EDP Notes

Slow growth of entrepreneurship in Kerala is mainly due to the lack of ‘entrepreneurial
skill’. To overcome this problem Department of Industries & Commerce, Government of Kerala
formulated a scheme to set up “Entrepreneurship Development Clubs” in schools and colleges of
the state to inculcate “Entrepreneurial Culture” amongst youth and equip them with the skills,
techniques and confidence to act as torch- bearers of “Enterprise” for the new generation.
MISSION
‘To create wealth and employment commensurate with unlimited natural and immense human
resource potential of Kerala by developing entrepreneurship in the youth’.
OBJECTIVES OF ED CLUBS
1) To nurture the latent entrepreneurial talents.
2) To educate members on various dimensions of industry.
3) To motivate the members to venture into the industrial activity.
4) To bring in successful entrepreneur and students on a common platform.
5) To induct entrepreneurial spirit in the institutions.
6) To inculcate entrepreneurial culture in students.
7) To make them aware of the unlimited developmental potential of the state.
8) To sensitize students on the real economic and industrial development scenario of the state.
9) To inculcate trustworthiness, integrity, hard work, discipline, honesty etc. as constituents of
entrepreneurship.

FUNCTIONS OF THE ED CLUBS
ED clubs have a tremendous role to play in the entrepreneurial development of Kerala. The
role of ED clubs may be understood from the functions they perform. The following are the
functions:
1) Organize workshops/ debates.
2) Organize industrial visits to business enterprise within / outside state.
3) Organize interactive sessions with successful entrepreneurs from outside as well as
within the state.
4) Exposure to national and international events in various parts of the country related to
industrial development.
5) Organize Entrepreneurship Clinics & Entrepreneur Awareness Programme.
6) To introduce talented youths to industrial research organizations.
7) To familiarize the youths to the latest developments through media.
IMPLEMENTING AGENCY
District Industries Centre (DIC) concerned will be the implementing agency. General
Manager, DIC shall advise the activities and have close liaison in conducting the activities.
FINANCIAL ASSISTANCE
A grant of Rs.120000 per annum will be given to each club by the Department of Industries
& Commerce. A minimum of 10% is to be contributed by the institution. The funds can be utilized
preferably for the following purposes:
1) Entrepreneurship motivation of students.
2) Interaction of students with successful entrepreneurs/ investors / stakeholders etc.
3) Training programme on Industrial Project Preparation and Appraisal.
4) Training Programme on Project Appraisal and Entrepreneur Assessment.
5) Entrepreneurship Awareness Camps.
6) Camp on Entrepreneurial Adventures for Youth.
7) Conducting meaningful surveys related to entrepreneurial development.
8) Essential exposure visits.

1) District Industries Centres will be made effective for enterprise development in MSMEs.
2) Government shall focus on nurturing innovative high growth MSMEs with capacity to
compete globally on a sustained basis and ill the productivity of the MSMEs.
3) Government shall create a knowledge based pro enterprise environment that inculcates
the appropriate mindset for business, encourages entrepreneurship and innovation and eliminates
barriers to organizational growth.
4) A system of decentralized production centralized marketing, centralized designing and
centralized quality control will be actively pursued.

5) Priority will be for utilization of unused land of local bodies for setting up MSME.
6) Preference, exemption of EMD/ Security Deposit and free tender forms.
7) Directorate of Industries and commerce will be revamped so as to become an effective
organization for promotion of MSMEs.
8) Joint Inspection by all Departments/ Agencies on prior notice will be encouraged, self
regulation and certification would be implemented in the place Inspector Raj.

1) SLPEs in Kerala are marginal players in their structure fields. Some sectors like Titanium
have the potential to create fortune 500 SLPEs in Kerala. This policy hopes to convert that dream to
a reality.
2) Government will facilitates strategic tie up with reputed State and Central Government
organizations with a view to tap new markets, technology support and appropriate participation in
growth and development of SLPEs.
3) Government will encourage merging of SLPEs having same lines of business.
4) Government reiterates its commitment to protect productive employment in SLPEs.
5) Professionals will be appointed as Chief Executive Officer (CEO) in SLPEs.
6) To facilitate implementation of the best practices in Board level, Governance of SLPEs,
the Director Boards will be strengthened with representatives of Banks, professional institutions
and domain Specialists.
7) Constitution of Board Level Committees as per relevant statues will be ensured.
8) For effective monitoring of restructuring plan implementation and performance of
SLPEs, an internet based performance Monitoring System will be set up in Public Sector
Restructuring and Internal Audit Board (RIAB).
9) Profitability linked incentive schemes and profit linked incentive schemes will be
implemented mapping with the responsibilities of various organizational levels.
10) Constitution of a state level Core Committee for PSU Restructuring involving bankers
with RIAB as the technical secretariat and constitution of similar SLPE level committees is a step
in strengthening the interface between the SLPEs and the Government.

The following measures are to be adopted to speed up industrial growth in the state.
TRADITIONAL SECTOR INDUSTRIES
Modernization of traditional sector will be ensured to tap National/ International
market and to create more employment to local people, especially women. The following
are the important traditional industries together with measures taken by the government in
the policy to promote them.
HANDLOOMS
 Strengthening existing Handloom clusters with financial, technical and managerial
assistance to sustain the cluster base.
 Developing of regional brands and location specific brands for high quality
Handloom products to meet domestic and international needs.
 Encouraging domestic usage of Handloom/ Khadi products through Mass
Campaigns and to bring back to focus the cultural aspects of traditional dressing.
 Development of high quality infrastructure facility for Handlooms for pre-loom
processing, loom processing and post-loom processing.
 Strengthening quality raw material distribution system
 Ensuring smooth credit-flow to the sector through cooperatives and other
Institutions.
 Revitalizing of Handloom co-operatives, Hantex and Hanveev and approved cluster/
consortium by special economic, technical and managerial support projects for a
result based production and marketing and to convert them into agencies of change
and growth instead of becoming a drain on resources and a favourite on weavers.
TEXTILE SECTOR
 The Textile Mills in the public Sector and co-operative sector will be re-engineered
to make them self-sustainable. Private Sector Mills will be encouraged to expand.
 TECHNICAL TEXTILES- To capture a reasonable share in the growing prospects
for technical textiles worldwide, special efforts will be made.
 MADE-UPS-The made-up sector, which has got immense growth, will be
encouraged.
POWER LOOMS
 Special projects will be launched for technology up gradation of power loom

 Clustering of facilities will be extended to achieve highest level of production.
 The demonstration cum training centre of Directorate of Handlooms & Textiles will
be upgraded to Kerala Institute of Power loom Technology with Budgetary support.
HANDICRAFTS, HERITAGE PRODUCTS & SOUVENIR INDUSTRY
 Project based support will be rendered to Apex organizations in Handicraft sector.
 Cluster based Development, modern production tools to reduce costs, targeting the
global market and promotion of entrepreneurs in the business of production and
marketing of handicrafts will be encouraged.
 Skill Development Training and common Facility Centers for the provision of
commonly needed but expensive equipments and professionalism in marketing.
 Heritage homes and souvenir industry for our state will be developed.
 Resource and market focus design for handicrafts products.
COIR
 To ensure conversion of minimum 50% husk produced in the state into fiber and to
promote raw husk defibering mills in hinterlands in private sector and co-operative
sector. Defibering Mills set up under ICDP will be revived.
 Raw material and marketing Consortiums of small scale producers, Co-operative
Societies under Cluster Development Programme.
 A brand image for Kerala Coir will be created to tap the internal and export market
of Coir Products.
 Modern coir factories will be set up in co-operative sector.
 Kerala State Coir Marketing Federation Ltd. (Coirfed), Kerala State Coir
Corporation and Foam Matting (India) Limited will be restructured to make it selfsustainable.
 Special thrust for Geo-textiles Development Programme.
KHADI & VILLAGE INDUSTRIES
 Usage of Khadi / Handloom products will be encouraged by all sections in our
states.
 It mainly sells the product of the Village Industries through its outlets in different
part of the state. Special assistance will be provided to the sector to help the rural
communities set up industrial units with minimal investment and yielding good
returns through Khadi % Village Industries Board. (KVIB).
SERICULTURE
Effective steps will be taken for providing adequate forward and backward linkages
by establishing cocoon marketing arrangements in all districts, quality linked cocoon
purchased system, arrangements for timely reeling of cocoons, production and sale of silk
yarn, fabric and garments.

BAMBOO
The Government shall continue to support these programmes through the state
Bamboo Mission. Also the activities of Kerala State Bamboo Corporation will be
strengthened with the support of technology adaptation and development.

It aims to achieve a tremendous growth of industries in our state. The vision of the
government is to convert Kerala into an investment friendly destination and to achieve constantly
high economic growth with specific thrust to social objectives, without adversely affecting ecology
and environment and to create employment opportunities for the people in Kerala and ensuring
them fair wages.
OBJECTIVES
1) To convert Kerala into a favored destination for manufacturing, agro processing, health
services and knowledge based industries and services.
2) To enable growth, revival and diversification of state level public enterprises.
3) To strengthen and modernization of traditional industries.
4) To accelerate the fast growing services and commerce sector.
5) To develop Kerala as a global centre of excellence with state of the art education and skill
sets and preparing a pool of multi skilled, technically competent individuals and
organizations.
6) To sustain industrial and economic growth by facilitating accelerated flow of investment.
7) To create additional employment of 5 lakh persons in the manufacturing and service
sectors.
STRATEGY
 To develop Industrial infrastructure facilities in various locations of the state through
KSIDC, KINFRA, DIC, SIDCO and private sector.
 To move towards a low tax, high growth regime.
 To exploit mineral wealth of Kerala in a scientific manner through Public Sector Enterprise.
 To attract Foreign Direct Investment with specific criteria.
 To improve investment climate through investment protection, decentralization, facilitation
and by creating more growth opportunities.
 To promote local entrepreneurship through institutional mechanism and mass participation.
 To help facilitate establishment of specialized skill development institutions at key locations

suitable for manufacturing, knowledge based industries.
 To restructure and retain potentially viable State Level Public Enterprise (SLPEs).

 To encourage Industrial Corridors/ Cluster Development in potential locations.
 To work in coordination with chamber of commerce/ industry associations and other trade
bodies to have continuous feedback on the state of industries and commerce and the support
measures required.

There are more business opportunities here due to the following reasons.
The Kerala Advantage: It is endowed with unique natural resources and is supported by a
thriving Diaspora. The business has a wide scope for development in Kerala due to the
following advantages possessed by it:
a) It has strategic location on the trans-national trade corridor and well-connected
road and train network.
b) It has three international airports and has international seaport with container
cargo handling facility at Cochin.
c) It has excellent communication network.
d) There is a highest density of science and technology personnel.
e) Kerala has 100% literate work force.
f) It has highest physical quality of life index.
g) It has abundance of natural resources such as minerals, marine products, and
agricultural products.
h) The accelerated industrial growth in the state is nearly 9%.
i) A good management culture is created and a cordial industrial and labour relation
is maintained in the state.
j) Necessary assistance is provided for marketing of industrial products in the state.
High Quality Human Capital and Social Development: Kerala has enviable human
resources. The state scores the highest among all Indian states on the UNDP Human
Development index.
Traditional Areas of Strength: The state is now one of the highest earners of tourism
revenues in the country and one of the world’s premier tourist destinations. The state is
also the leading producer of natural rubber, coconuts, pepper and cardamoms and the
second largest producer of tapioca, cashew nuts and coffee.

Economically Successful Diaspora: Non Resident Indians from Kerala are
economically successful and remit significant amounts to their home state.
Top Quality Infrastructure:
Investment Climate: A study conducted by the CII (Confederation of Indian Industry)
on the attractiveness of the states in attracting investments rated Kerala as the third best
in the country in overall ranking.