GOVT INCENTIVES & POLICIES IN

KERALA

BY

PRA CHA MO DI

IT SECTOR - H.Sree CharanDirectorate of IndustriesDirectorate of Renewable Energy

Transportation - Dinesh KannanTourism

Fisheries - Pradeep

Agriculture - Moorthy

INTRODUCTION - Dinesh Kannan ENTREPRENUER - Sree Charan

Topics dealt by

•Region South India•District(s) 14•Capital Thiruvananthapuram(Trivandrum)•Largest city Thiruvananthapuram•Largest metro Kochi•Population  Density 31,841,374(12th) (2001)  819 /km2 (2,121 /sq mi)•Literacy 94.59% (1st)•Official languages Malayalam•Area 38863 km2 (15005 sq mi)

Introduction

Industry

Culture & Habits

Labor Cost

Exposure

Financial Status

Climatic Conditio

nsLand cost and Types

Transportation

Expenses

Raw Mater/ Natural

Resource

IT

Others

Agriculture Sector

INCENTIVESRs.40 crores - special package - rubber losses incurred on the exports.

Rubber Farming

Copra ProcurementKerala Kershaka Sahakarana FederationNational Agricultural Cooperative Marketing Federation of India

INCENTIVESSeed money assistance will be given @ Rs.5 lakhs per drier or 25% of the cost drier whichever is less.

IncentivesA package of relief measures for arecanut growers will be implemented with an outlay of Rs.10 crores.

Arecanut Production

Other Crops1. Ginger: Purchase tax

reimbursement will be given up to a total of Rs.3 crores. Formal orders in this regard will be issued by the Taxes Department.

2. Pepper: A package costing not more than Rs.5 crores will be designed in consultation with organizations and implemented.

3. Coffee: A package costing not more than Rs. 6 crores will be designed in consultation with farmers organizations and implemented.

Department of FISHERIES

• Kerala Govt is Undertaking various production oriented schemes for the development of fisheries sector.

• Ensure disease free quality shrimp/fish seed to farmers.

• Special schemes for upgrading the educational status of fishermen Children.

• Implement schemes for welfare of fishermen community.

• Developing New Technologies in Fishery.

20% of the total land is allotted for fisheries i.e., 8.55 lakh in the marine sector and 2.55 in the inland sector land.

Marine fisheries is believed to be about 5.88 lakh tonnes and contributes 1.44% to the total GDP.

In Export of marine products, it has set ever time record of 1852.93 million US$ during the year 2006.07.

Matsyafed, BFFDA, FFDA, ADAC, KFWEB, FIRMA, FEDA,

TRANSPORTATION

Kovalam Trivendrum (2 Ports) Kollam

Ponnani Neendakara (RO) Beypore (RO)

Munambam Calicut Thalassery

Kannur Azhikkul (RO) Kasargod

Manjesswaram Neeleshwaram Kayamkullam

Manakkodam

INCENTIVES:

•Govt is concentrating on BEYPORE,PONNANI and AZHIKKUL Ports.

• Ponnani all-weather port project with 2000 Crores Govt Investment.

• Azhikkul port development undertaken by deloitte India.

• Annual revenue increase by 4.03 Crores.

PORTS

AirwaysThree International Airports 1. Trivendrum2. Calicut3. Kochi

Backwaters

Alleppey Backwaters Cochin Backwaters

Kottayam Backwaters Kollam Backwaters

Trivendrum Backwaters Kumarakom

Houseboat• Govt encouragement in Houseboat Tourism.• 10% State Investment Subsidy for govt approved houseboats.

Department of TOURISMINCENTIVES

•Approval of Hotels (by Govt. of India)

•Approval of restaurants (by Govt. of India)

•Approval of Ayurveda Centres

•‘Grihastali' for approval of heritage buildings and motels.

•Approval of Amusement Parks, recreation centers, handicrafts emporia

•Investment subsidy limited to 10% subject to a ceiling of Rs10 lakhs

•Support to avail loans from state financial institutions

•Concession in electricity charges

•Guidance and publicity support from the state Govt.

The Government’s vision is to turn Kerala into a knowledge society.

IT Sector

SEZ PARKS IN KERALA

• Exemption from Service Tax.

•100% I.T. exemption for 5 years, 50% for next five years.

• Exemptions on excise duty / vat/ taxes on all imports.

• Efficient and Speedy approvals of Customs clearance and procedures.

1. Vallarpadam/Puthvypeen, Cochin, Kerala 2. Kakkancherry near Calicut, Kerala  [Food Processing]3. Kalamassery,Kerala  [Electronics]4. Kzhakuttom, Trivandrum, Kerala [IT(Animation and gaming)]5. The Electronics Technology Parks - Kerala, [IT Park]

Note : 3 more SEZs are proposed in Trivendrum, Kassargod, Mannar e.t.c

GOVT Sanctioned 500 Crores for Development of SEZs

AKSHAYA PROJECT 18,Nov,2002

• Bridge gap between Tech Rich and Tech Poor Districts.

• E-Business, E-Governance, E-Learning, E-commerce, E- Marketing E- Learning, e.t.c.

• 3000+ Centers, 6.4 Million Trainees, 1223 local bodies.

• E-Vidya by FOSS for English, Internet, other it apps.

• Public – Private Partnership – Entrepreneur Investment 3 Lakhs.

• Services involves C2G, G2C, B2C , C2B modes.

SMART CITY 17,MAY, 2007

• Govt Investing 1700 Crores for development @ Kochi.

• Purpose: Future Multi-National Ventures & Agreements in the state.

Directorate of industries, Kerala1. Kerala State Single Window Clearance board (appeal). (30D)

2. Marginal money loan to non-resident keralities. (15D)

3. State Investment Subsidy -10Laksh. (45D)

4. Sales Tax Exemption (Appeal) – (45D)

5. Eligibility Certificate for central excise duty concessions.(15)

6. Essentiality Certificate ( Spirit, Molasses, e.t.c) (15D)

7. Technology Development Fund – 1.5Lakhs – 15D

8. Marketing Incentives Schemes. 15% MML, 15% Subsidy

9. Industry Facilitation Council. (6Months) – Disputes settlelment.

10.Land Allotment DA/DP – 1 Acre Approved by GM – (30D)

11.Proficiency Interface Cell

Department of Renewable energyWind-power or Windmills

INCENTIVES

•Concessional import duty on spares

•Customs and Excise duty relief

•Loans through IREDA

•No clearance required from Central Electricity Authority

•5 year tax holiday.

•100% depreciation in the first year and 80% from then on..

•Financial support is available for R&D.

•A 50% subsidy on energy projects based on urban waste.

Idukki Hydro Electric Rajiv Gandhi CCPPKochi CCPPKozhikode diesel powerBramhapuram Diesel power

ConclusionAgriculture – Kerafed, Copra, Arecanut, Rubber farmingFisheries - Matsyafed, BFFAD, FFADTransportation – Back waters, Housing Boat Tourism – Special incentives for Ayurvadic R&D, Tourism Policies IT Sector – Akshaya Project, Special Economic Zones, Smart City Industrial Sector – Incentives on various sectors. Renewable energy – Concessions on various sectors.Handloom, Wood, Pesticides, e.t.c

Bene Gra

cie