Tourism is the largest industrial sector in the world generating an output of 450 Billion USD per annum. It employs more than 600 million people worldwide and contributes to 6% of GDP. The travel and tourism industry generally grows faster than the world economy in all respects – in terms of output, value addition, capital investment and employment generation. India’s share in international tourism is quite meagre and stands at 0.7%. There has been a major thrust to develop India as a tourist destination, owing to the geographical and cultural diversity existing in the country.

Kerala is one of the few states in India, endowed with abundant natural beauty. This tiny state is one of the greenest places in the country offering a wide variety of tourist spots like beaches, backwaters, valleys, estuaries, hill stations and pilgrim centers.

Kerala has become a hot spot for tourism activity in the country in the recent days and a greater emphasis has been given to create sufficient infrastructure for tourism growth in the state. Construction of International Airport at Cochin and expansion of International Airport at Trivandrum and Calicut, construction of a variety of different classes of hotels, cottages, eco-tourism projects, beach resorts and hill stations will aid growth of tourism industry in the state.

KSIDC has promoted/financed nearly 20 hotel projects at various locations in the state so far. Another 15 projects are in the pipeline with details noted below:

KSIDC is known to provide promotional and financial assistance for new tourism- based projects in the State. The Corporation follows a debt equity ratio of maximum 1:5:1 and gives Term Loan for a maximum amount of Rs.250 lakhs per project. In case of larger projects, the Corporation makes equity investment as a promoter. Government of India has approved Cochin – Thekkady – Madurai as a tourism circuit where interest subsidy of 5% is applicable for new hotel projects. Recently, Government of India has declared corporate tax benefit for projects to be located in Idukki and Wayanad. There is a 5-year tax holiday followed by exemption of 30% on profit for the next 5 years for new projects in these 2 districts. The Corporation intends to launch an extensive promotion campaign in these 2 districts enabling the setting up of more tourism- based projects in Idukki and Wayanad districts.

Functions
KSIDC, as facilitator and financier for industries offers wide assistance in building a dynamic economy

The key areas of our focus include:

  Identification of Investment Ideas
  Translating Ideas into Concrete Proposals
  Feasibility Study, Technology Sourcing, Project Evaluation
  Financial Structuring, Loan Syndication
  Ensuring Central and State Govt. Clearances
  Tying up Requirements in Infrastructure
  Total Project Management Support
  Development and Administration of Growth Centres

In a nutshell, KSIDC is a single point contact for all investors of the state and acts as a brand ambassador of the state spreading its industrial ethos.

In fact KSIDC acts as an interface between Kerala and the outside world.

Allied Supporting Services.

In addition to the primary support provided to entrepreneurs, KSIDC extends a whole range of pro-investor services, which include:

Single Window Clearance System

Kerala is the first state in the country to introduce the Single Window Clearance System with statutory backing and KSIDC has been designated as the Nodal Agency for all governmental clearances at state level for medium and large-scale industries.

Venture Capital Financing

In a bid to encourage entrepreneurship in IT, Biotechnology and allied sectors, KSIDC in association with SIDBI and KFC has established Venture Capital Funding as an alternate financial source with a corpus of Rs.20 crores.

Capital Subsidy Processing
KSIDC is the operating agency for processing and disbursement of state investment subsidy for its assisted units.

Sales Tax Exemption Eligibility Certificate
The Corporation also issues eligibility certificate for Sales Tax Exemption for medium and large-scale industries

Other Support Services

  Equipment refinance
  Technology Data Bank with access to National and International data networks
  Cost sharing for preparation of feasibility/market studies

Financial Products

The financial service range from equity and term loans to short term loans and bridge loans.

Debt Equity Ratio: 1:1 upto 1.5:1 depending on the performance of the company

Term Loans: Upto Rs.1000 Lakhs. No cap for term loan under direct financing.

Bridge Loans: Against Term Loans Sanctioned

Short Term Loans: Against Subsidy

Corporate Loans: For Existing Profit Making Units up toRs.100 Lakhs

Repayment: 1-2 Years Moratorium + 6 Years