURE – ROADS … (1/2)

                                                                                               As per the state budget 2016-17, under the scheme of PPP annuity
                                                                                                model and loan from NABARD, construction work on 20 mega
                                                                                                projects was initiated in the state during 2016-17. Some of these
                                                                                                projects include: Cherupuzha–Payyavur–Ulickal–Vallithod – 59.42
                                                                                                km hill highway, construction of 1st phase of Kodimatha,
                                                                                                Kundannoor flyover, Ramanattukara Flyover, etc.

                                                                                               Under the ambitious Bharatmala scheme, which aims to improve
                                                                                                connectivity particularly on economic corridors, border areas and far
                                                                                                flung areas and quicken movement of cargo, two new road
                                                                                                construction projects were added in Kerala. The projects will involve
                                                                                                167 km and 218 km long development on NH 85 and NH 213,
                                                                                                respectively. Also, the Kerala Infrastructure Investment Board
                                                                                                (KIIFB) has alloted US$ 50.66 million for construction of a bypass at
                                                                   Source: Maps of India        Angamaly and Perumbavoor.

      Road development activities in the state are undertaken under
       three broad categories of roads and bridges, road transport and
       other transport services. In the annual budget 2017-18, a total
       outlay of US$ 209.69 million has been proposed by the state                          Road type                                             Road length (km)
       government for improving roads and bridge infrastructure.
                                                                                            National highways                                              1,782
      An outlay of US$ 3.81 million was proposed by the state
       government for development and improvement of state                                  State highways                                               4,341.65
       highways including relaying of a 600 km length road during                           Major district roads                                         27,469.9
       2016-17.

 Source: Economic Review of Kerala, 2014-15, Kerala State Industrial Development Corporation Ltd.; Ministry of Road Transport & Highways, Government of Kerala, State budget 2017-18

17      KERALA                                                                                                      For updated information, please visit www.ibef.org
PHYSICAL INFRASTRUCTURE – ROADS … (2/2)

      Pradhan Mantri Gram Sadak Yojana (PMGSY) was launched in                          National highway length completed (km)
       2000 with the objective of connecting eligible rural habitants. As of
       February 2017, about 590,104.62 km of road network was
                                                                               35.0
       completed across India, of which 3,534.89 km was completed in
                                                                               30.0
       Kerala.
                                                                               25.0                                                  29.00
     Pradhan Mantri Gram Sadak Yojana (PMGSY)                                  20.0
                                                                                                                21.40
     (as of December 2017)                                                     15.0
                                                                               10.0         5.72
     Habitations benefitted                               371                   5.0
                                                                                0.0
                                                                                          2012-13             2013-14               2014-15
     Length completed                                   2,964.32

     Total expenditure (US$ million)                     19.47*
                                                                                   Expenditure on road works under PMGSY in Kerala
                                                                                                     (US$ million)
 Source: PMGSY

                                                                               40.00
      To improve efficiency of transportation to Kannur International         35.00
       Airport, the state government has decided to convert six roads into     30.00                                        34.75
       four-lane highways. The preparation of a Detailed Project Report        25.00                29.12
       (DPR) is currently underway.                                            20.00                            24.86
      In the Budget 2018-19, a new scheme is being formulated to              15.00   18.51                                                 19.47
       renovate 155 dilapidated bridges and culverts within a period of 5      10.00
       years. Another mega scheme is the construction of 42 new rail            5.00
                                                                                0.00
       over bridges beginning in 2018-19.
                                                                                       2013-14      2014-15    2015-16     2016-17      2017-18^

 Note: * till March 2018
 Source: NHAI, omms.nic.in

18       KERALA                                                                                For updated information, please visit www.ibef.org
PHYSICAL INFRASTRUCTURE – RAILWAYS

                                                                                               Kerala is well connected to other parts of the country via railways.
                                                                                                The State Government has appointed Kerala State Industrial
                                                                                                Development Corporation Ltd (KSIDC) as the nodal agency for
                                                                                                developing a project to establish a north-south High-speed Rail
                                                                                                Corridor (HSRC) to facilitate smooth and speedy passenger
                                                                                                movement between various cities and towns in the state. As per
                                                                                                state budget 2016-17, the state government approved US$ 10.88
                                                                                                billion for constructing a 570-km corridor from Thiruvananthapuram
                                                                                                to Kasaragod. As per budget 2017-18, the Kerala Rail Development
                                                                                                Corporation is going to undertake construction work of nine rail lines
                                                                                                and detailed project reports of Thiruvananthapuram Light Metro for
                                                                                                US$ 654.84 million and Kozhikode Metro for US$ 389.43 million
                                                                                                have been prepared.

                                                                                               Railway divisions in Thiruvananthapuram, Palakkad and Madurai
                                                                                                jointly carry out railway operations in Kerala.

                                                                                               Under the major infrastructure development projects, for ongoing
                                                                                                and new projects, including Kochi Metro, Suburban Rail Corridor,
                                                                                                and various others, the state government provided these projects
                                                                                                with a common pooled amount of US$ 387.42 million during 2016-
                                                                                                17.

                                                                                               The government announced the launch of Kochi Metro Rail’s
                                                                  Source: Maps of India         commercial services of the 13-km Aluva-Palarivattom section of the
                                                                                                27-km Line-1. Over 600 women from the ‘Kudumbasree Mission’
                                                                                                have been employed & trained for smooth run of the 1st phase of
                                                                                                the metro.

 Source: Economic Review of Kerala, 2014-15, Kerala State Industrial Development Corporation Ltd, Government of Kerala, State Budget

19    KERALA                                                                                                        For updated information, please visit www.ibef.org
PHYSICAL INFRASTRUCTURE – AIRPORTS

                                                                                               Kerala has 3 airports handling domestic & international flights,
                                                                                                located at Thiruvananthapuram, Kochi & Kozhikode. Aircraft
                                                                                                movement from Cochin airport increased from 56,180 in 2015-16 to
                                                                                                61,688 in 2016-17. Aircraft movement from Thiruvananthapuram
                                                                                                airport increased from 26,001 in 2015-16 to 29,117 in 2016-17.
                                                                                                During April-February 2017-2018, aircraft movement from Cochin &
                                                                                                Thiruvananthapuram airports stood at 63,023 & 30,859,
                                                                                                respectively.

                                                                                               Passenger traffic from Cochin airport increased from 7,749,901 in
                                                                                                2015-16 to 8,955,441 in 2016-17, while passenger traffic from
                                                                                                Thiruvananthapuram airport increased from 3,470,788 in 2015-16 to
                                                                                                3,881,509 in 2016-17. During April-February 2017-2018, passenger
                                                                                                traffic from Cochin & Thiruvananthapuram airport stood at 9.23
                                                                                                million & 4.02million, respectively.

                                                                                               Freight traffic from Cochin airport increased from 79,233 tonnes in
                                                                                                2015-16 to 81,485 tonnes in 2016-17, while freight traffic from
                                                                                                Thiruvananthapuram airport decreased from 35,570 tonnes in 2015-
                                                                                                16 to 28,450 tonnes in 2016-17. During April-February 2017-2018,
                                                                                                freight traffic from Cochin & Thiruvananthapuram airports stood at
                                                                                                68,896 tonnes & 26,241 tonnes, respectively.

                                                                                               An international airport at Kannur is upcoming and is expected to be
                                                                                                operational by September 2018. This airport will be the 4th to have a
                                                                      Source: Maps of India     runway of 4,000 metres. Kannur is airport at the final stage of
                                                                                                completion and inauguration to be announced soon.

                                                                                               In February 2017, Government of Kerala approved setting up of an
                                                                                                airport at Erumely. This step is expected to benefit religious tourism
 Source: Airports Authority of India, Kerala State Industrial Development Corporation Ltd.      as lakhs of devotees visit Pathanamthitta district every year.

20     KERALA                                                                                                   For updated information, please visit www.ibef.org
PHYSICAL INFRASTRUCTURE – PORTS … (1/4)

      Kerala has 18 ports, of which, Cochin is the major one. Furthermore,         Existing Ports
       there are three intermediate and 14 minor ports.

      The development activities of the port are taken care of by the                 Major ports                                Cochin
       Department of Ports, Harbour Engineering Department and Harbour
       Engineering Department.                                                                                                 Neendakara
                                                                                       Intermediate ports                       Alappuzha
      Under the 12th Five Year Plan from 2012 to 2017, the State
                                                                                                                                Kozhikode
       Government approved an investment of US$ 364.9 million for
       development of port infrastructure facilities for handling cargo and
                                                                                                                                Vizhinjam
       passenger transport.
                                                                                                                               Valiyathura
      Vizhinjam International Port Phase-I, with an outlay of US$ 1.05                                                         Vadakara
       billion, is the largest harbour project in Kerala.                                                                        Ponnani
                                                                                                                              Thankasserry
     Head                                                Budget 2018-19                                                       Kayamkulam
                                                                                                                              Manakkodam
     Ports                                               US$ 16.99 million             Minor ports                             Munambam
                                                                                                                                Beypore
                                                                                                                               Thalasserry
                                                                                                                              Manjeswaram
                                                                                                                              Neeleswaram
                                                                                                                                 Kannur
                                                                                                                                Azhikkal
                                                                                                                               Kasaragode

 Source: Cochin Port Trust, Kerala Ports, Kerala Budget 2016-17, 2017-18, 2018-19

21      KERALA                                                                                        For updated information, please visit www.ibef.org
PHYSICAL INFRASTRUCTURE – PORTS … (2/4)

      During 2016-17, the cargo traffic handled by Cochin port was 25                               Cochin port traffic (million tonnes)
       million tonnes. The Cochin Port handled 12.078 million tonnes of
       crude oil, 816 thousand tonnes of cement 491,087 Twenty Foot
                                                                                 35.0
       Equivalent Units (TEUs) in 2016-17.                                       30.0
                                                                                 25.0

                                                                                                                                                                                                  29.14
      The cargo traffic handled by Cochin port was 29.14 million tonnes

                                                                                                                                                                                        25.00
                                                                                 20.0

                                                                                                                                                                              22.09
                                                                                                                                                                  21.60
                                                                                                                                                        20.90
                                                                                                                                    20.10
                                                                                 15.0

                                                                                                                                              19.80
       between April-March 2017-18.

                                                                                                                          17.90
                                                                                                                17.40
                                                                                          15.80

                                                                                                    15.20
                                                                                 10.0
      In addition, the state government      has   been focussing   on           5.0
                                                                                  0.0
       development of minor ports.

                                                                                                                                                                  2014-15
                                                                                          2007-08

                                                                                                    2008-09

                                                                                                                2009-10

                                                                                                                          2010-11

                                                                                                                                    2011-12

                                                                                                                                              2012-13

                                                                                                                                                        2013-14

                                                                                                                                                                              2015-16

                                                                                                                                                                                        2016-17

                                                                                                                                                                                                  2017-18*
                                                                           Source: Cochin Port Trust, News articles, Economic Survey 2014-15, India Port
                                                                           Association

                                                                            Ports to be developed                                             Budget 2017-18 (US$ million)

                                                                            Vizhinjam cargo port                                                                            3.42
                                                                            Thankassery, Munambam,
                                                                                                                                                                            7.16
                                                                            Beypur and Azheekkal ports
                                                                            Alappuzha Mareena Port                                                                          1.14

                                                                            Other small ports                                                                               0.62
                                                                           Source: State Budget 2016-17

 Source: * - between April-March 2017-18

22      KERALA                                                                                                For updated information, please visit www.ibef.org
PHYSICAL INFRASTRUCTURE – PORTS … (3/4)

      The Cochin port is a favourite port-of-call for luxury cruise liners from                 Number of cruise vessel arrivals at Cochin port
       around the world.

      During 2016-17, total number of cargo vessels that entered Cochin              50
       port were recorded to be 1,666.                                                40

                                                                                                                                      45

                                                                                                                                                          44

                                                                                                                                                                                                              44
                                                                                                                  43

                                                                                                                                                                    42
                                                                                                                                                41

                                                                                                                                                                                          39
                                                                                                        38
                                                                                      30

                                                                                                                            36
      Around 28,342 cruise passengers embarked in Kochi in 2014-15.

                                                                                                                                                                              34

                                                                                                                                                                                                    33
                                                                                      20

                                                                                              26
      The arrival of a cruise vessel has an added impact on the regional
                                                                                      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

                                                                                                        2006-07
                                                                                              2005-06

                                                                                                                  2007-08

                                                                                                                            2008-09

                                                                                                                                      2009-10

                                                                                                                                                2010-11

                                                                                                                                                          2011-12

                                                                                                                                                                    2012-13

                                                                                                                                                                              2013-14

                                                                                                                                                                                          2014-15

                                                                                                                                                                                                    2015-16

                                                                                                                                                                                                              2016-17
       less than a day.

                                                                                   Year                                                                                       Passenger

                                                                                   2011-12                                                                                              34,768

                                                                                   2012-13                                                                                              37,389

                                                                                   2013-14                                                                                              24,535

                                                                                   2014-15                                                                                              28,342

 Source: Cochin Port Trust

23      KERALA                                                                                                    For updated information, please visit www.ibef.org
PHYSICAL INFRASTRUCTURE – PORTS … (4/4)

     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 February 2018, the state had a total installed power generation                                      Installed power capacity (MW)
       capacity of 5,019.23 MW, of which 2,192.48 MW was accounted for
       by state utilities, 1,879.76 MW by central utilities and 946.99 MW
                                                                                            6,000.0
       under private sector.
                                                                                            5,000.0

                                                                                                                                                                                                             5,019.23
                                                                                                                                                                                                  4,998.94
      Thermal power contributed 2,416.72 MW to total installed power                       4,000.0

                                                                                                                                                                                       4,172.00
                                                                                                                                                                          4,106.00
       generation capacity. Hydropower (1,881.50 MW), nuclear power

                                                                                                                                                               3,892.00
                                                                                                                                                    3,856.40
                                                                                                                                         3,827.70
                                                                                                                              3,718.80
                                                                                            3,000.0

                                                                                                                   3,553.70
                                                                                                       3,514.00
       (362.00 MW), and renewable power (359.01 MW) are the other main
                                                                                            2,000.0
       energy sources.
                                                                                            1,000.0
      Kerala’s state utilities, which account for 43.81% of overall capacity,
                                                                                                0.0
       generate 86.05% of the energy through hydroelectric power plants,

                                                                                                                                         2011-12
                                                                                                       2008-09

                                                                                                                   2009-10

                                                                                                                              2010-11

                                                                                                                                                    2012-13

                                                                                                                                                               2013-14

                                                                                                                                                                          2014-15

                                                                                                                                                                                       2015-16

                                                                                                                                                                                                  2016-17

                                                                                                                                                                                                             2017-18*
       and the remaining 13.95% through thermal and renewable power
       generation plants.

                                                                                         Sub Sectors                                                Budget 2017-18 (US$ million)

                                                                                         Agency for Non-conventional
                                                                                                                                                                                     7.45
                                                                                         Energy and Rural Technology

                                                                                         Energy Management Centre                                                                    1.24

 Source: State Budget 2016-17, Central Electricity Authority, *data till February 2018

25      KERALA                                                                                                    For updated information, please visit www.ibef.org
PHYSICAL INFRASTRUCTURE – POWER … (2/3)

      Kerala is among the prominent Indian states to have achieved 100%      Status of rural electrification in Kerala (100 per cent electrified
       rural electrification.                                                 since May 2017)

      The rural areas or villages in the state were electrified under a      Area type                                                    Nos.
       scheme launched in 2015, “Deendayal Upadhyaya Gram Jyoti
       Yojana”. The operational electrification scheme, that is, Rural        Total villages                                             1,017
       Electricity infrastructure and Household. Electrification, was
       subsumed in the new scheme.                                            Electrified villages                                       1,017

      As on July 31 2017, a total sum of US$ 33.8 million was sanctioned     Total rural households                                   71,03,000
       and US$ 32.97 million was disbursed under the DDUGJY scheme
       for rural electrification of 29 projects in the state.                 Electrified rural households                             71,03,000

      Under Deendayal Upadhyaya Gram Jyoti Yojana scheme, 14 new             Un-electrified rural households                               Nil
       projects have been sanctioned for US$ 76.16 million as of July 2017.

                                                                              Status of rural electrification in Kerala under DDUGJY scheme
                                                                              (as of July 2017)

                                                                              Area type                                                  Nos.

                                                                              Intensively electrified villages                             1,087

                                                                              Electrified BPL households                                 1,50,305

 Source: Deendayal Upadhyaya Gram Jyoti Yojana

26      KERALA                                                                                       For updated information, please visit www.ibef.org
PHYSICAL INFRASTRUCTURE – POWER … (3/3)

      Budget Highlights - 2018-19:

       •   Total outlay for electricity sector is US$ 286.38 million.

       •   The annual scheme includes 49 Hydro Electric Projects, 2 Thermal Projects, 2 Windmill Projects and 1 Solar Project.

       •   Transgrid 2.0 with project cost of US$ 803.21 million being implemented through KIIFB, is the largest project in the transmission sector.

       •   Battery operated auto rikshaws will be introduced for connected journeys from Kochi Metro stations. For the recharging of these, bulk charging
           stations will be setup under the control of Electricity Board. It will be started in 2018-19.

       •   A new scheme is being launched to encourage inventions to reduce the electricity misuse and to expand them on an entrepreneurial basis. It
           will be implemented under the leadership of Energy Saving and Co-ordination Team of Electricity Board and US$ 4.32 million is allocated for
           this scheme.

 Source: Finance Department, Government of Kerala, India Converted using 1USD=64.74Rs

27      KERALA                                                                                        For updated information, please visit www.ibef.org
PHYSICAL INFRASTRUCTURE – TELECOM

      As of January 2018, Kerala had an overall tele-density of 119.35%         Telecom Infrastructure (As of January 2018)
       as against an all-India average of 90.61%.

      According to the Telecom Regulatory Authority of India (TRAI), as of      Wireless subscribers                                             41,141,883
       January 2018, Kerala had 41.14 million wireless subscribers and
                                                                                 Wire-line subscribers                                            1,977,054
       1.98 million wire-line subscribers.

      By the end of December 2017, 8,858,141 subscribers had submitted          Internet subscribers                                             18,930,000
       requests for mobile number portability in Kerala.
                                                                                 Post offices                                                      5,067(2)
      As per state budget 2017-18, free internet connections will be
       provided to two million poor families in Kerala under the Kerala Fibre    Tele density (in%)                                                 119.35
       Optic Network (K-FON). WiFi transmission centres will be                 Source: Telecom Regulatory Authority of India, 1As of March 2017, 2As of March 2016
       established at Akshaya Centres, Friends Janasevana Kendras,
       government offices, libraries, and public places under the control of
       government.                                                               Performance status of Bharat Net Project
                                                                                 (As of December 2017)
                                                                                 No. of GPs in Phase-I                                                977
                                                                                 Cables laid (km)                                                     830
                                                                                 GPs for which cable laid                                            1,129
                                                                                 No. of GPs Lit                                                      1,129

                                                                                Source: Ministry Of Communications And Information Technology, GP - Gram Panchayat

 Note: (1) - data upto September 2017

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

      In May 2017, the state government proposed to spend about US$
       2.97 billion for various urban development projects. The package will
                                                                                          The state government launched Haritha Keralam Mission in
       include construction of big roads, IT parks and welfare schemes for
                                                                                           December 2016, to make Kerala clean and protect its water
       poor and backward sections of the society. The funds are to be
                                                                                           resources and soil. As per budget 2017-18, US$ 23.28 million will be
       arranged by the Kerala Infrastructure Investment Fund Board
                                                                                           invested for establishing 14 septage units, one in each district.
       (KIIFB).
                                                                                          Major infrastructure projects such as Kannur Air Port, GAIL Pipeline,
      In August 2017, Kerala Infrastructure Investment Board (KIIFB) gave
                                                                                           Kochi-Edamon Electric line and Bypasses at Kollam and Alappuzha
       nod to four infrastructure projects. One of the major projects is the
                                                                                           will be inaugurated in 2018-19.
       Kerala Fibre Optic Network (K-FON) project which aims to transform
       the state into an intelligent, innovative and inclusive society. The
       state government is going to lay KSEB transmission lines and
       distribution poles which will connect 30,000 government and
       educational institutions and 2 million economically backward
       households will get free Internet through it.

 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
     MM Tech Towers, Alwaye                          KSITI, Kollam
                                                                                                              Technopark
                                                                                                              Pallipuram
     Emmar MGF, Alwaye
                                                                                                              Techno Park SEZ - II

 Source: Ministry of Commerce & Industry, Government of India,

32      KERALA                                                                                 For updated information, please visit www.ibef.org
DEVELOPMENT PROJECTS: SEZS … (2/3)

      As of December 2017, Kerala has 19 exporting SEZs.

     Name/Developer                                                                               Location                          Primary industry
     Cochin SEZ                                                                                     Cochin                             Multi-product
     Cochin Port Trust                                                                           Vallapadom                             Port-based
     Cochin Port Trust                                                                           Puthuvypeen                            Port-based
     Infopark                                                                                     Kakkanad                                IT/ITeS
     Electronics Technology Parks - Kerala                                                         Attipura                               IT/ITeS
     KINFRA                                                                                       Ayiroopara                       Animation & Gaming
     KINFRA                                                                                       Chelembra                     Agro-based food processing
     Electronics Technology Parks- Kerala                                                      Thiruvanthapuram                           IT/ITeS
     KINFRA                                                                                      Thrikkakara                       Electronics industries
     Kerala State Information Technology Infrastructure Limited                                   Pallipuram                              IT/ITeS
     Electronics Technology Parks Kerala (Technopark)                                              Attipura                               IT/ITeS
     Kerala State Information Technology Infrastructure Limited                                   Mulavana                                IT/ITeS
     Carborundum Universal Ltd.                                                                Thrikkakara North                     Solar Photovoltaic
     Sutherland Global Services Private Limited                                                Thrikkakara North                          IT/ITeS
     Kerala State Information Technology Infrastructure Limited (KSITIL)                 Pantheerankavu and Nellikode                     IT/ITeS
     Infoparks Kerala                                                                    Puthencruz and Kunnathunadu                      IT/ITeS
     Smart City (Kochi) Infrastructure Limited                                                    Kakkanad                                IT/ITeS
     Kerala State IT Infrastructure Ltd. (KSITIL)                                                  Thrissur                               IT/ITeS
     Uralungal Labour Contract Cooperative Society Limited (ULCCS LTD)                            Kozhikode                               IT/ITeS
 Source: Ministry of Commerce & Industry, Department of Commerce, SEZ: Special Economic Zone

33      KERALA                                                                                                For updated information, please visit www.ibef.org
DEVELOPMENT PROJECTS: SEZS … (3/3)

      As of December 2017, Kerala had 29 SEZs with formal approval and 25 notified SEZs.

     Some of formally approved SEZs in Kerala

     Name/Developer                                                                            Location                           Primary industry
     Cochin Port Trust                                                                         Vallarpadam                        Port-based
     Cochin Port Trust                                                                         Puthuvypeen, Ernakulam             Port-based
                                                                                               Kazhakoottam,
     KINFRA                                                                                                                       Electronics Industries
                                                                                               Thiruvananthapuram
     Smart City (Kochi) Infrastructure Pvt Ltd                                                 Kakkanad, Ernakulam                IT/ITeS
                                                                                               Pantheerankavu
     Kerala State Information Technology Infrastructure Ltd (KSITIL)                                                              IT/ITeS
                                                                                               and Nellikode, Kozhikode
     Infoparks, Kerala                                                                         Kunnathunad, Ernakulam             IT/ITeS
     Cochin International Airport Ltd                                                          Ernakulam                          Airport-based

 Source: Ministry of Commerce & Industry, Department of Commerce, SEZ: Special Economic Zone

34      KERALA                                                                                                For updated information, please visit www.ibef.org
SOCIAL INFRASTRUCTURE – EDUCATION … (1/2)

      Kerala has the highest literacy rate among all states in the country.      Educational infrastructure (2016)
       As of 2016, the state has a literacy rate of 94.57%; male & female
       literacy rates stood at 96.61% & 92.52%, respectively.                     Schools                                                            12,981
      Kerala has 3,021 higher secondary schools as of 2016. Of these,            Universities                                                        14
       1,162 (38.46%) were government schools, 1,406 (46.54%) aided
                                                                                  Engineering institutions                                            183
       schools & the remaining 453 (15%) unaided schools.
                                                                                  Arts and science colleges                                           213
      As per budget 2018-19, 45,000 hi-tech class rooms and IT labs will
       be established in 4,775 schools. The digitalisation will be completed      Polytechnics                                                        51
       in 3 phases with 20,000 class rooms being completed before the end        Source: Economic Review of Kerala
       of February, 10,000 class rooms in March and remaining 15,000
       class rooms in the months of April – May.                                  Sub sectors                          Budget 2018-19 (US$ million)
      In Budget 2018-19 US$ 5.10 million is allocated for ‘Kerala                School education                                    149.83
       Infrastructure and Technology for Education’ which is heading the
                                                                                  Higher education                                    121.87
       digitalisation programme.

      In June 2017, the University of Kerala decided to restore private          Technical education                                  38.31
       registrations at undergraduate level. A University Institute of            Total                                              3,170.82
       Management (UIM) and eight University Institutes of Technology
       (UITs) are to be established in various cities of the state this fiscal   Source: State Budget 2017-18, (1) 2016-17, Converted 1USD=64.74Rs

       year.

35      KERALA                                                                                          For updated information, please visit www.ibef.org
SOCIAL INFRASTRUCTURE – EDUCATION … (2/2)

     Kerala primary education statistics (2014-15)

                                                                                                Lower primary: 6,882
     Schools (No)                                                                               Upper primary: 2,979
                                                                                                 High schools: 3,021
                                                                                                 Lower primary: 0.35
     School dropout rate (%) (2013-14)                                                           Upper primary: 0.21
                                                                                                  High school: 0.44
     Pupil-teacher ratio                                                                               22.5:1

     Nature of schools (2016-17P)                     Student strength (in million)          Share of total student strength (%)
     Government                                                   1.12                                      30.42
     Government-aided                                             2.15                                      58.27
     Unaided                                                      0.41                                      11.30
     Total                                                        3.70                                      100.0

 P: Provisional
 Source: Economic Survey of Kerala 2014-15, 2016-17

36      KERALA                                                                    For updated information, please visit www.ibef.org
SOCIAL INFRASTRUCTURE – HEALTH

      The departments that offer health services in the state & are                     Health indicators (2017)
       responsible for development activities are namely, Health Services
       Department, Medical Education Department, Ayurveda Department                     Birth rate
                                                                                                      (1)
                                                                                                                                                     14.3
       (ISM), Ayurveda Medical Education Department, Homoeopathy                                        (1)
                                                                                         Death rate                                                   7.6
       Department & Homoeopathy Medical Education Department.
                                                                                                                  (2)
                                                                                         Infant mortality rate                                        10
      In Budget 2018-19, the state government allocated US$ 1,339.51
       million for medical and public health department.

      Under the 12th Five Year Plan, the state proposed an outlay of US$                Life expectancy at birth (years) (2014-15)
       650.71 million for health sector, of which US$ 295.05 million was
       proposed for the Directorate of Health Services, US$ 272.61 million for
                                                                                         Male                                                        71.4
       Directorate of Medical Education & US$ 28.02 million for Indian
       System of Medicines.                                                              Female                                                      76.3

      Government of Kerala announced plans to invest US$ 1.68 million for
       the establishment of a cath lab in the district hospital at Kollam & the
                                                                                         Health infrastructure (as of March 2018)
       general hospital of Kozhikode as per the annual state budget 2016-17.
       Further, the state government also allocated US$ 79.7 million to the
                                                                                         Primary health centres                                       954
       Directorate of Health Services to facilitate implementation of different
       schemes.                                                                          Sub-centres                                                 5,841
      As of November 2016, the state was declared as the 3rd Open
                                                                                         Community health centres                                     233
       Defecation Free state in the country.

      In March 2017, True North, a leading PE fund, announced plans to                  District hospitals                                           58
       invest over US$ 200 million in Kerala Institute of Medical Sciences.

 Note: (1)Per thousand persons, (2)Per thousand live births
 Source: Economic Review of Kerala, 2017, State Budget 2016-17, 2017-18, NHRM, Sample Registration System (SRS)

37      KERALA                                                                                                    For updated information, please visit www.ibef.org
CULTURAL INFRASTRUCTURE … (1/2)

      Kerala has been rated as one of the 13 Paradises of the World by         Popular tourist locations
       National Geographic Traveller; it has been promoted as ‘God’s Own
       Country’.
                                                                                Beaches                    Kovalam, Varkala, Marari, Bekal and Kannur
      Sri Padmanabhaswamy temple makes the state one of the attractive
       religious tourism spots in India. Other temples in Kerala, such as                                  Kumarakom, Alappuzha, Kollam, Kochi and
                                                                                Backwaters
       Guruvayoor & Sabarimala, are also major religious attractions.                                                    Kozhikode
      US4 2.32 million was allocated in budget 2017-18 for the promotion
                                                                                Hill stations               Ponmudi, Munnar, Wyanad and Vagamon
       of Nishagandhi dance and music festivals, Onam celebration, tribal
       dance festival, Pooram, Theyyam festivals and boat race etc.                                                Periyar Wildlife Sanctuary,
      In June 2015, Kerala organized a road show in Shanghai &                                                    Eraviikulam National Park,
                                                                                Wildlife reserves
       participated in Beijing International Tourism Expo (BITE) 2015. The                                         Thattekad Bird Sanctuary
       BITE 2015 witnessed participation of 70 buyers from the Chinese                                          Parambikulam Wildlife Sanctuary
       travel & tourism industry. The main objective of the initiative was to
       strengthen the Spice Route heritage with other countries & promote
                                                                                                                                   Budget 2018-19
       sustainable tourism aimed at achieving world peace.                         Departments
                                                                                                                                    (US$ million)
      In June 2017, the state government started a campaign ‘Anuyatra’,
       for people with special needs. In this campaign, 23 children suffering   Sahithya Academy, Kerala Sangeetha Nadaka
                                                                                Academy, Kerala Lalithakala Academy and                  2.46
       from various challenges will become brand ambassadors of the
                                                                                Kerala Folklore Academy
       initiative.
                                                                                Arts and Cultural fields                                22.24

                                                                                State Central Library                                    0.56

                                                                                Kerala State Science and Technology Museum               2.63

                                                                                Development of Zoos                                      1.78

     Source: State budget, Converted 1USD=64.74Rs

38      KERALA                                                                                      For updated information, please visit www.ibef.org
CULTURAL INFRASTRUCTURE … (2/2)

      Art and culture are being fostered and promoted through various                    New sports infrastructure projects in Kerala
       bodies such as:                                                                       New hockey stadium at Kollam
       •   Kerala Sahitya Academy – To promote Malayalam literature.
                                                                                             Rajiv Gandhi Indoor Stadium, Kochi
       •   Kerala Sangeetha Nataka Akademi – To promote traditional arts.
                                                                                             Shooting range at Vattiyoorkkavu, Thiruvananthapuarm
       •   Kerala Lalithkala Academy – To promote painters and sculptors.
                                                                                             Corporation Stadium, Kollam
       •   Kerala Folklore Academy – To promote Kerala folklore.
                                                                                             V.K.N. Indoor Hall, Thrissur
       •   Kerala State Chalachitra Academy – Academy for motion
           pictures.                                                                         VKK Menon Stadium, Kozhikode
       •   Kerala Kalamandalam – To teach traditional dances.
                                                                                             CSN Stadium, Thiruvananthapuram
      The state government proposed an outlay of US$ 22.24 for art and
                                                                                             New football stadium at medical college ground, Kozhikkode
       culture million under annual budget 2018-19.
      On November 1, 2016, the state celebrated the 60th year of its                        New multipurpose hall, Kannur

       formation.                                                                            Kariavattom main stadium, Thiruvananathapuam

                                                                                             Synthetic Athletic track at University of Calicut, Malapuram (Approved under
                                                                                              Urban Sports Infrastructure Scheme (USIS))

 Source: Department of Tourism, Government of Kerala, Economic Review of Kerala 2014-15

39      KERALA                                                                                                  For updated information, please visit www.ibef.org
INDUSTRIAL INFRASTRUCTURE … (1/3)

      As of September 2017, Kerala had 29 SEZs with formal approval and 25 notified SEZs. A cyber-park spread over a 68 acre campus is being
       developed in Kozhikode.

     Infrastructure                      Project description

                                         The Technopark at Thiruvananthapuram is spread over 760 acres.

                                         It currently hosts over 300 IT and ITeS companies, employing over 46,000 IT professionals.

                                         Technopark Phase-II has been declared an SEZ by the Government of India.
     Technopark
                                         The technology park is spread across 7.2 million sq. ft. built-up space (completed) and 3.5 million sq. ft. (work-in-
                                          progress)

                                         As a part of the Phase-IV, named Technocity, Technopark is developing 431 acres of land in Pallippuram, 5 km
                                          north of the main campus on the National Highway-47 to Kollam.

                                         The Infopark at Kochi is best suited for ITeS due to its proximity to the submarine optical-cable landings.
     Infopark                            The total land available with Infopark is 98.25 acres, of which 75 acres has been notified as an SEZ by the Ministry
                                          of Commerce, Government of India.

                                         Apart from the SEZs in Technopark and Infopark, the other SEZs in Kerala include the KINFRA Electronics Park
                                          SEZ in Kalamassery; a multi-product SEZ at Kochi; two port-based SEZs at Vallarpadam and Puthuvypeen at
     Special Economic Zones
                                          Kochi; a food processing SEZ near Calicut; a pulp and paper SEZ at Kottayam; and a non-conventional energy
                                          sources SEZ at Kalamassery.

 Source: http://www.technopark.org/ , sezindia.nic.in

40      KERALA                                                                                              For updated information, please visit www.ibef.org
INDUSTRIAL INFRASTRUCTURE – INDUSTRIAL
          CLUSTERS … (2/3)

                                                  Symbol                          Industries

                                                                                      IT

                                                                                  Engineering

                                                                              Minerals and mining

                                                                         Handlooms and power looms

                                                                                    Textile

                                                                                     Tiles

                                                                                   Canning

                                                                                  Coir products

                                                                          Agriculture and forest-based

                                                                                  Sericulture

                                                                                    Rubber

                                                                                Food products

                                                                                     Beedi
                          Source: Maps of India

41   KERALA                                                For updated information, please visit www.ibef.org
INDUSTRIAL INFRASTRUCTURE – INDUSTRIAL
                 CLUSTERS … (3/3)

     District                        Industries

     Kannur                          Handlooms, power looms, beedi

     Alappuzha                       Coir products

     Idukki                          Agriculture and forest based

     Thiruvananthapuram              Handlooms, IT

     Thrissur                        Power looms, handlooms, textile, timber, tile, canning

     Palakkad                        Power looms, sericulture

     Kollam                          Minerals and mining

     Kozhikode                       Rubber

     Wayanad                         Minerals and mining

     Kasargod                        Minerals and mining

     Kottayam                        Rubber, food products, engineering

     Ernakulam                       IT

42      KERALA                                                        For updated information, please visit www.ibef.org
SMART CITIES

      As of June 2017, Kochi and Thiruvananthapuram are proposed to be
       developed as smart cities in Kerala. The Kochi smart city would be
       spread over an area of 246 acres.
      Along with smart cities, 9 cities of Kerala have also been selected for
       infrastructure development. The infrastructure development will be
       done under the Atal Mission for Rejuvenation and Urban
       Transformation (AMRUT) scheme. In July 2015, the state
       government allocated US$ 1.47 million for administrative and office
       expenses for service level improvement plan or capacity building
       under AMRUT scheme.
      As per budget 2016-17, the state government is planning to
       inaugurate 650,000 square feet space in Kochi smart city, for             Thrissur
       providing employment to around 90,000 unemployed youth of Kerala.
      Smart City Kochi has set a revenue target of US$ 41.79 million for
       2017, and US$ 2.40 billion by 2021.                                          Ernakulam
     List of cities in Kerala covered under AMRUT                                      Kochin

     Cities                                           Area (sq. km)
     Kochi                                                 94.88                                                      Tiruvalla
     Kollam                                                58.18
                                                                                                                   Kollam
     Kozhikode                                              128
     Thiruvananthapuram                                    2,192
     Thrissur                                              101.4
                                                                                                  Thiruvananthapuram
     Alappuzha                                             1,414
     Palakkad                                              1,363
     Guruvayur                                             29.66
     Kannur                                                2,961

43      KERALA                                                                     For updated information, please visit www.ibef.org
KEY INDUSTRIES

  Kerala’s strategic location on the trans-national trade corridor, rich          Key industries in Kerala
   natural resources & simple & transparent procedures are favourably                 Handlooms and power looms
   suited for investments in key sectors like tourism, IT/ITeS,
   manufacturing & mining.                                                            Rubber

  Kerala’s traditional industries include handloom, cashew, coir and                 Bamboo
   handicrafts.
                                                                                      Coir
  KINFRA, KITCO Limited (formerly, Kerala Industrial and Technical
                                                                                      Khadi and village industry
   Consultancy Organisation Limited), the Directorate of Industries &
   Commerce & the Small Industries Development Corporation are jointly                Sericulture
   responsible for the development of industrial infrastructure in the state.
                                                                                      Seafood and other marine products
  Around US$ 35.53 million has been earmarked in the budget 2018-19
   for the main parks under KINFRA & KSIDC.                                           Cashew

  Forming industrial clusters & developing infrastructure (such as rubber            Mining
   parks, electronic hardware park, coconut industrial park, organic                  Tourism
   industrial park & food processing parks) have been integral to the
   state’s strategies to attract investments in various industries.                   Food processing

  As per budget 2016-17, the MSME sector accounted for higher growth                 Spices and spice extracts
   rate in comparison with other industrial sectors during 2015-16. For
                                                                                      IT & electronics
   the development of MSME infrastructure, an amount of US$ 6.96
   million was allocated by the state government during 2016-17

  The amount allocated to small scale industries by the state
   government during 2018-19 is US$ 25.02 million.

 Source: Economic Review of Kerala, 2014-15, News articles, State budget 2017-18

44    KERALA                                                                                              For updated information, please visit www.ibef.org
KEY INDUSTRY – COIR AND COIR PRODUCTS … (1/2)

      Kerala accounts for 85% of total coir production in India and its coir                      No. of coir units registered in Kerala as on March 2015
       industry provides employment to around 375,000 people.
      The Coir Co-operative Marketing Federation (COIRFED) is the apex                          10000.0
       federation of 842 primary coir co-operatives societies.
                                                                                                  8000.0                 8,814              8,811
      The US is the largest importer of coir products from India, followed
       by the Netherlands, the UK, Germany, Italy and Spain.                                      6000.0

      The Coir Kerala trade fair held in February 2015 witnessed the                             4000.0
       participation of around 170 foreign buyers from over 53 countries.
                                                                                                  2000.0
      The Coir Board of India facilitates setting up of coir defibering units
                                                                                                                                                                 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

                                                                                                                                                                        9,108
                                                                                                  9000.0
       societies taken up for revival will be provided with working capital
       and managerial subsidy.                                                                    8900.0

      Under state budget 2018-19, US$ 32.59 million is allocated for the                         8800.0

                                                                                                                                                       8,814
                                                                                                                                             8,790
                                                                                                                                   8,773
       coir sector.                                                                               8700.0

                                                                                                                 8,744
                                                                                                  8600.0
                                                                                                  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
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