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Kerala
Prepared for
Table of Contents
Table of Contents .............................................................................................................. 3
List of Tables ..................................................................................................................... 4
List of Figures .................................................................................................................... 5
List of Annexure................................................................................................................ 5
1.
2.
3.
4.
5.
6.
7.
8.
9.
List of Tables
1.1: Administrative Units in Kerala ................................................................................ 8
1.2: Districts of Kerala & Areas ...................................................................................... 8
1.3: Key Demographics of Kerala.................................................................................... 9
1.4: Share & Growth Rate of Manufacturing Sector in Kerala GSDP (Current
Prices) ............................................................................................................................... 10
2.1: Land Use Pattern in Kerala .................................................................................... 11
2.2: District-wise Waste Land in Kerala ....................................................................... 12
2.3: Industrial Parks of Kerala Industrial Infrastructure Corporation (KINFRA) 14
2.4: Major Industrial Estates District Wise ............................................................... 14
2.5: Kerala SIDCO Industrial Parks in Kerala District Wise ................................. 15
3.1: Total Generation Capacity in Kerala .................................................................... 16
4.1: Ports in Kerala ......................................................................................................... 18
4.2: Road Network in Kerala ......................................................................................... 19
4.3: Communications Snapshot of Kerala .................................................................... 23
5.1: Key Industries in Kerala ......................................................................................... 24
5.2: District-wise Distribution of Operating Factories ................................................ 24
5.3: Industrial Clusters in Kerala .................................................................................. 25
5.4: Time-Series Data Showing Growth in Past 5 Years in Kerala ............................ 28
5.5: Gross Capital Formation for the State of Kerala ................................................. 29
6.1: Number of SME Units Operating in Kerala (Mar, 2011) .................................... 31
6.2: MSME Clusters in Kerala ...................................................................................... 32
6.3: Sanctioned MSME Clusters under MSE-CDP Scheme in Kerala (As on
30.6.2011) ......................................................................................................................... 32
7.1: Mineral Production in Kerala (2009-10) ............................................................... 34
8.1: Technical Education Institutions in Kerala (2010) ............................................... 36
8.3: Percentage Share of Professional & Technical Work Seekers in Kerala ........... 38
8.4: Labor Strikes Over the Year in Kerala ................................................................. 39
8.5: Company Lockouts over the Years in Kerala ....................................................... 39
9.1: Single Window Clearance Process in Kerala ........................................................ 42
9.2: No. of Applications Cleared/Disposed Since Inception ........................................ 42
List of Figures
Figure 1.1: Map of India Showing the Location of Kerala ........................................... 7
Figure 1.2: Sector Contribution to Kerala GSDP ........................................................ 10
Figure 3.1 Road Network of Kerala .............................................................................. 17
Figure 4.1: Railway Network in Kerala ........................................................................ 21
Figure 4.2: Airports in Kerala ....................................................................................... 22
Figure 6.1: Industry-wise State Public Sector Units in Kerala ................................... 33
List of Annexure
Annexure 1: Industry-wise Contribution to GSDP and Growth Rates ..................... 54
Annexure 2: Industrial Land with Directorate of Industries ..................................... 55
Annexure 3: Mini Industrial Estates in Kerala: District Wise ................................... 56
Annexure 4: Mineral Resources & Availability in Kerala .......................................... 57
Annexure 5: Ratio of the State on Key Characteristics of Overall and in
Manufacturing sector for India and Kerala ................................................................. 58
Annexure 6: Distribution of factories by employment in overall and manufacturing
sector in Kerala ............................................................................................................... 59
Annexure 7: Estimate of selected characteristics of factory sector by 3-digit industry
group (NIC-2008) for Kerala ......................................................................................... 60
Annexure 8: Engineering Colleges Intake in Kerala (2010-11) .................................. 63
Annexure 9: Trade Wise Intake in Polytechnics in Kerala (2010-11)........................ 64
Annexure 10: Select Manufacturing Sector Wages Rates in Kerala ......................... 65
Annexure 11: Cost of Doing Business in Kerala .......................................................... 68
1.
State Profile
1.1
Introduction
1.1.1
The State has seen an average industrial growth rate of 10.56 percent at constant
prices in the last 5 years. The contributions of manufacturing sector to GSDP at constant
and current prices are 9.26 per cent and 9.33 per cent respectively during 2009-10. Some
of the key industries in the state include Handlooms & Power-looms, Rubber / Bamboo /
Coir Based Industries, Food Processing, etc.
1.1.2
The State Government has provided special support to MSMEs due to its high
employment and economic growth potential. This sector contributes greatly towards
domestic needs, export marketing and foreign exchange earnings by producing varieties
of products ranging from traditional to high tech. As on March 2010, there were about
213740 SSI/MSME units registered with a total investment of Rs. 731212.13 and direct
employment generation of 8, 31,847. Majority of the SME units operate in the Wood
Based, Food Products, Readymade Garments and General Engineering sectors.
1.1.3
http://www.kerala.gov.in
http://www.ksidc.org
http://www.keralasidco.com
http://www.ibef.org/states/kerala.aspx
Kerala is located along the coastline, to the extreme south west of the Indian
peninsula, flanked by the Arabian Sea on the west and the mountains of the Western
Ghats on the east. The total area of the state is 38,863 sq km and encompasses 1.18 per
cent total land of India.
The nature of the terrain and its physical features, divides an east west cross section of
the state into three distinct regions- hills and valleys with an average elevation of 1500
meters, midland and plains and the coastal region. Western Ghats is the origination of
about 44 rivers that flow in the state, 41 of which flow towards west into Arabian Sea and
3 are tributaries of River Cauvery. In the Midland Plains of central region, the hills have
slightly steep with wide valleys allowing agriculture. The Coastal Belt strip is
comparatively plain with extensive paddy fields, thick groves of coconut trees and
backwaters, interconnected with canals and rivers.
1.3 Administrative Units
1.3.1
The State of Kerala is divided into 14 Districts. Following are the administrative
units in Kerala.
Region
North Kerala
Central Kerala
South Kerala
14
21
14
63
152
1453
978
5
60
Area (Sq.Kms)
(Sq.
kms)
2966
1992
2345
3550
2131
2931
4479
4480
3032
1414
2498
2203
2462
2192
The state has high density of population and the number of females per males is
the highest in the country. Table 1.3 lists the key demographics of the state.
Population
Male
1,60,21,290
Females
1,73,66,387
Sex Ratio
1,084
859
Literacy Rate
93.91%
Male
96.02%
Females
91.98%
1.5.2 The per capita State Income is estimated to be Rs. 52,984 as compared to national
income of Rs. 38,155 for 2009-10 at constant (2004-05) prices.
1.5.3 The contribution of primary sector has been decreasing and tertiary sector has been
increasing over the years, with the secondary sector remaining almost stagnant. Majority
of the economic growth in the State is due the growth in the tertiary sector. Table 1.4
lists the contribution of the three key sectors to the State GSDP.
Current Prices
1.5.4 Annexure: I gives details on Industry-wise contribution of State GDP. Table 1.5
specifically highlights the contribution of Manufacturing Sector to the State GDP. From
the data we see that the share of Manufacturing Sector has been increasing and is also
showing higher growth rates year-on-year.
1.4: Share & Growth Rate of Manufacturing Sector in Kerala GSDP (Current
Prices)
Sector
2007-08
Growth
2008-09 Growth
2009-10 Growth
Manufacturing
15082.23
Rate (%)
8.61
Rate (%)
17865.66 8.89
Rate (%)
21477.11 9.33
Registered
6437.81
3.68
7712.89
9464.67
Unregistered
8644.42
4.94
10152.77 5.05
3.84
4.11
12012.44 5.22
1.5.5 In terms of Human Development Index and life standard of the people, Kerala is
much ahead of the most other states in India, and in fact in certain development indices, it
is on a par with some of the developed countries. This peculiar paradox often termed as
the KERALA PHENOMENON or Kerala model of development by experts, which is
mainly owing to the performance of the State in the Service Sector.
Visit: www.kerala.gov.in
10
2.
Land is one of the most invaluable resources as far as state of Kerala is concerned. The
state with its dense population, is finding it difficult to satisfy the land needs of even the
most deserving categories and development initiatives.
2.1 Non-Agricultural Land
2.1.1 Kerala has a diverse land use and cropping pattern. The land reforms introduced in
the State brought in radical and comprehensive institutional changes leading to drastic
transformation in the land holding pattern and a shift in the land use pattern.
2.1.2 Agriculture is still the dominant land use type accounting for over 55% of the
geographical area followed by forest land (including degraded forest) of 28%, with only
11% under non-agricultural use. Land under non-agricultural use was 9 percent in 199900 and has increased to 9.68 per cent in 2008-09 and it slightly declined to 9.31 percent
in 2009-10. The area under cultivable waste increased by 1821 hectares, while barren and
uncultivated land declined by 7019 ha. Table 2.1 shows the land use pattern in Kerala.
2.1: Land Use Pattern in Kerala
Classification of Land
2009-10
2008-09
3886287
1081509
376155
24931
229
6602
96193
45955
67759
2088955
605988
2694943
100
28
10
1
0
0
2
1
2
54
16
69
11
As per the data available with Department of Land Resource, the total waste land
2.2.2
Table 2.2 shows the district wise waste land in the state.
2.3.1.2 In its Industrial Policy 2007, the Government has encouraged recognizing leasing
of land for industrial and commercial purpose as equity participation by the landowners.
A Fast Track Mechanism is also being devised for transparency in land acquisition and its
12
utilization for the development of infrastructure through Public Private Partnerships, and
to address the address the concerns of the landowners through a time-bound
implementation of attractive rehabilitation schemes.
2.3.1.4 The Government is also making provisions for the conversion of Industrial land
/plots into Industrial Parks / Commercial Estates, in cases where the established industry
remained in production for at least 5 years. Any industry, which commenced production,
but has been closed due to Court Order / Government Order / declared sick by BIFR, will
also be considered for conversion, in relaxation of the condition of being in production
for 5 years.
2.3.1.5 Existing DA, DP, IE, Growth Centers etc. are being modernized, expanded and
upgraded to meet the requirements of the industry. Any unused land / unused
infrastructure facility already allotted will be resumed and reallocated for starting new
units. Distribution of Pattayam for DA / DP plots will be done on a fast track basis.
SIDCO plots will be allotted expeditiously. Industrial plots will not be utilized for non
industrial purposes and speculation of land will not be allowed. Annexure 2 provides the
details on the land available in the Industrial Estates being developed by the Directorate
of Industries.
13
Panthanamthitta
KINFRA
Park,
Adoor
Food Processing / General
KINFRA Park, Kunnamthanam Land
Built up space
KINFRA Park, Mazhuvannur Food Zone
28.10
Panthanamthitta
Ernakulam
Malappuram
2.00
8500 sq.ft
2.80
Palakkad
15.00
90.00
Wayanad
12.00
Kannur
3.75
Kannur
57.85
Kasaragod
1.00
Industrial
Estate
Total
Land
Available
Land
District
Industrial
Estate
Total
Land
Available
Land
Alappuzha
Kollakadavu
19.15315
50 cents
Kottayam
Ettumanoor
30.31
55 cents
Alappuzha
Cherthala
8.94
20 cents
Kozhikode
West Hill
12.44
Nil
Ernakulam
Palluruthy
1.86
Nil
Malappuram
Manjeri
4.99
Nil
Ernakulam
Mudickal
4.6215
Nil
Palakkad
Karakkad
10.96
4 cents
Kannur
Palayad
8.42
Nil
Palakkad
Olavakkode
21.93
2.98 acre
Kasaragod
Kasaragod
16.84
26.0343
Pappanam
code
Kallettum
Nil
Umayanalloor
Thiruvanan
thapuram
Thrissur
18.5327
Kollam
39.81
cents
15
cents
Nil
Kollam
Karunaga
ppally
Changana
cherry
8.63
35 cents
Thrissur
Ollur
29.5625
Nil
14.22
Nil
Kottayam
14
Visit: www.keralasidco.com
2.3.1.8 Kerala SIDCO has established an Industrial Park in every constituency in charge a
separate Industrial Parks division. Table 2.5 provides details on the land available in the
industrial parks.
2.5: Kerala SIDCO Industrial Parks in Kerala District Wise
Name of Project
Total Area
(Acres)
Area
Allotted
Available
(Acres)
(Acres)
Athani
11.81
7.07
6.94
0.13
Chelakkara
5.0251
4.2
Fully Allotted
Angamali
15.39
13.47
12.2067
1.2633
Moodadi
3.7778
3.0373
Fully Allotted
Shoranur
5.0104
3.8793
Fully Allotted
Thiruvarpu
1.34
1.0295
Fully Allotted
Kunnamthanam
Area
1.5
Progress
2.3.1.9 The major hurdle which comes in the way of the industrial development in the
state has been the inadequate infrastructure facilities. The Government intends to give
topmost priority to develop world-class infrastructure facilities to attract massive
investments in manufacturing and service sectors. The Government has evolved special
schemes to build up such facilities to convert the State into an investment friendly
destination. The initiatives include:
1. A proposed infrastructure company, Infrastructures Kerala Limited (INKEL), to
facilitate accelerated development of industrial infrastructure to attract massive
investment.
2. Develop major industrial water supply projects, power supply projects, sewerage
and effluent treatment plants etc., in industrial areas.
3. Ensure uninterrupted supply of quality power for industrial and commercial
purpose.
15
3.
Basic Infrastructure
3.1 Power
3.1.1
Kerala is one among the few Indian states which have the lowest rates for
electricity for both domestic and commercial outfits. Kerala State Electricity Board is the
sole distributor of the electricity for the state of Kerala except for Thrissur Corporation
and Munnar where the distribution is managed by City Corporation and Tata Tea Ltd
respectively. There is a huge shortage of power from last few years and the State
Government is facing difficulties in providing sufficient power to the industries. Table
3.1 listes the current generation capacity in the state.
3.1: Total Generation Capacity in Kerala
Sr. No. Source
Generation Capacity (MW)
1
Hydro
1780 MW
2
Thermal
430 MW
3
Nuclear
0
4
New & Renewable
140 MW
Total
2350 MW
Source: Energy Statistics 2011, MOSPI, Govt. of India
3.2 Water Supply
3.2.1
Kerala has many important rivers that flow from north to south; Valapattanam
river (110 kms.), Chaliar (69 kms.), Kadalundipuzha (130 kms.), Bharathapuzha (209
kms.), Chalakudy river (130 kms.), Periyar (244 kms), Pamba (176 kms), Achancoil (128
kms.) and Kalladayar (121 kms.). Other than these, there are 35 more small rivers and
rivulets flowing down from the Ghats.
3.2.2
The average per capita supply of water in major cities is 150 to 200 liters per
capita day. There are 1,745 rural water supply schemes and 69 urban water supply
schemes. To ensure uninterrupted supply of industrial water, the State Government has
proposed to develop major water supply projects in industrial areas. The current tariffs
for industrial use of water is Rs25/- per 1000 liters with a minimum charge of Rs. 250/-.
16
3.3 Roads
3.3.1
Roads are one of the basic modes of transportation system and also an important
3.3.2
Kerala has the highest road density among other Indian states and a well-
developed transport system operated by both public and private sector, thus enabling a
seamless movement of people and goods across the state.
3.3.3
Road density in the State is 417 Km/100 Sq.Km, which is far ahead of national
average of 100.39 Km/100 Sq.Km. The length of road per lakh population is 509.23 Km,
which is also much higher than the national average of 321.3 Km.
Figure 3.1 Road Network of Kerala
17
4.
Profile of Logistics
The State with a coastline of 590 kilometers has one Major port, 3 Intermediate
ports and 14 Minor Ports. Besides the Port of Kochi (a Major Port governed by Major
Port Trusts Act, 1963), there are 3 Intermediate and 14 Minor Ports in Kerala. Table 4.1
list all the ports operating in the state.
4.1: Ports in Kerala
Type
Locations
Major Port
Kochi
of Form Alappuzha, Kozhikkode
Intermediate Ports Top
Neendakara,
Minor Ports
4.1.2
The Major Port of Kochi is under the Ministry of Shipping, Government of India
while the intermediate and minor ports are under the administration of the Government of
Kerala. Most of the minor and intermediate ports in the State are seasonal in nature and
are underdeveloped. The Kochi Port, with container handling facility, is one of the most
modern international seaports in the country. It spreads over 827 hectares and has a water
frontage of 7.5 Km. An International Container Transshipment Terminal is being
developed at Vallarpadam in Kochi, completion of which would make the Kochi port a
major hub port in the Indian Ocean region.
4.1.3
The State Government has plans to provide a boost to coastal shipping with the
development of ports to ease the burden on the heavily congested highways in the State.
They have allowed private investment in Intermediate and Minor Ports from
1994.Government has also decided to develop a Deep Water Container Transshipment
Terminal at Vizhinjam in Thiruvananthapuram through PPP mode. The Terminal when
completed would be able to cater to container vessels up to 8000 TEUs in the initial
phase and 10000 to 12000 TEUs sizes in the subsequent phases.
18
4.1.4
Canals link the lakes and backwaters to facilitate an uninterrupted inland water
Kerala has the highest road density among other Indian states and a well-
developed transport system operated by both public and private sector, thus enabling a
seamless movement of people and goods across the state. Table 4.2 lists the length of
road network in the state.
4.2: Road Network in Kerala
Sr. No.
Type
1
National Highways
1542
2
State Highways
4655
3
Major District Roads
17117
Total
23314
Source: PWD, Govt. of Kerala
4.2.2
Length (Kms)
Kerala Ltd (RBDCK) on 23rd September 1999 for building and strengthening
infrastructure facilities for the overall development of the state. RBDCK is intended to
give a thrust for multifaceted growth in transport infrastructure by generating additional
resources through institutional finance, market borrowing and private participation.
4.2.3
The Kerala Road Fund Board has been set up by the Kerala State Public Works
19
Implementing Road Safety Projects as are found essential for safe and smooth
movement of traffic
Implementing futuristic projects like Rapid Transit Systems and Metro Rail
Projects in Cities
The Indian Railways has spread its impressive network in Kerala connecting the
state with all the major cities of the country. A number of long distance trains operate
from Kerala to these locations on a daily basis. The Railway division at
Thiruvananthapuram, Palakkad and Madurai (Tamil Nadu) jointly carry out transport
operations in Kerala. The railway network extends over 1148 route Kms in Kerala of
which 111.14 km are meter gauge. The total route length of Railways in
Thiruvananthapuram Division is 625.80 km.
20
Kochi, of which the first two are owned by Govt. of India. The Cochin International
Airport is the first Greenfield airport in India setup on Public Private Partnership model.
21
Together, they have handled 45,715 international flights, carrying 4.9 million passengers
and 36,598 domestic flights carrying 1.9 million passengers in 2008-09.
4.4.2
Besides expansion of the existing airports, two more airports are about to come up
in the State, one at Kannur district and the other at Aranmula in Panthanamthitta district.
These airports will not only cater to the large overseas community of Keralites, but also
help the tourism sector of Kerala with more connectivity and easy flying across the state.
22
52.7 per cent as of March 2010. The state has 1,242 automatic telephonic exchanges, of
which about 98% have Internet connectivity through the national Internet backbone.
According to estimates by the Telecom Regulatory Authority of India, Kerala had nearly
24.2 million wireless subscribers and 3.5 million wire-line subscribers as of March 2010.
Table 4.3 gives a snapshot of the communications in the state.
Visit: www.scribd.com/doc/54987552/kerala-190111
4.3: Communications Snapshot of Kerala
GSM cellular subscribers: 18,873,340
Internet/broadband subscribers: 1,059,800
Wireless subscribers: 24,194,621
Wire-line subscribers: 3,460,358
Post offices: 5,070
Telephone exchanges: 1,242
Source: Economic Review 2010
4.5.2
The state also has the highest penetration of optic fiber cable network in the
country and VSNL has an international communication gateway at Kochi with two highspeed submarine cable landings (SEA-ME-WE-3 and SAFE) offering 15Gbps bandwidth.
23
5.
The State has had an average Industrial growth rate of 10.56 at constant prices in the last
5 years. The contributions of manufacturing sector to GSDP at constant and current
prices are 9.26 per cent and 9.33 per cent respectively during 2009-10. Table 5.1 lists the
key industries in the state.
5.1: Key Industries in Kerala
Handlooms & Power-looms
Cashew
Rubber-based Industries
Beedi
Bamboo-based Industries
Mining
Coir-based Industries
Tourism
Food Processing
Sericulture
Table 5.2 gives the district wise distribution of operating factories from 2007 to 2009.
5.2: District-wise Distribution of Operating Factories
District
2007
2008
Thiruvananthapuram
988
989
Kollam
1827
1827
Panthanamthitta
2801
2823
Alappuzha
412
418
Kottayam
231
231
Idukki
1273
1273
Ernakulam
1508
1510
Thrissur
1039
1041
Palakkad
1948
1969
Malappuram
622
622
Wayanad
2063
2064
Kozhikode
2529
2547
Kannur
895
896
Kasaragod
118
118
Source: Economic Review 2010
2009
994
1820
2822
419
244
1274
1535
1036
1968
623
2065
2544
895
120
24
25
Mazhuvannur, KINFRA Food Processing Park at Adoor and Seafood Park India Private
Ltd at Aroor are the five Food Processing Industries parks already set up by KINFRA.
26
5.1.4 Power-loom
Power-loom industry employs about 0.1 million people and ranks second among the
traditional industries of the state in terms of providing employment. The industry is
concentrated in the districts of Palakkad, Kozhikode, Thrissur, Ernakulam, Kollam and
Kasaragod. Around 94 per cent of the total number of looms is under the cooperative
sector, the rest being under industrial entrepreneurs. At the end of March 2009, there
were 676 registered primary handloom weavers co-operative societies (PHWCS),
consisting of 150 factory-type societies and 526 cottage-type societies. The overall
production of cloth in the co-operative sector of Kerala was 20.2 million meters in 200809, valued at US$ 32 million.
5.1.5 Electronics
The self-contained Electronics Technology Park at Technopark, Thiruvananthapuram,
has been instrumental in attracting global electronics manufacturers. The state has an
advantage of the availability of skilled and semi-skilled workers for the electronics
industry. Major companies operating in this sector include Traco Cable Company
Limited, Transformers & Electricals Kerala Limited and Kerala State Electronics
Development Corporation Limited.
5.2 Quantum of Output
5.2.1 Table 5.4 shows time series data series showing growth in past five years in Kerala
from 2003-2004 till 2008-2009.The No. of Factories, Value of Output, Net Value Added
shows a uneven trend. There was decrease in no. of Factories in 2006-2007 over previous
years and shown a marginal increase from 2007-2008 till 2008-2009.The Value of Output
shows a increasing trend from 2003-2004 till 2005-2006.Thereafter it declined and shown
a increasing trend during 2008-2009.The Net Value Added was highest during 20072008.It showed a decline during 2008-2009. Similar time series data based on several
characteristics is depicted in Annexure 7. Annexure 6 lists the distribution of factories
employment in overall and manufacturing sector in Kerala.
27
5.2.2 Gross Capital Formation (GCF) Gross capital formation had witnessed a huge
growth between 2003-04 and 2004-05 followed by sluggish growth between 2004-05 and
2005-06. The GCF had declined by about 30% between 2005-06 and 2006-07, followed
by another huge growth of 105%. Between the years 2007-08 and 2008-09, it declined by
56%. Table 5.5 lists the gross capital formation for the period between 2003-04 and
2008-09.
28
5.3 Efficiency
5.3.1
overall industry and in particular the manufacturing sector for India and Kerala. The fact
of the manufacturing sector not being a core sector of the State is evident in the ratio,
where the state is a lot lower on the characteristics.
5.4 Constraints
5.4.1 Availability of Land Due the high density of population, there is a shortage of
industrial space in the state. Most of the industrial parks and estates have already been
fully allotted and the State Government is in the process of acquiring new land for
development. Until then there could be no major expansion of the industry in the state.
29
5.4.2 Infrastructure The State is also facing the issues of inadequate and
underdevelopment infrastructure, particularly in Power and Logistics sectors. The State
Government has plans to develop rivers and backwaters to establish an Inland Waterways
System and ease the traffic on the road network.
5.4.3 Power Shortage The State is currently facing a huge shortage of power supply and
there have been constant power-cuts for industries. Due the lack of available land for
power projects and environmental concerns, there could be no new power projects be
established in the State.
5.4.4 Environmental Issues The State has a huge green cover and there have been issues
for developing factories which release pollutants. The current regulations also delays the
process of environmental permits for new units.
5.4.5 Greater Focus on Less Labor Intensive Jobs Over the years the service industry in
the state has developed immensely attracting manpower from the state. This has led to a
shortage of skilled manpower for labor intensive manufacturing jobs.
5.4.6 Raw Material Shortage Rubber-based Industries are prominent in the State and
currently there is a shortage of the raw material due to issues such as small landholding of
rubber plantations etc
30
6.
6.1 SMEs
6.1.1 Micro, small and medium enterprises (MSMEs) sector contributes significantly to
the manufacturing output, employment and exports of the country. In Kerala, the State
Government has provided special support to MSMEs due to its high employment and
economic growth potential. This sector contributes greatly towards domestic needs,
export marketing and foreign exchange earnings by producing variety of products
ranging from traditional to high tech. Though the volume of production of MSME sector
is very large, the quality of production, diversification of products, energy consumption
and environmental effects has always been a concern.
6.1.2 As of March 2010, there were about 213740 SSI/MSME units registered in the
state. The total investment in the tune of Rs. 731212.13 lakhs, the total number of
employment generated is 831847 and value of goods and services produced is Rs.
1545949 lakh. Table 6.1 lists number of SME units operating in the state based on
industry type. Table 6.2 lists the key MSME Clusters operating in Kerala.
6.1: Number of SME Units Operating in Kerala (Mar, 2011)
Industry
No. of Units Industry
No. of Units
Type
Operating
Type
Operating
Wood Based
1057
Mobile Phone Repairing
97
Food Products
1619
Rexin Products
185
Readymade Garments
1553
Wax Candles
79
Cement Products
766
PVC Products
133
General Engineering
1821
Mineral Water
31
Software Development
504
Paper Products
175
Marine Products
26
Printing
324
Rubber Products
143
Miscellaneous
3235
Products/Services
Fiber Glass Products
30
Total
11778
Source: Directorate of Industries, Govt. of Kerala
31
Location
Kollam
Kottayam
Malappuram
Palakkad
-
Product
Coir &
Rubber
PowerPower-
6.1.3 The Kerala Bureau of Industrial Promotion (K-BIP) is coordinating the Cluster
Development activities throughout the State in association with Directorate of Industries
and Commerce. It coordinates the implementation of setting up of Common Facility
Centers (CFCs) in clusters as per MSMEEDP scheme of Government of India. Table
below provides details on clusters that have been sanctioned under this scheme. Table 6.3
lists the sanctioned MSME clusters under the MSE-CDP Scheme in Kerala.
Visit: www.kerala.gov.in
6.3: Sanctioned MSME Clusters under MSE-CDP Scheme in Kerala (As on
30.6.2011)
Name of Cluster
Location
Total Investment
(Rs. Lakhs)
Rubber Cluster
Plastic Cluster
Plywood Manufacturers
Terra Tile Cluster
Furniture Cluster
Rice Millers Cluster
Wood Cluster
General Engineering Cluster
Changanacherry, Kottayam
Aluva, Ernakulam
Perumbavoor, Ernakulam
Thrissur
Ernakulam
Kalady, Ernakulam
Malappuram
Malappuram
266.54
490
417.23
499.3
496.58
713.4
238.9
315.01
Pala, Kottayam
454.86
Printers Clusters
Ernakulam
Nature Fiber& Allied Products Vaikkom, Kottayam
Cluster
253
485
6.1.4 There were further proposals submitted by the State Government to Central
Government for developing the following clusters,
32
Large Industries
6.2.1 There are 63 State Public Sector Units (SPSUs) under the Industries Department out
of which, 17 have remained closed for long periods. Five are welfare corporations and
four are developmental agencies. Thirty seven companies are directly engaged in
manufacturing activities. Table 6.4 gives a break up of SPSUs based on type of industry.
Figure 6.1: Industry-wise State Public Sector Units in Kerala
33
7.
Raw Materials
7.1 Description
7.1.1 The State is endowed with a variety of mineral resources; however they are not
available in plentiful amounts. There are occurrences/deposits of minerals such as Heavy
Mineral Sands ( Ilmenite, Rutile, Zircon, Monazite, Sillimanite), Gold, Iron ore, Bauxite,
Graphite, China Clay, Fire Clay, Tile and Brick Clay, Silica Sand, Lignite, Limestone,
Limeshell, Dimension Stone (Granite), Gemstones, Magnesite, Steatite etc. Mining
activities are largely confined to few minerals such as Heavy Mineral Sands, China Clay
and to a lesser extent Limestone/Limeshell, Silica Sand and Granite. Heavy mineral sand
and China Clay contribute more than 90% of the total value of mineral production in the
State. Table 7.1 listed the mineral production in Kerala for 2009-10.
7.1.2 There are extensive deposits of white clay and commercially valuable deposits of
graphite, lignite (brown coal), limestone, and mica in Kerala. Iron ore has been found at
Calicut. Kerala's monazite, magnetite, sillimanite, and zircon deposits are largely
undeveloped. Apart from this the beach sand of Kerala is rich in radioactive elements.
Although it has been proved that there are deposits of gold at some places of Wayanad,
Kozhikode and Malappuram districts, mining is yet to start. Neendakara, Chavara and
Kayamkulam regions have ample deposits of illuminate, magnetite, zircon etc. Kerala
State Mineral Development Corporation and the Mining and Geology Department play
the lead role in mining and research. Annexure 4 lists the location and mineral reserves.
7.1: Mineral Production in Kerala (2009-10)
Mineral
Production (Tons)
Mineral
Production (Tons)
China Clay
947619.8
Quartz
1145
Ilmanite
162066.67
Graphite
820
Rutile
8226.71
GBS
9765296.19
Zircon
16002.89
GDS
1109.65
Sillimanite
7310.29
Laterite
1322706
Silica Sand
179758.6
Brick Clay
1201741.1
Limeshell/Sea shell
85395.36
Ordinary Sand
2679072.5
Lime stone
686549.04
River Sand
5248901.6
Bauxite/Laterite
110451.44
34
8.
A long tradition of literacy and quality education has been the core strength of Kerala.
According to the 2011 census, Keralas literacy rate is 93.91%; well ahead of the national
average. With several reputed universities and technical institutions like engineering
colleges, institutes for information technology and management, research institutions, etc,
Kerala has the densest cluster of Science & Technology personnel in the country. The
large pool of educated and skilled human resource has substantial exposure to the best
practices of global business requirements thereby providing the state with the right
platform for social and economic growth.
Concerted effort is being made by the State Government for skill upgradation of work
force to match the world standards. The Government has plans for the formulation of a
scheme for capacity development of human resources for the next 20 years involving
premier institutes in the domain. A task force is being created to identify the skill sets
required for modern industries, setting up of finishing schools to meet the requirements
on the basis of the recommendations of the task force and establishing Management
Institutes for Micro Enterprise Development.
A number of factors are converging to create skills imbalance in the economy changing
age of the workforce, larger generation of young workers and available resources,
changing nature of jobs from agrarian to manufacturing to servicing, need for
investments in training vis--vis growth requirements, and insufficient workforce
planning, to name a few.
35
8.1.2 As of 2010 there are about 119 engineering colleges in the state with a total
sanctioned intake of 38009. Out of these engineering colleges, 105 (88.24%) are selffinancing colleges, 11 (9.24%) are government colleges and 3 (2.52%) are private aided
colleges. Kerala University has the largest number of engineering colleges affiliated to it.
During 2010, 35 self-financing engineering colleges are started in the state. Tables 8.1 list
the number of technical institutions in the state.
Institutions
Government
Number
3
Colleges
Private Aided Engineering 3
College
Schools
Government
Polytechnic 36
Colleges
Government
Government
Commercial 17
Institutes
Women's 7
Polytechnic Colleges
Training Centers
Colleges
Source: Directorate of Technical Education
8.1.3 The Industrial Training Department is responsible for the functioning of Industrial
Training Institutes (ITIs) in the state. There are currently about 52 ITIs and a basic
training centre, with a total intake of 16503 students, of which 30% of the seats are
reserved for women candidates. Table 8.2 lists the district wise distribution of ITIs/ITCs
in the state.
Visit: www.det.kerala.gov.in/index.php
36
No of Affiliated ITIs/ITCs
Total
Government
Private
General
Women
SCDD
General
Women
SCDD
Thiruvananthapuram 62
51
Kollam
53
48
Panthanamthitta
35
33
Alappuzha
49
45
Kottayam
35
31
Idukki
10
Ernakulam
57
55
Thrissur
42
34
Palakkad
17
14
Malappuram
16
11
Kozhikode
27
23
Wayanad
Kannur
29
26
Kasaragod
Total
445
19
25
389
37
2007 (%)
2008 (%)
2009 (%)
2010 (%)
Medical Graduates
1.55
1.55
1.66
1.28
Engineering Graduates
5.1
5.54
6.51
4.74
23.56
22.21
24.8
23.6
68.93
69.84
66.23
69.89
Agricultural Graduates
0.47
0.455
0.4
0.25
Veterinary Graduates
0.39
0.402
0.41
0.23
Total
100
100
100
100
8.2.2 Analysis of the sector wise growth of employment in public and private
establishments in Kerala in March 2010 revealed that the highest employment is in the
community, social and personnel services 44.29%, followed by manufacturing 22.91%,
financing and business services 9.20%, Transport 8.32%, Agriculture 7.17%, Electricity,
Gas, Water, Sanitary services 2.63%, Construction 1.91% and the lowest employment is
in the mining and Quarrying 0.239%.
8.2.3 Engineering colleges in the state offer varied courses to suit the needs of the
growing industry. Annexure 8 and 9 provide details on course-wise student intake for
engineering and polytechnic colleges.
8.3 Labor Wage Rate
8.3.1
agriculture, manufacturing and service industries under the Minimum Wages Act, out of
which minimum wages are notified in 46 employments. Annexure 10 lists the minimum
wages for key manufacturing industries of the state.
38
During 2009-10, 2352 industrial disputes were registered in the State. At the end
of the year, there were 5122 cases along with the pending disputes of previous year which
is less than 14.1% of previous year. A total of 2357 disputes were settled during the year
under review. Due to strike and lockout 39347 workers were affected which led to loss of
839788 man days. Table 8.4 and 8.5 lists the number of strikes and lockouts in the state
and the lost man-days.
8.4: Labor Strikes Over the Year in Kerala
2006
2007
2008
2009
Items
2005
Pending
Arose
Total
Man-day lost
1
10
11
3250553
0
6
6
86977
1
2
3
86746
0
22
22
394198
4
18
22
177494
2010
(As
on
30.9.10)
3
8
11
135502
Items
Pending
Arose
Total
Man-day
lost
27
4
31
1855429
23
6
29
1811755
27
0
27
1505370
4
5
9
758144
8
13
21
506606
2010 (As
on
30.9.10)
10
9
19
649439
The prominent role of the Labor Department is to maintain industrial peace and
39
conducive climate for sustained investment. Labor Department is responsible for the
enforcement of labor enactments, settlement of industrial disputes, administration of
various welfare measures, revising / fixing the minimum wages of employees,
implementation of social security and insurance schemes so as to safeguard the rights and
privileges of working class and thereby providing a labor friendly atmosphere in the
State. There are 30 labor enactments administered by the Department. 83 categories of
employment have been covered by the minimum wages Act, 1948 out of which minimum
wages are notified in 46 employments.
8.6 Labor Regulations
8.6.1
Kerala is a model state for labor welfare measures. About 28 Labor Welfare Fund
Boards are functioning in Kerala under different departments. The State Government is
of the view that healthy labor relation and good work culture are the pre requisites for the
growth and sustenance of the industry. They have proposed to spearhead a massive
campaign to highlight the healthy labor relations and to remove the unfounded
perceptions.
The management will have the right to choose and deploy employees. However, local
workforce shall be engaged to the extent possible.
Government will take initiative in promoting a new management culture through regular
interaction with the industrialists and trade unions.
A reconciliation forum will be set up involving Departments of Labor, Industries and
Commerce, ensuring participation of trade unions for the effective redressal of labor
issues. Arbitration mechanism shall be implemented if industrial disputes arise, for
speedy decisions.
Public Sector Advisory Board and Fast Track Labor Courts will be constituted for Policy
making and dispute settlement.
40
9.
Kerala is one of the first states in India to have legislation for statutory Single
Window Clearance. The Government of Kerala has introduced the Single Window
Clearance System from 1st June, 2000 for expediting the issue of various clearances for
new Industrial Projects. As per this system, a final clearance for all new projects, either
approval or rejection, is to be given within a specific period from the date of submission
of application; a statutory requirement under the Kerala State Single Window Clearance
Boards and Industrial Township Area Development Act 1999.
9.1.2
A State Level Board for aiding medium and large-scale industries has been
constituted in this regard, headed by the Chief Secretary, which shall issue clearances
within a timeframe of 45 days. Kerala State Industrial Development Corporation has been
designated as the Single Contact Point and the Convener of the State Board. The Board
has statutory powers to enforce its decisions.
9.1.3
In a similar manner, District Level Boards have been constituted for clearing
small scale industrial undertakings, with the District Collector as the Chairman and
General Manager, District Industries Centre as the Convener; the stipulated time frame
being 60 days.
9.1.4
Industrial Area Boards have also been set up in various industrial areas of the
state for the clearance of projects being set up in these areas. An officer not below the
rank of District Collector is the Chairman in each Board, with the Designated Authority
of the Industrial Area as Convener, to issue clearances within a period of 30 days
9.1.5
A composite application form has also been formulated, which the entrepreneur
needs to submit only at the designated contact points. With the introduction of the Single
Window Clearance System, setting up of Industrial projects in the State is expected to
41
become a hassle free operation. Table 9.1 shows the Single Window Clearance process
and Table 9.2 lists the number of applications cleared/disposed since inception.
9.1: Single Window Clearance Process in Kerala
42
43
class facilities for manufacturing, contract manufacturing, R&D and fabrication units in
the electronics sector. The Hub would house companies in the semiconductor and
electronic components sector, including their manufacture, research & development,
design, etc. The land acquisition procedure has been initiated.
Petro-Chemical Complex - The market survey conducted by KSIDC by engaging M/s.
Industrial Development Service Pvt. Ltd. (IDS), New Delhi has established scope for
setting up a project for manufacturing Propylene Oxide utilizing Propylene available with
BPCL-Kochi Refinery. In this context, KSIDC has developed a proposal for setting up a
Propylene-based petrochemical complex at Kochi. The estimated investment for setting
up the above project is Rs.1000Crore. KSIDC has prepared a pre-feasibility report for the
project and is looking for technology tie-up.
Titanium Sponge Project - Govt. of Kerala proposes to set up a Titanium Complex in
Kollam District consisting of a Titanium Sponge Plant of 10000 tons per annum capacity,
Titanium metal and downstream products. The proposed plant will be located adjacent to
the Kerala Minerals and Metals Ltd. (KMML), Chavara, a Govt. owned company
producing Titanium products. An extent of about 300 acres of land has been identified for
the project. KSIDC has commissioned a consultant to conduct techno-economic
feasibility of the project.
LNG Terminal - As the State's Promotional Agency, KSIDC has been instrumental to
facilitate establishment of the LNG Terminal at Kochi. The Terminal is being
implemented by M/s. Petronet LNG Ltd, a joint venture of ONGC, GAIL, IOC and
BPCL. Capacity of the LNG Re-gasification Terminal in the 1st phase is 2.5 Million
TPA, which will be enhanced to 5 Million TPA in the 2nd phase. The location is inside
the Cochin Port SEZ at Puthuvypeen, Kochi. The project aims to supply Regasified LNG
(R-LNG) to various customers in sectors like power, fertilizer, and industrial sector and
for City Gas Distribution (CGD) in the Southern States of Kerala, Tamil Nadu and
Karnataka, with the pipeline infrastructure is in place. The project, which has an
estimated cost of Rs.3,600Crores in the 1st phase has 3 major components, viz., Storage
Tanks, Marine Facility and Re-gasification Facility. 2 Nos. of Storage Tanks with a total
capacity of 5 Million TPA are under construction.
44
GAIL Pipe Line Project - KSIDC has signed an MoU with M/s. GAIL India Ltd, a'
Navaratna' Central PSU to facilitate establishment of Gas pipeline in the State of Kerala.
GAIL proposes to lay Gas pipeline from the Kochi LNG Terminal to various bulk
consumers of Gas in Kerala, Tamil Nadu and Karnataka. GAIL is laying the pipeline in
the following routes, for supply of R-LNG from the Kochi Terminal.
1. Kochi-Koottanad-Bangalore-Mangalore Pipe line (KKBMPL) Project
2. Sub-Sea Gas pipeline from Kochi to NTPC, Kayamkulam
3. The project will be implemented in 2 phases. The 1st phase is expected to be
completed in 2012 and the 2nd phase in 2013. The total project cost is estimated
at Rs 3,700 Crores.
Gas Distribution Project - KSIDC has signed a JV Agreement with GAIL for promoting a
Joint Venture Company (JVC) to develop Gas Distribution Project in Kerala. The JVC
proposes to create the Supplementary Gas Infrastructure in the State. It also intends to
take up City Gas Distribution Projects in the State.
Industrial Corridor - The Kochi-Coimbatore, Kochi-Kasaragod Industrial Corridor is
designed to utilize the existing infrastructure and new projects like LNG Terminal, ICTT
Vallarpadam, LNG Pipelines and High Speed Rail Corridor. The vision of the project is
to create strong economic base with global competitive environment and state of art
infrastructure to activate local commerce, enhance foreign investment and attain
sustainable development. The project is conceived to be developed as a global
manufacturing and trading hub supported by world class infrastructure and green
technology. The goals of the project are to double the employment, industrial output and
exports within a period of 5 years. The RFP for consultancy and pre-feasibility study will
be issued immediately. The first phase of the project proposes to start the corridor with
5000 hectares of land in the Kochi-Coimbatore route. The project would be implemented
through an SPV which would coordinate project development, finance and
implementation.
Gas based Thermal Power Project - Govt of Kerala, vide Govt order GO (MS)
No.19/2009/ID dated 07..02..2009, have appointed KSIDC as nodal agency for
development of thermal power project at Cheemeni, Kasaragod and allocated 2000 acres
of land necessary for the project. Govt. has constituted a Steering Committee with Chief
45
Secretary as Chairman for taking decisions on the project. Vide GO dated 1.12.2010
Govt. of Kerala have accorded administrative sanction for setting up of Gas based
Thermal Power Plant at Cheemeni, Kasaragod with project configuration of 1100-1200
MW units. A Special Purpose Vehicle (SPV) with 50:50 equity participation by KSIDC
and KSEB is being formed shortly for development of the power project. KSIDC has
appointed consultants for carrying out DPR&EIA studies, and the DPR is available.
Government of Kerala will be providing land on lease and obtain clearances for the
project. Apart from these, the Govt. will also provide Viability Gap Funding Grant to the
extent of Rs.500crores covering a period of 5 years. The project would be developed
through a developer selected through tariff based competitive case -2 bidding guidelines
of Govt of India. The process for selection of developers will be initiated shortly.
KSIDC has developed four Industrial Growth Centers (IGC) in the State, located at
Kannur, Kozhikode, Malappuram and Alappuzha districts. The Industrial Growth Centers
are aimed at the development of industrially backward districts of the State. The
Industrial Growth Centers are under various stages of development and thrust is given for
improving essential infrastructure facilities, in order to attract entrepreneurs.
All IGCs are provided with basic infrastructure facilities required for industries like
Roads, Telecommunication, Water Supply, Power, Administrative Buildings, etc. Land is
allotted to prospective entrepreneurs in the form of industrial plots and built up area.
Visit: www.ksiidc.com
46
47
9.2.7
WEAKNESSES
Shortage of Industrial Land Majority of
Industrial Parks are already full
State facing acute power shortage leading
to industry inefficiency
Underdeveloped logistical infrastructure
connecting interior regions to ports
48
Cont
OPPORTUNITIES
Located close to a major Global Trade
Route
Potential for Electronics & Light
Engineering based industries
Potential for Food-Processing Industry due
to its proximity to Middle East
Availability of Inland-waterways which
can be developed for direct connectivity to
Ports
THREATS
Rampant increase in manufacturing
industry may to lead to destruction of
environment which is key for the State to
maintain is Tourism dominance
49
10.
50
In addition to the above, the project should be financially and technically viable with
satisfactory financial indices like Internal Rate of Return (IRR), Debt Service Coverage
Ratio (DSCR), payback period etc, and the promoter directors should execute personal
guarantees with the Corporation for the timely repayment of the financial assistance
sought.
Visit: www.ksidc.org/projectlending.php
10.1: Project Lending Pre-requisites for KSIDC Financing
Debt
Equity (a) 1:1 up to 1.5:1 for new companies with minimum/no track record.
Ratio
(b) 1.5:1 upto 2:1 for companies in the thrust sectors/expansion of
good assisted units & other good non-assisted units.
Term Loans
Up to Rs.20Crore can be sanctioned. No cap for term loan under
direct financing. However loan exceeding Rs.20crore is subject to
approval
by State Govt. The minimum amount considered for assistance is
Rs.1 Crore except in case of expansion proposals of assisted units,
where the minimum limit would be Rs. 50 lakhs.
Short
Term May be considered for assisted units on a selective basis.
Loan
Repayment
Repayment period is 6-8 years with a moratorium of 2-3 years, on a
selective basis.
Interest Rate
Based on a sliding scale with interest band ranging from 10.50 12.50% for thrust sectors & 11.50 - 13.50% for others.
Source: KSIDC
51
11.
11.1
Conclusions
The new State Government has envisaged a 100-day program towards the development
of the state by bringing in industry-friendly policies and establishing institutional
structures for industrial growth. Following key initiatives have to be quickly taken up for
increasing the competitiveness of the state.
11.1.1 Industrial Policy The State requires a new industrial policy since the previous
one was released in 2007. There should be a greater focus on providing incentives and
capital support to investors.
11.1.2 Creation of Land Banks One of the major constraints for any industrial project
is the availability of land. There is an immediate need for the creation of land banks for
industrial use.
11.1.3 Availability of Power The State has been facing huge power shortages for a
while and this will be a deterrent to prospective investors for setting up industries in the
state. The State has to evolve a policy to either improve power generation locally or allow
industries to purchase power directly from other states/private power companies.
11.2
52
11.2.2 Coir
Because:
Kerala has 95 percent of the total coir produced in the country
Presence of suitable infrastructure to support the development of the coir industry in the
form of coir parks
Potential to export coir products-US and European Union are the biggest markets.
53
54
55
56
Mineral
Mineral Sands
Iron Ore
Bauxite
144
84
12.5
Neendaraka, Kayamkulam
Kozhikode, Malappuram,
Sooranad,
Vadakkumuri,
Chittavattom,
Adichanallur (Kollam District) Mangalapuram,
Chilambil,
Sasthavattom,
Attipra
(Thiruvananthapuram),
Thiruvananthapuram, Kollam, Kannur, Kasaragod
Kollam, Alappuzha, Ernakulam, Thrissur, Kannur
Coastal areas
Thrissur,
Kozhikode,
Ernakulam,
Kollam,
Thiruvananthapuram, Kannur and Palakkad
China Clay
Ball Clay
Fire Clay
Tile & Brick
Clays
172
5.67
11.5
-
Graphite
6.81
Silica Sand
Limestone
28.4
Alappuzha
24 Million Palakkad, Idukki
Crystalline
Limestone
Gemstones*
Granite
Magnesite
0.037
Palakkad District
Steatite/Talc
7.94
Kannur District
*Chrysoberyl, Cat's eye, Alexandrite, Ruby, Sapphire, Beryl, Aquamarine, Topaz,
Kornerupine, Zircon, Sphene, Spinel, Garnet
57
Structural
ratios ALL
SECTORS
Orissa
Fixed
Capital 203
per Factory (Rs.
Lakh)
Gross
Output 1209
per Factory (Rs.
Lakh)
Net
Value 131
Added
per
Factory
(Rs.
Lakh)
Workers
per 56
factory Number
Structural
ratios ALL
SECTORS
India
680
Structural ratios
only
for
Manufacturing
Sector Orissa
206
Structural ratios
only
for
Manufacturing
Sector India
672
2107
1223
2154
340
135
350
57
58
58
73
67
75
Net
Value 201938
Added
per
Employee
(Rupees)
Emoluments per 70569
Employee
(Rupees)
465916
202999
465554
114272
69811
115091
Wages
per 47612
Worker (Rupees)
68103
47000
68507
Employee
factory Number
65
58
All India
Characteris
manufactur
all
% all
manufactur
all the
% all
tics
ing sector
manufactur
the
sector
ing sector
manufactur
sectors
sectors
No. of
322358
322358
33104
33104
8511704
8511704
877674
877674
workers
Total
367768
367768
3
38155
3
38155
10946303
10946303
5
113274
5
113274
persons
0 --- 14
2360
42.74
8
2454
8
41.82
53175
36.49
85
56379
85
36.3
15 -- 19
512
9.27
569
9.70
15359
10.54
16509
10.63
20 -- 29
463
8.38
493
8.40
17288
11.86
18683
12.03
30 -- 49
571
10.34
643
10.96
18720
12.85
20318
13.08
50 -- 99
571
10.34
617
10.51
17752
12.18
19145
12.33
100 -- 199
403
7.30
444
7.57
10677
7.33
11261
7.25
200 -- 499
263
4.76
269
4.58
7530
5.17
7765
500-999
128
2.32
128
2.18
2795
1.92
2824
1.82
1000-1999
127
2.30
127
2.16
1440
0.99
1442
0.93
2000-4999
95
1.72
95
1.62
716
0.49
721
0.46
5000&
29
0.53
29
0.49
274
0.19
274
0.18
Above
Total
5522
100.00
5868
100.0
145727
100
155321
100
0 MoSPI, GoI
Source: Annual survey of Industries, Volume 1, 2008-09,
59
Annexure 7: Estimate of selected characteristics of factory sector by 3-digit industry group (NIC-2008) for Kerala
Characteristics
Number of
Factories
(no.)
Fixed
Capital
Invested
Capital
Total
Output
Total
Inputs
Gross
Value
Added
Net
Value
Added
Income
Profit
75
87
61
70
-9
-22
-22
-34
114
19683
33402
146414
133782
12632
10426
1448
-2181
35
1536
2281
4074
4064
10
-110
-191
-662
35
9757
17763
92747
89569
3178
1705
514
-1144
56
14217
16753
67461
59232
8229
6513
6070
2596
148
26334
48719
171540
164246
7294
4597
2425
573
777
49856
143901
564121
469227
94894
90156
80749
31227
18
4632
7249
39339
30898
8441
7795
7234
5850
41
30023
38437
60199
52869
7330
4051
3184
-563
799
316
436
16801
6740
10061
10041
9970
860
162
94647
121294
60739
58373
2366
-6953
-14752
-25280
170
38496
55531
69936
70857
-921
-4230
-11984
-18617
24
15404
18321
26439
17176
9263
8291
6782
829
20
55
277
663
548
115
107
106
68
60
394
1893
4694
3667
1027
977
822
402
85
7023
10422
35927
28497
7430
5890
5361
3633
216
820
1558
8886
7199
1687
1594
1399
245
321
14120
23882
76683
65638
11045
9369
7356
1161
116
28488
45868
86404
63863
22541
19860
18220
8332
117
8272
14502
40292
22138
18154
17351
15500
10430
21
310443
465349
2765979
2580966
185013
165929
163986
163986
70
90979
124502
341243
307660
33583
24980
19682
19682
118
24845
51792
128565
91904
36661
34154
31869
31869
124
23883
35173
50953
35913
15040
12379
9226
9226
280
55816
88039
538541
430441
108100
100962
96711
96711
170
14037
21635
64768
50560
14208
12145
9626
9626
3551
4821
7096
6181
915
631
76
76
867
60401
76833
113463
79891
33572
28183
25473
25473
241
59747
135339
583786
552660
31126
25978
19177
19177
61
23
15073
23569
54068
46616
7452
6090
5125
1893
30
6389
12790
33837
31502
2335
1539
577
-1316
51
633
1046
3467
2597
870
818
786
-223
91
3436
5352
14033
11645
2388
2023
1708
-543
19
27566
44330
92535
66828
25707
23357
18570
9426
952
2385
6584
5033
1551
1476
1401
182
405
3459
14811
9225
5656
5619
5542
4334
29
1686
8757
41202
27475
13727
13467
13206
7312
91
91
-9
-9
-9
62
1380
Agricultural Engineering
46
Architecture
180
Automobile Engineering
300
Bio-medical Engineering
180
Bio- Technology
300
Civil Engineering
4472
Chemical Engineering
170
7460
25
9060
5460
300
Food Technology
60
120
Industrial Engineering
30
Information Technology
2715
Mechanical (Automobile)
60
Mechanical Engineering
5181
90
Polymer Engineering
60
150
Printing Technology
30
Aeronautical Engineering
180
Total
38009
63
64
Handloom Industry
Unskilled
Semi-skilled
Skilled
Unskilled
Semi-skilled
Skilled
Highly skilled
Lowest Rate
Highest Rate
Unskilled
Semi-skilled
Skilled
Highly skilled
175
225
250
118
124
131
137
128
130
65
68
106.62
164.3
51.66
51.66
51.66
51.66
51.66
51.66
51.66
68.06
68.06
94.28
94.28
94.28
94.28
Total
Wages
164.29
168.6
170.75
175.06
138.04
142.27
144.38
150.73
203.06
218.06
227.06
242.9
245.3
247.7
124.65
141.65
175.46
273.46
226.66
276.66
301.66
169.66
175.66
182.66
188.66
196.06
198.06
159.28
162.28
200.9
258.58
65
Ice Factory
Unskilled
Highly skilled
Khadi Industry categorized according Grade VII
to
turn over
Grade VI
Grade V
Grade IV
Grade III
Grade II
Grade I
Light Motor Vehicles
Lowest Rate
Highest Rate
Match Industry
Lowest Rate
Highest Rate
Minor Engineering
Unskilled
SemiskilledGr.2
SemiskilledGr.1
Skilled Gr.3
Skilled Gr.2
Skilled Gr.1
Highly skilled
Supervisory
Minor Ports
Lowest Rate
Highest Rate
Oil Mill
Unskilled
Semi-skilled
Skilled
Power loom Industry excluding the Unskilled
workers employed in power loom Semi-skilled
section of Cotton Textile Mills in the
Skilled
State
Highly skilled
Printing Press
Unskilled
Skilled C
Printing Press
Skilled B
Skilled A
72.96
75.31
115
81.26
81.26
51.66
154.22
156.57
166.66
134
144
153
163
173
192
148
174
59.3
66.7
138
150
51.66
51.66
51.66
51.66
51.66
51.66
68.06
68.06
71.47
71.47
68.06
68.06
185.66
195.66
204.66
214.66
224.66
243.66
216.06
242.06
130.77
138.17
206.06
218.06
145
68.06
213.06
164
158
154
166
192
75
139
123
126.8
127.85
71.8
73.38
78.16
78.16
137.55
151.3
166.4
183.1
68.06
68.06
68.06
68.06
68.06
209.03
209.03
68.06
68.06
68.06
80.11
80.11
80.11
80.11
54.32
54.32
54.32
54.32
232.06
226.06
222.06
234.06
260.06
284.03
348.03
191.06
194.86
195.91
151.91
153.49
158.27
158.27
191.87
205.62
220.72
237.42
66
Unskilled
167
45.05
Semi-skilled
174
45.05
Skilled
181
45.05
Rubber Crepe Mills
Unskilled
130
68.06
Semi-skilled
134
68.06
Skilled
139
68.06
Rubber Products Industry
Unskilled
85
88.11
Semi-skilled
92.5
88.11
Skilled
95
88.11
Highly skilled
96.25
88.11
Tile Industry
Unskilled
120.2
68.06
Semi-skilled
120.7
68.06
Skilled
121.8
68.06
Highly skilled
122.3
68.06
Timber Industry and Plywood Industry Unskilled
111
68.06
Semi-skilled
113
68.06
Skilled
115
68.06
Highly skilled
122
68.06
Manufacture and sale of Umbrellas
Guaranteed Minimum Wages - 125/Grade VII
155
43.42
Grade VI
165
43.42
Grade V
173
43.42
Grade IV
177
43.42
Grade III
185
43.42
Grade II
205
43.42
Grade I
231
43.42
Source: Department of Labor, Govt. of Kerala
212.05
219.05
226.05
198.06
202.06
207.06
173.11
180.61
183.11
184.36
188.26
188.76
189.86
190.36
179.06
181.06
183.06
190.06
198.42
208.42
216.42
220.42
228.42
248.42
274.42
67
Procedure
Time to
Complete
(in days)
Associated
Cost (in
INR)
100
1500
500
1,525
15
67
Obtain a Tax Account Number (TAN) for income taxes deducted at the
source from an authorized franchise or agent appointed
14
57
14
I500
25
1,800
10
No Cost
11
18
No Cost
12
15
No Cost
30
68