The Key Investment Zones in Kerala With Immense Potential – Part II

In the previous blog post we discussed about 7 of the Key Investment Zones in Kerala. Here, in continuation, we discuss the remaining areas of focus.


1. Infrastructure Development

Kerala took a pioneering role in attracting private investments in building green fields when it built the highly successful Cochin International Airport, which recently also received the distinction of the first Airport to be completely Solar-Powered. The large non-resident community, the increased attention Kerala has drawn as a tourist destination and booming industrial activity together call for more air connectivity for the State.

Following are the present projects in pipeline -

  • Kochi – Palakkad NIMZ
  • Container Transshipment Terminal at Vizhinjam
  • Petroleum, Chemicals and Petrochemical Investment Region at Kochi
  • SEZs
  • International Airport at Kannur
  • Gas-based Power Projects
  • Convention Centres
  • Electronic Hub


2. Green Energy (and Energy in total)

The State is planning to set up two power projects: a 1200 MW gas based project at Cheemeni in Kasaragod district and a 1200 MW gas-based project in Kochi. At present, the big chunk of the power produced in Kerala comes from hydel projects. Idukki arch dam with an installed capacity of 780 MW is the main contributor to the grid. However, given its commitment to environmental sustainability, the State government is actively pursuing other means of power production.

It is estimated that Kerala has a wind energy potential of 605 MW from 17 sites. The solar potential is as high as 14,346 MW while the rooftop solar potential is 6,187 MW.

Biomass gasification, which has been tested successfully in industrial areas has a potential capacity to generate 697 MW.

Kerala-Tourism-key-investment-zone-green energy

3. Science & Technology

The industrial policy of the State seeks to set up a State-Level Task Force to coordinate the efforts of the Department of Industries and other developmental agencies and R & D centres for the integral development of Biotechnology, Nanotechnology and other knowledge industries in the State.

The State has already established its presence in the frontiers of biotechnology with the setting up of the Rajiv Gandhi Centre for Biotechnology, Thiruvananthapuram and the Tropical Botanical garden and Research Institute at Palode, Thiruvananthapuram.

As per the industrial policy of the State, , KSIDC is setting up a world class Life Sciences Park, Bio360, in Thiruvananthapuram to attract FDI in pharmaceuticals, medical devices, biotechnology, nanotechnology etc., especially in core activities like manufacturing, R & D and clinical development.


4. Water Technologies

he State is yet to scientifically explore the full potential of the key natural resource for human, and agricultural and industrial purposes. As a result, despite its water richness, several parts of the State face acute shortage of water during the summer, the coastal areas of the State are the worst affected.

The State Government is planning to set up demand-driven participatory water supply projects which together entails an investment of Rs. 1000 crore. They include desalination plants, automation of water pipelines and canals, conservation and recharging of rain water, rainwater harvesting, waste water recycling and water purification.



The Micro, Small and Medium Enterprises (MSME) sector contributes to the process of economic growth, employment generation and balanced regional development. It has the potential to emerge as a strong, vibrant and globally competitive sector in the State’s economy.

The State has identified about 75 SME clusters and they are at different stages of development. Central Government agencies like Coir Board, SISI, and NGOs like Federation of Industrial Clusters etc. are also taking initiative in Cluster Development.


6. Financial Services

Banking and Financial Services is yet another area for innovative investments. The groundwork has already been completed with the wide penetration of equity culture amongst a large section of the people and concepts like futures trade in commodities.

Kerala-Tourism-key-investment-zone-financial service

  • Banks
  • Asset management companies
  • Stock broking companies
  • Portfolio management service
  • Back office operations
  • Venture Capital Funds

The investment Kerala made in education and health in the past has started paying dividends now. It has produced a generation of people that creates wealth at home and abroad. Financial institutions that come up with imaginative products would find Kerala a fertile land to grow.


Image Courtesy : allwallpaper, marketwatchdemo