INDIAN STATE : KERALA

Special Economic Zone (SEZ)

Special Economic Zone (SEZ) is one of the major thrust area for export promotion. Special Economic Zones (SEZs) are been set up in the country in order to provide an internationally competitive and hassle free environment for exports.

Kochi is the only City in India having three Special Economic Zones

• Electronic Park at KINFRA in Kalamassery
  
• Cochin SEZ
  
• Port Based SEZ

Other SEZs

• Malappuram Food Park.
  
• Techno park.

Proposed SEZs

• Thiruvananthapuram Apparel Park.
  
• Film and Video Park Animation SEZ (The first Animation SEZ in India).

SEZ status for animation zone: Further, government of India has sanctioned Special Economic Zone status to the Animation Zone at KINFRA Film and Video Park, Thiruvananthapuram.This is the first time that the Central Government is granting SEZ status to an animation zone in the country. Ten hectares of land in the park has been earmarked for the animation zone. The SEZ status is expected to boost the growth and development of the capital city.

Finance

The government of Kerala assists Industrial units by providing them financial assistance, infrastructure and training/ consultancy services.Important agencies/ departments engaged in the industrial promotion in the State are:

Kerala Financial Corporation (KFC):

Kerala Financial Corporation (KFC) provides term loan assistance up to a maximum of Rs.500 lakhs per unit for corporate sector and Rs. 200 lakhs for others to develop and promote small and medium scale industrial units in the state. For the SSI segment, KFC sanctioned an amount of Rs. 3939.02 lakhs for 213 projects and the total sanction amounts to Rs. 10950.78 lakhs in 385 projects. During the year 2004-05, KFC disbursed an amount of Rs. 8547.82 lakhs; earmarking Rs. 4096.56 lakhs to SSI segment for 187 projects.

Kerala State Industrial Development Corporation (KSIDC):

KSIDC acts as a promotional agency involved in catalyzing the development of physical and social infrastructure required for the constant growth of the industry that will be further strengthened.

During 2004-05, KSIDC assisted in eleven projects with a total investment of Rs. 30 crores and generating employment to 401 persons. It approved financial assistance to 25 projects with an estimated investment of Rs. 192 crores for giving employment to 1487 persons. Twenty-eight projects with an estimated cost of Rs. 670 crores are under implementation that will provide employment to 1731 persons.

During the year 2004-05, KSIDC sanctioned Rs. 91 crores and disbursed Rs. 24 crores. The recovery of principal and interest on loans from assisted units amounted to Rs. 55 crores. The total overdue to the corporation as on 31st March 2005 stood at Rs. 415 crores. During 2004-05, KSIDC's operating profit was Rs. 13 crores as against Rs. 8.00 crores in 2003-04.

Mega projects by KSIDC:

KSIDC has facilitated investments in some mega projects that include

• Rs. 7000 crore Port-based SEZ Project
• Rs. 2500 crore LNG Terminal, Rs. 7000 crore Petro Chemical Complex
• Rs.7000 crore NTPC Expansion and Rs. 450 crore City Gas Distribution Project.

Other projects being promoted by the corporation are

• A permanent trade fair centre at Kalamassery, Kochi to facilitate Industrial
  Promotion and to identify markets for products from the state.
• The Gem and Jewellery Park in Kochi near Kochi International Airport.
  
  

Small Industries Development Bank of India (SIDBI):

During the financial year 2004-05 in Kochi city, SIDBI approved Rs. 221.47 crores and disbursed Rs. 142.17 crores under its various schemes of assistance to the small- scale sector in the state of Kerala.

The salient details of developmental activities for which assistance has been provided by SIDBI in 2004-05 are as follows:

a) Under its Micro Credit Scheme, SIDBI has sanctioned Rs. 120.00 lakhs and disbursed Rs. 228.56 lakhs (which includes sanctions made in the previous years) in the State of Kerala.

b) SIDBI has started implementing Rural Industries Programme (RIP), a comprehensive programme for promotion of micro enterprises in the rural areas of Kerala since 2003-2004. To begin with, Malappuram and Wayanad Districts were identified, and was extended to Thrissur and Palakkad Districts of Kerala during 2004-05. A grant support of Rs. four lakhs was sanctioned to APITCO Ltd., Hyderabad for implementing the programme in Thrissur and Palakkad districts, of which an amount of Rs. 1.90 lakhs has been disbursed so far.

c) During 2004-05 an assistance of Rs. 4.65 lakhs was sanctioned to various agencies in the State for conducting seminars/workshops on topics relevant to SSI sector, skill Upgradation programme for SSI managers & entrepreneurs, entrepreneurship development programme, trade fairs etc.

Kerala Industrial Infrastructure Development Corporation (KINFRA):

In a conscious effort of industrial development KINFRA, the industrial catalyst of the state is specifically aiming at the economic development of those regions of the state that are industrially backward in nature. In order to do so the corporation has been setting up industrial parks, townships, zones etc that provides all the facilities required by entrepreneurs in starting an industry in the thrust sectors identified by the Industrial policy of the government.

KINFRA has 17 industrial parks in various sectors wherein there are 150 operating units with an annual turnover of about Rs.1000 crore, creating an employment to 5000 persons.

Major activities of KINFRA during 2004-05 are

• KINFRA Film & Video Park, Kazhakootam - Development of Animation Centre
  
  
• IIDC, Koratty - Development of Ist phase of the Small Industries Park under IIDC Scheme of GOI is completed
  
  
• IIDC, Kunnamthanam - Development of Small Industries Park is in progress
  
  
• Herbal Village, Wayanad is being developed in 240 acres of land
  
  
• WSS for KINFRA Techno Industrial Park, Kakkancherry is under implementation and phase I work of the internal works have been completed
  
  
• Biotechnology Parks, Kochi & Thiruvananthapuram - Being developed in 50 acres at Kalamassery
  
  
• A Biotechnology Incubation Centre is being developed in the Biotechnology Park, Kochi
  
  
• IIDC for Food Processing and Biotech Industries, Adoor
  
  
• Developing Industrial Development Zones at Thiruvananthapuram, Kochi, Kozhikode and Palakkad through private sector participation and the project is in Progress
  
  
• KINFRA to set up a Textile Park at Kannur In order to facilitate infrastructure for the growth of textile industry in the area KINFRA is establishing a textile centre near Thaliparambu in Kannur district. The central government is extending a financial assistance of Rs. 20 crore for setting up of the centre, which is coming up on a 120-acre plot.

Directorate of Industries & Commerce

Directorate of Industries and Commerce provides infrastructure facilities for small-scale sector by acquiring land and developing it into development area / plots with facilities like developed land, road, water supply, electricity, necessary building etc.

Small Industries Development Corporation

The Small Industries Development Corporation also undertakes works on provision of infrastructure facilities for the small-scale sector through its major industrial estates and mini industrial estates.

Kerala Industrial and Technical Consultancy Organization (KITCO)

Kerala Industrial and Technical Consultancy Organization (KITCO) have gross earnings of Rs.438.67 lakhs as against Rs.362.98 lakhs during 2003-04. They achieved a growth rate of 20.85 per cent during 2004-05 as against 4.22 per cent during the previous year. KITCO is involved in various activities such as rendering consultancy services in different fields, but mainly in the fields of detailed engineering and human resources development. Other activities include special studies, valuation of assets and energy audit.

Major Assignments of KITCO

• Design, construction, supervision and project management of ROB at
  Meenchanda and Neeleswaram for RBDCK.
  
• Detailed investigation of 56 ROBs.
• Infrastructure projects of Cochin Special Economic Zone.
• Revamping of the HT and LT power distribution system at CSEZ.