Industries T - · PDF fileagro processing and traditional industries while giving thrust to IT and health service ... Other than the existing Milma Plant at Kollam ... possible as

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Integrated District Development Plan, Kollam

Volume - II Execution Plan Industries

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This chapter includes the developmentproposals of Industries sector based

on the District Development Policies andStrategies derived from the sectoral andsettlement studies, spatial analysis and theDistrict Development Concept.1. Introduction

According to the District Industriespolicy, by 2021 Kollam has to be convertedinto a destination of environment friendlyagro processing and traditional industrieswhile giving thrust to IT and health servicesectors through the creation of skilledpersonnel. The strategies arel To develop agro and food processing

industriesô This is to be achieved through the

development of agro bio basedindustries, fish processing units,dairy units, milk processing unit withchilling plant, food processing unitsand flour mills and curry powdermanufacturing units, food parks etc.

Chapter 39Industries

l To strengthen and modernizetraditional industriesô This is to be achieved through the

development of mechanized coirmanufacturing units, handloomindustry renovation centre, claybased industries, value addedcashew kernel units, handloomunits, manufacturing of bamboobased products and handicraftsitems, development of existingindustries and starting of micro units

l To develop Health Services industriesô This is to be achieved through the

development of public medicalcentre and bio medical industriesand ayurvedic medic inemanufacturing units

ô To develop knowledge basedindustries and services

ô This is to be achieved through thedevelopment of Technopark atKundara and IT Park at Paravur

ô To revive and diversify closed and

defunct public enterprisesô Revival of Premo Pipe Factory at

Chavara, Rehabilitation of ALIND,Kerala Ceramics, TravancoreChemicals, Punalur Paper Mill andTravancore Plywood IndustriesLtd., Punalur, revival of PompsyBiscuit Manufacturing Unit, revivalof Parvathy Mills and revival ofother closed and defunct industriesare proposed.

l To create a pool of skilled humanresourceô This is to be achieved through the

development of entrepreneurshipdevelopment training centre and atool room training centre

l Other Proposalsô Other proposals include new

ventures like toy manufacturing, coiryarn manufacturing units, lightengineering units, straw picture andscrew pine products manufacturingunits, note book manufacturing unit

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and school bag manufacturing unit,wood based industries, rubberwood treatment plant, rubber basedindustries and development ofexisting clusters and Mini IndustrialEstate, Nedugolam,

2. Proposals for Agriculture andAllied Processing Industries

2.1 Agro Bio Based IndustriesFairly a large number of people in

Thevalakkara and West Kallada GramaPanchayats are depending upon coirindustry for their livelihood. Coir pithdumped in bulk quantities in the coastalareas adversely affects the ecology of thelocality.

Research and studies conducted byCoir Board has led to the utilisation of coirpith for the production of Briquettes, Designdoors, partition boards etc.

In the light of the above findings it isproposed to start an industrial unit atThevelakkara Panchayat. The landavailable with any of the coir cooperativesociety can be utilized for setting up theunit . Coir Board shall give requiredtechnical assistance. Other Infrastructuralfacilities shall be provided by DistrictPanchayat. The Nationalized Banks in thearea shall provide required working capital.The unit shall be established during 2009-2011 period.

It is expected that 30 persons can begiven direct employment and another 100families will be indirectly benefited by thisunit. The unit can function in full swing bythe year 2011. Power requirement for thisproposal would be 15 KVA. The estimatedcost for setting up of the unit would be Rs10 Lakhs.2.2 Fish Processing

Kollam District has a vast coastal beltcovering mainly Kollam Corporation,Chavara, Neendakara, Alappad andKarunagappally Grama Panchayats. Themain occupation of the people in theseareas is fishing and related activities. Atpresent the fishermen catch and sell fish inraw form without any value addition.

In the present scenario, there is amplescope for value added fish products.Based on the Development Concept, it isproposed to start 5 fish processing unitseach in Kollam Corporation, Alappad,Chavara , Ka runagappa lly andNeendakara Grama Panchayats whichhave good potential as per the Sectoral

Analysis of Fisheries sector. Considering the level of operation, an

extent of 10 cents of land is required forsetting up every unit. Thus an extent of 50cents is enough for establishing 5 such units.An amount of Rs.10 Lakhs is estimated tobe incurred for setting up each unit.

The roles of var ious agenc iesresponsible for implementation of theproposal are as follows: LSGIs have toidentify and acquire land. Jilla Panchayathas to arrange finance, through SHGs, forcreating fixed assets. Nationalised Banksshall provide adequate working capital.District Industries Centre will arrangeLicenses and Clearances through SingleWindow Clearance Board. Technicalsupport will also be extended by DICsthrough agencies like CIFT, CFTRI,CMFRI, MPEDA etc. As per Article 6.1.5 ofChapter 38; Fisheries the technical supportwill be given by the Fisheries Dept.

The units shall be set up during 2008-2011 period.The proposal is expected tobe completed in a period of 3 years in allthe above LSGIs.

By the implementation of this scheme,value added fish products like fish pickles,ready to serve curries etc. worth Rs.132Lakhs wil l be produced in the year2011.The production in the year 2021 isproposed to touch 200 tons worth Rs.264lakhs. This will generate direct employmentfor 50 persons in the year 2011 andthrough expansion, modernization anddiversi f icat ion d irec t emp loymentgenerated would be 100 by the year 2021.The multiplier effect of employment wouldbe 5 times the direct employment. Thus thetotal employment generated in 2011 wouldbe 300 and by 2021 it is projected to be600. This scheme will ensure regularemployment throughout the year to thepeople involved in this activity. This canalso improve the standard of living of thefishermen community. They can providegood education to their children as theyearn a fixed income every month. This willliberate the fishermen from the crutches ofseasonal income. Further the exploitationof middlemen in this sector can be avoided.Power requirement for this proposal wouldbe 30 KVA.

The phasing of activities is given inAppendix 39-1.2.3 Dairy Unit

According to the analysis of Animal

Husbandry sector, the milk production inthe district is much lesser than the demandand the demand supply gap is filled by theneighboring States. Based on the DistrictDevelopment Concept the AnimalHusbandry sector has , the refo re,recommended a Mini D iary uni t atMynagappally Grama Panchayat in KollamDistrict.

An extent of 50 cents of land is found tobe enough for setting up this proposal. Thiscan be arranged by Mynagappally GramaPanchayat on lease or by any othermethod. The Dairy Deve lopmentDepartment, Mynagappal ly GramaPanchayat and District Industries Centrewill identify the beneficiaries and DairyDevelopment Department shall purchasecows for the unit. The Animal HusbandryDepartment shall provide cattle feeds andmedicines at subsidized rates. The cost ofproposal is worked out to be Rs.10 lakhsand the proposal can be implemented in aperiod of one year. The finance shall bearranged by Nationalized Banks. The unitsshall be established during2009-2011.

The proposal, on implementation, willprovide employment to 7 persons in theinitial stage. The unit can go for forwardintegration in the second year itself. It isexpected that the unit will provide directemployment to 50 persons by the year2021. The production of milk, at that time,will go up to 200000 liters worth Rs.44lakhs. The production and sale of valueadded milk products is estimated to touch500000 litres in 2021. Power requirementfor this proposal would be 50 KVA. Thephasing of activities is given in Appendix39-1.2.4 Milk processing unit withchilling plant

Milk processing is a lucrative industry.Other than the existing Milma Plant atKollam Corporation, according to theIndustries Sectoral analysis, it is seen thatthere is a scope for one more milkprocessing unit in the eastern parts of theDistrict. Under the Multi Functional Zone,Anchal in Kollam District is an ideal locationfor setting up milk processing unit withchilling plant facility. Therefore such a unitis proposed in Anchal at a cost of Rs.1crore.

Land to the extent of 2 Acres neededfor this unit will be identified with theassistance of Anchal Grama Panchayat and



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Dai ry Development Department.Clearances will be issued by HealthDepartment and Pollution Control Boardfor the functioning of this unit. The plantshall be set up during 2008-2012 period.

Finance for the proposal may bearranged by Jilla Panchayat, Anchal BlockPanchayat and Anchal Grama Panchayat.Financial support may also be obtainedfrom banks. The proposal can becompleted in a period of 5 years or less.Skimmed milk to the tune of 730 lakh litresworth Rs.160 crore will be processed inthe plant by the yea r 2021. Theemployment potential is proposed to be 50Nos. on implementation i.e. in 2011. Around5000 farmers will be benefited by thisproposal initially itself. Considering thearea limitations, the expansion may not bepossible as cow rear ing requi resconsiderable land and other amenities. Asper existing trend, large number of peopleis not taking up this lucrative activity.Therefore, by 2021, the total employmentgenerated is expected to be 600 andbeneficiaries would be at about 10000.This scheme shall be a replica of Anandmodel co-operative societies in our state.Power requirement for this proposal wouldbe 50 KVA. The phasing of activities isgiven in Appendix 39-1.2.5 Food Processing Unit

As per the Industries Sectoral analysis,the food processing Industry is growing ata rapid pace of around 4% annually. Themost important asset to the industry is thework force employed. Currently foodproduction and processing account for 26%of India’s GDP and employs 60% of thework force. It is this industry that offers lotof scope to entrepreneurs for sustainabledevelopment. The Govt. of India istherefore committed to provide a thrust tothe development of food processingindustries in rural areas in order to increasethe income of farmers, create employmentopportunities, diversify the rural economyand increase rural industr ia lization.Keeping this in view and based on thesectoral analysis results, it is proposed toset up 12 micro food processing units. Ofthese 7 are suggested at Alayamon,Edamulakkal, Pathanapuram, Yeroor,Kadakkal, Ummannur and VettikkavalaGrama Panchayats in Agro DevelopmentZone and 5 are suggested at SooranadNorth, Sooranad South, Thodiyoor,

Kareepra and Kulakkada GramaPanchayats in Agro-allied DevelopmentZone. Period of implementation is 2008-2011. As per Article 3.3.1, 3.4.1 and 3.6 ofChapter 34, there are proposals forproduct iv i ty improvement, bananacultivation and pineapple cultivationrespectively. The raw materials from theseproposals can be processed in the foodprocessing units suggested here.

An extent of 6 Acres of land is requiredto set up 12 units. Hence the investmentoutlay works out to Rs.120 lakhs. The landis expected to be identified and acquiredin consultation with LSGIs. The source offinance can be from LSGIs and banks. Thiswill create employment opportunities for120 people in the initial period i.e. by 2011.Various food items worth Rs.2000 lakhs isexpected to be produced in the year 2011.This is expected to touch 720 quintals worthRs.4000 lakhs by the year 2021.Theemployment generation is projected to be300 by 2021. Power requirement for thisproposal would be 15 KVA. The phasingof activities is given in Appendix 39-1.2.6. Flour Mills and Curry PowderManufacturing Units

Now days, an upward t rend isapparent in the food processing sector.Instead of purchasing of raw grain, peopleare interested in purchasing packed itemssuch as rice powder, wheat powder, currypowder and even idli and dosa mixes.Ready to eat and ready to cook food itemsare in great demand now. Therefore thereis ample scope for starting curry powder,units and flour mills in the panchayat areasespecially where agriculture is prominent.The following panchayats are ideal to startsuch uni ts: Alayamon, Anchal,Neduvathoor, Edamulakkal, Karavaloor,Kottarakkara, Veliyam, Pathanapuram,Pattazhy, Vadakkekkara, Pooyappally,Yeroor, Chadayamangalam, Chithara,Elamadu, Ittiva, Kadakkal, Thalavoor,Vi lakkudy, N i lame l, Me li la , Mylom,Ummannur, Vettikkavala, Velinalloor inaddition to Punalur Municipality. Period ofimplementation is 2008-2009.

The estimated cost of starting one unitwith new building and related machineriesis Rs.3 lakhs. The total estimated cost ofstarting 25 units is worked out to be Rs75.00 Lakhs. The funds can be raised byentrepreneurs themselves or through Bankloan. District Industries Centre shall render

all assistance to start the units. 100 personswill get direct employment and it is estimatedthat the unit can be started by 2009. Powerrequirement for this proposal would be 15KVA.The phasing of activities is given inAppendix 39-1.

Apart from these, large scale paddyprocessing centers are suggested in Article2.1 .4 o f Chapter 34 in the GramaPanchayats of Kadakkal, Kottarakkara andSasthamcotta. Also as per Article 3.2.3 ofChapter 34, 2 Expeller units for valueaddition of Coconut are proposed. Theseproposals can also be interlinked toindustries sector.3. Proposals for Strengthening

and Modernizing TraditionalIndustries

3.1 Mechanized CoirManufacturing Units

Even though Alleppey is the focal pointof Coir Industries, some places in Kollamand Trivandrum Districts also manufacturecoir and coir based products.

Considering the availability of rawmaterial, ie, Husk and other favorablefactors as evident from Sectoral analysis, itis suggested to set up two coirmanufactur ing unit s one atKulasekharapuram Panchayat and theother at Paravur Municipality both in SubZone 4 of Special Development Zone. Anextent of 50 cents of land in each locationshall be provided by the local body forestablishing the units.

The Social Welfare Department shallprovide necessary assistance in theselection of beneficiaries. The finance tothe extent of Rs.10 lakh each will be madeavailable by the Nationalized Banks forexecuting the proposal. On implementationof the proposal, 50 to 60 persons will bebenefited by direct employment. Theproposal can be implemented in a periodof 4 years commencing from 2008.

In the second phase, brand building,new products addition, vertical integrationetc. can be undertaken. The second phaseactivities shall commence in the year 2011and will be completed in the year 2016.By this time, through diversification andmodernization, the employment generationwould have gone up to 500. The productionof coir and coir products in the year 2021is proposed to touch 6000 Tons worthRs.3.30 crores. Power requirement for thisproposal would be 10 KVA. From, the




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present yarn manufacturing, there is scopefor switching over to the manufacturing ofgeo textiles, mats, mattings, decorativeitems, handicrafts materials etc. In thatinstance the employment generation will bedoubled i.e. to the extent of 1000. Totalcost for two units would be 20 Lakhs. Thephasing of activities is given in Appendix39-1.3.2 Handloom IndustryRenovation Centre

Handloom Industry in Kerala is spreadall ove r the sta te. In Kol lam,Karunagappal ly, Kottarakkara andChathannoor are the main handloomcenters in the District catering to thedomestic market suiting to the local tastesand preference. As in the sectoral studiesthere are about 40 working Handloom Co-ope rat i ve Societ ies having 10000(appxly.) registered weavers with 6000looms in Kollam District.

A common facility service center(CFSC) for the dyeing of yarn andcalendaring of cloth at Chathannoor is avita l proposal fo r the sus tainabledevelopment of Handloom industry inKollam District. Period of implementation ofthe project is 2009-2015.

The existing vacant land available withthe Handloom Society at Nedungolam(Chathannoor) can be utilized for settingup this CFSC. The investment outlayamounting to Rs.50 Lakhs will be providedby the Department of Handloom andTextiles. The proposal can be executedin 6 years time since land is alreadyavailable. 50 persons will be benefited bydirect employmen t in the year ofcommissioning, ie by 2011. Around 6000weavers in the District can avail theservices of this CFSC. Power requirementfor this proposal would be 20 KVA.

It is expected that services worth Rs.60lakhs per annum will be rendered by thisCFSC to the handloom weavers by theyear 2021 with a projected employmentgeneration of 150 with beneficiaries ofaround 10,000. The phasing of activitiesis given in Appendix 39-1.3.3 Clay Based Industries

Clay based industries have good scopein Kollam District. Taking advantage of thispotential, a clay based unit is proposed inChathannoor in Kollam District for theproduction of pottery items, flower pots,statues etc. The availability of clay in

abundant quantities is the attractions ofChathannoor and nearby areas.

Therefore it is proposed to set up aclay based unit at Chathannoor at aninvestment of Rs.5 Corers. Ideal land willbe ident i f ied by Soi l Conversat ionDepartment or Min ing & GeologyDepartment of the State Government.Power requirement for this proposal wouldbe 50 KVA. The agencies like Mining &Geology, Pollution Control Board etc; willprovide necessary clearances for the unit.Ground Water Department will survey andlocate the suitable spot for water availability.Finance for the proposal will be arrangedby Government/Banks/Private agencies.The scheme will provide direct employmentto the tune of 100 persons. Theimplementation can be completed in 5years time from the date of commencement.It is expected that earthen ware pots, flowerpots, statues etc; worth Rs. 120 Lakhs willbe produced in this unit in the year 2021.The phasing of activit ies is given inAppendix 39-1.3.4 Value Added Cashew KernelUnit

Kollam is the mother land of CashewKernals in the world. The town of Kollamhas the scope of becoming a town of ExportExcellence for its cashew exports. Aspointed out in Article 1.3 of Chapter 28;Finance, the Non Farm Sector showsmaximum credit delivery due to high creditoff take by cashew exporters. Also as perArticle 3.5.1 of Chapter 34; Agriculture,there is a proposal aiming rehabilitation of3000 ha of cashew plantations by 2014.Keeping this in mind, it is recommendedfor setting up value added cashew Kernelunits in Panchayats like Elampalloor,Ezhukone, Kalluvathulkkal, Kareepra,Kunnathur and Pavithraeswaram in KollamDistrict. The units can be set up in existingor rented buildings during 2008-2010periods.

The investment estimated is Rs. 7 Lakhper unit. The employment potential is 35 inthe initial state. It is an estimated that friedand salted cashew kernels to the extent of4200 quintals worth Rs. 15 crores will beproduced in these units during the year2021. The finance can be arrangedthrough banks or from own sources.Export promotion counci l wi ll extentnecessary marketing assistance. Powerrequirement for this proposal would be 15

KVA. The phasing of activities is given inAppendix 39-1. Total cost for all units wouldbe Rs 42 Lakhs.3.5 Handloom Units

Kerala Handloom Products are uniquein nature, from the rest of the country. Inal l major states in India, Handloomproduction is based on dressing materialssuch as sarees and dhothies. In Kerala, itranges from very fundamental bath towelto latest trendy home fashions. KeralaHandloom Industry carries a vital role instate’s economy as well as in the field ofemployment. It continues to play animportant ro le in Kerala’s exportperformance in Handloom items. Hence itis proposed to set up 10 Handloom units inKollam District’s at strategic locations likeKollam Corporation, Grama Panchayats ofCha thannoor, Karunagappal ly,Kottarakkara, Kulathupuzha, Mayyanad,Pavithreswaram, Poruvazthy, Thodiyoorand Paravur Municipality. The investmentproposal is only Rs. 50 lakh and theemployment generation is 100 Nos. Theproposal can be implemented in a yeartime as the unit can be housed in own orrented sheds. The finance can bearranged through banks and own sources.The beneficiaries can be selected by SocialWelfare Department, SC/ST Departmentetc. Marketing assistance will be providedby Hantex and Hanveev. School uniformcloth can be the main item of production forthere units. Period of implementation is2008-2009.

It is estimated that 240000 Mts. ofHandloom cloth worth Rs. 86 Lakhs will beproduced per year in these units by theyear 2021. Power requirement for thisproposal would be 2 KVA.The phasing ofactivities is given in Appendix 39-1.3.6 Manufacturing of BambooBased Products and HandicraftsItems

Pirvanthoor,Kulathuppuzha, Thenmalaand Aryankavu are the Grama Panchayatslocated in the eastern part of the District.The tribal people in these areas areexperts in the manufacturing of bambooand cane based products such as baskets,mats, cane furniture, handicraft items etc.Raw materials for the manufacturing of theabove products are available in plenty inthese areas. But the poor tribal peopleare unable to get the raw materials in rightquantities in right time. Therefore the above



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four LSGIs shall set up a Raw MaterialDepot for collection and distribution of rawmaterials. Training shall be given to themin the manufacturing of attractive Handicraftitems. The products manufactured by themshall be purchased by Governmentagencies. Period of implementation of thescheme is 2008-2009. This can also belinked with the proposals of Forest Sectorgiven in Article 4.3 of Chapter 43A.

There is scope for starting 5 units eachin each Panchayat. Thus the total numberof units in the four Panchayats will be 20.Power requirement for this proposal wouldbe 2 KVA. 200 persons will get directemployment by setting up the units. Thetotal estimated cost is Rs 60 lakhs. Thiscan be provided by concerned GramaPanchayats. The phasing of activities isgiven in Appendix 39-1.3.7 Development of ExistingIndustries

A large number of SSI uni ts atElampalloor, East Kallada, West Kalladaand Perayam Grama Panchayats arestruggling hard for their existence. Most ofthe above units are working with theconventional type of machineries and otherfacilities. For the development of such unitsthey have to swi tch over to CNCMachineries and computer Technology. Ifsuch technologies are adopted, the qualityof products can be improved and capacityof the unit can be increased.

At least 3 units each from the abovefour Grama Panchayats shall be identifiedfor which expansion proposal shall beprepared by District Industries Centre andimplemented with the support of FinancialInstitutions. Necessary training shall begiven to the entrepreneurs at appropriatelevel by different agencies. Period ofimplementation is 2008-2011.

An additional employment to the extentof 100 can be generated on completion ofthis scheme. Power requirement for thisproposal would be 15 KVA. Total cost forall units would be Rs120 Lakhs @ Rs. 10Lakh / Unit. The phasing of activities isgiven in Appendix 39-1.3.8 Development of ExistingIndustries and Starting of MicroUnits

Though Coir Mats & Mattings IndustrialCo Operative Society was registered atPoothakulam Panchayat, it has not startedproduction till date. Infrastructural facilities

like land, building etc are still available withthe society. At present, the circumstancesfor starting the unit are favorable if expertworkers are available for the productionof attractive items from coir yarn.

The members of the society have tobe given training for the manufacturing ofitems either at Paravoor or at Allappuzha.The cost of t raining 50 members isestimated at Rs 10 Lakhs which shall beprovided by LSGIs. The suggestedlocat ions are at Paravur (M),Kalluvathukkal and Poothakkulam. It isestimated that 250 persons can be givendirect employment and another 50 familieswill be benefited by the revival of the unitby the year 2011. Period of implementationis 2008-2010.

There is ample scope for startingMICRO units at Paravoor Municipality &Kal luva thukkkal Panchayt throughKudumbashree and SHGs. Ready madeitems, bakery products, paper envelops,note books etc can be manufactured bythese groups. Power requirement for thisproposal would be 30 KVA.

100 Micro units each in ParavoorMunicipality and Kalluvathukkal GramaPanchayat can be started which willgenerate direct employment to 100 womenby the year 2010 . T he funds forestablishment of these units shall be throughJilla Panchayat and Nationalized Banks.Total cost for all units would be Rs 610Lakhs (including training component). Thephasing of activities is given in Appendix39-1.4. Proposals for Health Services

industries4.1 Public Medical Centre andBio Medical Industries

Due to the increase of new diseases,Health care is one of the major issues whichhas to be given prime importance. Thenumber of hospitals with modern facilitiesis growing day by day which require biomedical equipments. In this context, thereis ample scope for starting a Bio MedicalEquipment Manufacturing unit at Kollam.

The unit is proposed at ChathannoorPanchayat. The land required is alreadyavailable with Industries Department atVanchi-Clay Mines Industrial area adjacentto KSRTC Bus station. Other infrastructuralfacilities like building, power, water etc. shallbe provided by Government.

A public Medical Centre can also be

started in combination with the above unit.A medical lab with the facility for bloodtesting, X-ray, MRI Scan shall also beprovided. Now the common people aredepending private institutions for suchservices by paying huge amounts asservice charges. The centre will providethe above services to common people atconcession rates. The responsibility ofsetting up of the unit shall be vested withHea lth Depar tmen t. Per iod ofimplementation is 2008-2010, so that thecommencement of operation can beexpected by 2010. Power requirement forthis proposal would be 20 KVA. The directemployment generation will be 50 personsand the beneficiaries will be about 10000.Total cost for setting up that units would beRs 400 Lakhs. The phasing of activities isgiven in Appendix 39-1.4.2 Ayurvedic MedicineManufacturing Units

Punalur in Kollam District is an ideallocation for starting Ayurvedic Medicinemanufacturing units due to the availabilityof raw materials, especially medicinal plantsfrom surrounding Panchayats. Skilledlabours in the manufacturing of variouskinds of ‘Lehyams’, ‘Tablets’, ‘Arishtams’and herbal and other oils are available inthis area.

A suitable building either owned orrented shall be provided by Municipality.Funds for the establishment and workingof the units shall be from LSGIs andNat ional ized Banks. Per iod ofimplementation is 2008-2010.

The total project cost is estimated asRs 30 lakhs. 25 persons can be givendirect employment and another 50 familieswill be benefited by establishing this unit.Commercial production can be started bythe end of 2011. Power requirement forthis proposal would be 10 KVA.

The phasing of activities is given inAppendix 39-1.5. Proposals for Knowledge

based Industries and Services5.1 IT Park, Paravur andTechnopark, Kundara

The Industrial Policy of the Statedeclares that the Govt. will establish two ITcorridors stretching from Kazhakkuttom toKollam and Kazhakkuttom to Kovalam.Therefore it is very significant to note thatthere is very good scope for establishingan IT Park at Paravur in an extent of 5




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Acres of land. The land can be acquiredwith the assistance of Land Use Board orParavur Municipality. Rail, Road linkagescan be established with the support ofconcerned agencies. Uninterrupted powersupply will be provided by Kerala StateElectricity Board. The proposal can becompleted by 2011 and this will providedirect employment to 100 persons at thattime. Revenue generation in the park in2011 is estimated to be Rs.650 lakhs andin the year 2021 it is expected to crossRs.1300 lakhs with an employmentpotential of 250 persons.

The Govt of Kerala has decided toestablish Technoparks in all Districts. Theidle land to the extent of 30 acres availablewith M/s Kerala Ceramics Ltd, Kundaracan be u t i l i zed for es tabl ishing aTechnopark in Kollam District. Powerrequirement for this proposal would be 600KVA. The project can be implemented withGovt funds under IT Department, Govt ofKerala. It is expected that the park will beoperat ional by 2012. Employmentgenerated after completion will be 100.Total cost for establishing the Park wouldbe Rs. 800 Lakhs. The phasing of activitiesis given in Appendix 39-1.5.2 EntrepreneurshipDevelopment Training Centre

Ent repreneurship Deve lopmentTraining is an important activity of IndustriesDepartment. Kerala Inst i tute ofEntrepreneurship Development (KIED)Kalamassery i s the main agencyundertaking EntrepreneurshipDevelopment Training programmes underIndustries Department.

The training centre proposed in thepremises of District Industries Centre,Kollam Corporation will work like a subcentre of KIED.

Project cost to the tune of Rs.65 lakhswill be met by District Panchayat. 90% ofthe building construction work is alreadycompleted. The full completion is expectedin the year 2008. Power connection, watersupply and supply of equipments will becompleted in the first quarter of 2009.Power requirement for this proposal wouldbe 2 KVA.

The f ir st ba tch of t ra in ing w il lcommence in the beginning of the financialyear 2009-10. Beneficiaries selected byvarious agencies like Dairy DevelopmentDepartment, Fisheries, Social Welfare, SC/

ST, Tourism, Culture and Youth Affairs,HRD etc can be trained at this center. It isexpected that by the year 2021, this centrewould grow to the level of KIED, KILA etc.Employment generated after completion willbe 5. The phasing of activities is given inAppendix 39-1.6. Proposals to Revive and

Diversify Closed PublicEnterprises

6.1 Revival of Premo PipeFactory at Chavara

M/s Premo Pipe Factory at Chavara isdefunct for the last several years. The stepsinitiated for the revival of this unit did notsucceed due to the lack of demand forcement pipes. Therefore there is everyscope for the diversification of this unit bymanufacturing PVC Pipes.

The demand for PVC p ipes isincreasing day by day as the constructionindustry is booming. The production inKerala is lesser than the present marketdemand. Hence there is good scope forestablishing PVC pipe manufacturing unitsin this state.

M/s Premo Pipe Factory is located inan extent of 9.00 acres of land in ChavaraVillage of Chavara Panchayat. The landis adjacent to the N.H and very close toKollam Town. Factory buildings havingadequate space are available in the abovepremises.

At present Kerala Water Authority issourcing the entire quantity of PVC pipesfrom outside agencies at exorbitant prices.Therefore this unit can be converted as aproduct ion faci l i t y of Kerala WaterAuthority. As an alternative, the IrrigationDepartment can also be brought into thepicture.

An amount of Rs. 6.5 crores isestimated for converting the unit to PVCpipe manufacturing unit. The existingliabilities with statutory bodies shall besettled by the Government at an early date.Power requirement for this proposal wouldbe 250 KVA.

On implementing this proposal, pipesof different sizes worth Rs. 8250 lakhs isexpected to be produced in the year 2011.This wi l l generate emp loymentopportunities for 150 persons in 2011 and320 in 2021. The correspond ingproduction will be 3000 Ton worth Rs.16500 lakhs in this year 2021. Employmentgenerated after completion will be 150. The

phasing of activities is given in Appendix39-1.6.2 Rehabilitation of ALIND,Travancore Chemicals, PunalurPaper Mills and TravancorePlywood Industries Ltd., Punalur

M/S Alind, M/s Kerala Ceramics andM/s Travancore Chemicals all located atKundara in Kollam District are State ownedPublic Sector Enterprises.

The industrial policy of the State makesnecessary provisions for the revival ofpotentia lly viable sick public sectorenterprises. Therefore the TechnicalAdvisory Committee on Industries and Co-operation discussed the above cases indetail and recommended to revive theabove PSUs in a period of 5 years.

The existing infrastructural facilities likeland, building, machinery (to the extentpossible) can be ut i l ized for therehabilitation process. The rehabilitationcan be carr ied ou t by adopt ingmodernization, diversification, privatization,joint venture operation etc. Period ofimplementation is 2009-2014.

As the existing liabilities of these PSUsare yet to be ascertained, the financialcommitment for revival cannot be workedout at this stage. Besides, the revivalpackages have to be announced by theGovernment on a case to case basis.Therefore the units can be subjected todetailed techno-economic studies byexperts for preparing detailed revivalproposals for the consideration of theGovernment. Thereafter the revival canbe completed in a phased manner. ALIND,Travancore Chemicals, Punalur paper milland Travancore Plywood industries areGOI undertakings. So the rehabilitationproposal has to be formulated by GOI.Therefore cost estimation, assessment ofpower requirements etc. can be done onlyas per the final proposal.6.3 Revival of Pompsy BiscuitManufacturing Unit

This is a private concern, engaged inthe manufacturing of biscuits, which comesunder Medium Scale Industry. The unit isdefunct at present due to financial problems.Government has to take steps to revivethe uni t in consu ltat ion w ith theManagement. Power requirement for thisproposal would be 10 KVA. The locationof the unit is at Karunagappally gramapanchayat. The revival of this unit will



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provide employment to the workers of theunit and accelerate the development of thelocality and nearby areas. The phasing ofactivities is given in Appendix 39-1.6.4 Revival of Parvathy Mills

This is a proposal for starting a largescale garment manufacturing unit atParvathy Mills, Kollam by utilizing theinfrastructural facilities available there. Atpresent the mill is working under loss andthe capacity is not fully utilized.

Since th is i s a Public Sec torUndertaking (PSU) under National TextileDevelopment Corporation, GOI and GOKshall take appropriate steps to start the newventure. Therefore cost est imation,assessment power requirements etc canbe done only as per the final proposal.6.5 Revival of Other Closed andDefunct Industries

It is a fact that a large number of unitswhich are started under PMRY Schemeare either closed or defunct due to variousreasons. The reasons for closure of suchuni ts are lack of work ing capita l,mismanagement and inadequate marketingof products etc. Tsunami also led to theclosure of many units at Alappad GramaPanchayat.The entrepreneurs are nowfacing legal action from financial institutionsfor the realization of loans.

Industries Department shall identityrevivable units from among the closed unitswith concrete proposals for revival. TheGrama Panchayats of Alappad, Panmana,Chavara, Kulasekharapuram and Oachirashall provide necessary funds in the planproposals for assisting the above saidunits. Period of implementation is 2008-2009.

It is estimated that 25 units in eachPanchayats shall be revived by th isscheme. Industries Department, Co-operative and Nationalized Banks shall co-operate with the revival package. 150persons can be given re-employment bythe implementation of this proposal by theyear 2011. Power requirement for thisproposal would be 30 KVA. Employmentgenerated after completion will be 740.Total cost for reviving all units would be Rs740 Lakhs. The phasing of activities isgiven in Appendix 39-1.7. Creating a pool of skilled

human resource7.1 Entrepreneurship Trainingand Employment Exchange

Industrial units are on the look out for

trained persons for providing employment.Therefore job seekers having requiredqualifications need some experience in therelevant field to become employable. Toach ieve th is object i ve, theEntrepreneurship Training Centre set upin the DIC premises, Kollam is proposed tofunction as a finishing school. Need basedtraining programmes will be conducted atthis centre as and when required. Thetraining programmes will be arranged inconsultation with industry leaders andIndustrial Training Department.

An employment exchange, exclusivelyfor the skilled persons, will be establishedin this institution. Pass outs from variousEng inee r ing col lages, poly techniccollages, Management Institutes, ITIs,ITCs, Food Craft Institutes etc can registertheir names in this employment exchangeat any point of time.

The building construction work of thetraining centre is already completed.Furniture, furnishing, procurement ofcomputer and Audio Visual Equipments arenot yet planned. An amount of Rs 15.00lakhs is estimated for this purpose. TheDistrict Panchayat can provide the financefor this. The full completion is expected inthe year 2008-09.

The f ir st ba tch of t ra in ing w il lcommence in the first quarter of the financialyear 2009-10. It is expected that by theyear 2012, this centre will grow to the levelof KIED, KILA etc. The phasing of activitiesis given in Appendix 39-1.7.2 Tool Room Training Centre atQet Cos, Umayanalloor

Quet-Cos is a Co-operative Institutionworking at Thr ikkovilvattom GramaPanchayat under the administrative controlof Industries Department. Main activity ofthe unit is manufacturing of lathes. Atpresent the society is working under lossdue to financial stringency.

Dis tr ict Panchaya t, Ko l lam hasconstructed a factory shed in the premisesof Quet-Cos with an investment of Rs.20Lakhs. Qet-Cos has submitted a proposalto Government of India for sanctioning ToolRoom Training Center in this building. Thetotal estimated cost of the project is Rs 12crores. Government of India shall give Rs9 crores as grant. State government shallprovide Rs.2 cro res as match ingcontribution. Now this proposal is pendingbefore the Ministry of Small and Medium

Entrepreneurs Govt of India, New Delhi.If the above center is set up, it is

estimated that 50 persons will get directemployment and 500 students in 10 batchesshall be given training in different aspects.I t is expected that the unit wi l l becommissioned by 2010.

The phasing of activities is given inAppendix 39-1.8. Others8.1 Toy Manufacturing

Toys play a prominent role in our dailylife. It is the necessity of every housewhich has a child. At present, trend is topurchase toys imported from China. NowChina is supplying toys to the entire world.Quality is not a concern as far as theseitems are concerned. In this context, thereis ample scope for s tar t ing toymanufacturing units in our state.

Oachira in Kollam is blessed with afamous temple known for centuries.Thousands of pilgrims visit this holy placeevery year. This opens vast opportunitiesfor the trading of various low value itemslike toys, handicrafts, household implementsetc.

Components of different types of toyscan be purchased from other states andassembled at very competitive rates in ourstate. The sale is not a problem as thedemand is very high.

A small Industrial Estate exclusively fortoy manufacturing is proposed in OachiraGrama Panchayat under the ownership ofthe Panchayat. The industrial shedsconstructed will be rented out to 25prospective entrepreneurs on a monthlyrent. The working capital required will bearranged by the promoters.

An extent of 50 cents of land is sufficientto set up 25 toy manufacturing units in a 5storied building @ 500 sq.fts built up areafor per unit. The total cost of constructionof building will be Rs.87.50 lakhs. Fundsfor which shall be arranged by the GramaPanchayat.

On implementing this Proposal, 125persons will be employed directly by 2011.Different types of Toys worth Rs.5.62crores will be produced in the year 2011.The estimated production in the year 2021will be 47 lakhs pieces worth Rs.11.75corers. By that time India will be adeveloped country and our products willfind markets in foreign countries also. Thisis a proposal having no environment




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problem and implementing is very risk free.Diversification of products can be done atany time without incurring any fixed capitalinvestment. Power requirement for thisproposal would be 100 KVA. The phasingof activities is given in Appendix 39-1.8.2 Mini Industrial Estate,Nedugolam

In our state vacant plots, sheds etc arein great demand now for starting newindustrial units. Therefore constructing aMini Industrial Estate in the existing vacantland avai lable wi th M/s. VinayakarHandloom Weavers Industrial Co-op.Society at Nedugolam is a very goodproposal.

An extent of 1 Acre of vacant landavailable with the above society is veryideal for setting up 10 sheds. An amount ofRs.40 lakhs is expected to incur for thispurpose. This amount shall be providedby District Panchayat. On completion ofthe building, 10 entrepreneurs can set upunits there with an employment potential of50 persons in the initial stage. Workingcapital for these units shall be provided bythe banks. Agencies like KSEB and PCBwill provide power and pollution controllicense on request. The entire activitiescan be completed in a period of 5 years.Power requirement for this proposal wouldbe 50 KVA. The phasing of activities isgiven in Appendix 39-1.8.3 Coir Yarn ManufacturingUnits

Coir Yarn is the main input for theproduction of coir mats and matting. Matsand matting units are clustered in AlleppeyDistrict. Coir yarn produced at variousparts of the state is brought to Alleppeyand value added coir products aremanufactured and exported. There is adeveloped coir cluster in Alleppey District.

Considering the scope and demand forvalue added coir products, the TechnicalAdvisory Committee has decided to set upcoir yarn manufacturing units in potentiallocat ions a t Chavara , Clappana,Karunagapally, Kulasekharapuaram,Munroe Island, Oachira, Panayam,P e r i n a d u , T h e k k u m b h a g o m ,Thevalakkara , Thr ikkaruva andThrikkadavoor Grama Panchayats ofKollam District. It is expected that the 13units, set up in the above Panchayats willprovide direct employment to 130 personsin the beginning itself. The scheme shall

be implemented during 2008-2010.The investment outlay for this proposal

is only Rs.13 Lakhs which will be sharedby the Directorate of Coir Development andNationalized banks. The beneficiaryselection shall be done by Social WelfareDepartment, SC/ST Deve lopmentDepartment etc; The Agr icultureDepartment will ensure smooth flow of rawmaterial (Husk) to the above units. It isestimated that 15600 quintals of coir yarnworth Rs.96 Lakhs will be manufactured inthe year 2021. Power requirement for thisproposal would be 5 KVA.

The phasing of activities is given inAppendix 39-1.8.4 Light Engineering units

Light Engineering is the platform for allengineering activities. The boom in theconstruction industry cannot sustain withoutthe active support of light engineeringsector. The up coming mega proposalslike Vallkarapadam Container Terminal,Smart C ity, Technopark- Kundara,Vizhijam Port, Thangasserry port, RailwayWagon Factory at Chertahala, RailwayCoach Factory at Palakkad etc. opengolden opportunit ies for this sector.Accordingly five light engineering units areproposed one each at Elampalloor,Mynagappally, Ezhukone, Kalluvathukkaland Kareepra in Kollam District.

An extent of 50 cents of land isadequate to set up 5 units. Each unit willprovide employment to 5 persons. Anamount of Rs. 10 lakhs is needed to set upthese units@ Rs 2 lakhs /unit. The financecan be arranged through nationalizedbanks and from own sources . Theentrepreneurs can be selected from ITIsand Polytechnics of the District. Period ofimplementation of the scheme is 2008-2010.

It is estimated that 10000 quintals oflight engineering products worth Rs.3.3.crores will be produced in the year 2021by these units. The units can be set up ina year time and further expansions can becarried out at any time. Power requirementfor th is proposal would be 8 KVA.Employment generated after completion willbe 25. The phasing of activities is given inAppendix 39-1.8.5 Straw Picture and Screw Pineproducts manufacturing units

Straw picture and screw pine productsare two unique artisan products of KollamDistrict. These speciality products find good

market in foreign countries. The demandfor these products is much more than theoutput now.

Hence it is decided to set up twoseparate units for the manufacture of screwpine and straw picture products one atThrikkadavur and other at ThazhavaPanchayt of Kollam District. 1.50 Acres ofland is required for this purpose (1.00 acrein Thrikkadavoor Grama Panchayat and0.50 acre in Thazhava Grama Panchayat).The units shall be established during 2008-2010 period.

The total cost of project is worked outto be Rs 15 lakhs. Various handicraft itemsworth Rs 35 lakhs will be produced in theyear 2011 by employing 150 people. Theproduction is expected to double by 2021.By this time the employment potential wouldhave soared to 500. Power requirementfor this proposal would be 2 KVA. Thephasing of activities is given in Appendix39-1.8.6 Note Book ManufacturingUnit

It is proposed to set up a note bookmanufacturing unit at Punalur Municipalitywith a project cost of Rs 25 lakhs. Modernmachineries having maximum capacityshall be utilized. Marketing of the productsis not a problem due to the proximity ofmany educational institutions. 10 personscan be given direct employment. Period ofimplementation is 2008-2010. Powerrequirement for this proposal would be 15KVA.

The phasing of activities is given inAppendix 39-1.8.7 School Bag ManufacturingUnit

Punalur and Karunagappally are thecentral market place of Pathanapuram andKarunagappa lly Taluks. So manyGovernment and Private educationalinstitutions are located in and around thesedeveloping towns. Therefore the scopefor establishing a large scale school bagmanufacturing unit in this area is found veryfeasible.

The total project cost is estimated asRs 25 lakhs. An ideal building with at least1000 sq.ft. plinth area is required forstarting the unit. This shall be hired orpurchased by respective local bodies.Other infrastructural facilities such asmachineries, e lectr ic ity etc shal l beprovided by District Panchayat. The



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members of Kudumbasree / SHGs shallbe given training in the manufacturing ofschool bags by District Industries Center.Working capital shall be provided by localbanks. Power requirement for this proposalwould be 5 KVA.

At least 50 persons shall get directemployment in two units. The indirectemployment expected is 100. The projectis proposed to be commissioned by theyear 2011. Total cost for all units would beRs 50 Lakhs. The phasing of activities isgiven in Appendix 39-1.8.8 Wood based Industries

Decorative wooden furniture viz. doors,windows, furniture show cases etc. formpart of new houses, auditorium, shops etc.being constructed. Besides wooden legsand handles of tables, chairs, coats etc.themselves are marketable. The unitsenvisaged here is of the above nature.High quality wood and wooden piecesavailable from saw mills are the principalraw materia ls. There is huge exportdemand for the products. This is due to thefact that skilled workmanship of the State isbeing universally acknowledged. Good tieups with export agencies are essential forthe success of this venture. Besides, thereis also a good internal market for selectiveand highly d iscerning customers. Availability of raw materials in plenty alsomakes this an attractive venture.

The units envisage manufacturing ofwooden furniture on different designs outof quality wood like Teak, Anjili, Rose woodetc. The finished products will be soldthrough furniture marts. Job work also willbe undertaken. Wooden planks and piecesare available from saw mills. The size anddesigns of the products will therefore bedifferent. For outdoor use, wood baseditems are good as they weather better andrequire very little maintenance. Gardenchairs are popular products throughout theleisure industry and there is ample scopefor manufacture of these items, especiallywhen the tourism industry in the State is ona roll. Also, the Kerala weather is best suitedfor wood based furniture and the rawmaterials are available in abundance inthe District. Wooden doors and windowframes are still popular due to its durabilityand suitability for the weather prevalent inthe Sta te. A major percen tage ofconstructions still use wood based articlesand there is sustained demand as the

construction industry in the state is stillgrowing. There is good potential in theneighboring states as well.

Considering all these favorable factors,it is proposed to promote five wooden andsteel furniture units in all Panchayats/Municipalities/ Corporation in a phasedmanner. The setting up of the units can becommenced in 2008-11.The cost of eachunit wi l l be Rs10.00 Lakhs and therequirement of land is only 10-15 centsper unit. The Forest dept will arrange NOCand KSEB will ensure power supply forthe units. KSPCB will issue Pollution controll icense for establ ishing the uni ts.Nationalized and other Banks will arrangefinance to the entrepreneurs for setting upthese units. Power requirement for thisproposal would be 50 KVA. This will createemployment opportunity for 300 personsin the year 2011. Wooden and steelfurniture items worth Rs 300.00 Lakhs willbe produced during the year 2011 and Rs10 Crores in the year 2021. By that timethe employment generation would havecrossed 1000 nos. Total Cost for all unitswould be 3700 Lakhs@10 lakh /unit. Thephasing of activities is given in Appendix39-1.8.9 Rubber Wood TreatmentPlant

Chemically treated soft wood is largelyreplacing hard wood for cost advantageand even long l i fe. By chemicalimpregnation, the pore space is filled withanti fungus and fibre resisting chemicals.The wood thus becomes stronger, resistantto insects, termites, moths, fungus and evenfire. Very few such plants only are nowavailable in Kerala.

This Chemical Treatment plant can beestablished as a Common Facility ServiceCentre for the use of all wooden buildingmaterials / furniture manufacturers in theDistrict. Pathanapuram Panchayat inPathanapuram Taluk is the ideal locationfor establishing this project. The total costof project is estimated as Rs 5.00 Crores.Land to the extent of 1.50 acres has to bearranged by the local body. The DistrictPanchayat wi l l p rovide funds forimplementing this scheme. This will createemployment opportunities for 10 personsin the initial stage. The implementation canbe commenced in the year 2011 for thereason that many rubber wood base unitsshould have been established before

setting up the Treatment Plant. It is estimatedthat 30000cft of rubber wood can betreated in a year time in this Plant. Thisproject can be considered under Build,Operate and Transfer (BOT) basis. Powerrequirement for this proposal would be 200KVA.

The phasing of activities is given inAppendix 39-1.8.10 Rubber Based Industries

The rubber moulded articles (bothnatural and synthetic rubber), mainly autocomponents, components of electrical andother machine parts are having gooddemand in these days. Rubber productsrequired for e lectronic industry aremoulded or extruded pieces of specifieddesigns and dimensions viz. sleeves,bushes, beadings, ‘O’ rings, flexible hoses,spacer links etc. They are manufacturedmainly by extrusion and moulding. Withmore or less same infrastructure a numberof items could be manufactured with slightchange of formula and moulds. As there isa good production of natural rubber in theState and to increase the demand ofnatural rubber, user industries are to beencouraged. The production of naturalrubber in the country in the year 2007-08was 8.52 Lakh Tonnes. The target for theyear 2008-09 is 8.75 Lakh tonnes. Out ofthis 92% goes from Kerala. Kollam Districtcontributes 7% of the total natural rubberproduction in Kerala. In our State 517000hectares are under Plantations. In Indiathe total extent under Rubber Plantationsis 6.30 Lakh hectares. It is expected thatthe income from natural rubber will touchRs10000 corers in the year 2009-10 if theprevai l ing market pr i ce of Rs 100continues.

As per Article 3.1.1 of Chapter 34;Agriculture, an area of 400 ha is to bebrought under rubber cultivation as part ofarea expansion. Also By 2021 all theplantations would be replanted by highyielding varieties. These can be utilizedfor the Rubber Based Industries. As perArticle 4.1 of Chapter 43A, promotion ofalternate species of timber for furniture isalso suggested by Forest sector.

But there is hardly any value additionof natural rubber occurs in the District.There is vast potential for rubber mouldingunits in the District. The Technical AdvisoryCommittee on Industries and Co operationhas recommended rubber based units in




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the fo l lowing Grama Panchaya ts:Alayamon, Anchal , Aryankavu,Edamulakkal , Karavalur, Yeroor,Chadayamangalam, Ni lamel, I t t iva,Pattazhy, Pathanapuram, Piravanthur,Mylom, Kulakkada and Kummil. Period ofimplementation is 2008-2011. Powerrequirement for this proposal would be 35KVA. Employment gene rated af tercompletion will be 100. Total cost for allunits would be Rs 375 Lakhs.

The phasing of activities is given inAppendix 39-1.8.11 Food Park

India has a food industry dominatedby small, unorganized players that accountfor more than 70% of the industry out putin volume terms and 50% in value terms.Food industry is a very promising field inthe State of Kerala. Branded food is therapidly rising segments of this industry. Themarket for branded foods is growing at ahealthy rate of 10-15%. Kerala is a landwith highly diversified physical features andagro ecological conditions. Due to itsunique topography and climate, the Stateis blessed with a copious blend ofagricultural resources. It has tremendouspotential to become the dream zone in foodprocessing, considering the huge domesticmarket it offers to this sector. When it comesto investment in food processing, the Stateis an ideal destination, offering a host ofadvantageous. The potential of the state inareas of agr iculture and l ive stockcommodities has been under utilized.Mango, banana, c i t rus, guava andpineapple are among the important fruititems in Kerala which have the potential ofvalue addition through food processing.There is significant potential in all sectorsof food processing for both domestic andinternational markets. Products from thissector have a large expor t marketespecially in West Asia, Europe and theU.S. The development of industr ia linfrastructure oriented towards foodprocessing is the need of the hour. Thiswil l br ing in the much awaited jobopportunities while the economy will alsobe benefited due to the value addition tothe States resources. Kerala’s potential infood processing sector lies in tapping itshigh per capita spending consumer, aready market from a large population ofnon-resident Keralites and the skillspeculiar to the region.

Food processing Industrial parks, act

as catalysts for the agro industria ldevelopment of the state by providingcommon multi user facilities, where womenentrepreneurs can set up small to largeunits for agro food processing. The Stateaccounts for about 9% of all licensed foodprocessing units in the country and nextonly to Maharashtra and Tamil Nadu.However, 75% of these units are in theSmall and Cottage sector and only a fewunits are medium and large scale.However, certain segments such as seafoods and cashew have becomedeveloped and are major earners offoreign exchange. As for fruits andvegetables, the state has made goodprogress through exports to Gulf countries.In the present scenario of economicliberalization and globalisation, the Stateneeds to create a favorable environmentfor setting up food processing units. Thethrust areas for the food parks are spiceextracts, oleoresins, curry powder, naturalcolours and flavours, malted foods, meatprocessing, high fructose syrup fromcassava, ready-to-eat snacks, pine apple& Mango products, canned/dried fruits andvegetables and dairy products. The ideallocations for setting up Food Parks arefound to be Grama Panchayats of Kundara,Karunagappally, Kottarakkara, KollamCorpora t ion, Paravur and Puna lurMunicipalities.

The land to the extent of 2.0 acres is tobe arranged by the LSGIs and the fundsto the extent of 60% can be provided bythe District Panchayat. The rest can bearranged by private parties through bankloans either partially or fully. The projectcan be implemented under Public PrivateParticipation (PPP) on BOT basis. The costof each Food park is estimated to be Rs500 lakhs. 25 Industrial sheds can beconstructed in the park each having a plintharea of 1500 sqft. Power requirement forthis proposal would be 35 KVA. This willcreate employment opportunities for 100persons in the initial year. The project canbe taken up for implementation during theyear 2008-09 and can be completed inthe year 2010-11. Total Cost for all unitswould be 3000 Lakhs. The phasing ofactivities is given in Appendix 39-1.8.12 Development of ExistingClusters

A c luster i s a geographicalconcentration of industries engaged insimilar activities. There are about 50

registered clusters in Kerala and about 25are in different stages of registration. InKollam District 5 clusters are in operation.

Cluster Development Programme inthe state has achieved wide spreadacceptance. The Central Govt has beenpumping funds for the development ofindustrial clusters in different states. Thiscan be availed with a matching contributionfrom the state. But the State’s budgetaryallocation for this programme is tooinsufficient and hence our state is not in aposition to harness Central Funds providedfor cluster development. Thereforeextending financial and infrastructuralsupport to the registered clusters in theDis tr ic t is the need of the hour.Infrastructural facilities in the form of land,building, power, water, approach roads,rail heads etc can be provided. Funds forarranging the above i tems can beprovided by LSGIs as part of clusterdevelopment programme. If the registeredclusters already possess land, funds forbuilding, machinery, raw material bank etccan be allotted.

Every registered cluster in the Districtcan be supported with a maximum amountof Rs 5.00 lakhs each per year for 5 yearsfor the above purposes, provided theconsortium members approach the DistrictPanchayat with viable proposals. Matchingcontribution from the side of consortiummembers is the pre requisite for consideringthese proposals. The scrutiny of DistrictIndustries Centre will be insisted forassessing the quantum of grant from districtPanchayat.

The clusters can develop the areasconsiderably if they are supported forestablishing Common Raw Material Banks,Common Faci l i ty Serv ice Centres,Common Marketing Centres, Common SkillTra ining Centres etc . Pe r iod ofimplementation is 2008-2012.

The scheme is the need of the hourand hence the assistance can be releasedfrom 2008-09 onwards. This is a GOIundertaking proposal. So the revivalproposal has to be formulated by GOI.Therefore the power requirement can beassessed only as per the final proposal.This wi l l generate emp loymentopportunities to the extent of 150 in theyear 2010-11. Total cost for reviving /developing these clusters would be 25Lakhs.



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9. ConclusionKerala, popularly known as ‘God’s

Own Country’ is gifted with beautifullandscapes, rivers and backwaters. Keralais one among the top in South Asia, forquality of life index, high literacy rate, goodhealth standards, public hygiene and lifeexpectancy. The social developmentindices of Kerala are considered as a globalrole model. The State has a well developednet work of roads, pollution free-low costhydel power and immense water sources.Its long and beautiful coastal belt hasprovided ample opportunities for marineproducts and tourism sector. State is oneof the premier destinations of health tourism.About 90% of the Natural Rubber in thecountry is produced here and it is theleading producer of coconut, pepper andcardamom. It is the second largestproducer of Tapioca, Cashew and Coffee.The state contributes a significant portionof the national export from marine andspices based products.

Even though considerable investmentand efforts were made for the development

of industrial sector, they have not assuredwell functioning and sustainable SmallScale Industries or traditional industries.Considering the global situation of marketeconomy and the financial stringencies ofGovernment, it is necessary to reconsiderthe present scenario and spending ofGovernment funds effectively to bringdesired results in industrial development.

Kerala i s becoming one of thecompetitive industrial destinations with aninvestor friendly environment. It is the landwith amazing social advancement andastonishing economic progress. The socialdevelopment indices of the state areequivalent to developed countries. It isgifted with nature rich environment andhighly educated manpower. Keralaindustry is capable to adopt moderntechnologies for the upgradation of existingunits to make them more competitive tocope up with the changing internationalindustrial scenario. With a well defined andpragmatic approach, the state governmentis encouraging private sector investment

by providing a number of incentives andassistances. In order to achieve sector wisedevelopment Govt. declared some of thesectors as Thrust Industries. 100% Exportoriented units, IT, tourism, agro basedindustries, food processing, readymadegarments, Ayurvedic medicines, marineproducts, L ight Engineer ing, B io-technology and Rubber based industriesare some of the industries declared asThrust.

Our Prime Minister announced on 15-Aug-2002 that India wi l l become adeveloped country by 2020. Nationalefforts are progressing to achieve thismission. The developed countries have toexport their products in a competitive wayto dif ferent countr ies to remain asdeveloped countries. The developingcountry, forgett ing transformed intodeveloped; have to market their productsin other countries in a competitive way. Theschemes proposed in this report canchange the industrial scenario of the Districtby the year 2021n



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Industries T - · PDF fileagro processing and traditional industries while giving thrust to IT and health service ... Other than the existing Milma Plant at Kollam ... possible as