Seasonal Magazine LDF Government 1st Anniversary Special Issue Pilot by John Antony

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Managing Editor Jason D Pavorattikaran Editor John Antony Director (Finance) Ceena Senior Editorial Coordinator Jacob Deva Senior Correspondent Bina Menon Creative Visualizer Bijohns Varghese Photographer Anish Aloysious Correspondents Bombay: Rashmi Prakash Hyderabad: Iqbal Siddiqui Delhi: Anurag Dixit Director (Technical) John Antony Publisher Jason D Pavorattikaran

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s’ihdnaG si tahw dna ,7102 ot drawrof tsaF noillib 05$ naht erom sdneps tI ?gniod aidnI .erutidnepxe yratilim sa raey yreve srallod neve ,yllaunna serorc 000,52,3 .sR si tahT yna kcatta ro edavni ot snalp on sah ti nehw tsegral htxis eht sah aidnI ,seY .ruobhgien .dlrow eht ni erutidnepxe yratilim

noillim 271 dnuora ,atad tsetal eht rep sA ton ,ytrevop tcejba ni gnivil llits era snaidnI

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dah noitan rehto on sa no tops saw ihdnaG dne ot rewop labolg rojam a decrof elihW .snaem lufecaep no ylurt ,noitazinoloc leboN gnivresed a niw ot deliaf ihdnaG eettimmoc leboN eht hcihw( ezirP ecaeP srewollof lacigoloedi sih ,)retal detterger alednaM nosleN dna rJ gniK rehtuL nitraM gnirenrag ybereht ,ezirp detevoc eht niw did asmihA s’ihdnaG rof troppus lanoitanretni .snaem tneloiV-noN ro

rof sredneps 01-poT eht taht si ynori ehT - hcir-repus lla era ebolg eht ssorca yratilim KU & ,aissuR ,aibarA iduaS ,anihC ,ASU ruof eht era os dna ;su evoba dneps hcihw ,napaJ ,ecnarF – su woleb tsil siht ni snoitan nam ddo ylno ehT .aeroK htuoS & ,ynamreG a gnoma ytrevop gnilttab llits ,aidnI si ereh .noitalupop sti fo egatnecrep tnacifingis

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SEASONAL MAGAZINE

Celebrating 60 Years of Kerala Assembly eht ezinoitulover tsum modeerf s'aidnI“ eht ”,raW dna ecaeP nopu kooltuo s'dlrow ti deedni dna ,etorw noitaN ruO fo rehtaF stekcop suoirav ni kooltuo eht degnahc eht gnieb elbaton tsom eht ,dlrow eht ssorca eht dna tnemevom sthgiR liviC naciremA .tnemevom diehtrapA-itnA nacirfA htuoS

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All health related articles are for first information purposes only. Always consult your doctor before taking any decison affecting your health.

EDITORIAL

a rof dneps ot srallod 2$ dnuora neve gnivah tuokrow epolevne-eht-fo-kcab A .gnivil s’yad ecnefed a dah aidnI fi taht ees ot hguone si otni ti detuorer dna ,ezis sti flah tegdub dluow ytrevop ,roop eht no desucof smargorp .ydaerla detanimile neeb evah retsiniM emirP naidnI tnerruc eht tuB ecnefed taht seveileb idoM ardneraN .erom hcum nworg eb ot sdeen erutidnepxe fo mia detats a sah tnemnrevog sih ,tcaf nI snopaew no 5202 yb noillib 052$ gnidneps .tnempiuqe yratilim dna .snoisiv hcus gnivah ni enola ton si idoM eht neve dna nituP ot pmurT morf enoyrevE gniraos evah dlrow eht ssorca snoitan ynit .erutidnepxe yratilim ot semoc ti nehw snoisiv fo tluser tcerid eht tub ecnedicnioc on si sihT -yratilim eht fo ecneulfni gniworg eht .suxen lacitilop-lairtsudni lareneg rats-evif a saw rewohnesiE D thgiwD raW dlroW gnirud ymrA setatS detinU eht ni eht fo rednammoC emerpuS sa devres dna II eH .eporuE ni secroF yranoitidepxE deillA gnisivrepus dna gninnalp rof elbisnopser saw s’ reltiH morf acirfA htroN fo erutpacer eht eht dna 34-2491 ni hcroT noitarepO ni ymra noisavni dna ecnarF fo erutpacer lufsseccus .54-4491 ni ynamreG fo feihC ymrA s’ASU emaceb eh IIWW retfA fo rednammoC emerpuS tsrif eht dna ffatS fo tnediserP ht43 eht emaceb eh retaL .OTAN . 1 6 9 1 o t 3 5 9 1 m o r f s e t a tS d e t i n U e h t f o stnediserP SU tsetaerg eht fo eno sa dedrageR -noitan lanoitpecxe sih ot eud emit lla fo dna ,ASAN fo rednuof( sevitaitini gnidliub ,)tenretnI fo noitaerc eht ot del hcihw APRAD lleweraF sih ni yas ot siht dah rewohnesiE :1691 ni noitan eht ot sserddA siht rof deen evitarepmi eht ezingocer eW“ liaf ton tsum ew teY .tnempoleved )yratilim( ,liot ruO .snoitacilpmi evarg sti dneherpmoc ot os ;devlovni lla era doohilevil dna secruoser eht nI .yteicos ruo fo erutcurts yrev eht si draug tsum ew ,tnemnrevog fo slicnuoc detnarrawnu fo noitisiuqca eht tsniaga eht yb ,thguosnu ro thguos rehtehw ,ecneulfni rof laitnetop ehT .xelpmoc lairtsudni–yratilim ,stsixe rewop decalpsim fo esir suortsasid eht thgiew eht tel reven tsum eW .tsisrep lliw dna

erahs eht – erutidnepxe ecnefed sti tuoba ,sraey neves tsal eht roF .ti ni stropmi fo dlrow detupsidnu eht neeb sah aidnI ,aidnI s’ihdnaG .tropmi smra ni redael ecneulfni nretseW eht otni thgir gniyalp .modeerf otni su del eh hcihw morf seitrebil ruo regnadne noitanibmoc siht fo ekat dluohs eW .sessecorp citarcomed ro dna trela na ylnO .detnarg rof gnihton eht lepmoc nac yrnezitic elbaegdelwonk dna lairtsudni eguh eht fo gnihsem reporp ruo htiw esnefed fo yrenihcam yratilim ytiruces taht os slaog dna sdohtem lufecaep ”.rehtegot repsorp yam ytrebil dna

taht yrotsih ni stniopweiv elbiderc era erehT gnidulcni rotatcid gniregnom-raw a ynam siht fo tcudorp etamitlu eht saw reltiH skrow tI .suxen lacitilop-lairtsudni-yratilim gnillihc llits si ti dna ,seicarcomed ni tseb dna rewop ot emac reltiH taht rebmemer ot revelc hguorht rotatcid lautriv a emaceb .sessecorp citarcomed eht fo snoitalupinam

egnahc ot stnaw tnemnrevog s’idoM ,woN aidnI taht os ro %07 eht nwod gnirB .ti naidnI ehT .rotces ecnefed eht ni stropmi ecnefed naidnI gnitomorp si noitulos yeht fi dibrof doG .yaw gib a ni seirtsudni dna smra gnitropxe pu dne osla srotatcid morf enoyreve ot snoitinumma .erutuf eht ni ,stsirorret ot

gninioc htiw detiderc si rewohnesiE elihW ,’xelpmoc lairtsudni-yratilim‘ mret eht eht mret lanigiro eht taht ti sah dnegel -lairtsudni-yratilim‘ saw dednetni tnediserP saw eh taht dna ,xelpmoc ’lanoissergnoc os tnemom tsal eht ta ti egnahc ot desivda !snaicitilop eht etatirri ot ton sa

sgniht ,reve desu t’nerew snopaew eht fI eht fo ynam tuB .retteb neeb evah dluow dna ,sbmob ekil ,selbamusnoc era smeti srethgif tej ekil selbarud yratilim ynam neve eht erehw si ereH .tabmoc ni ylno tsol era yehT .segreme suxen siht fo edis rekrad ,serutsop tneregilleb rof ybbol ylterces ,sredrob gnola snoisnet fo noitalacse .sraw tuo-lla neve dna ,snoitatnorfnoc .airyS ta kool a evah tsuJ ?dehctef-raf smeeS ,srehcnual tekcor esoht lla gniylppus si ohW ot stellub dna ,snug ,sllehs ,sratrom ,sbmob ,ASU tub esle ohW ?snoitcaf cimalsI lavir eht raW ?sekil eht dna ,ecnarF ,KU ,anihC ,aissuR yb denrawerof ,dnik tsrow eht fo gnireetiforp lareneG yb ’tekcaR a si raW‘ koob elttil taht .5391 ni reltuB D yeldemS

dna anihC tuoba denrecnoc eb ot deen eW eht nI .ti yalprevo ton su tel tub ,natsikaP fo trap ruo ni yllaicepse ,redro dlrow wen natsikaP ron anihC rehtien ,dlrow eht na tpmetta ot ydrahloof os eb dluow e k i l l i g r a K , s eY . a i d n I f o n o i s a v n i ecnefed a tub ,elbissop llits era snoisurtni nehw neve ,raey yreve spmuj taht tegdub ,sevlesmeht rof dnef ot tfel era roop eht ro renooS .taht rof noitulos laer eht t’nsi ylno taht ezilaer lliw sruobhgien lla ,retal cimonoce dna ,lacitilop ,lufecaep fI .tcilfnoc a evlos yllaer nac snoitulos dezilaer sah eporuE gniregnom-raw ecno gniht trams ehT .aisA htuoS lliw os ,taht .tseilrae eht ta ecar smra siht pots ot si

scimanyd eht ,noitan yna ni dna ,esac yna nI .dnatsrednu ot ysae si suxen siht fo mroftalp a sa msilanoitan deen snaicitiloP ot yaw retteb tahw dna ,rewop ot no dloh ot no eguh dneps ot naht msilanoitan leuf eht tuoba tneuqole xaw dna yratilim ,seirtsudni ecnefeD .sreidlos fo secifircas stnaig rotces etavirp erup yb detanimod tnemnrevog erom dna erom deen ,syad eseht eseht gnirekorb dnA .ecnefed no gnidneps ni stnemhsilbatse yratilim eht era sedis owt rof ruomalc rieht hguorht seirtnuoc tsom ot tnahcnep rieht dna yrnopaew retteb .skcabkcik evissam eht eviecer

citsemod s’pmurT woh ta kool a evah rO saw BAOM eht nehw pu tohs sgnitar ni slennut SISI no deppord yltnecer .natsinahgfA gniht eno ylno tuoba denrecnoc si aidnI

hcus morf sgnivas eht fo %1 nevE retteb evig ot hguone eb dluow sevitaitini jeT mohw fo eno ,snawaj ruo ot doof gninialpmoc rof dekcas tog ohw rudahaB eno fo doof ergaem eht tuoba ylcilbup rehgih eht elihw neve seviecer eh ahtarap a elihW .snoitar doof ffo nohpis sreciffo SEASONAL MAGAZINE

CONTENTS OUR FOCUS ON MSMEs & PSUs IS DELIVERING AC Moideen, Industries Minister, Kerala There was a time when being a Communist Industries Minister in Kerala was one of the toughest jobs in the country. Because, Communist Parties, especially Communist Party of India (Marxist) had always thrown their

KERALA'S ECONOMIST FINANCE MINISTER GEARS UP FOR GST

Kerala’s Finance Minister Dr Thomas Isaac will have his task cut out from the 1st of July – the inauguration date of the GST tax rollout – when India readies for its biggest

10 REASONS WHY KERALA REMAINS HOPEFUL ABOUT ITSELF AND ITS LEADERSHIP

Kerala is not a typical state of the vast nation of India. It is a place where poor village women recently dug nearly 200 wells when government or their men weren’t willing to face the drought. It is a place where the state government gave crop insurance even before Centre planned to provide it. It is a place where one woman forest official built 500 toilets for the tribals to help make the state open defecation free. The credit for Kerala’s nation-leading Human Development Index is shared by the Left. While other states are vying to be Kerala in HDI, Kerala’s challenge is to balance optimum development with its deep socialist ethos. In other words, it’s just a redevelopment that Kerala seeks from Pinarayi Vijayan Government when it completes its first year. Here are 10 reasons why Kerala remains hopeful about itself and its leadership.

WEATHERING THE STORMS ON RESPONSIBLE TOURISM INITIATIVES

Kadakampally Surendran assumed the helm of affairs at Kerala Tourism, when it was already hit by the issue of alcohol ban by the previous government. A few months into his job, more was to follow as the Central Government unleashed its controversial demonetization program that took the lakhs of Kerala bound overseas tourists by

WEATHERING THE STORMS ON RESPONSIBLE TOURISM INITIATIVES

Kadakampally Surendran assumed the helm of affairs at Kerala Tourism, when it was already hit by the issue of alcohol ban by the previous government. A few months into his

KERALA'S ECONOMIST FINANCE MINISTER GEARS UP FOR GST

Kerala’s Finance Minister Dr Thomas Isaac will have his task cut out from the 1st of July – the

KERALA TOURISM ON REVIVAL COURSE AMID STORMY TIMES

If the setback following the bar license cancellation by the previous dispensation was not enough, the tourism sector was further hit by the SC ruling against operation of liquor outlets alongside national & state highways. Even demonetization

HOUSING FOR ALL ISN'T A DISTANT DREAM AFTER ALL

E Chandrasekharan, the first cabinet minister from Kasargod in 12 years, devoted much of his political activities spearheading various initiatives in the tranquil northern town of Kanhangad. The CPI leader, rewarded with the important revenue & housing portfolio in the Pinarayi government, has swiftly swung into action by introducing a slew of schemes in the housing sector.

THE DARLING OF KOCHIITES SET TO MAKE ITS DEBUT"S

In what is set to be a major boost for Kochi’s urban connectivity, the inauguration of the Kochi metro services also comes as a relief for the under-fire ruling LDF government. The Pinarayi Vijayanled LDF government is battling multiple controversies within only

KERALA COOPERATIVE BANK TO TAKE ON BIG BANKS

Tasked by the government, M.S. Sriram, a professor at the public policy department, Indian Institute of Management (IIM), Bengaluru, just developed a roadmap for the KCB project. Edited excerpts from a phone interview:

KERALA GETS READY TO COUNT ITS ELEPHANTS

KERALA RETURNS TO NATURE, TO DEVELOP 10 FOREST-CENTRED ECOTOURISM CIRCUITS Kerala government will develop 10 ecotourism circuits connecting various forests as part of its plans to promote green tourism. Forest Minister K Raju recently informed the assembly that as many as 60 ecotourism projects were

SUPREME COURT MAKES KERALA DRINK LESS?

The Supreme Court order banning liquor sale within 500 meters of national and state highways has led to huge drop in alcohol sales in Kerala. Statistics of the state-

KERALA STARTUP MISSION TIES UP WITH BPCL TO PROVIDE SUPPORT TO KERALA STARTUPS

In a bid to spruce up the Kerala Government’s efforts in the entrepreneurial space and

Kerala Announces New Rs.20K Recession Package Through KIIFB

Longer-term plans for KIIFB include raising Rs. 1 lakh crore for funding infrastructure in a massive way.

CONTENTS

WHY AVANTI HAS NEARLY TRIPLED IN 5 MONTHS Avanti Feeds stock has nearly tripled in the first five months of 2017, during a period when many small-cap companies were reeling from the post-demonetisation impact. In the current month of May itself the stock has shot up by 62% on blockbuster Q4 numbers. Seasonal

A MAN FOR ALL SEASONS & A MAN FOR ALL REASONS The man behind the groundbreaking 2G scam revelation, former CAG Vinod Rai seems to relish solving some of the country's serious challenges. One also observes an explicit tendency to appoint him to positions of

ASSAM DOWN TOWN UNIVERSITY

SPREADING THE WINGS

From a primarily health sciences university focusing on nursing, pharmacy, and allied domains, Guwahati based Assam Down Town University is rapidly emerging as a top destination in North Eastern region of India for Engineering, Management, Hotel

BALANCING WORLD-CLASS QUALITY WITH LOCAL AFFORDABILITY

WANT TO BE SUCCESSFUL? JUST BE CONSISTENT!

COMING TOP IN RIGOUR, RESEARCH, & RANKINGS

JSS University is accelerating steadily, on an academic approach that is rigorous in that it encompasses not just classroom or lab learning but industry interactions, international seminars, and groundbreaking research. Also on the anvil is a new Rs.2000 crore campus at Mysuru. This top-ranking private university for health sciences in South India is led by a visionary

VR CAMERA SET TO GO INTO SPACE WITH SPACE X

Everybody knows the universal truth that there are no shortcuts to success. But what about Grant Cardoneâ&#x20AC;&#x2122;s simple recipe for guaranteed success? The renowned entrepreneur and sales

SpaceVR and Space X team up to capture VR footage of space flight. There are several virtual reality (VR) experiences that hope to show VR users what it is like to be in outer space, from videogames such as Lone Echo

LAMBORGHINI STEPS UP IN INDIA

HOW DID DR.BASHAR AL-ASSAD BECOME A MASS MURDERER

With the countryâ&#x20AC;&#x2122;s economy moving in an upward trajectory, the demand for super luxury sports cars is also emerging from the hinterland of India. Witnessing the growing trends in the country, Lamborghini launched its superfast car, Huracan

The heart-wrenchingly succinct statement goes to the heart of my own dismay at the appalling crisis in Syria. More than 400,000 dead, most recently in a nerve gas attack. Six million citizens internally displaced. Five

H1B VISA APPLICATIONS DIP FOR FIRST TIME IN YEARS

Employers applied for about 16% fewer H1B visas for highly skilled workers this year than in 2016, possibly reflecting concern that the Trump administration is taking a more restrictive approach to the program. Employers seeking visas for 2018 submitted 199,000

CUT TRANS FATS TO CUT HEART ATTACKS

Hospitalisation for heart attacks and strokes is less common among people living in areas that restrict trans fats in foods compared to residents in areas without restrictions, new research has found.

IPL 2017

IPL 2017 has come to an end. It just had to. There is perhaps no other league in the world that attracts disparage at the beginning and leaves you spellbound as it progresses into the final stages. This is precisely what the diehard IPL fan witnessed in the epic encounter between the victorious Mumbai Indians & Rising Pune Supergiant. The match was worthy enough to qualify as a potential movie script. Mumbai Indians showed why they were indeed the best T20 outfit around en route to their 3rd IPL title. Rohit Sharma led the team with conviction although the Indian opener himself had a relatively quiet season by his standards. The contribution of his pace attack can’t be understated. As Jasprit Bumrah led the way with some incredible bowling performances, one could almost gauge the envy of Indian skipper Virat Kohli’s counterparts. Known for his pin-point yorkers in the death overs, the Gujarat bowler would be of great asset to India’s limited overs plan. Not to forget Rohit’s strike bowler – Mitchell McClenaghan – who has consistently delivered this season. Keiron Pollard and Hardik Pandya donned the role of finishers with great style. Young Nitish Rana also had a convincing season with the bat and was the prime rea-

son for Mumbai’s breath-taking start to the tournament. However, the real unsung hero of this edition of the IPL was Krunal Pandya, elder sibling of Hardik. What is most remarkable about this special talent is that it is difficult to tell whether he excels more in his batting or bowling. But what stood out was his full-blown commitment to get the job done both with the bat and ball whenever required. It didn’t mean that he topped the bowling or batting charts but was arguably the most impactful player in the tournament although Ben Stokes won the honours. While most of the pre-tournament picks had a fairly decent outing, there were also a few disappointments in terms of the expectations from them. Yuvraj Singh blew hot and cold leading many to question his selection for the Cham-

pions Trophy. Mustafizur Rahman failed to play a single match as the Sunrisers Hyderabad were content with Bhuvaneshwar Kumar & Rashid Khan doing the damage in the bowling department. Jason Roy, similiarly, was unfortunate to sit out for the most part given his immense talent. Brendan McCullum, Virat Kohli, Rishabh Pant, Manish Pandey, Glenn Maxwell & Steve Smith contributed enough for their respective team’s cause. Basil Thampi deservedly won the ‘Emerging Player of the Tournament’ award for his outstanding performance with the ball. Meanwhile, the no.1 ranked test spinner in the world, Ravindra Jadeja was taken to the cleaners consistently although his fielding was top-class. Ten seasons worth of glitz, glamour and cricket, some serious high-octane entertainment – it’s done and dusted now. Who knows what will happen in 2018, what the Supreme Court-appointed panel will have to say on the matter. Maybe not much will change. Some things could do with a rethink anyway.

SEASONAL MAGAZINE

HOUSING FOR ALL ISN'T A DISTANT DREAM AFTER ALL E Chandrasekharan, the first cabinet minister from Kasargod in 12 years, devoted much of his political activities spearheading various initiatives in the tranquil northern town of Kanhangad. The CPI leader, rewarded with the important revenue & housing portfolio in the Pinarayi government, has swiftly swung into action by introducing a slew of schemes in the housing sector.

The Total Housing Security Mission of the state, or Mission LIFE, hopes to transform the urban landscape by offering affordable residential accommodation to labourers, workers and low-waged employees. This will be carried out by the Bhavanam Foundation, a non-profit public undertaking under the Labour & Skills ministry to provide, promote, develop and establish residential accomm odation, education, healthcare, other associated infrastructure and services. The raison d'être of the programme is to provide housing to all homeless families within 5 years. Apna Ghar project of Bhavanam foundation is building an apartment complex for migrant workers in the KINFRA industrial park in Kanjikode, Palakkad. Around 768 labourers will benefit from this initiative. The Janani project helps low-paid labourers, workers and employees in the State to own a house. 215 flats as big as 645 sq ft are nearing completion in Adimali. The Jannai Project’s Ponjassery Scheme is building another set of 296 flats of size 715 sq ft spread out in 2.2 acres of land in Ernakulam district. Work has also started on a similar project in Akkulam, Thiruvan anthapuram. The Labour ministry conducted a survey among homeless plantation workers and identified 30887 worker families to be eligible. As a first step Mission LIFE will construct 450 houses of size 400 sq ft there. Google’s Map My Home Project,

backed by the Department of Revenue and Land Survey, Government of Kerala was initiated with a motive to map all the missing Government offices, hospitals and other places in Google maps. The first phase was

completed with a team of college students in Trivandrum with more than 2K new additions to the maps. For the second phase 20 students each from 18 colleges were selected from 3 districts, namely Trivandrum, Ernakulam and Kozhikode and were given orientation classes.

Apna Ghar project of Bhavanam foundation is building an apartment complex for migrant workers in the KINFRA industrial park in Kanjikode, Palakkad. Around 768 labourers will benefit from this initiative.

Another scheme being given a major impetus is the M.N. Laksham Veedu Punarnirmana Padhathi financial assistance scheme wherein the Kerala State Housing Board will provide subsidies for the reconstruction of dilapidated twin houses into single units and recontruction of single houses. The government subsidy will be Rs. 75,000 for General Category, Rs. 100000 for SC Category and Rs.125000 for ST category. SEASONAL MAGAZINE

SPECIAL ISSUE on Kerala Governmentâ&#x20AC;&#x2122;s 1st Anniversary

Pinarayi Vijayan, Chief Minister, Kerala SEASONAL MAGAZINE

WHY

KERALA REMAINS HOPEFUL ABOUT ITSELF AND ITS

LEADERSHIP Kerala is not a typical state of the vast nation of India. It is a place where poor village women recently dug nearly 200 wells when government or their men weren’t willing to face the drought. It is a place where the state government gave crop insurance even before Centre planned to provide it. It is a place where one woman forest official built 500 toilets for the tribals to help make the state open defecation free. The credit for Kerala’s nation-leading Human Development Index is shared by the Left. While other states are vying to be Kerala in HDI, Kerala’s challenge is to balance optimum development with its deep socialist ethos. In other words, it’s just a redevelopment that Kerala seeks from Pinarayi Vijayan Government when it completes its first year.

SEASONAL MAGAZINE

SPECIAL ISSUE on Kerala Governmentâ&#x20AC;&#x2122;s 1st Anniversary

SEASONAL MAGAZINE

Industry and commerce activities in the state are slated to benefit from the creation of KIIFB. There are also special efforts being made to revive traditional industries with a large workforce. The tourism sector is slowly getting back on its feet after a shaky year gone by. With the south-west monsoon set to make a strong appearance, Kerala's agricultural sector would heave a huge sigh of relief. Kerala's infant mortality rate is now as good as that in the United States, after the former already surpassed countries like Russia, China, Sri Lanka & Brazil. Special emphasis will be placed on development of hill & coastal highways and national waterways. Compensation for land acquisition will get a major impetus. While the government strives to live up to its promise, here are 10 reasons why Kerala remains hopeful about itself and its leadership.

SEASONAL MAGAZINE

SPECIAL ISSUE on Kerala Government’s 1st Anniversary

Steely Determination of Keralites

ver heard a once 120-feet river degrade into a 20 feet sewage stream over the decades? Sure you have, because it happens across India due to the rapid urbanization of the last three decades. But ever heard about villagers resurrecting that river back into former glory? That’s rarer, and that’s what happened to the 12-km long Kuttemperoor river in Kerala’s Alappuzha district, when 700 villagers waded through a dead river, cleansed it off plastics, dredged it off debris and pollutants, and brought it back to life in 70 days! What is greater is that it was done by local residents cutting across political lines and by combining the best of Central Government’s NREGA scheme and support of State PWD Minister G Sudhakaran.

SEASONAL MAGAZINE

A Thriving Startup Culture

erala might have missed the IT bandwagon, but there is no doubt that Keralite software engineers and technopreneurs (including Infosys cofounders Kris Gopalakrishnan and SD Shibulal) are the best in breed, making their mark from Bengaluru to the real Silicon Valley. This has eventually resulted in a thriving startup ecosystem in the state led by the first public-private incubator in India, Startup Village (now Technology Innovation Zone under State Government’s Kerala Startup Mission), which is now getting competition from new incubators from national level industry bodies like NASSCOM (Startup Warehouse at Kakkanad) to state government infrastructure companies like KSIDC to even private promoters like Technolodge.

Kerala Tourism is Fighting Back

Even UN is Helping Kerala

uring the recently concluded tourism season in India, Kerala was hit by not double whammy but by multiple issues. The first strike on tourism was from the move to limit availability of liquor to just the finest hotels. Then came demonetisation which hit the state badly, and bad news about how Kerala’s tourist spots from Wayanad to Munnar and Kumarakom to Kovalam were suffering from acute cash crunch spread rapidly across the international tourism circuit. Next in line came a report that struck at the famed cleanliness of the state – 9 cities of Kerala dropped from under-50 ranks in cleanliness to near-250 ranks. Kerala Tourism is now fighting back with a massive initiative ‘Green Carpet’ while government’s ‘Haritha Keralam’ is aiding it.

uess who is going to help Kerala in meeting its Sustainable Development Goals? None other than United Nations that helps in formulating SDGs for each region. UN’s Office of Information & Communication Technology (ICT) has joined hands with Kerala Government to start its impressive facility of UN Technology Innovation Lab (UNTIL) in the state capital, Thiruvananthapuram. What is even more impressive is that UN Office for ICT has agreed to focus on three vital areas that Government has asked support for viz Water Resources, Sanitation, & Sustainable Agriculture, in addition to the futuristic concept of Electrical Mobility. Kerala Startup Mission will spearhead UNTIL in the state. SEASONAL MAGAZINE

SPECIAL ISSUE on Kerala Government’s 1st Anniversary

A Radical Approach for Environment

ome June 5, the World Environment Day, and guess how Kerala is going to celebrate it? Believe it or not, by felling lakhs of trees! To understand this, one should rewind to an afforestation program gone haywire. Over the past decades, Kerala Forest Department like of many other states planted lakhs of eucalyptus and acacia trees for rapid forestation, only to discover that these water gurglers brought down the state’s precarious water table still further. That’s why on June 5 a new felling program of these tress and replacement with planting of 1 crore fruit-bearing, medicinal, and traditional multipurpose trees are being organized. Forest department, agriculture department, & Kudumbasree are jointly spearheading it.

A Focus on Teachers erala which made history by training a total of 38,000 upper primary teachers in specific ICT training is getting ready for the next round. A total of 56,000 high school teachers in Kerala will soon get specific training in Information Technology as part of the state government's general education rejuvenation mission'. The training is imparted under the IT@School, a government initiative to impart IT education in schools, from May 8 onwards. The IT@School has come up with the teachers' training project after the launch of the 'High Tech School' project, envisaged to digitise 45,000 classrooms in staterun schools. The highlight of the training would be the practical sessions on the use of ICT in classroom transactions.

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Kerala is India’s 3rd Fully Electrified State

ut of India’s 29 states, Kerala is soon to become the third fully-electrified state, meaning that all homes in the state will have electrification. In fact, Kerala has already achieved this by March 31st, but has waited to steer clear of poll code violation. The last leg of this impressive drive spanned 2.5 lakh homes, many of them accessed by cabling 30 km deep into forest areas, for which the state has spent Rs.700 crore. For Kerala, this is a commendable achievement as it produces only 30% of its needed electricity, while 70% is procured from other Indian states at rates around Rs.10 per unit. Most of these producing states are yet to achieve full electrification! Until now, only Gujarat and Andhra Pradesh have achieved full electrification.

GST is Net Positive for Kerala hile some Indian states are still having reservations about revenue loss from the upcoming Goods & Services Tax (GST) implementation by the Central Government, Kerala’s economist Finance Minister has done his homework and is confident that the state would benefit by additional revenue of Rs.3000 crore when GST is fully implemented. However, Thomas Issac is still appealing the Central Government to not include petroleum products under GST, as the state collects Rs.14,000 crore as petroleum cess each year, which he hopes to utilize as a 15% fund source for the newly formed Kerala Infrastructure Investment Fund Board (KIIFB). In any case, Kerala is not waiting for the 1st year compensation from Centre and has formed a Plan B.

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SPECIAL ISSUE on Kerala Government’s 1st Anniversary

Leadership in Anti-Corruption Battle

A New Educational Loan Assistance Scheme recent survey has proved that Kerala is actually one of the least corrupt states in the country, second only to Himachal Pradesh. The survey was conducted by the Centre for Media Studies on the basis of people's experience in paying bribes for public services, and covered around 150 households from at least two districts each of 20 states, spread across urban and rural locations. While Karnataka tops the list with 77% of respondents saying that they had to pay bribes to public servants, only 4% among Malayalis said the same. The reasons for the low levels of corruption in Kerala could be many, ranging from an ever vigilant media to high literacy rates because of which the citizens are more aware of their rights.

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ad study loans are a severe problem for banks in Kerala. Out of the Rs10,220 crore total educational loans in the state, Rs1,315 crore is NPA. Now, Kerala has launched a Rs. 900 crore loan repayment scheme to help students from families with annual income below Rs. 6 lakhs. The move comes at a time when students are suffering because of banks selling a large number of “bad loans”, to loan sharks like ARCs. For loans below Rs4 lakh (NPA study loans), if the banks waive interest and penal interest, 60% will be paid by the government and the rest 40% by the borrower. For loans above Rs 4 lakh, if the loans have not turned NPA, state will pay upfront the first year up to 90% of the repayment, second year 75%, third year 50% and fourth year 25%.

Kerala Plans Environment Friendly Weddings The state of Kerala is regularly in the limelight for its progressive behaviour along several fronts. From maintaining extremely high levels of literacy to taking big strides in the battle for LGBT rights to countless innovations, the people of this state just do not seem to leave a single stone unturned when it comes to being an ideal example for the country.

KERALA STARTUP MISSION TIES UP WITH BPCL TO PROVIDE SUPPORT TO KERALA STARTUPS In a bid to spruce up the Kerala Government’s efforts in the entrepreneurial space and derive long-term benefits from start-ups, nodal agency for promoting entrepreneurship Kerala Startup Mission has signed a memorandum of understanding (MoU) with Bharat Petroleum Corporation Limited (BPCL). The pact will aim at providing technological aid and investments in start-ups from various technology domains.

nd now, the state has one more reason to boast, with green weddings possibly soon becoming a regular practice with a little co-operation from the the state government. As part of this, the state government has started to confer with various social and religious groups and organisations to come up with environment-friendly weddings with as little wastage as possible. This programme is set to take off under collaboration between several local bodies and Suchitwa Mission, an organisation under the state government responsible for evolving implementation strategy and providing policy in the areas of sanitation and solid and liquid waste management. Previous implementation of the green protocol in major events like the National Games with assistance from Suchitwa Mission has reportedly pushed the state government to take the idea forward and give it a try at weddings too. Plenty of awareness campaigns have already been started in districts like Kannur, Ernakulam, and Idukki, and Suchitwa Mission has got in touch with various churches in the region for this initiative. C.V. Joy, Director of Operations for Suchitwa Mission, said, "People should be aware of the environmental impact of the huge quantity of waste, including plastic products, generated in lavish weddings and other parties. They should be ready to stop using disposable items such as plates and water bottles." The director was also hopeful about extending this idea to religious festivals, even including Iftar meetings during the time of Ramadan. He added, "The churches in Idukki have already offered their support for the initiative, and we are also expecting the Waqf board to join us. The district administrations of Kannur and Alappuzha have formally urged the public to follow green protocol during wedding parties and other functions."

s per the MoU, BPCL will provide financial support and exclusive access for start-ups to the company’s R&D facilities, expertise and network. The MoU is for two years. BPCL General Manager (Strategy) Aravind Krishnaswamy and Kerala Startup Mission CEO Dr Saji Gopinath signed the MoU in the presence of Additional Chief Secretary Paul Antony and Electronics and IT Secretary M Sivashankar. “Startup entrepreneurs and students in the state are driven by good ideas, but face a dearth of business models,” said Sivashankar. “The backing that they receive from trade and industry is a great source of encouragement for them,” he added. Kerala Startup Mission will identify and work on ideas with start-ups, shortlist and curate a selection with which technology companies can work, said Dr Saji Gopinath. The selected start-ups can use the technical facilities and domain expertise offered by the industry. “BPCL will utilise selected products from start-ups on chargeable basis in its business verticals,” said Aravind Krishnaswamy. “BPCL will also conduct workshops to promote start-up culture,” he pointed out. ICFOSS Director Dr Jaishankar Prasad, BPCL Business Development Executive Director Pramod Sharma, and BPCL Kochi Refinery Executive Director Prasad Panicker were also present. Suhail of Tranzmeo, a start-up for petroleum piping solutions, and Manjunath, from waste management solution start-up Renow, made presentations at the function. SEASONAL MAGAZINE

SPECIAL ISSUE on Kerala Government’s 1st Anniversary

“ OUR FOCUS ON MSMEs & PSUs IS ” DELIVERING Exclusive Interview with AC Moideen, Industries Minister, Kerala

There was a time when being a Communist Industries Minister in Kerala was one of the toughest jobs in the country. Because, Communist Parties, especially Communist Party of India (Marxist) had always thrown their weight behind the state’s powerful trade unions led by its own CITU in any industrial tussle be it with private companies or with PSUs owned by Centre or even the state itself.

ut times have changed, and to give credit where it is due, CPI(M) has been the enabler for major industrial infrastructure initiatives in the state like the Thiruvananthapuram Technopark. However, the policies of CPM and the Left Democratic Front (LDF) that it leads have little changed, even in recent years. CPM does business, but on their terms. Current Industries Minister AC Moideen embodies this philosophy to the core, and he can emphatically explain why CPM’s terms are the best for the state, based on his holistic view that it is the interest of the workers that should come before the interest of investors. Based on such lofty socialist ideals that are shared even by their arch-rivals UDF led by Congress, Kerala has emerged as the number one destination state for unskilled and skilled labourers from across India. It is no wonder really, as daily wages for labourers in the state are 4 to 8 times higher than in so-called industrialized states like Maharashtra, SEASONAL MAGAZINE

Tamilnadu, & Gujarat. On the flipside, however, it has affected industrial growth in Kerala, especially in the heavy industries segment. The wages remain high in Kerala due to its unique revenue streams like Middle East inflows and its leadership position in rubber farming. This has led to a consumption boom as well as a residential construction boom that has sustained for decades now in this southernmost state. However, in recent years both these revenue streams have started showing stagnancy if not de-growth, and Minister AC Moideen has assumed charge of the state’s Industries at such a difficult situation which almost is looking like an emerging recession. CPM’s plot to counter this, led by Chief Minister Pinarayi Vijayan, Finance Minister Thomas Issac, Industries Minister AC Moideen, and others, is to come with an anti-recession package centered around a new Special Purpose

Vehicle, the Kerala Industrial Infrastructure Fund Board (KIIFB) that plans to raise massive funds from multiple avenues including India’s bond market. While the present LDF Government that completes its first year shortly, has been unable to attract any major private investors from India or abroad so far, it is too short a period to judge the Industries Ministry on that regard alone. Because, AC Moideen operates at a higher level of wisdom about Kerala, especially about its unique strengths and weaknesses. He knows that the geographically small state with high density of population and high environmental concerns won’t be a right fit for heavy industries looking for thousands of acres. Rather than waste his ministry’s energy on such ambiguous possibilities, Moideen is focusing on the state’s unique strengths like its thriving MSME sector, its competent IT industries, the impressive distribution strength of its cooperative bodies, and

Interviewed by: Carl J, John Antony & Jaison D

A. C. Moideen, Minister for Industries, Kerala SEASONAL MAGAZINE

SPECIAL ISSUE on Kerala Government’s 1st Anniversary its emerging strength in agro processing industries.

park, and several agro processing parks in various parts of the state.

Even while the Central Government at New Delhi is accelerating the disinvestment or privatization of its PSUs, Kerala is following a different track of handholding its PSUs in hope of a better tomorrow. Minister Moideen has personally seen to it that Kerala’s PSU units work in optimum synergy with each other, so that each other’s business and profitability targets are met. Already 13 state PSUs which were making losses have been turned around in this first year.

A man of few words, who opens up only when speaking about the passionate work that his team is doing, AC Moideen spent nearly an hour with Seasonal Magazine’s team answering our queries eloquently. Hidden beneath his words is a deep understanding of the Kerala situation, which is a personal strength of this grassroots level politician hailing from Wadakkancherry in Thrissur District.

He is banking high hopes on reviving the stronghold of traditional industries of Kerala like Coir, Handloom, Khadi, Cashew etc. The LDF Government has already made a breakthrough when it sourced one million metres of handloom textiles for school uniforms in the state. Textile units in the state have been revived with monthly incomes of dependent families registering a notable surge.

Entering politics while still a young student, Moideen has worked in almost all CPM organizations like SFI, DYFI, CPM Area Committee, Block Committee, District Committee, Grama Panchayat, Cooperative Societies, Kerala Karshaka Sangham etc in leadership positions. A three-time MLA, this is AC Moideen’s first stint as Minister, and he is likely to leave a mark in the Industries sector in the years to come.

The state is also continuing earlier plans of creating major industrial infrastructures like the petrochemicals

However, the all important question that remains is whether the well-meaning efforts of the Minister and his team

“ Our Chief Minister has already visited major investing nations in the Middle East, and has received several investment proposals. we have already conducted B2B meets, which were very effective, and those initiatives will continue.

”

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KSIDC Handed over Rupees FIFTY LAKHS to Suchitwa Mission as Part of CSR Intiative for their efforts to transform Kerala into an open defecation-free state

Inauguration of Business Incubation Centre at Govt.College Kariavattom, Thiruvananthapuram

would be sufficient for Kerala in a new highly competitive Indian and global scenario.

Seasonal Magazine in conversation with AC Moideen, Minister for Industries, Sports, & Youth Affairs, in Government of Kerala: When the Government completes its first year, what would you consider as the main achievements of your three ministries – Industries, Sports, & Youth Affairs? During this first year, we have turned around 13 Public Sector Units from losses into profits. In the still loss-making PSUs, we have cut the net losses from Rs.131 crores last year to Rs.70 crores now. This has been possible by tackling the inefficiencies prevalent in these public sector companies, and with the full cooperation of the employees. Secondly, we have made major strides in growing the Micro, Small, & Medium Enterprises (MSME) segment. Our annual target for the fiscal was 15,000 new MSME units, but we could surpass it and reach 16,000 units. From this, around 60,000 new direct jobs have been created. Thirdly, in Kerala’s once powerful stronghold of traditional industries like handloom, khadi, coir, & cashew nuts, we have taken giant steps. Over 10 lakh metres of handloom textiles have been sourced for school uniforms this year. Next year it will grow substantially as all students up to 8th standard would use this Kerala product.

Hon'ble Minister for Industries Sri. A.C Moideen unveiled the study report on 'Export Competitiveness of Kerala'

” Kerala is a huge consumer market, and the state is also a leading market for building materials consumption. We have several PSUs and thousands of MSMEs that can tap into this demand.

“

In Coir and Cashew industries we have provided for more work days, while in Khadi we have arranged for new Charkas and Tharis (hand spindles and looms). Coming to the second year in office, what are the primary goals before the Industries Ministry? The focus on MSME segment would continue. We have put a target of 20,000 new MSME units and 1 lakh jobs for this fiscal. Another major initiative is the creation of basic infrastructure development for industries. Towards this, we are in the process of executing several land acquisitions, especially of suitable lands with PSUs that are lying SEASONAL MAGAZINE

SPECIAL ISSUE on Kerala Government’s 1st Anniversary unused for years. The move to acquire FACT’s 600 acres land is already on, the funds have been allocated for that. New agro industrial parks are coming up at Ramanattukara, Chertala, Ranni, and a few other places, and land acquisition is being done for some of these. On a larger scale, around 4000 acres of land would be acquired for the KochiCoimbatore Industrial Corridor. These are being planned with funds from the new Kerala Industrial Infrastructure Fund Board (KIIFB), and the planning is being done by state’s development agencies like KSIDC and KINFRA. Thirdly, we will be improving the Ease-of-DoingBusiness in Kerala to a much higher level by amending obsolete laws, creation of new laws, and implementing fast singlewindow clearances for industries. What are your long-term development goals for Industries ministry, things that you want completed by the end of your term? Our primary aim is to create 15 lakh new jobs during this government’s full term. This will be achieved through growing the MSME segment as well as by rectifying shortcomings in the public sector. There are 42 PSU units under Industries Department itself, most of which are now turning profitable or will be profitable within the next one year or two. Major units like Travancore Titanium Products Ltd and Kerala Metals & Minerals Ltd are being given full support for their major development plans. KMML is putting up a new plant to process Black Sand, and has acquired 150 acres of suitable land for the same. Black Sand mining is being shifted to the public sector as it is a state asset.

“ Our annual target for MSME sector for this past fiscal was 15,000 new units, but we could surpass it and reach 16,000 units.

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TELK

Still, the state has been unable to attract any major private investor from India or abroad during this past year to start a new large-scale industry or venture. So, are you planning for any Investment Meet like how other Indian states have done? We all know how past Investment Meets in Kerala as well as other states have fared. Keeping this in mind, we would try to organize an investment meet in a more effective manner. Our Chief Minister has already visited major investing nations in the Middle East, and has received several investment proposals. Former Indian ambassador KP Fabian is also helping Kerala

Government in this regard. Before an Investment Meet is conducted, we want to amend some of Kerala’s laws and systems so that competitive Ease-ofDoing-Business is there. Labor rules would be modified without affecting the interests of the workers. But without waiting for these, we have already conducted B2B meets, which were very effective, and those initiatives will continue. Is the state averse to attracting big industries? No, but our scarce land availability and our genuine concern for environment make Kerala more suited to smaller industries and non-polluting industries like Information Technology,

KINFRA Industries Park, Nellad Kerala Clays and Ceramic Products Limited

Travancore Titanium

“ Our major initiative is the creation of basic infrastructure development for industries. Towards this, we are in the process of executing several land acquisitions, especially of suitable lands with PSUs that are lying unused for years.

” Biotechnology, financial services etc. Big industries tend to pollute more and need land in thousands of acres, whereas we are only comfortable in providing land in hundreds of acres. But this doesn’t mean that there aren’t any new large-scale industries happening in Kerala. The impressive expansions by BPCL, IOC, & Cochin Shipyard are the best examples. We are fully supporting such initiatives with necessary infrastructure like the new KINFRA Petrochemicals Park. So far, the big industries in Kerala have been PSUs, but we are not averse to private investment. What all would you consider as the

chief roadblocks when coming to policy implementation by the Industries Department? Is it land acquisition? No, I don’t think land acquisition is a major issue in Kerala anymore. It is time consuming of course, as it has to be done through the Revenue Department, and through District Collectors, by following proper procedure. The main roadblock as of now is some of our obsolete laws that are hurting the ease-of-doing-business; those need to be amended. Secondly, some people are taking pollution

activism into their own hands; that can’t be allowed. Investors deploy hundreds of crores in investment, and suddenly on local protests, the panchayat issues a stop memo, and then the entrepreneur is stranded and suffers huge losses. That is totally unacceptable. Neither I nor you are the final word on pollution. For that there are scientifically trained professionals in the Pollution Control Board with the required mandate. Their decisions should be respected. You mentioned that you could turn around some PSUs and more would be made profitable in the coming years. What is your main strategy for achieving this? We have taken a novel approach of making SEASONAL MAGAZINE

SPECIAL ISSUE on Kerala Government’s 1st Anniversary the different PSUs cooperate with each other. For instance, KSDP the PSU drug manufacturer has obtained new orders from Medical Services Corporation and PSUs from a couple of neighbouring states totalling to about Rs.100 crore. Based on such orders, the currently lossmaking KSDP is likely to turn profitable next year. Similarly, we have asked KSEB to give 40% of their orders and 15% price preference to state’s own electrical companies like TELK, Traco Cables, KEL, and United Electrical Industries (Meter Company). We are also working with Central PSUs to tap synergies. Recently, we did an exhibition in Ernakulam with Cochin Shipyard, despite differing with them on their privatization move. They source lakhs or tons of small parts like nuts, lights, handles etc, and this exhibition connected their huge needs with the hundreds of MSMEs in Kerala which can manufacture these parts. Similar is the case with the huge expansion plans of IOC and BPCL; we are creating the petrochemicals park so that MSME units can work in synergy with these majors by working further on their by-products. How far do you think radical initiatives like KIIFB would help development in the industrial sector? A lot of our proposed PSU expansions and new projects are being funded through KIIFB. For example, the major KMML expansion, the petrochemicals park, the Kochi-Coimbatore industrial corridor etc are KIIFB projects. KELTRON, the pioneering PSU

“ For the full term of this government, our primary aim is to create 15 lakh new jobs. This will be achieved through growing the MSME segment as well as by rectifying shortcomings in the public sector.

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electronics major which used to have an early mover advantage is also planning a new unit after several years, on KIIFB funds. How will you respond to the criticism that KIIFB projects may lag due to non-availability of funds? It is a totally wrong view. KIIFB is already operational post the new law enactment we did. The current corpus is only Rs.3000 odd crores because the fund requirements are only emerging. We can any day go in for diverse fund sources, and we aren’t doing it only because we don’t want to incur unnecessary interest costs. KIIFB is being led by professionals of high reputation, and even the Opposition while having differences over KIIFB, has never asked to dismantle it. In a new transparent environment dominated by RTI, media activism, and social media, don’t you think LDF Government’s policy implementations as well as management of public relations have been lacking? I would say that the first year achievements of this LDF Government have been even better than the earlier LDF Government. Different missions being launched by this government – Education Mission, Life Mission, Haritha Keralam Mission etc are already revolutionizing development in these fields. We have created 2000 new postings in Health Department, which is coming after a long gap. Government Hospitals are being modernised on a war footing. Arrears of social welfare pensions have been cleared as a top priority. But various media houses have joined ranks with UDF and BJP and have inflated some controversies out of proportion. We won’t be distracted on such strategies. All controversies will die down sooner than later, and everyone will come to recognize this government’s achievements. What all have been the major initiatives in the other two ministries that you head – Sports and Youth Affairs? For sports development, this government is investing the largest

amount ever, around Rs.700 crore. 14 district headquarters will get modern stadiums while 25 selected panchayats will get good playgrounds. We have identified 11 sports items where our youth have an edge, and we have launched Operation Olympia to coach 250 top athletes by the best domestic and overseas coaches, with the aim of winning medals in the next Olympics. The Youth Affairs ministry is working closely with the Youth Welfare Board and supporting all its initiatives. With Gulf inflows, rubber revenue, and alcohol revenue getting hurt in recent years, what all are your ministry eyeing as revenue sources? It is precisely due to this recession-like situation prevalent in Kerala due to these three reasons that we have announced two recession packages. The idea is to increase public spending through new infrastructure projects so that the market becomes live once again and private investors too start investing in a big way. This is basic economic theory. KIIFB

“ For sports development, this government is investing the largest amount ever, around Rs.700 crore. 14 district headquarters will get modern stadiums while 25 selected panchayats will get good playgrounds.

”

which can tap into 50% of motor vehicles tax, petroleum cess etc will adequately fund this recession package. With Kerala Bank on the anvil, are there are any plans to leverage it for the benefit of your departments, especially Industries Department? Since the proposed Kerala Bank is an amalgamation of the cooperative banks, it will basically benefit the Cooperative Department which will be equipped to start their own ventures. They are already venturing out from their usual domains, and volunteering to invest for 1000 smart classes across the state. Kerala Bank will also help KIIFB source low cost funds, as well as provide lower interest loans to millions of consumers and MSME units in the state. How do you view the support of Central Government in the further industrial growth of Kerala? The BJP government’s policies towards their own Central PSUs in Kerala have

been very negative. They are pursuing privatization, and eyeing to cut their stakes or even exit fully from several PSUs in the state like Cochin Shipyard, Hindustan Newsprint, Palakkad’s Instrumentation Ltd, TELK etc. This is despite the state extending full support by way of land and low cost inputs. So, their policy is detrimental to state’s interests. We will carefully consider whether to increase our stake in some of these companies when they exit partially, as it would require huge funds. Based on your long years of experience in Kerala’s developmental issues, and your experience during the past one year as state’s Industries Minister, what all are you most bullish about? Firstly, Kerala is a huge consumer market, and the state is also a leading market for building materials consumption. We have several PSUs and thousands of MSMEs that can tap into this demand. For instance, we are reviving Malabar Cements to its past

glory, by making it competitive again by sourcing laterite from outside Kerala and coal from overseas. By targeting to increase their market share in Kerala from 6% to around 25% we will limit the influence of cement cartels in pricing. We have undertaken B2B meets where our MSME units including agri units have displayed their acumen in catering to specialist overseas demand like dried fruits etc. Unlike Central Government, we won’t forsake our PSUs but work with them closely so that they are productive to the state and remain as top job generators. We will extend cooperation to restart any closed private or PSU unit, even on PPP basis, as long as it generates thousands of jobs and not just end up as a real estate business. We are open to the idea of restarting even Mavoor Rayons if proper proposals come up. There is absolutely no labour issues in the state, and labourers from all over India are flocking to Kerala due to the better job opportunities and pay rates here. Kerala has a thriving cooperative movement, the distribution reach of which is unparalleled anywhere in India. Kerala youth is also proving their mettle by establishing start-ups and government is providing all support including interestfree loans to them. Based on all these, and with proper planning and execution, I don’t find any reason why Kerala can’t make its aim of sustainable economic development a reality. SEASONAL MAGAZINE

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Kerala Announces New Rs.20K Recession Package Through KIIFB Longer-term plans for KIIFB include raising Rs. 1 lakh crore for funding infrastructure in a massive way. he CPI-M led LDF government in Kerala proposes to spend about Rs.20,000 crore for various development projects as part of its package to address economic recession, State Finance Minister T M Thomas Isaac told the assembly recently. The package will, among other things, include construction of big roads, bridges, IT parks and welfare schemes for poor and backward sections in the society, he said during question hour.

Necessary funds for the same would be raised through the Kerala Infrastructure Investment Fund Board (KIIFB), a mechanism envisaged to mobilise funds outside the budget provisions, Isaac said. Intervening in the matter, Chief Minister Pinarayi Vijayan said there was no need for any anxiety on the functioning of KIIFB. Mobilising funds for investments was the only function carried out through the board. The funds would be used for the projects mooted by different depart-

ments, he said, adding, "There will not be any economic chaos due to this." Isaac said KIIFB had already sanctioned projects worth Rs.12,000 crore and also would accord approval to schemes to a tune of Rs.2800 crore soon. "Work for the projects to the tune of Rs.18,000 crore would be taken up this year itself," he said. Priority would be given to promote tourism sector by taking up projects under the package.Similarly, schemes for drinking water supply also would be taken up, he said. There was no need for any anxiety on the functioning of KIIFB that would facilitate funds for the projects approved by the assembly and cabinet, he said. He also reminded members that reputed persons including Vinod Rai, former Comptroller and Auditor General of India, are heading the board. "They will not agree to any wrongdoings," he added. Presently the Board has a fund to a tune of Rs.3227 crore,he said. "There is no need to take loans now. It would be taken only after estimating the needs," he said. Stating that there would not be any difficulty for KIIFB to mobilise funds, Isaac said through the motor vehicle and petrol and diesel cess,the board could raise about Rs.one lakh crore in the next 20 years. Isaac also said massive investments were needed in the state to overcome revenue loss suffered by the state due to demonetisation and restrictions on functioning of liquor bars.

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KERALA GETS READY TO COUNT ITS ELEPHANTS

The state which leads the country in elephant population is cooperating with neighbours Karnataka and Tamilnadu to cover over 10,000 sq km of forest area to count elephants through an ambitious direct counting method based on sightings. n elephant census will be held in southern India from May 17 to May 19. It is estimated that there are more than 6,000 elephants in the Wayanad, Nilambur, Anamudi, and Periyar elephant reserves of the State. The last census in 2012 had put the number of elephants at 6,177. P.S. Easa, wildlife expert and coordinator of the programme, told that along with Kerala, the census would be held in Tamil Nadu and Karnataka. â&#x20AC;&#x153;Elephants are migratory animals and cross over to the adjoining States, which may lead to overestimation or underestimation. Hence, the count will be conducted simultaneously with the three States,â&#x20AC;? Dr. Easa said.

cover elephant habitats spread around 9,670 sq km of the 11,119.3 sq km forest area of the State. The direct counting method is based on sightings of elephants, while in the indirect method, surveyors follow a dung decay formula for arriving at an estimate. As many as 641 select blocks, a block may be of six to seven sq km, have been identified in the State and a threemember team, including a watcher and two beat forest officers, will be engaged in each block.

As many as 120 resources persons have been trained for the census and they will train close to 2,000 field staff. The direct count will begin on May 17 and the indirect count on May 18. The third day will be exclusively for collecting information on population structure of the jumbos and will be in open areas where the pachyderms are frequently sighted. The Periyar Tiger Conservation foundation will coordinate the census.

A twelve-member core committee has been constituted for the programme. Amit Mallick, field director, Periyar Tiger Reserve, is the nodal officer and chairman of the team. The census, involving direct and indirect count, will

KERALA RETURNS TO NATURE, TO DEVELOP 10 FOREST-CENTRED ECOTOURISM CIRCUITS erala government will develop 10 ecotourism circuits connecting various forests as part of its plans to promote green tourism. Forest Minister K Raju recently informed the assembly that as many as 60 ecotourism projects were being implemented in 32 forest divisions across the state at present. The new ecotourism circuits were envisaged to promote tourism without harming Environment and preserve local culture. The total forest cover in the state is 11,30,94171 hectare and the high-range Idukki district topped the list in terms of forest stretch. The government will implement ecotourism circuit projects as forest-centred. "Neyyar-KotturShenduruni-Achankovil will be such a circuit in the southern part of the state," he said. SEASONAL MAGAZINE

SPECIAL ISSUE on Kerala Government’s 1st Anniversary

WEATHERING THE STORMS ON RESPONSIBLE TOURISM INITIATIVES EXCLUSIVE INTERVIEW WITH TOURISM MINISTER, KADAKAMPALLY SURENDRAN

adakampally Surendran assumed the helm of affairs at Kerala Tourism, when it was already hit by the issue of alcohol ban by the previous government. A few months into his job, more was to follow as the Central Government unleashed its controversial demonetization program that took the lakhs of Kerala bound overseas tourists by surprise. Making matters worse was the fact that another Ministry that Surendran heads, Co-operation, especially its Cooperative Banks taking massive impact from the cash crunch. But under Surendran’s able guidance, both the Tourism and Cooperation Ministries have weathered the storms, and are getting back to normal. Challenges continue to arise randomly as the recent Supreme Court order banning bar hotels on all highways have further affected the prospects of the high-value international MICE tourism in the state. Also adding to Brand Kerala’s woes is the new annual cleanliness index where Kerala cities fared poorly due to a technical issue. However, Surendran epitomizes

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the new generation of younger leaders in CPI(M) who won’t give up without a fight. Under his leadership, the Tourism Ministry and Department are consolidating the strengths of Brand Kerala in international tourism circuits. These initiatives include a brand new Tourism Policy hinging on Responsible Tourism and creation of basic infrastructure. Hitherto unattended but breathtaking Malabar or North Kerala is getting its well deserved attention as a cluster of high potential tourism magnets. All destinations and tourism projects are also being proactively encouraged to be disabled-friendly. Shedding LDF’s previous aversion to private investments, Surendran is also open to consider PPP proposals, but strictly on a meritorious basis. Around 100 new tourism projects have been given permission, while the government is focusing its energies also on growing pilgrim circuits, forest circuits, adventure tourism, river tourism, lake tourism etc. At the heart of his philosophy is that tourism should ultimately benefit the local populations. Seasonal Magazine recently met Kadakampally Surendran, Kerala’s Minister for Tourism, Cooperation, & Devasom, for this exclusive interview:

Interviewed by: Jaison D, John Antony & Ceena J

Kadakampally Surendran, Minister for Tourism, Kerala

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Currently, not even 1% of tourists visiting Kerala are visiting the Malabar region. The potential of Malabar is immense especially with possibilities like River Tourism.

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Special focus has been given to developing the Malabar or North Kerala region. This is in synergy with the upcoming commissioning of the Kannur International Airport.

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Since there is a dearth of International Convention Centres in the southern districts, the proposal for Aakkulam International Convention Centre has been revived. SEASONAL MAGAZINE

SPECIAL ISSUE on Kerala Government’s 1st Anniversary Seasonal Magazine recently met Kadakampally Surendran, Kerala’s Minister for Tourism, Co-operation, & Devasom, for this exclusive interview: When the Government completes its first year, what would you consider the main achievements of the Tourism Ministry? We have created several new projects during this past year, in the tourism sector. Special focus has been given to developing the Malabar or North Kerala region. This is in synergy with the upcoming commissioning of the Kannur International Airport. A new River Tourism project costing Rs.300 crore has been given permission. The Thalassery Heritage project which was started by the previous LDF Government, but which went stagnant during the UDF rule, has been revived. This project will benefit the whole of North Malabar. Some of the great beaches in Malabar like Muzhappilangadu and Dharmadom have been allowed expansion plans, including a ropeway. All these projects will increase the inflow of tourists into Malabar by tenfold or more in the long run. Currently, not even 1% of tourists visiting Kerala are visiting the Malabar region. Only pilgrim tourists come there to visit some renowned temples. The potential of Malabar is immense especially with possibilities like River Tourism. What about other regions of Kerala like Central and Southern Districts? All districts are getting optimum focus. The first stage of Muziris Heritage Project is over and is a reasonable success despite some deficiencies that the Government will address soon. The second stage of this project has been started now. A similar heritage project

has been given permission in Alleppey. An IAS officer is being appointed as its Special Officer. A new Ashtamudi Lake Project is being pursued. Since there is a dearth of International Convention Centres in the southern districts, the proposal for Aakkulam International Convention Centre has been revived. Its foundation stone was laid during Kodiyeri Balakrishnan’s tenure, in tieup with Raheja Group. But nothing happened during the past 5 years of UDF, and the re-negotiation has now made fruitful progress. Altogether, around 100 new tourism projects have been given permission all over the state. You had recently mooted a project for a new forest eco-tourism circuit? What are its specifics? Forest based eco-tourism is mainly to promote adventure tourism in the state which attracts young travelers from all over India and abroad. But it can be attempted successfully only with the help of Forest Department. This is what

Forest based ecotourism is mainly to promote adventure tourism in the state which attracts young travelers from all over India and abroad, and is being attempted now with the help of Forest Department.

is being attempted now. Tourism department will spend and Forest Department will build the basic infrastructure according to their norms. As a first stage of this program, existing adventure tourism infrastructure in destinations like Ponmudi and Thenmala would be expanded and modernized. Is the Government open to PPP proposals? That will depend upon the specific proposal. We will consider PPP only on

Muziris Heritage Project

Ashtamudi Lake SEASONAL MAGAZINE

The upcoming Jatayu Para project is a recent example of PPP. We are spending Rs.50 crore for this project, and providing all basic infrastructure and facilities like excellent road connectivity, electricity, ropeway etc.

a case-by-case manner based on the merit of the project. For the ongoing Jatayu Para project, we are spending Rs.50 crore under the PPP model, and providing all basic infrastructure and facilities like excellent road connectivity, electricity, ropeway etc. This project is likely to be opened for visitors this September. But there won't be any special preference for PPP projects. Is the Government planning to announce a new Tourism Policy?

We are working on it, and while still not launched, I can share you the broad themes. The new policy will focus on responsible tourism and the basic infrastructure development. Our people should benefit from tourist inflow, the ecology and heritage should be protected, and the government will take the lead in providing basic infrastructure. How far has the ban on alcoholic beverages affected tourist inflows? The scarcity of alcohol has seriously affected some segments of tourist

Thenmala Ecotourism

inflows, especially in the MICE segment. We have lost out many international meetings and conventions. Even an international convention of top academics and professors we couldn’t host due to this issue. Some people foolishly think that they come here to booze. Rather, a social drink in the evening after meetings is a norm across the Western world. Instead, if our rules and regulations say that even wine and beer should stop by 10 PM, and by if you don’t stop by 11 PM you would be arrested, won’t it scare away the tourists? That is what has happened unfortunately. Now, we are trying to get permission for alcoholic beverages to at least tourists staying in the better hotels. Did demonetization affect Kerala Tourism? It affected because the cash crunch happened during the peak tourism season of November and December. There were incidents of tourists getting stranded without Indian currency, and this news got spread in the international tourism circuit. SEASONAL MAGAZINE

SPECIAL ISSUE on Kerala Government’s 1st Anniversary Religious circuits are quite popular in the state. What are your plans to augment the inflows? Four major projects are being planned. First is the development and modernization of infrastructure and facilities in the temple township of Guruvayoor. We had submitted a Rs.100 crore proposal for the same to Centre, but they have trimmed it and made it a Rs.46 crore one. This plan will also include installation of modern monitoring systems like cameras for added security. Similar projects are being created for Sabarimala and Sree Padmanabhaswamy Temple. A project to develop the Malayatoor-Kalady pilgrim circuit at a cost of Rs.300 crore has also been submitted to the Central Government, in discussion with the region’s MP. How do you view Kerala Cities falling sharply in the Cleanliness Index by the Central Government? It is a technical issue, as this year the Central Government made their decision based on whether a large waste management project in available in a city. Unfortunately, after some of our large waste management plans were shut down due to local resistance, Kerala was resorting to decentralized waste management including managing waste at source. This is the more holistic approach and the better option suitable for a state like Kerala with high population density. We feel that Central Government used these norms to tarnish Kerala and the LDF Government. But all Keralites and Guruvayoor Elephant Park

The scarcity of alcohol has seriously affected some segments of tourist inflows, especially in the MICE segment. We have lost out many international meetings and conventions. Even an international convention of top academics and professors we couldn’t host due to this issue. the tourists know the ground situation. They travel all over India and know which are its big cities that stink. You yourself travel, and you can judge. How are you leveraging the new KIIFB funding for your projects? Many of our projects are KIIFB funded. These include some beach modernizations like at Chethy in Alappuzha. Then there is the Sargalaya at Iringal that will benefit regions like Vadakara and Payyoli. It is a Rs.81 crore project funded by KIIFB. Also some dam modifications like at Kanjirappuzha and Thenmala are through this new fund route. We have given permission for all these projects. What are the new innovations being planned by Tourism Ministry? A key innovation being planned is accessibility to differently abled visitors. No new project that is not friendly to the differently abled will be given

permission. A new arrangement of Destination Monotoring Committees are being set up, chaired by the region’s MLA and having all concerned officers. Similarly, a new Technical Sanctioning Committee has been formed that will make various technical clearances including environmental clearance faster. We have also launched a new Mission for Responsible Tourism. How far was tourism growth affected during the past year? There was no decline in absolute number of tourists. But the growth rate was affected. It was not up to expectations, especially considering the huge efforts the tourism department and private players had put in. More than footfalls, growth in value too was affected as high value products like MICE got hit. How far will the new Kerala Bank formed by amalgamation of Cooperative Banks be practically useful? The Kerala public now feels that it is essential, especially after the demonetization issue and the merger of SBT into SBI which has raised the user charges. The Expert Committee Report for the formation of Kerala Bank has already been received and Special Officer approved. We hope to make it a reality within the next 21 months. It will not only help Keralites due to its proposed low charges, but the development of Kerala as a whole. Apart from Kerala Bank, what are the initiatives under the Cooperation Ministry? During the last year, the cooperative banks in Kerala were hit massively by the Central Government’s demonetization drive. The very fact that we have survived this onslaught, and come out unscathed has been the greatest achievement. I heard recently from some top private sources that at RBI headquarters they are studying how Kerala cooperatives could survive this issue. We not only survived but grew our deposit base from Rs.1.5 lakh crore to Rs.1.75 lakh crore. A new software is being planned for taking banking services beyond core banking. We have also taken up a major fight with corrupt forces in the cooperative sector. Corrupt

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Malayattoor

Sri Padmanabhaswamy Temple

officers have been identified and sidelined from responsible posts. Even a few cooperative banks following corruption have been pulled up and reined in. The government won’t keep a shut eye towards corrupt practices in the cooperative sector. Profitable cooperative societies that are more than 1000 in number have been advised to contribute more to society. Recently a project for gifting 1000 LP & UP schools in the state with Smart Classrooms have been taken by these societies. They are also contributing to tourism initiatives like beach beautifications. How far has your plans in the Devasom Ministry been fruitful? There are 5 Devasom Boards in Kerala, and most of them are doing rampant corruption. There are numerous complaints against them. For the past one year, we have started a big war against this corruption. A new Devasom Recruitment Board has been set up, just

Demonetisation affected because the cash crunch happened during the peak tourism season of November and December. There were incidents of tourists getting stranded without Indian currency, and this news got spread in the international tourism circuit.

Alappuzha

like PSC. I would say some progress has been made, and more will follow. What is your prime objective for the tourism ministry for the full term of this government? The number one aim is that tourism should generate at least 5 lakh new job opportunities. Tourism development should benefit Keralites, not the visitors. Especially, our poor people who are the inhabitants of these destinations should benefit economically. We have given greater focus to the upliftment of families providing supplies and services to hotels and resorts, and as a result their incomes are improving., Don’t you think the various controversies like the Senkumar affair

and Jishnu Prannoy probe should have been better handled? I don’t agree with that view. We did everything possible. Appointing a DGP is well understood to be a Government prerogative. We only did that and when our move was questioned, two courts agreed with our stand. But Supreme Court didn’t agree unfortunately, and we complied with the apex court order and that is all to it. Regarding Jishnu Prannoy probe, we did everything possible and even attracted the ire of the courts for being hyper-active in pinning down the accused. But some media houses carried out an organized campaign against us and that is behind all these noise. It is an organized attempt to destabilize the LDF government. When people realize the truth, all these will die down. SEASONAL MAGAZINE

SPECIAL ISSUE on Kerala Governmentâ&#x20AC;&#x2122;s 1st Anniversary

KERALA TO GO HIGH-TECH FOR PADDY PROCUREMENT, TO CONSIDER BETTER MSP FOR RUBBER The government will adopt the Direct Benefit Transfer (DBT) scheme to pay the support price for paddy farmers from next season, Kerala Agriculture Minister V.S. Sunil Kumar has said. The money will be immediately credited to farmersâ&#x20AC;&#x2122; bank accounts electronically to reduce delay in payment. The Agriculture and Finance Departments are jointly executing the scheme, the Minister said, adding Rs.1,039 crore was given for paddy procurement.

Mr. Kumar said Rs.748 crore had been given as production incentive to rubber farmers and the government was taking steps to arrest the fall in prices. The flooding of international market with natural rubber from Thailand and other nations and variation in crude oil price were responsible for the fall in

price. He said the State was lagging behind value addition despite producing 70% of rubber in the country. The Centre was adopting a stepmotherly attitude towards Kerala and had gone back on the rubber policy. The move to shift the office of the Rubber Board from Kottayam to outside the State would be opposed at any cost, he said. Finance Minister T.M. Thomas Isaac said the government had given ?748 crore to the rubber farmers compared to ?350 crore given by the previous UDF government in five years. The Agriculture Minister said the demand for increasing the support price of rubber to Rs.200 as demanded by Leader of the Opposition Ramesh Chennithala and K.M. Mani would be considered on the basis of the financial situation of the State.

SUPREME COURT MAKES KERALA DRINK LESS? The Supreme Court order banning liquor sale within 500 meters of national and state highways has led to huge drop in alcohol sales in Kerala.

tatistics of the state-run Kerala Beverages Corporation show that the volume of liquor sold in April 2017 came down by 30 per cent compared to the figure of corresponding month last year. Among alcoholic beverages, huge drop was reported in the volume of beer (53.52 per cent) and wine (43.52 per cent). As many as 535 beer and wine parlours out of 805 have remained closed in Kerala following the order. The sale of IMF through state-run retail outlets has come down only by eight per cent. Of 270 retail outlets, 137 outlets could not be relocated following the verdict. Excise minister T P Ramakrishnan Wednesday told the state SEASONAL MAGAZINE

assembly that the state will incur loss of Rs 5,000 because of the closure of liquor outlets. The loss of income from liquor sale will impact the welfare measures

of the government. Besides, the restrictions in the availability of liquor would force people to turn to hooch, said the minister.

KERALA TO GIVE FREE INTERNET TO 20 LAKH POOR FAMILIES

CPI(M)-led LDF government in Kerala is planning to provide free internet connections to 20 lakh poor families in the state.

hief Minister Pinarayi Vijayan told the state assembly in a written reply that the initiative is being implem ented under the new optic fibre pathway, 'Kerala Fibre Optic Network' (K-FON).

"Kerala government is planning to launch K-FON system.It is envisaged to provide free internet connection to 20 lakh families as part of the new fibre network," he said. Besides free internet connection, the government has also plans to distribute free mobile phones to poor families under the initiative, he said. The proposals had already been mentioned in the ruling LDF's election manifesto and the state's draft IT policy. However, the fund for the project is yet to be earmarked, the chief minister added. Finance Minister T M Thomas Isaac in the budget for the year 201718, had proposed to provide 20 lakh free internet connections to as many poor families and internet services at a lower rate for the others.

Why Kerala Opposes the Controversial River-Linking Project THE CENTRE HAS ASSURED THAT IT WOULD NOT GO AHEAD WITH THE PAMBA-ACHANKOVIL-VYPAR RIVER LINKING PROJECT WITHOUT THE CONSENT OF KERALA, CHIEF MINISTER PINARAYI VIJAYAN TOLD THE STATE ASSEMBLY RECENTLY. he state had all along taken a stand that Pamba-Achankovil would not be allowed to be connected with Vypar river in Tamil Nadu under the inter-linking of rivers project, he said.. State representatives had always put forward this stand at the meeting of technical advisory committee governing body of the National Water Development Authority, that had prepared the feasibility study report on the project, Vijayan said. The Chief Minister said that NWDA authorities had assured the state that further steps on the river link would not be taken up without the consent of Kerala. Besides, Kerala had also pointed out its opposition to the project at the Special Committee for interlinking of Rivers, he said. With regard to the issues related to inter-

The Chief Minister said that NWDA authorities had assured the state that further steps on the river link would not be taken up without the consent of Kerala.

state water disputes, Vijayan said state government had already given its recommendations for amendments to be brought in Inter State River Water Disputes Act 1956 proposed by the Centre. Kerala has asked for a clear cut definition of inter-state rivers, he added. SEASONAL MAGAZINE

SPECIAL ISSUE on Kerala Government’s 1st Anniversary

KERALA'S ECONOMIST FINANCE MINISTER GEARS UP FOR GST Kerala’s Finance Minister Dr Thomas Isaac will have his task cut out from the 1st of July – the inauguration date of the GST tax rollout – when India readies for its biggest economic reform since the 1990s.

r Thomas Isaac has been at the forefront of the much talked about GST Council meetings, doing his best to ensure that the new tax rollout doesn’t significantly impact Kerala’s revenue. However, he does admit that the state will initially suffer a revenue loss of Rs 1 lakh crore, but is poised to get an additional tax revenue of at least Rs 3,000 crore per year thereafter. He essentially blames the demonetisation move as having delivered a killer blow to the state’s finances. Mr Isaac feels that the Centre has not resolved the currency shortage and has categorically demanded that the Union government correct its policy. According to the JNU-educated economist, the main reason for the present shortage has been due to note hoarding leaving banks with inadequate cash from RBI. Mr Isaac has also been mooting the idea of a Kerala Cooperative Bank in order to strengthen the cooperative sector, especially in the wake of state public sector bank State Bank of Travancore merging with State Bank of India. The proposal entails formation of a bank by merging district co-operative banks with state Cooperative banks, converting the present three-tier cooperative into two tier system. He is hopeful that the state government could monitor loans and advances made by SBI in Kerala after the merger and take it up in the statelevel bankers committee if there was any reduction in it. Also high up on the priority list is to look into the problems faced by more than 3,000 daily contract SEASONAL MAGAZINE

workers whose wages had been cut following the merger. “A revolution is a struggle to the death between the future and the past,” wrote Fidel Castro. If the Cuban legend meant the then emerging struggle between socialism and capitalism, the beauty of the quote is that it is eternal, timeless. Revolution is not finite, but continuous. Capitalists have had to adjust, and even the socialists. Dr. TM Thomas Isaac is definitely dreaming of a future where the capitalists will be forced to adjust more. But he is not oblivious to the fact that even socialists will have to adjust for meeting future head on. He feels that there is no better model to be emulated than the Kerala Model of development. Few can compete with his argument, as this model has catapulted the tiny southern state to be a leader in Human Development Index. At the same time, without prompting, Dr. Thomas Isaac is candid enough to admit that the Kerala Model is long pending for an overhaul. This pragmatism sums up this proud communist intellectual. An economist himself, Dr. Thomas Isaac feels that RBI should have cut rates faster and deeper, but adds in the same breath that without supporting fiscal policy that contained inflation it was impossible to do so. Once a vocal critic of economic liberalization, he finds no charm left in debating whether the 90’s liberalization move was right or wrong. But he will gently remind that all our current achievements haven’t happened post

liberalization, pointing to India’s impressive gains in the pre-liberalization era in areas like public industries, green revolution, and basic infrastructure. Even the most passionate capitalist can’t hoodwink him into admitting that it was all gung-ho in India after liberalization and globalization. Dr. Thomas Isaac will immediately point to irrefutable facts about the growing inequalities and the widening income gap between various sections of our society. Wherever and whenever Kerala is unprepared to meet its emerging challenges, Dr. Thomas Isaac is frank enough to admit it. Examples include state’s unpreparedness to handle the exodus from Middle East, the falling rubber prices and noteban. He often has only bitter medicines to prescribe – like moving away from rubber – but he is willing to handhold those affected by offering them alternatives. The first budget he presented in this term as Finance Minister has already attracted national attention for its innovative measures for raising funds by way of Special Purpose Vehicles (SPVs) that will tap the Indian bond market. A champion crusader against corruption and tax evasion, he is all set to repeat record tax-collection growth rate in the state, just like in his earlier term. But in some things he remains a cautious communist at heart, like in his total disapproval for private universities being empowered to give degrees in the state. But for that unmet need too, Dr. Thomas Isaac has alternatives to offer in the public sector. Once a passionate agriculturist too, he

is little swayed by marginal innovations like grow-bags, aquaponics, or precision farming, and would any day prefer to leverage Kerala’s natural strengths like excellent soil and good rainfall for agriculture productivity.

Seasonal Magazine interviews Dr. Thomas Isaac, Minister for Finance, Kerala Government: Seasonal Magazine Kerala (SK): You have been actively been pursuing a case for 5% tax on gold under GST. What is the immediate rationale behind such a move given the opposition to this from gold-making states? See, the bottom line is that gold isn’t an essential commodity. It's a luxury product and price of gold has quadrupled in the last one decade. Nobody had any problem. What is the big trouble with a 5% tax on jewellery. We are very reasonable people at the Council. We will discuss this further. What is the principle or idea of tax being imposed on it at 1 per cent rate? It is not a commodity for the poor.

So, the main objective is to spend about Rs 20,000 crore for various development projects to address economic recession. The package will, among other things, include construction of big roads, bridges, IT parks and welfare schemes for poor and backward sections in the society. Necessary funds for the same would be raised through the Kerala Infrastructure Investment Fund Board (KIIFB). Work for the projects to the tune of Rs 18,000 crore would be taken up this year itself. Priority would be given to promote tourism sector by taking up projects under the package. Similarly, schemes for drinking water supply also would be taken up.

Massive investments were needed in the state to overcome revenue loss suffered due to demonetisation and restrictions on functioning of liquor bars. I believe that there would be no difficulty for KIIFB to mobilize funds as through the motor vehicle and petrol and diesel cess, the board could easily raise about Rs 1 lakh crore in the next 20 years. Reputed persons including former CAG Vinod Rai are heading the board therefore there is no need for any anxiety on functioning of KIIFB. SK: India and especially Kerala is staring at a massive return of expatriates from Middle East. How prepared is our economy to handle this situation. What are your shortterm and long-term plans? Kerala is not at all prepared to handle this situation, if this does materialize. We also can’t expect much help from the Centre, as their trend is to look at it as a regional issue. Just like the price crash in rubber or cardamom hasn’t emerged as a national issue, this exodus from

SK: You recently stated that Kerala is set to gain Rs. 3000 crore yearly from GST. How do you think this would offset the initial loss? Yes, this was possible because of our persistent requests for GST to be exempt for petroleum products. Therefore, petroleum products would be exempted from GST purview as per the amendment to be brought by the Centre to the GST bill. We currently get Rs14,000 crore per year in lieu of the petroleum cess. If the petroleum products come under GST, then the state governments will not be authorised to collect any kind of cess from these products. This would mean a huge loss to the state's exchequer, including a 15% loss in the revenue towards the Kerala Infrastructure Investment Fund Board (KIIFB). The state will get tax from the online sales and trades also from shopping malls and supermarkets. SK: Could you please elaborate on the Rs. 20,000 crore package aimed at tackling recession?

Dr Thomas Isaac Finance Minister Kerala SEASONAL MAGAZINE

SPECIAL ISSUE on Kerala Government’s 1st Anniversary Middle East, if it happens, will be ignored. It will be up to Kerala to find solutions for this. That is why in my first budget, I took some unusual steps to address this. Firstly, this can cause a regional recession, and that is why there has been an anti-recession package amounting to Rs. 20,000 crores in the budget. Obviously, the Kerala budget can’t accommodate such an amount for this purpose, but we will raise these funds through Special Purpose Vehicles for various large projects, which will tap the Indian bond market for the first time. This will pump in money into our regional economy and drive creation of public infrastructure, which in turn will attract private investments into the state and cause creation of significant new jobs. Surpluses from these projects will be utilized for rehabilitation of the Gulf returnees as they need to be re-integrated into our socio-economic fabric. SK: Will you be tapping overseas bond markets for the same? No, for the time being I would like to avoid that, as overseas bond market participation will make us dependent on forex rates which can fluctuate wildly, and cause unnecessary risk. There is no need either, as apart from the Indian bond market, there are other underutilized reserves in the state itself. SK: What are the broad steps being considered in terms of tackling corruption? Of course, rooting out corruption from the tax department has always been important, and in fact, one of the biggest achievements during our last term, was at the State Check Posts including the main Walayar Check Post. I had offered cash reward of Rs. 25,000 for anyone providing proof for corruption at Kerala Check Posts, which went unchallenged for four years or so. We also did an independent social audit on the performance of check posts. Another area in which we did social audit, where more than 70,000 people participated, was about the operation of our treasuries, and it led to widespread improvement in how treasuries operated, back then. SK: Are you planning any new initiatives with regard to treasuries now? SEASONAL MAGAZINE

Yes, we are going to modernize treasuries in a big way. Within months, you will see core banking being deployed across the Kerala treasuries. We will also make it mandatory for all employees and pensioners of state government and its corporations to get their salaries through treasuries. This will vastly improve the cash balance situation of the treasuries. Of course, employees and pensioners can give standing instructions to automatically transfer their funds or part of funds to a bank account of their choice. As an incentive to keep it in treasury, we will provide 1% more interest to account holders. This will improve the condition of the treasuries, and make more funds available for development activities. This will enable the Finance Department, which is blocking most such proposals, to become a Finance Department that say ‘yes’ to all productive proposals. SK: Do you have any model of development either from any Indian state or abroad that you wish to see implemented in Kerala? No. We are very proud of our Kerala model of development that has ensured better standards across education, health, welfare etc. Having said that, I am also aware that Kerala model of development needs to be renewed, it needs to be modified on several fronts. It has fallen short on a few fronts, the most significant being less than required performance in high-quality job creation. So, we need to continue providing welfare measures, but at the same time, we must be growing much faster. Kerala is already growing above the national average, but that may not be enough. We need to invest in, as well as attract private investments, in some of our core sectors like information

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We are very reasonable people at the Council. We will discuss this further. What is the principle or idea of tax being imposed on it at 1 per cent rate? It is not a commodity for the poor.

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technology, tourism, value-added products etc. SK: What would be the major initiatives on the education front, that the finance ministry is keen on supporting? There would be a major overhaul with all high school and higher secondary schools being digitalized. Every classroom will have laptop, LCD projector, screen etc. There will be centralized resource centres. 1000 schools will be made into Centres of Excellence with world-class infrastructure. SK: If eminent academicians of Kerala origin come back to the state to start Centres of Excellence, how will they be encouraged? They will be encouraged wholeh eartedly, and we will also provide them short-term positions in our universities and research centres. SK: But Kerala is yet to allow private and deemed universities. Are you considering that move during this ministry? No, we are not considering private

universities at all. Instead, we are going to modernize all our university centres in a big way, to make them world-class. Big money is going to be spent on these centres. We will make them top-notch and offer short-term positions there to eminent NRI/NRK academicians to raise our higher education standards. SK: What if they want to start autonomous centres? We are open to that idea, but not as degree-granting institutions. They will operate as affiliated centres of our universities. I studied and taught in one such autonomous centre – Centre for Development Studies (CDS). Fully autonomous with no meddling by any government secretary. That is the model to follow. SK: You have been a pioneer in decentralization policies. How much room is there for improvement in this regard between Centre and states, and within states? Between Centre and the states, instead of things getting decentralized, the reverse is happening. The present Central Government doesn’t believe in decentralization at all. They are already on the verge of closing down the Panchayati Raj Ministry after cutting down its budget from Rs. 7000 crore to just Rs. 96 crore. Modi doesn’t want to select and encourage model panchayats anymore, but ‘model villages’ whatever that means. But the biggest blow to decentralization has been the removal of the Planning Commission. This has centralized a huge amount of money into the hands of the Centre, from the hands of the states. Regarding non-plan expenditure, the states anyway didn’t have much judgment to wield – items like salaries, pensions, interests etc that anyway have to be paid. The states had discretion only with plan funds, which could be used judiciously for developmental activities. Now, this whole corpus of funds has been moved to the control of Arun Jaitley and Narendra Modi. They are erecting the most centralized financial structure ever attempted anywhere in the world, so that they can release funds to whoever finds favour with them. No formula and no guidelines. Many people do not understand the implications of this sudden change that has been forced upon the country.

“There would be a major overhaul with all high school and higher secondary schools being digitalized. Every classroom will have laptop, LCD projector, screen etc.

”

SK: What about NITI Aayog then? NITI Aayog is just fictional. Absolutely no powers in resource allocation, and purely in an advisory role. The removal of Planning Commission and centralization of plan funds into the hands of PM and FM is more troubling not due to the unhealthy centralization alone, but due to the arbitrariness built into the sharing of these funds. Just on their whims and fancies at that time, which will be dictated by their political needs at that time. SK: What about the BJP-NDA claims that Kerala has got a better deal from the Centre than when UPA was in power? That is absolute rubbish. Whatever Kerala received has not been by the grace of Modi. It is by the recommendations of the 14th Finance Commission of India headed by Dr. YV Reddy which was appointed in 2013, and whose recommendation is valid from 2015 to 2020. This Finance Commission sharply increased the share of states from the shareable pool of taxes from 32% to 42%. Every state was benefitted and so was Kerala. There is no point in Modi Government claiming any credit for this. SK: What about decentralization within states? Within the states, it is good that the Finance Commission has given a fair deal to the local self-governments. In Kerala, the state government too is giving generous funds to these local governments. This has resulted in a peculiar situation in that the local selfgovernments are better off than the state government, when it comes to availability of untied funds or free funds for doing developmental works. Having said that, there is enormous scope for

improvement in the expenditure of these funds by local governments. Lack of innovation, lack of people’s participation, and increasing corruption are all serious issues with how they operate. So what we are going to do is a second edition of People’s Plan Campaign by which development will move from this level of equilibrium to a higher level of equilibrium. SK: Startups are in big momentum across India's various metros. Though our youngsters too are doing their bit, are you satisfied with the progress we have made? Are there any plans to back promising startups? Yes. Enough is happening to prove that the startup movement is the right path to follow. Kerala’s future is in knowledge industries, services, high-skill industries etc where startups are only natural. Money is not the prime mover here. Innovative ideas and entrepreneurship skills will decide the course. They will raise their money. Kerala also has a huge pool of highly educated workforce. Government’s focus would be to create an ecosystem that encourages startups. Soon we will implement a plan by which 1000 best ideas would be given Rs. 2 lakhs each, and after assessing the progress in their implementation, 50 among them would be given Rs. 2 crores each as startup support with no security. The objective is to create a new generation of entrepreneurs in the state. SK: Since land is at a premium in the state, are there any plans to boost agriculture through novel methods like aquaponics or precision farming? I don’t think they are going to be widely adopted in the near future. Kerala is a tropical region with heavy rains. These technologies were developed in semiarid regions. We mechanically aping them is not so great. Same with growbags that many are using nowadays to grow vegetables. I find them detestable, increasing pollution when so much good soil is available. The same with polyhouses; maybe rain-guards have a utility in the state. I am not against any of these innovations, but I don’t think these are suitable for large scale adoption in our state. SEASONAL MAGAZINE

SPECIAL ISSUE on Kerala Government’s 1st Anniversary

KERALA COOPERATIVE BANK TO TAKE ON BIG BANKS TASKED BY THE GOVERNMENT, M.S. SRIRAM, A PROFESSOR AT THE PUBLIC POLICY DEPARTMENT, INDIAN INSTITUTE OF MANAGEMENT (IIM), BENGALURU, JUST DEVELOPED A ROADMAP FOR THE KCB PROJECT. EDITED EXCERPTS FROM A PHONE INTERVIEW: erala’s cooperatives are planning to take on big banks by merging into a single bank called Kerala Co-operative Bank (KCB). It’s a massive project and a first of its kind in India. If all goes as planned, 15 financial institutions (14 district cooperative banks and a statelevel bank), which have branches across the state, will form the largest scheduled cooperative bank in the country. Together, the structure will sit on a deposit base of Rs110,000 crore, and hold 30% market share of total banking transactions in Kerala, becoming the state’s second-biggest bank, next only to State Bank Group. Partly controlled by the government, cooperatives in Kerala have a long history of shaping a society where almost everyone has access to institutional credit. They handle an estimated 70% of the state’s total agricultural credit, have a significant reserve of gold, and often hand out money to fuel regional development—for instance, they gave a Rs470 crore loan to build a metro service in Ernakulam district. Tasked by the government, M.S. Sriram, a professor at the public policy department, Indian Institute of Management (IIM), Bengaluru, just developed a roadmap for the KCB project. Edited excerpts from a phone interview: What is the potential for such a bank? This could turn out to be a large people’s SEASONAL MAGAZINE

institution. Primary cooperatives (PCBs) together have a deposit of around Rs83,152 crore and a loan base of around Rs56,706 crore. So if you want to look at it from banking terms and how the public sector banks calculate their business, the total business size is around Rs1,40,000 crore at the primary level and then the District Cooperative Banks (DCBs) have another Rs52,456 crore of deposits and Rs27,946 crore of loans. Part of it will be overlapping, in the sense that the deposits that DCBs have are from the primaries and some of the loans given are also to the primaries. Our own estimate is if we net if off and treat it as an integrated structure, the structure would have possibly an overall business of Rs1,10,000 crore as deposits and about Rs70,000 crore of loans. And also don’t forget the touch points. The cooperative system already has nearly an equal number of touchpoints as all the commercial banks put together— around 6,000 branches and offices of primary cooperatives and district cooperative bank branches. These will be fully leveraged to touch the customers. What will be its USP? If you are a member of the cooperative system at the primary level, then right now you are getting possibly savings, fixed deposit and loan services, but not many value-added services. Once the 15 institutions integrate into one unit, you will be able to get many more value-

M.S. SRIRAM

added services which means that you need not go to some other place for remittances, cards and other products. What will be the challenges? Huge, huge challenges. First, if they want to pull it out, they need to have a completely integrated, sophisticated technology backbone. Second, there is the issue of legacy staff. They have been doing business in a certain way and thereâ&#x20AC;&#x2122;s a certain age profile of them as well. We do not see many retirements coming up in the next 10 years. But the staff are certainly not very young. So the staff needs to be added or reduced? I would not say reduced. The government has assured that there will be no retrenchment. They need to be re-trained and redeployed to adopt to modern banking. Some may be deployed in the tightened supervisory, audit or regulatory function. Post demonetisation, there is a strong buzz that cooperative banks park a lot of black money in Kerala. This is not an image an emerging bank would want to have. Your comments. None of the rural cooperatives were allowed to exchange old notes during demonetisation, citing either the status of technology or the status of management. Both these issues need to be addressed. We have recommended that in the runup (to create Kerala Bank), their books need to be audited afresh. Second, if there are perceptions that there is a political capture, or state capture, or even a perception that they are not professionally run, it needs to be addressed, irrespective of what the fact is. Banks are institutions that people trust and perceptions are important. We have also recommended setting up of a â&#x20AC;&#x153;Kerala State Financial Sector Regulatory Authorityâ&#x20AC;?

which will act like a regulator for all financial institutions that fall under the purview of the state government that are non-regulated. This way the government can signal to the world that it is not a political capture and the bank is adequately insulated from political or state capture. Will a consolidated bank be able to retain the existing ease to access for the layman? While doing this exercise, we should not undermine the primary cooperatives. We have recomm ended that the new bank should under no circumstances be competing with the primary. Whenever the primary is ready to do business, the bank should just let go the business in favour of the primary. KCB will only do that business that the primary is unwilling to do, or unable to do. KCB will remain thin, it should be a coexistence and convergence of interests, and not conflict of interests. Has this been experimented anywhere else? Not in India. Some states already had a two-tier structure. Jharkhand is going through a restructuring exercise, but their situation is completely different. But worldover, there is a broad trend towards knocking off one layer in cooperative banks. But it has been a challenge everywhere. The Canadians in Quebec are consolidating their cooperative system and they took seven or eight years to knock off their middle tier. Rabo (Netherlands-based multinational cooperative bank), for instance, did it very quickly, in about a year and a half or two years, and they are having their pangs. Here, it has to cross several hoops. Once we start the process and get in-principle approval from the Reserve Bank of India, we could possibly do it in a period of 18 months. (Credit: LiveMint) SEASONAL MAGAZINE

SPECIAL ISSUE on Kerala Governmentâ&#x20AC;&#x2122;s 1st Anniversary

KERALA TOURISM ON REVIVAL COURSE AMID STORMY TIMES IF THE SETBACK FOLLOWING THE BAR LICENSE CANCELLATION BY THE PREVIOUS DISPENSATION WAS NOT ENOUGH, THE TOURISM SECTOR WAS FURTHER HIT BY THE SC RULING AGAINST OPERATION OF LIQUOR OUTLETS ALONGSIDE NATIONAL & STATE HIGHWAYS. EVEN DEMONETIZATION PLAYED SPOILSPORT AFFECTING MANY UNSUSPECTING TOURISTS AND SENDING THE INDUSTRY INTO A TIZZY. WHILE UNCERTAINTY STILL REMAINS, THE STATE IS SLOWLY GETTING BACK ON ITS FEET AND MAY HAVE JUST DONE ENOUGH TO AVOID A COLLAPSE.

Bala Kiran is a familiar face among Keralites. A Kerala cadre IAS officer of the 2008 batch, Mr Bala Kiran shot to prominence following his remarkable stint as the district collector of Kannur for close to two and a half years. His efforts won him the coveted recognition of 'Best Collector' in the state, including a special word of praise from the Election Commission for his vigilant watch over the politicallyvolatile Kannur elections. A number of unique projects he implemented in the SEASONAL MAGAZINE

district have been adopted by other districts as well as by states. However, his first posting in the state was as the Director of the Kerala State IT Mission under the Department of Information Technology. Mr Bala Kiran, an alumnus of IIT Madras, currently serves as the Director of Kerala Tourism Department. Not one to hide his fondness for his "second home", Mr Bala Kiran confesses to being captivated both by the tranquility and governance offered by the state and hopes to catapult Kerala into the global tourism map. While the

state remains one of the most soughtafter travel destinations in India, the young & enterprising officer believes that a truly game-changing experience can be brought about only through innovation and stakeholder involvement. While he is clearly on a mission to revolutionize the tourism industry through innovative steps and industry participation, he is equally mindful of the challenges ahead. Having spearheaded noteworthy projects in previous roles, the expectations are high. But the highlydriven Hyderabad-born officer isn't unfazed by the hype. First and foremost, he is a great believer in Kerala's core competencies but reasons that traditional strengths alone can't derive sustainable results. In a recent interview with Seasonal Magazine, Mr Bala Kiran discussed the government's vision for the sector and what it would take for

the proverbial "God's Own Country" to realize its fullest potential. Interview by Jaison D, John Antony, Ceena, Carl

Seasonal Magazine (SK): As the LDF government completes its first year in office, what do you think are its achievements in the tourism sector? P Bala Kiran (PBK): There has been a concentrated effort on increasing the infrastructure of the existing market. This is actually being done in 2 stages: One, upgrading the facilities that are already existing. Last 5 years, we have pumped in almost Rs. 600 crores of funds into upgradation of existing infrastructure. But there was much to be done on the maintenance aspect. This year we started the ‘Green Carpet Initiative’, taking the most popular destinations (83 in the first phase) and bringing them to an international quality with high cleanliness, security, solid waste

management, toilets benchmarks. This will, of course, be done with the help of the local community. We don’t want to just keep on building new infrastructure, but consolidate the existing ones. Having said that, we aren’t pausing on the launch of new projects. We are taking up huge projects in terms of discovering potentially attractive destinations. Kerala receives 1.3 crore domestic tourists and this year, for the first time, we have crossed 1 million international tourists. The target now is to attract 50% more domestic tourists and 100% international tourists by 2021.

P Bala Kiran, IAS

SEASONAL MAGAZINE

SPECIAL ISSUE on Kerala Government’s 1st Anniversary Keeping that target in mind, South Kerala’s world famous tourism circuit, is still in the maturity stage. It is only appropriate that we find newer destinations. Due to this, we are targeting North Kerala as a premier destination, especially with the coming up of the Kannur International Airport. Taking into account, the proximity of two other airports (Kozhikode & Cochin), it is a potential game-changer for the tourism sector. We want to leverage this to the fullest with neighbouring Wayanad already a popular destination. Following this, we have taken up two major projects. Thalassery Heritage Project phase-II, which banks on the heritage from the Dutch, Portuguese and English cultures. There would also be efforts to leverage the existing historical sites in and around Thalassery. The North Malabar package circuit that we are targeting include Bekal fort, Kannur, Wayanad, Calicut. Malappuram would be included in the later stage. We want to develop these districts as part of the new destination package. Guruvayoor is also a possible addition in the near future. The second project is the ‘River Cruise Tourism’. We have a splendid connectivity of around 190-200 kms across 7 rivers and this initiative will allow tourists to traverse through the pristine beauty of the state. As you’d know, Malabar is untouched by tourism so the idea is to untap the virgin beauty of the region. The concept note and data estimates have been prepared, while the DPR will be presented soon. We are also targeting new heritage project in Allepey. Seeing the success of the Muziris Heritage project in Kodungallur, we plan to take up a similar project in Alappuzha. For this, the master plan has already been prepared and consultants taken on board. This project will be starting in two months and we’ll welcome tenders soon after that. SK: Kerala has performed below expectations in the recent Cleanliness survey. What is your take on this? PBK: I would differ on this as last year we featured in the top 40 rankings. Therefore, I was surprised to learn the ranking had changed drastically. I would imagine that the nominations send in by SEASONAL MAGAZINE

delivered a huge hit to the sector?

This year we started the ‘Green Carpet Initiative’, taking the most popular destinations (83 in the first phase) and bringing them to an international quality with high cleanliness, security, solid waste management, toilets benchmarks.

the corporations wouldn’t have fitted into the evaluation criteria of the agency. Maybe they were more focusing on more centralized waste management which take a lot of markings, evaluation criteria etc. But, we are committed to focusing on decentralized waste treatment. In fact, there is no other city where plastic is banned. I have been staying in Trivandrum for the last 8 months and not once have I had to use plastic. Instead, I would need to use cloth bags. Which other state can boast of this? SK: Has the recent court verdict banning sale of alcohol within 500 metres of national and state highways

Alappy

PBK: Yes, it has affected tourism in a big way. I wouldn’t want to suppress the facts about this. Though it is seen as a social taboo in our country, it is not so in other countries. It is part of their lifestyle. This will lead to a steady decline of tourists who might look for other alternate destinations. More than that, it is our spice tourism that has been affected in a big way. After 5 years, for the first time, we have reached negative growth. All the conferences and meetings are showing cancellations because of the ban on alcoholic beverages.We hope to rectify this in close cooperation with various state bodies. SK: What was the impact of demonetisation? PBK: We had apprehensions about its effect, but it hasn’t hit us in a big way. There were. Of course, minor hits in the initial 1-2 months. It hasn’t affected our arrivals as we have a strong destinationbranding. SK: How do you plan on developing the ecotourism circuit, which was recently in the news? PBK: Yes, the reason why it has come up is because we need to develop new products. Our strengths have

traditionally been backwaters and Ayurveda. The new targets are the 65% adventure-loving, youth population in India and we want to attract them by introducing water-borne sporting activities etc.

Thalassery

SK: In your opinion, what are the major roadblocks with regard to policy making in the tourism sector? PBK: As you know, tourism can only succeed if it is takes into account the local community and private industry. It is certainly an industry-driven sector. Although from the governmentâ&#x20AC;&#x2122;s side, there is a lot of handpulling on the marketing front, it is finally the tour & hotel industry that builds up the brand to what it is today. Unless that aspect is satisfied (hotel infrastructure and holiday packages), why would the tourists come to any state? Therefore, we want to incentivize the private sector and help them in creating a favourable environment for tourism in Kerala.

Bekal fort

SK: Any of your projects being funded by KIIFB? PBK: There are a total of 8 projects being funded by KIIFB. The government has given principal sanction and the DPRs have been submitted. Once the approval comes in, weâ&#x20AC;&#x2122;ll start with the projects. SK: How has the response been so far from the hospitality sector bigwigs in

Wayanad SEASONAL MAGAZINE

SPECIAL ISSUE on Kerala Government’s 1st Anniversary DUE TO THIS, WE ARE TARGETING NORTH KERALA AS A PREMIER DESTINATION, ESPECIALLY WITH THE COMING UP OF THE KANNUR INTERNATIONAL AIRPORT. TAKING INTO ACCOUNT, THE PROXIMITY OF TWO OTHER AIRPORTS (KOZHIKODE & COCHIN), IT IS A POTENTIAL GAME-CHANGER FOR THE TOURISM SECTOR. relation to the efforts of your department? PBK: In the last 3 months, we have received 3 awards in the domestic tourism category. Outlook Traveller magazine had given us an award as the best destination in the Wellness & Spirituality segment. Also, Lonely Planet magazine awarded Kerala as the ‘Best Family Destination in India’. Recently, Holiday IQ selected us as the best destination for water front. So, the brand is going very strong. If we make adequate changes in our liquor policy and incentivize industry, there is no way why Kerala can’t compete with some of the top destinations in the world. We are coming up with a tourism policy soon. SK: What are your long term goals? PBK: We want to double the number of international tourists and also increase the arrival of domestic tourists by 50%. The cumulative total would be around 1 crore

KUMARAKOM

tourists a year, which will be a noteworthy achievement. SK: Could you share with us some highlights from your previous assignments? PBK: I am an IAS officer from the 2008 batch. Before coming here, I was working as the district collector of Kannur for around 3 years. I had a wonderful experience there. We were able to launch many projects during that time. We also won two national awards recently from the President of India. One for the disabled-friendly district project and the other for the best conduct of elections. Actually, my core competency is in the IT field and computer engineering. Before my posting as collector, I also spearheaded the IT mission in Kerala.

SEASONAL MAGAZINE

INTERVIEW

A MAN FOR ALL SEASONS & A MAN FOR ALL REASONS The man behind the ground-breaking 2G scam revelation, former CAG Vinod Rai seems to relish solving some of the country's serious challenges. One also observes an explicit tendency to appoint him to positions of responsibility which demand unwavering preservation of public trust. In his role as Chairman of the Bank Board Bureau (BBB), Vinod Rai has his hands full with unenviable tasks like cleaning up the NPA mess in PSU banks, creating a professional succession plan for Chairmen & MDs of these banks, and thirdly, to execute the daunting task of merging various PSU banks to create fewer and bigger banks that can withstand shocks better. However, there have been instances where the BBBâ&#x20AC;&#x2122;s recommendations have been disregarded by the government including the delayed appointment of Indian Overseas Bank CEO and the unfulfilled promise of variable pay incentives for public sector bank employees. inod Rai was also chosen as the head of the Committee of Administrators (CoA) by the Supreme Court to temporarily oversee the administration of the BCCI following the Lodha Committee recommendations. Although Rai admits that the CoA is optimistic that it would wrap its job of helping the BCCI and state associations implement the Lodha Committee recommendations by October, it is not going to be an easy task. Already, the BCCI has been pushed against the wall by other ICC member boards and will have considerable headaches to deal with on that front.

Seasonal Magazine recently caught up with Vinod Rai in an exclusive interview to have his views about various factors affecting the economy and about his initiatives at Bank Board Bureau and CoA: There are some core tasks before the Bank Board Bureau including the PSU bank mergers, the institutionalizing of the top appointments, and the NPA crisis. Which among these would be your top priority now, and why? Our top priority today is to ensure that the lending activities of banks, which means to give credit, starts as quickly as possible. The balance sheets of banks are very stressed, there are a lot of NPAs, and there is also a shortage of capital with the banks. Therefore, it is very essential for us to clean-up the balance SEASONAL MAGAZINE

sheets of the banks, which means that with the stressed assets that they have, they either do recovery, settle or resolve them, or restructure them so that they are no longer NPAs but they start earning some revenue for these companies because of which they can also plough it back into their business and some they will give to the banks.

So, the first priority is to ensure that the lending activity starts and the bank assets and balance sheets get cleaned up. What are the specific steps that the Bureau is taking to speeding up the top appointments at various PSU banks? What we are doing is that we are trying

to ensure that we create a good reservoir, that a good list of professionals is ready with us, which means we are looking for professionals capable of credit appraisal, risk management, HR capabilities, and IT. These are the 4 things on which we are putting a lot of stress and we also have a list of experts who are available and willing to join Boards of public sector banks. Secondly, there are some experts at the managerial level also whom we are encouraging the banks to hire through a lateral mode. These experts are available in the market on a contractual basis and at market salaries. Banks may be able to hire them for 3 years or 6 years, whatever it may be. In fact, now we have increased it up to 10 years. The order for this has already been issued by the RBI. What are the broad steps that you recommend to tide over the current NPA crisis? The first thing we are doing with regard to NPA crisis is that we are telling the

The first thing we are doing with regard to NPA crisis is that we are telling the bank managements to look into the accounts that are stressed. bank managements to look into the accounts that are stressed. Now, accounts under stress would depend on those under difficulty because of downturns in the economy, because of statutory approvals getting delayed, crisis in the commodity market etc, which are factors beyond their control. Also, exports had died down and there was no demand. So, we are trying to ask them to restructure these accounts so that at least the production activities can start and if those genuine accounts still require some more working capital, we are willing to stretch and provide the same. The other type is where we suspect some mala fide and collusive action has taken place, those are the ones for which we will be getting a detailed investigation done to ensure that in the future, such actions, either on the lender’s or the borrower’s part, or both, doesn’t happen. Since you have a deeper look into the NPA problem now, is it something of greater impact than you had imagined before taking up this assignment? Not really. Before, I took up this assignment, I think the RBI had done a good job in trying to recognize the quantum of NPA issues and the steps that they had done under the Asset Quality Review, and the SMA-I and SMA-II kind of schemes they had, so I think the worst of the recognition of bad assets had already taken place. So, now I think the worst is over and only some small accounts which may be pending somewhere - who have been hit by later developments – remain to be recognized, but the majority has been unearthed. Recently the SBI results came

out, they have done very good, they have shown profits, and it is a clear indication that the worst is over. Why are PSU bank mergers essential, or is consolidation just an attractive proposal, but not an inevitable one? What time frame are you seeing for this task? No, for banks today, it has become very essential. Conventional banking is now giving way to banking through IT, technology etc. Banking is also going digital or mobile too. Now for small banks to be able to spend a lot on such development activities, to spend a lot on setting up an IT framework, it becomes very difficult and expensive. So, it is best to ensure banks consolidate so that consolidated development funds are used to build world-class infrastructure in these areas. Also, conventional banking used to be branch banking. Now, there are more Points of Sales, hand-held devices, ATMs are giving way to hand-held devices which representatives can carry on their twowheelers. So, for the villager from rural areas, for whom it is very difficult to go all the way to a branch, will soon have the facility of ‘home-level banking’, in a way, the branch itself is reaching out to them. So, for these kinds of activities, if there are 30 small banks and everybody starts spending on that, their cost-toincome ratio will become very high and they will not be very competitive also. Hence it is very important to consolidate and maybe create 6 or 10 large banks which have a reserve of funds, which can be utilized for these kinds of activities to ensure that banking gets digitized and the bank can reach the doorstep of the client. That’s why consolidation becomes important. You enjoy expertise in both the IAS or administrative sector, especially on the financial admin side, and later you also handled the audit side as CAG very powerfully. How are those insights helping you in formulating better policies for the banking sector? I have been lucky that the government has given me the opportunity to work in these sectors where I have gained SEASONAL MAGAZINE

some expertise and having a background in economics, I was able to apply myself. The audit exposure has given me an idea of how there should be an oversight on the lending process of banks. Every bank has an audit committee that is compulsorily mandated. The audit committee must comprise of chartered accountants who are well trained in commercial lending process. So, we are trying to strengthen that aspect of the audit process, that is the external audit which is post the event, and the other is we are trying to ensure that the banks have a good concurrent internal audit process, which leads to good financial control. Then, of course, the important part is the HR Management. In the public sector, the complaint is usually that the salaries are not like in the private sector. So what we are trying to do is trying to structure or create innovative methods by which we can introduce performance-based incentives to public sector managers. So we are looking at ESOPs, bonus programs, other performance-linked incentives where if they perform well, we are able to compensate them better. Do you think the BBB is on course to achieve the objectives of the Lodha panel by October with the current international climate disfavouring BCCI? It is still a long haul, but that ends in October. I am very realistic, because I don't see a place for the CoA in the BCCI in the long term. We want to provide a structure to the BCCI. It does not have one right now. It is run by individual styles. It is personality-oriented. We will put a structure in place and ensure that there are systems that will make this structure work. I am aware that the ICCâ&#x20AC;&#x2122;s proposal of a new financial model would reduce the BCCI's revenues from USD 570 million to USD 293 million. This was discussed in a recent meeting with all state associations. It was the first time I was meeting the state associations. So that was my opening gambit, to say to them, 'Look, we need to be in conversation with each other.' They are all positively oriented, thinking people. The only thing is their thinking and their perspective was exceedingly narrow. SEASONAL MAGAZINE

They just did not know that there was an ICC governance model and a finance model. And the finance model, as far as we are concerned, is crumbs. I told them if the BCCI members had decided to withdraw from the ICC on the basis of the differences on the governance model, the CoA will back them. But not on the finance model. You cannot put Indian cricket at risk. You recently suggested that excricketers like Sachin Tendulkar could offer help to improve administration of the game in India. Could you elaborate on this? Yes, I was at a book launch at CCI along with Sachin Tendulkar and passed on my thoughts to him on the prevailing scenario in cricket in India. We have legends like Kapil Dev, Sourav Ganguly, Anil Kumble, Rahul Dravid, Sunil Gavaskar and Sachin himself who in some ways need to mentor the administrators and also speak up and ensure that cricket administration in this country improves. In the CoA itself, we have Diana Edulji who has been helping us. We have Prof Ratnakar Shetty who

I am very realistic, because I don't see a place for the CoA in the BCCI in the long term. We want to provide a structure to the BCCI.

is in the BCCI, people who have been sincerely committed to it all, but do they have the freedom? I believe that Indian cricket is at its peak and the administrators will have to provide the players with the best support in terms of logistics and administration. We have a remarkable young team. They are aggressive and dedicated, their commitment on field is absolutely wonderful. Why do all of us go to see the matches, because this is a set of cricketers performing remarkably on the ground. All that you must have been reading about it in the newspapers, it is unfortunate and I don't think we're doing good service to the excellent team that we have. You have also recently been in touch with India team coach Anil Kumble & skipper Virat Kohli on the issue of player fee hike. What are the takeaways so far? We had recently doubled the central contracts remuneration for Grade-A players to Rs 2 crore, Grade-B to Rs 1 crore and Grade-C to Rs 50 lakh. The discussions have been going on since New Zealandâ&#x20AC;&#x2122;s tour of India series. There is a feeling that players in Grade A, most of whom play all three formats of the sport, should get around Rs 5 crore per year. A suggestion for pay hike for the support staff has also been proposed. I have instructed Rahul Johri, Amitabh Chaudhary and Anirudh Chaudhary to deliberate on the issue and prepare a detailed report so that due action can be taken.

SPECIAL ISSUE on Kerala Government’s 1st Anniversary

The Darling of Kochiites Set to Make Its Debut

he work on the Kochi metro project started in June 2013 and it took almost four years for completion. Having obtained the Fit for Operation certificate from CMRS in record time, all eyes are now on Prime Minister Narendra Modi to finalize on his availability for the official inauguration of the metro line. In the first stage, the metro will operate in the 13- km stretch from Aluva to Palarivattom. There are 11 stations in this route. In the second stage, metro will run on the Thrippunithura, Infopark and Nedumbassery route. The total number of seats are 136, but with the inclusion of standing passengers, a train can take 975 passengers. The train will cover the distance from Palarivattom to Aluva in 20 minutes at an average speed of 34 km per hour. KMRL had generated Rs 15 crore revenue through branding the stations. Each station will be known in the name of a corporate company for the first three years. Muthoot Papachan Group won the right for Aluva, Kalamassery SEASONAL MAGAZINE

and Kaloor stations while smartphone brand Oppo won the right for Edappally and MG Road stations. Another unique feature has been the thematic interior design worked out for each station basis the speciality of respective locale. The theme in Kaloor station is sports, as it has an international stadium. Monsoon is the theme of Kalamassery station, Western Ghats and Periyar is the theme of Aluva. The theme in CUSAT station is old maritime history of Kerala, while Edapally has Kerala spices as the theme. Over the years, the LDF have found themselves on the right side of history with respect to egging on the public

The total number of seats are 136, but with the inclusion of standing passengers, a train can take 975 passengers. The train will cover the distance from Palarivattom to Aluva in 20 minutes at an average speed of 34 km per hour.

sentiment attached to the metro project. In early 2012, attempts by the ruling UDF government to have the metro project go through a global tender were thwarted by the LDF, accusing the government of snubbing DMRC. This spiralled into a public outcry in favour of the project being handed over to DMRC and E Sreedharan. Kochiites formed a 25 km human chain from Aluva to Petta urging the government to speedily progress with the project, and criticising it for its delay in appointing DMRC's E. Sreedharan as the head of the project. The protest was sponsored by the CPI(M) along with the Kerala Merchants Chamber of Commerce. The government was credited for granting Kudumbashree, a women’s self-help group, the exclusive rights to manage the metro station premises including ticketing, customer relations, house keeping, parking management and running the canteens. It was also heartening to learn that KMRL would also hire transgender employees, reflecting the government’s agenda for social inclusion.

HEALTHCARE

RAJAGIRI HOSPITAL

BALANCING

WORLD-CLASS

QUALITYWITH LOCAL AFFORDABILITY

SEASONAL MAGAZINE

Kochi based Rajagiri Hospital has attained the most sought after accreditation in the healthcare field internationally - from USA based Joint Commission International (JCI). The accreditation is noted for its tough screening procedures that ensure quality in any accredited institution carrying its Gold Seal, as well as for enabling medical tourism as patients from developed countries prefer JCI accredited hospitals. Only two other hospitals in Kerala has ever won the coveted JCI accreditation, and one of them is only a single-speciality hospital. Even in the whole of India, there are only 30 other hospitals that have made this mark. Even among them, 10 centres belong to the country's largest two hospital chains - Apollo & Fortis. With this achievement, Rajagiri is joining the ranks of these two majors as well as noted players like Medanta of Gurgaon, and Narayana Hrudayalaya of Bangalore. Rajagiri's achievement is also special as 20 out of the 30 JCI accredited hospitals in India are based in the country's biggest metro cities like Delhi-NCR, Numbai, Bangalore, Chennai, & Hyderabad. Earlier, Rajagiri Hospital had won the coveted domestic accreditation of NABH. Seasonal Magazine recently visited the hospital campus to interview its Executive Director Fr. Johnson Vazhapilly. s Rajagiri Hospital just another swanky hospital that has come up in Kochi during the last couple of years? Before visiting the facility, we too had such an inkling. But having known the promoter group – CMI and especially its Sacred Heart or Rajagiri Province – up-close for many years now, we believed something more would be there. Thus ensued a meeting and interview with Fr. Johnson Vazhapilly, the young priest in charge of affairs there, recently. The hospital is pretty easy to reach from Ernakulam by road, and the closer you get to the hospital from the city there are enough signboards to guide. While the images splashed in the media conveyed the picture of a posh hospital, one look at the front elevation was enough to realize that not an unnecessary rupee has been spent for making it unnecessarily luxurious. But there is enough greenery to convey an optimum sense of tranquility. Once you enter the main reception area, however, it is a different story altogether, and it impresses by way of luxurious use of space as well as aesthetics.

Executive Director Fr. Johnson’s room is placed in one of the welldone basement floors. Despite being sick with a neck sprain, and not attending office on that day, Fr. Johnson made it a point to keep the appointment for the interview. What then unraveled about the hospital project is nothing short of impressive. While ‘Rajagiri’ is a brand well-known in Kerala, and especially Kochi, in the field of higher education, the Sacred Heart Province of CMIs seems to have left no stone unturned in making this Rs. 300 crore tertiary care hospital project well-designed and wellexecuted. The success started from selecting a top management panel of four priests led by Fr. Johnson Vazhapilly and Fr. Jose Alex. Interestingly, Fr. Johnson is the youngest of these four priests, but yet the CMI Province deemed it fit for him to run the show as Executive Director. This former teacher, nevertheless, has risen to the job, and executed the project to near perfection within a short span of few years. Having no previous experience in the medical field, he started off with visiting some of the best tertiary and quaternary care hospitals not only in India, but SEASONAL MAGAZINE

across the world, including the famed Mayo Clinic of USA. The difference shows in Rajagiri Hospital’s approach. While Fr. Johnson admits that quality medical care is never inexpensive even at Rajagiri, he has taken extra care to ensure that the costs are not prohibitive as in many of the wellknown private hospitals in Kerala. He is enabled to do that as he has the backing of the CMI Province to extend break-even period from the normal 7 years to double that period. Also, this Catholic priest is very particular that the hospital steers clear of the dubious practice prevalent in the industry of pressurizing doctors to order unwarranted and expensive scans and tests. A side-effect is that, here is a hospital that doesn’t suffer from attrition of highly-experienced doctors even in these times of intense competition. This is all the more impressive as Rajagiri Hospital is not able to pay the best salaries compared with hospitals in metros and even some hospitals in Kerala. Long story short, only a well-entrenched social group like CMIs can do such a feat. The promoter group strength is evident from the fact that the 40 acres land needed for this project has been with the Congregation for nearly 90 years now! Seasonal Magazine interviews Fr. Johnson Vazhapilly, Executive Director, Rajagiri Hospital.

an you tell us briefly about the healthcare initiatives so far by the CMI Congregation in India and abroad? While the 15 provinces of the CMI Congregation are headquartered in India, they have their wings all over the world. Each province has its branches in different parts of the world. We have established branches in South America, North America, Europe, Africa, and Middle East. The focus outside India, and for that matter outside Kerala, is a charitable or missionary approach. We have between 500 to 600 clinics and they are all basically primary healthcare centres. The priests there also work in different villages. Do you have such activities under the

Sacred Heart (SH) or Rajagiri Province? Rajagiri Province also has a model or approach in health care, but not in a big way. We have had small hospitals, small primary health centres. Then we have our outreach program, which is our way of reaching out to the poor and marginalized. These programs we had from long back. Is Rajagiri the first full-fledged hospital by CMI Congregation? No, CMI Congregation has the Amala Medical College which is under the Thrissur province. It started as a cancer centre and then grew into a medical college. It is now a premier institution. So, how is Rajagiri Hospital different from all these existing CMI initiatives in healthcare?

“ CMI Congregation's focus outside Kerala, is a charitable or missionary approach.We have between 500 to 600 clinics and they are all basically primary healthcare centres. The priests there also work in different villages.

” SEASONAL MAGAZINE

Fr. Johnson Vazhapilly

This hospital is our first project into the high-end super-specialities and subspecialties. This is a 40-acre campus where we initially prepared a master plan where we listed all the things that we wanted. The master plan included a tertiary-care hospital, medical college, nursing college, and institute of paramedical sciences. We have also planned for a retirement home. Each of them falls into either healthcare or healthcare education. As you know, Rajagiri is mostly into higher education. Here also one of our ultimate goals is higher education. But we also gave much importance to the healthcare services project, which is why we have this standalone super-specialty hospital now. What have been the various phases of operation here? Our action plan was to first go for multispecialty hospital, which has now come into existence. As the next phase, we will be going for a big way in Oncology, then into other sub-specialties like IVF. The plan is ready and we are about to roll it out. What about the plans for a medical college? With regard to the medical college, the plan is ready and we have approached the government, who has given us the NOC and the next phase is to get the essentiality certificate. We expect to get this in a couple of weeks’ time. Then we have to go to the health university (Kerala Health University – KHU) where we will have to appear for the first inspection. But nevertheless, the medical college will take at least 3-4 years to implement. Will the teaching hospital for the medical college be this one? No, there will be a new teaching hospital with extensive general wards and other facilities that are needed for a medical college. Maybe a tertiary care centre isn’t required as a teaching hospital? No, it’s not required. We mostly need the general disciplines and the general wards. We are proposing for 500 general ward beds. This hospital doesn’t have that kind of facility. Of course for affordability purpose, we have allotted certain shared rooms and 5-8 bed units for needy people, whereas in the

Fr. Johnson Vazhappilly CMI receiving the coveted quality recognition of Joint Commission International (JCI) from JCI President & CEO Paula Wilson at JCI headquarters in Chicago, USA.

upcoming general hospital wards would have 30 bedded units. We may not go for individual rooms there. This upcoming general hospital will be in an adjacent campus? One side we will have the teaching hospital and the other side we will have the college or the academic building. It will form a single unit. You also mentioned a retirement home here. Can you elaborate? Sure, but before that a word about Rajagiri’s existing activities in this domain. At a place called Pothy, near Thalayoraparambu, in Kottatam we have a children’s village called Sevagram and another institute called the Avedana Bhavan, which is basically meant for people who are poor and have nobody to take care of them. People who are terminally ill will be taken to that centre and we will give them the basic treatment and give them a comfortable time. This has been in existence for many decades now. But the current plan for a retirement home here is totally different. Please elaborate.. This is meant for people who have the ability to pay, who can lease out the facility. It will be more than an apartment plus club house, and whatever you can imagine in a high-end facility will be there. Plus, we will have comprehensive nursing assistance for the residents. We will accept a deposit and after the end of a person’s life here, their legal heir will be given back the principal amount. So the deposit will be the corpus fund

which we will use to run the facility. We plan for 400 such units and many expenses will be covered with this deposit. Whatever will be the cost of the infrastructure will be the deposit and together with the common maintenance, which is different from other types of apartment maintenance. Here if a unit is of 650 square feet, they will have about 1300-1400 sq ft of common spaces. It is because the amenities are planned in such a way. For example, the second floor, which is close to 1,35,000 sq feet, is completely meant for garden, pool, farming etc. It is a very innovative project, which we might find only in Singapore and places like that. We have not yet awarded the building tender, but Synergy is the PMC for this project. Rajagiri Hospital has already embarked on its educational initiatives. What all courses have you started with and what will be the rollout schedule in the years to come? We have already applied for DNB and I think many departments will have such post graduate diploma programs here. Some of the smaller programs we have already started, like for anesthesia technicians. Leveraging the Rajagiri brand has proved to be a brilliant move so far. Was it prompted by the plan for medical educational initiatives mainly? See, three things are important here. One is the high-end healthcare facility, secondly, education, and thirdly, the social initiatives. All the three play equal importance. As a social commitment, SEASONAL MAGAZINE

when this hospital came up, we employed Rajagiri College of Social Sciences to make a study of three neighbouring panchayats and we made a databank, where you know, different issues faced by these people like unemployment, and health hazards were systematically understood and we tried to come up with the required solutions. What could the hospital do to address the unemployment issue? With regard to unemployment, people were given the option of coming to our centres for an interview and we shortlisted many of them for a 3-month long training. Especially, the people who had to work at the lower-end jobs like housekeeping, laundry etc since they had to come in tune with the tasks. Generally, hospitals won’t do this. It is because of the possibility of union formation, strikes etc. But we decided that we won’t go for outsourced services, which is the norm for most hospitals, and made up our mind to trust them, and around 250 people are now employed from this pool. They have the additional advantage that the hospital is within walking distance from their homes. It is a way of empowering the downtrodden and we are extremely content with their services. We have had them with us for close to 2 years now. And what were the health hazards in the local population that you addressed? We have conducted camps on health status and we created data on the aged population and spearheaded special programs for them. Other than that, we also identified the bedridden and we made a special effort to ensure that the hospital services reach their homes. Nurses and ambulances conduct routine visits so that people who have been bedridden for months and years get every possible care from us. Also, this region had a big issue with perchlorate contamination from a nearby ISRO unit. It is a waste matter that is dumped into the sea and it also contaminates the wellwater and is a major cause of thyroid problems. This has been a big struggle here, and we volunteered to give free treatment to people already affected by thyroid issues, for throughout their lives. We signed an agreement with the Collector and a committee was SEASONAL MAGAZINE

constituted by the government to study the issue. You have recently tied up with Victor Hospital of Goa. What is the nature of this tie-up, and are more such tie-ups being planned? We are not in a position to invest money, so whoever needs assistance to run the hospital, they can be assisted once we are convinced with their vision. Victor Hospital was run by Apollo and all the original owners wanted was to have a more humane approach. In this case, what they wanted was firstly, a Christian culture to the hospital and secondly, to ensure overall improvement of their quality. It is a 150 bedded hospital and they have all the infrastructure, medical equipment, technology etc. So, it will be like a team from here will be managing the affairs at the Goa hospital? Not the whole team. We will be a major component of their top management, but without any financial engagement. Are you eyeing more such tie-ups? Yes, but an arrangement with another hospital may be different. We first assess what they need. We have also right now received invitation from abroad, one from Egypt, and one from Kuwait, and even from here there are some groups who are interested and discussions are going on. How does winning accreditations like JCI and NABH help you? We look at accreditations as golden opportunities to improve the system. Since we ourselves are newcomers in

“ "This hospital is Rajagiri's first project into the high-end super-specialities and subspecialties. This 40-acre campus has a master plan having a tertiary-care hospital, a medical college with its own teaching hospital, nursing college, institute of paramedical sciences, and a retirement home."

”

the field, our systems should be proper. I can see how we improve when we go in for accreditation. Basically, these are meant for improving our systems. That is our primary goal of getting accreditation. Having won JCI and NABH, we are now going for nursing excellence accreditation. to improve the system. Since we ourselves are newcomers in the field, our systems should be proper. I can see how we improve when we go in for accreditation. Basically, these are meant for improving our systems. That is our primary goal of getting accreditation. Having won JCI and NABH, we are now going for nursing excellence accreditation. But the building design requirements and all for the accreditations? Those were already taken care of. You see, the main challenge with accreditation isn’t with buildings, but with the processes. How you are able to streamline your processes is what matters. But definitely the building infrastructure has a role in it. You have assembled an impressive team of senior doctors across 33 super specialities. Considering the heightened competition in Cochin these days between hospitals, how challenging are the tasks of attracting and retaining talents? There are many hospitals in Cochin with their own scheme of things. I don’t think there is much competition among them. We have a different focus. But ultimately what matters is what the patient thinks. People may expect from Rajagiri what they don’t expect from other hospitals and vice-versa. As it is, I frequently interact with at least a few of our peer hospitals.

Chunanganvely, what are the strategic and operational advantages that you foresaw?

Is there attrition among doctors? Absolutely not in our case. None of the doctors have ever left us. In fact, this is despite some of the exceptional doctors having received unbelievable offers from other places. In Urology, we have Dr. Sanjay Bhat who is well known not only in Kerala but also abroad where he does surgeries. He got some excellent offer but he said he is in love with fathers here and don’t want to leave (laughs). In fact, one of the biggest assets of our hospital is that we have had excellent consultants. When I compare with the best hospitals in India, technology-wise we will catch up with them soon, like we will go for robotic surgery and all. But our real advantage is with our consultants. Almost all our departments have the most sought-after names. Like

in cardiac surgery, Dr. S.K Nair; in neurology, Dr Gigi Kurutuikulam, and in Gynaec Dr.Paily, who conducts monthly get-togethers with pregnant women on how to proceed with natural child birth and to avoid a caesarian. So we are proud to have the best consultants in their respective fields. How do you decide on adopting new medical technologies? Some of the things we look if they are viable - so with robotic surgery equipment, it costs anywhere between 9-10 crores, the initial expectations were so high but that narrowed down and is now linked to only urology and gynaec. In cardiac, it didn’t work much. But in some fields, it has clicked to an extent. While zeroing in on this campus at

On the other side of the National Highway, there are a lot of facilities. But when you connect to Idukki, Kottayam and nearby areas, we don’t have too many facilities. We are basically on the eastern side of the highway. Then we had the land from the very beginning, about 80-90 years back. Since around 1920, this land was with us. Those days when you take the land, you have to pay tax and that was hefty compared with the land price. We also had considered another land at Karukutty, that is after Angamaly, which is a larger campus of the monastery. But we finally thought that this would be a more fitting place with proximity to major towns. Affordability of healthcare especially among the middleclass and lower middleclass is a major issue especially as the health insurance penetration is low. As a Christian institution how are you addressing it empathetically? First thing is if you want quality healthcare it will be accompanied by costs. There is no doubt about this. It will involve money. You need the latest technology, the best consultants, good infrastructure; so it is expensive. Since most of our insurance schemes aren’t mature enough and most of our citizens are out of the insurance coverage, so this is a big challenge. I would say that we take 2-3 aspects in our approach. Firstly, this is a non-profit oriented institution, but it doesn’t mean that there won’t be surplus, but that it will be solely used for improvement of the facilities. If this had been a pure business model with a profit oriented approach, we have to give back the profit share etc. This is not in that model. It is a single management ownership and we don’t want return in the form of profits. Therefore, we are able to plan things accordingly. How all does it make a difference?

Sanjeevani 2017, a get-together program of Road Accident victims who underwent treatment for Brain and Spine injury being inaugurated by renowned cine artiste Smt KPAC Lalitha, in the prescence of (LtoR) Mrs Gracy Abraham, Nursing Director, Rajagiri Hospital, Dr M N Gopinathan Nair (Retd Major General) - Medical Director, Rev. Fr. Johnson Vazhapilly CMI Executive Director &amp; CEO, Rajagiri Hospital, Rev. Fr. Joy Kilikunnel CMI Director - Administration, Rajagiri Hospital, Dr Rony Louis, Dr. Manoj Narayana Panicker, Dr Rakesh and Dr. Jagath Lal Gangadharan - HOD Neurosurgery. Department of Neurosurgery, Rajagiri Hospital, conducted the event.

Generally hospitals plan for a breakeven in 7-8 years time, but we put it as 15 years. When you have longer time span, you don’t really have to worry about returns. Thirdly, we also plan for a cross-subsidy by which we will try to attract more patients from abroad. So to summarize these are the three areas we are looking at – one, we aren’t obsessed SEASONAL MAGAZINE

over making huge profits, second, we have extended the financial planning to a larger time period, and thirdly, medical tourism which needn’t always be foreign patients, they can even be from within India. If you compare the cost factors with Delhi, Mumbai, or Chennai, in Cochin it is very very economical. So even from within India, we can attract patients. Can you tell us about your services formed towards addressing international patients? How has been the response so far? Are the mainly NRIs as of now? No, they aren’t just NRIs even now. There are places like Middle East, Africa, Maldives, the SAARC countries, and Philippines, where the treatment is extremely expensive. Secondly, they don’t have sufficient facilities there. So these two things give us an edge and opportunity. So we have attracted people from these nations, through various channels, but not in a very big way. But now, having won the JCI accreditation, we will be aiming to grow this segment as foreign patients look for international accreditations like JCI. How are you placed approximately with respect to CIAL. Is it an attractive.. Yes, it is of course an attractive feature. I think out of all the super-specialty hospitals, we are the nearest to Cochin airport and once the seaport-airport road completes, it won’t take even 10 minutes actually. Once the land would get acquired for the roads, this hospital will be very near to the airport. Preventive health check-ups are the order of the day, especially among corporate customers. What are your strategies for growing this segment to its full potential? We have full-fledged system in place for the corporate clientele. We are offering different kinds of packages to them. The growth of this hospital is more than what we expected, and it is also on corporate clientele. Organ transplant is another area where rapid strides are being made by all the major hospitals in the state. Where is Rajagiri Hospital placed in this regard? We have already started our organ transplant division. Initially, we went for the license of renal, heart, and lung SEASONAL MAGAZINE

Rajagiri Hospital has signed a memorandum of understanding (MoU) with Shimane University Hospital, Japan to promote cooperation and interaction in healthcare education between both institutions. The MoU was signed by Rev Fr. Johnson Vazhappilly, Executive Director & CEO, Rajagiri Hospital and Dr. Mikio Igawa Director - Shimane University Hospital and Vice President & Executive Director, Shimane University, Japan.

transplants. Our inspection for liver transplant eligibility will take place soon. We have completed 3 renal transplants and 3 more are waiting in the wings as also a heart transplant.

It is actually quite strange how priests are able to manage complex institutions…the CMI philosophy of farsightedness and having these kinds of land from far back…

How did the Rajagiri Province select you from among all the other prieststo head this project?

Yes, true. We all believe this is God’s work. It took 300 crores for this hospital itself. We were quite bewildered as to how we ultimately managed to raise so much capital. We sold our lands in Kakkanad, bought in Rs. 50 crore as margin money and rest we went in for bank loans and the banks have been very liberally supportive. Now, the banks are surprised to see the growth we have achieved. They want to give more money now and all we need is to ask for it (laughs).

(Laughs). See, I’m not an intellectual giant. I believe I am a hardworking fellow. But I had absolutely no connection to healthcare. My subject is mainly history. But with regard to the selection process, they have different plans for different people. I wasn’t very interested in this field. Throughout my life, I was more inclined to study English. But my Provinicial told me to go and study History, and that was it. However, I topped in my graduation level, but not because of my intellectual capability but because I try to do my level best in whatever I am in. Basically, leadership is a co-ordination and one needn’t be an expert in everything. The only attribute required is to have a listening mind. A leader should also be able to tolerate people who are more knowledgeable and that really is what leadership is all about. We select the right people and that’s why this hospital has come up to this extent. It is basically the culture of the Rajagiri management, which is reflective in every institution it runs where it attracts people. People don’t leave us so there is absolutely no attrition. Our salaries may not be the most competitive. The priests aren’t experts in many things but they have the humility to carry the right people with them.

Why a patient should opt for Rajagiri over other hospitals? My prayer is that people stay healthy and won’t have to visit any hospital in the first place (laughs). But if they are ill, they should be able to trust Rajagiri. We never give any targets to doctors. I have never asked a single doctor about how many surgeries he or she did etc. We also don’t have the system of giving incentive. If they do either 1 or 100 radio-diagnostic scans, the payment is the same. Otherwise it would bring in a kind of temptation for doctors. That will kill the medical service. I only enquire about patients’ responses to the doctor’s treatment. And you know, these are the factors why doctors don’t leave us. People should have faith that this hospital won’t do unnecessary procedures.

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HIGHER EDUCATION

JSS University

COMING TOP IN RIGOUR, RESEARCH, &RANKINGS

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JSS University is fast emerging as a force to reckon with in the higher education arena. Within a short span of 10 years, the Mysuru-based varsity has already featured prominently in some of Indiaâ&#x20AC;&#x2122;s well-known ranking lists and is poised to continue its remarkable run through its commitment for world class education & investment in realizing its long term vision.

In the inaugural edition of the Karnataka State University Ranking Framework, JSS university recently emerged as the numero uno among the young universities in the state, securing 711 out of 1000 points. The university, founded in 2008, scored

high on the parameters of teaching excellence, inclusiveness, research and infrastructure. In the overall NIRF ranking released by the Union Ministry of Human Resource Development, the university secured the 74th position among the top 100 institutions in the country. What lends greater credence to this veritable achievement is that it is among only one of the 7 institutes from Karnataka among the top 100. Out of the 52 universities in the state, 42 were evaluated as part of the survey while ranks were allotted to only 38 varsities. In pharma education, one of its core competencies, the university did

exceedingly well via its constituent colleges. The JSS College of Pharmacy, Ooty & The JSS College of Pharmacy, Mysuru were ranked 9th and 10th respectively among the pharmacy colleges in the country. JSS university also stands 45th amongst universities in the country in the NIRF. Vice Chancellor, B. Suresh, said the state and national rankings continue to recognize the efforts put in by the young university as an emerging institution, adopting best practices and providing quality education. He further added that the university has plans to strengthen its infrastructure, attract distinguished faculty, increase international student diversity and international collaborations, besides nurturing social research programmes to be able to move towards international benchmarking. Accredited with A Grade (CGPA of 3.34 out of 4) by NAAC, JSS Universityâ&#x20AC;&#x2122;s Pharm D. programme has been awarded with International Certification by Accreditation Council for Pharmacy Education (ACPE), USA, and becomes the first among the Universities in the Asia Pacific region to achieve this. JSS College of Pharmacy, Mysuru & JSS College of Pharmacy, Ooty have got their B.Pharm program accredited by

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Vice Chancellor, B. Suresh, said the state and national rankings continue to recognize the efforts put in by the young university as an emerging institution, adopting best practices and providing quality education.

National Board of Accreditation (NBA). JSS University’s placement drive witnessed a massive intake of its graduates with many students bagging more than one offer letter. Around 350 students have received 436 offers from IT giants such as Accenture, Infosys and Wipro. While

the university invests heavily on its students’ research & providing them hands-on training in the corporate environment, there are also plans on organising pool campus recruitment drives to create opportunities for students of other colleges as well. While this would no doubt boost the B. Suresh, Vice Chancellor

confidence of all stakeholders involved, the university has set its eyes on a far grander scheme of things: to emerge as the “most respected university” in Karnataka and to provide meaningful educational transformation to the state’s individuals. True to its mission, JSS university is looking to invest Rs. 2,000 crore in Mysuru for its new campus and establish state-of-the-art facilities in what is touted to be one of the largest investment opportunities beckoning the city in recent decades. The project envisages not only a digital and smart campus, but also a cricket stadium modern enough to stage international tournaments. While the first phase is expected to be completed by the end of next year, the full-fledged international campus is scheduled to be operational by 2025. Being one of the premier institutes in the health sciences field, JSS university has entered into valuable collaborative initiatives with other universities & organizations. Some of its most significant tie-ups include ones with the National Institute of Health (NIH), USA; Howard University, Washington D.C; AIMST University, Malaysia; University Of Pretoria, South Africa; Oman Medical College Sultanate of Oman; Uppsala Monitoring Centre, Sweden; Latrobe University, Australia; Maastricht University, Netherlands; Khon Kaen University, Thailand; University of North Carolina at Chapel Hill, USA (UNC) etc. SEASONAL MAGAZINE

In a bid to upgrade its research potential, JSS university has also benefited from tie-ups with organizations & universities at the national level including, NMIMS University, Mumbai; University of Hyderabad; CSIR-CFTRI, Mysore; DRDO, New Delhi; National Institute of Veterinary Epidemiology and Disease Informatics, (NIVEDI) Bangalore etc. The university also provides industryinterface to its students with their association with key corporate players like Himalaya Drug Company; Philips Electronic India Ltd; Biocon Foundation, Bangalore; Alveus Pharmaceuticals Pvt. Ltd, Hyderabad etc. JSS university has received close to Rs. 8.62 crores from various funding agencies for utilization in its various major & minor projects, industrysponsored initiatives, interdisciplinary projects, student research projects etc. The university recently signed an MoU with the National Institute for Pharmaceutical Education & Research (NIPER) under the Ministry of Fertilizers & Petrochemicals. The MoU envisages preparation of snake venom anti-body and possibilities for joint projects & academic exchange programmes.

(VGST) and Department of Science and Technology, the CoE has been established to offer academic programs and training in the area of molecular biology and biomedical research to help develop skilled manpower.

It also strives to identify therapeutic and drug resistance markers in various communicable and noncommunicable diseases & key factors regulating cellular transformation and differentiation in health and disease. The Clinical Development Services

The Center of Excellence in Molecular Biology and Regenerative Medicine ( CEMR ), established by JSS University, is one of the leading centers for laboratory research using molecular biology & stem cell research in the country. Supported in part by Vision Group on Science and Technology

College Sultanate of Oman; Uppsala Monitoring Centre, Sweden; Latrobe University, Australia; Maastricht University, Netherlands; Khon Kaen University, Thailand; University of North Carolina at Chapel Hill, USA (UNC) etc. SEASONAL MAGAZINE

From left, SIUE Chancellor Dr. Randy Pembrook, Vice Chancellor of JSS University Dr. B. Suresh and SIUE Vice Chancellor for Academic Affairs Dr. Denise Cobb recently met to discuss the student exchange program. Provided

Agency (CDSA), Department of Biotechnology, Government of India has recognised JSS University, as Centre of Excellence for carrying out clinical trials. Another notable feat has been the recognition of JSS University as a regional coordinating centre for Pharmacovigilance Program of India (PvPI) by the Indian Pharmacopeial commission. The university also takes pride in its global visibility by meeting international standards. WHO International Drug Monitoring Programme located at Uppsala, Sweden has partnered with JSS University to establish a strategic framework for collaboration to conduct training programmes for capacity building in Pharmacovigi lance for the Asia-Pacific region.

The university also provides industry-interface to its students with their association with key corporate players like Himalaya Drug Company; Philips Electronic India Ltd; Biocon Foundation, Bangalore; Alveus Pharmaceuticals Pvt. Ltd, Hyderabad etc.

another feather in the cap for JSS university. With an approval from the ISRO-IIRS, the programme is aimed at empowering human resource in the field of remote sensing and geographical information systems (GIS). Admission to JSS Universityâ&#x20AC;&#x2122;s D. Pharm, B. Pharm, B. Pharm Practice, Pharm .D, M. Pharm, Pharm .D (Post Baccalaureate) courses for the upcoming academic year has begun. The last date for submitting application is on the 15th of June, 2017. The entrance test for the courses will be held on the 23rd & 24th of June, 2017.

WHO Global Vaccine Safety Initiative program has partnered with JSS Medical College Hospital to promote quality and safe use of vaccines. JSS Hospital is identified by WHO as a sentinel site for multi country vaccine safety studies. The launch of the e-learning lab, a three-week programme to train nonprofessional cadres to gain knowledge of EDUSAT/INSAT 4CR satellite through distance learning, has been SEASONAL MAGAZINE

CRICKET

SHANE WATSON THINKS CRICKET MATCHES NEED TO OFFER CONTEXT FOR STAYING RELEVANT Shane Watson has stated an opinion that has for years been raised by cricket's die hard fans: to provide an element of context to matches. With Test cricket already hit by revenue dips & ODI cricket fast losing fan engagement with the sudden spike in T20 franchise cricket, the recently-retired Australian cricketer has some valid points to make. he international cricket calendar, particularly one-day cricket, is under serious threat, according to former Australia allrounder Shane Watson. A player who has plenty of first-hand experience of T20 league cricket, Watson said the leagues were doing a better job of providing what the fans want: context. "The reason why the public loves franchise tournaments is because there's a build-up and there's an outcome - there's semifinals and a final. Whereas a lot of the time with international bilateral series - of course you're playing for your country and you want to beat the opposition - but if it's a five-match series and you win 3-0, then no one sort of watches the last two games. For the players the series is over. There's no reason to play those two games. Whereas in knockout tournaments, like the Champions Trophy or a T20 World Cup or a World Cup, if you lose you're out, you don't play another couple of games for the sake of playing the amount of games that has to be there in the tournament." It might perhaps be impossible to ensure every game played contains a hook for the player and the fan, but Watson was unequivocal in his belief that the primacy of international cricket will come under threat if things stay as they are. "Obviously there's a lot of politics around the future tours programme (FTP) and how they can't change the next four years in advance, which seems pretty crazy, they're going to have to," he said. "Just by sheer numbers of the people coming along to the Big Bash, for example - it's the perfect example - it shows there's a huge shift in what people want to watch and that's games with context. Tournaments with context. Not just a series that has to be played, like the T20 series that Sri Lanka played at the back end of the Australian summer when everyone thought the cricket season was over. These token games have to stop shortly because the general public is going to be fed up." They might not be the only ones alienated either. Watson was worried about the SEASONAL MAGAZINE

impact participating in meaningless series can have on the current generation of cricketers. "Of course, there is the pride and privilege of playing for your country, but when it's all year round and a lot of gaps [in the calendar] are being filled for boards to be able to continue to make money - which has now come to the players which is great but in the end how much money is enough for a player to earn when they're getting burnt out, when they don't have a life outside of just playing and travelling around the world in different hotels, especially with families. For cricketers who've got young families, it's very challenging." So, is the fact that the ICC is working towards establishing a Test championship and a one-day league some kind of consolation to Watson? Things are not moving quickly enough to make a difference, he said. "These conversations have been talked about for the last five years, at least, that I can remember. There's been a lot of conversations around providing more context for Test matches, having relegation, having points for your wins, and having a Test championship at the end after two years or something like that. But there's only been talk. There has been nothing put in place and in the end the players want games with context and most

importantly the fans want games with context and I don't understand why the ICC is taking so long to be able to put these things in place." A big part of the problem is the ICC cannot unilaterally make decisions. A plan as sizable as changing the way the game is played around the world has to be put forward at Board meetings and then passed by a majority vote. As things stand, the member countries have disagreed to the two-tier Test championship and are instead discussing a model by which the top-two ranked teams play for the honours. A 13team ODI league is also up for ratification in the next round of meetings in June. The ICC is therefore aware of the need for change, but Watson reiterated it. "If they don't be proactive with it, before you know it, for the big Test series, there's going to be no one coming along to Test cricket. Unless its a knockout tournament, there's going to be hardly anyone coming along to one-day cricket and potentially Twenty20 cricket, international Twenty20 cricket outside of a World Cup. They'll all be going to franchise tournaments that have got more context. "In Australia, for example, the best players aren't playing because they're playing international cricket at that moment when the Big Bash is on, but there's still 45,000 people coming around to the Adelaide Oval. Every ground is just about sold out, so people love what it's providing."

CORPORATE PEROFRMANCE ALLURI INDRA KUMAR, CHAIRMAN & MANAGING DIRECTOR

SEASONAL MAGAZINE

AVANTI FEEDS LTD

WHY AVANTI HAS NEARLY TRIPLED IN 5 MONTHS

AVANTI FEEDS STOCK HAS NEARLY TRIPLED IN THE FIRST FIVE MONTHS OF 2017, DURING A PERIOD WHEN MANY SMALL-CAP COMPANIES WERE REELING FROM THE POSTDEMONETISATION IMPACT. IN THE CURRENT MONTH OF MAY ITSELF THE STOCK HAS SHOT UP BY 62% ON BLOCKBUSTER Q4 NUMBERS. SEASONAL MAGAZINE TAKES A LOOK AT WHAT IS DRIVING THE FUTURE AT INDIA'S SHRIMP FEEDS MAJOR.

Q4 / FY'17 Performance For the full fiscal of FY'17, Avanti Feeds' sales is up by 35% while net profit is up by 36%. This has been possible due to excellent performance in the first three quarters and blockbuster numbers in Q4. Sales is up by 50% year-on-year and 26% quarter-on-quarter or sequentially, in the fourth quarter. Net profit has nearly tripled YoY in Q4 while it has nearly doubled QoQ or sequentially.

Government Policy vs. Risks The overall business climate is expected to improve dramatically for Avanti Feeds after the government announcement to grow marine exports by 20 per cent every year. Avanti Feeds can gain maximum benefit post this announcement because it earns 85 per cent of its revenue by selling shrimp feed and rest from shrimp processing. On the other hand despite having sizeable domestic sales, Avanti had nil impact due to demonetisation, as seen in the excellent Q3 results.

Market Opportunity Avanti Feeds is India's undisputed leader in the aquafeeds market, especially in its most lucrative shrimp feeds segment. The global aquafeeds market is estimated to be valued at USD 107.82 Billion in

2017 and projected to reach USD 172.56 Billion by 2022, at a CAGR of 9.9% from 2017 to 2022, with Indian market emerging as a leader in Asia. While Avanti Feeds is the market leader in India, its annual sales of Rs.2700 crores leaves unlimited opportunities to grow. Currently, Avanti Feeds is not exporting its feed products.

Scope for Value Addition Aquafeeds manufacture is rapidly emerging from a once generic business to a highly specialized business offering immense scope for value addition. While traditionally aquafeeds were manufactured by base ingredients like Soybean, Corn, Additives, Shrimp meal, Fish oil etc, today's market is getting dominated by feeds having additives like Vitamins, Antioxidants, Amino acids, Feed enzymes etc, a field where Avanti has significant expertise.

Factors Driving Global Growth Increased consumption of seafood across the globe, especially in developed nations across Europe, North America, and Far East is the primary driver. Quality by way of better protein quality, and better natural taste have been additional factors. Driven by these factors, high growth was observed in the European Aquafeed SEASONAL MAGAZINE

Market, especially in countries like Norway & Germany, and Avanti as an emerging exporter has favourable tailwinds from this higher demand.

Avanti's Positioning Among Peers Today, Avanti's feed products are ranked amidst global leaders in USA, Europe, & Australia like Archer Daniels, Ridley, Cargill, Nutreco, Purina, Nutriad, Alltech, Aller Aqua, BIOMIN, Norel, Dibaq, De Heus etc. However, being an India based company, and that too operating with strict capital controls and tight expense controls, Avanti's products are competitively priced, whereas its tie-up with Thai Union provide comprehensive support in international reach.

Input Costs Soybean is a key ingredient in aqua and shrimp feeds. Soya is used for its superior amino acid profile, higher total phosphorus content, and energy content. Soybean contains about 48% high-quality protein. Compared to last year, price of the raw soya in India has come down due to the good monsoon in 2016. According to the most recent climate forecast, 2017 will also have a good monsoon, which augurs well for soya feeds as well as Avanti Feeds.

Guidance / Value Addition Avanti Feeds has guided for 25 per cent growth for the financial year 2018. Two strategies have been put in place for achieving this robust performance. Firstly, the company is going for higher value added products in the shrimps segment. Secondly, many of these value added products are being designed for the consumption by direct consumers, thereby establishing Avanti as a consumer brand.

Long Term / Future Plans The company currently has more than 40 per cent stake in the Indian prawn feeds market. Avanti Feeds is now working hard to become a billion-dollar aquafeeds and shrimps player in the coming three years. To achieve this, the SEASONAL MAGAZINE

SHINING SHRIMPS

Avanti Feeds has posted blockbuster numbers in Q4. Sales is up by 50% year-on-year and 26% quarter-on-quarter or sequentially. Net profit has nearly tripled YoY while it has nearly doubled QoQ or sequentially. For the full fiscal of FY'17, sales is up by 35% while net profit is up by 36%. With 50% expanded capacity in shrimp feeds, and 200% capacity expansion in processed shrimps, Avanti Feeds is looking more competitive. In both the expansions, the company has gone in for next-generation infrastructure to be globally competitive. The company is also more focused on its dual core competencies now, having hived off its promising shrimp processing business into a subsidiary – Avanti Frozen Foods - into which its long-term overseas partner and world leading shrimps player Thai Union has invested. Chairman & Managing Director Alluri Indra Kumar is focusing his energies on growing Avanti Feeds Ltd into a billion dollar company by revenue within the next few years on a multi-pronged strategy that includes value-addition, end-user products, tapping of new overseas markets, and inorganic expansions. Indra Kumar’s success is a hard-fought one, as this entrepreneur has his home in the Avanti campus, and is always on his feet meeting with not only his customers across the globe but with their associate shrimp farmers across India. Since its inception, Avanti has given over 1000 times return to its investors including a handsome dividend payout that stood at 350% last fiscal. Seasonal Magazine in conversation with Alluri Indra Kumar, Chairman & Managing Director of Avanti Feeds Ltd. You recently had the commissioning of an expanded capacity for feeds manufacturing. Can you tell us how this affects your topline in the coming periods? Yes, we have completed and commissioned this expanded capacity. Before this expansion, we were producing 3 lakh tonnes of feeds annually. And after this expansion, we are producing 4.5 lakh tonnes. On this new volume, Avanti is hopeful of clocking an annual turnover of Rs.2750 crores.

What would be the impact on profits? Would there be a negative impact due to any interest or financial costs component? The impact on profits would be positive and proportionate to the expansion. As we haven’t taken any significant debt for this expansion, there is no new interest component. Government has announced its commitment to grow marine exports by 20% every year. What kind of new

Avanti was generally shielded from the effects of demonetisation. How was this possible despite having a sizeable domestic operation? Is it due to the criticality of your core product of feeds? We have always encouraged all our suppliers and customers to do transactions only through banks. This has been so for the last 15 years, both in the feeds and processing businesses, and due to this there was no impact due to demonetisation. That is why there was no impact of it in Q3. But the farmers might have faced cash crunch issues, isnâ&#x20AC;&#x2122;t it? Yes, they surely faced some cash crunch issues especially with regard to sourcing some other inputs needed for shrimp farming, but thankfully they came out of it eventually. On either your total volume or total revenue from feeds, what percentage is exported currently? Our feeds business is still totally domestic. This is basically because of the huge demand for fish feeds in India, and even after this recent expansion and running at full capacity utilization we can cater only to the domestic demand. Is there any scope for penetrating more lucrative geographies? Which all would be such countries, and are there such plans before the company?

support is government providing for the same and how does this help Avanti? Yes, that is a new target set by the government. How Government plans to achieve this 20% growth is basically by helping the shrimp and fish farmers. Earlier, the farmers had challenges in land registration, and such issues. Now, the government has put in faster clearances, and the implementation of the policy is now more transparent as well as aggressive. Two other areas the

Apart from these, there are no specific schemes directly affecting Avanti?

Sri Lanka and Bangladesh are two neighbouring markets that we can address in the future. But they are small markets compared to India, and we need to be careful in assessing the benefits versus the risks. May be in another two years time, we will take a call on it, as I told you currently we are able to sell the full capacity in India.

There arenâ&#x20AC;&#x2122;t specific schemes, but some moves like faster clearances for the marine food processing industries are directly benefitting Avantiâ&#x20AC;&#x2122;s processing subsidiary.

Similarly, coming to your shrimps business, what percentage if any is currently available for Indian market? Which are your main overseas markets for shrimps?

government is helping is by providing better power tariffs and by helping improve the crop quality. When farmers are thus helped, it naturally helps a feeds and shrimps processor like Avanti.

SEASONAL MAGAZINE

revenue break up between shrimp exports and shrimp feed which is currently at 15:85, is being better balanced to a ratio to 40:60. There are also plans to diversify into fish feed manufacturing, from mainly shrimp feeds now.

Unique Trackrecord Andhra based Avanti Feeds Ltd is a farmto-fork leader when it comes to aquaculture, especially in shrimps. Over 23 years of its existence, Avanti has grown from strength to strength, based on significant forward and backward integration, as well as high quality products and technical services to its clients in both India and abroad. Founded by legendary entrepreneur Alluri Venkateswara Rao, and led by his son and visionary business leader Alluri Indra Kumar, this listed player is also noted for its stunning wealth creation for its long-term shareholders.

Pioneering Efforts Started way back in 1993 by Alluri Venkateswara Rao, who had proven his mettle in various business fields, Avanti Feeds has been an Indian pioneer in

Almost 100% of our processed shrimps are sold in overseas markets. Only negligible quantities get into the Indian market. Our main markets for shrimps are USA and various European countries. Are you planning an Indian foray for your shrimps? We have done it earlier, and the response was not up to our expectations. Avanti’s expertise in global markets is in frozen shrimps, whereas Indian market is still not ready for frozen shrimps in a big way. Here the demand is for fresh shrimps. Avanti can do this, but it would require considerable investment into logistics. We may attempt this within another one to two years. We understand that over the past year there was a realignment between certain divisions with Avanti and Thai Union making fresh investments. Can you walk us through the scope of this new project? As you know Avanti Feeds Ltd has two SEASONAL MAGAZINE

businesses – shrimp feeds and shrimp processing. Earlier, the processing business was structured as a division of the company. Over the past one year, what we have done is we created a new subsidiary called Avanti Frozen Foods and we transferred the entire shrimp processing business into this subsidiary. Into this subsidiary company, both Avanti Feeds Ltd and Thai Union have invested, and it is owned 60% by Avanti and 40% by Thai Union. We did this restructuring as we wanted a major capacity expansion which needed significant new investments.

small debt component to this expansion, but not affecting the profitability seriously.

Since Avanti gave away 40% stake in lieu of investments from Thai Union for this expansion, what is the scale of it? The previous and current volumes? And what would be the debt and impact on profitability?

Seasonal vagaries like adverse climate and diseases have been the bane of the shrimp feed business, and have you formulated any specific strategies for risk mitigation?

It was a major expansion as earlier we were processing 5000 tonnes of shrimps per day, and after this expansion we are doing thrice of this, that is 15,000 tonnes. There is a

After this expansion, how are you positioned in India’s shrimp exports? How does Avanti market its products worldwide? We are one of the major shrimp exporters from India, after this capacity expansion. We market our shrimp products on our own and Thai Union also helps us in marketing. They are one of the largest shrimp processors in the world doing every type of products everywhere.

Seasonal vagaries are definitely there, and we can address some of them only. For example, we can’t do much regarding climate issues like abnormal monsoon. But with regard to disease issue we can

aquaculture, spanning operations like prawn culture, shrimp feeds, and processing. This is the 23rd year of operation for Avanti, and this early mover advantage has been helping the company to weather the many storms that have affected the aquaculture industry of India in recent years.

Japan, Australia & Middle East. Avant's shrimp processing units conforms to HACCP, USFDA, EU & BRC Global standards. Avanti is also ACC Certified for best aquaculture practices.

Strong Domestic Operations

to higher yields and higher profits, and this has been a big factor in winning Avanti the loyalty of the farming community.

Tie-up with Thai Union

While exports are one side of the coin, aqualculture companies can thrive with only strong domestic operations. Avanti has 5 Prawn Feed manufacturing units across West Godavari District in Andhra Pradesh and Valsad District in Gujarat, which together produce 4,50,000 metric tons of feed per annum. Its plants are located at the heart of aquaculture operations in India, thereby enabling better reach to farmers.

Aquaculture is a field where there is rapid technological evolvement, and a hallmark of Avanti has been its constant upgradation of aquaculture technology by bringing in from abroad the latest developments in the field. Towards this, Avanti has a long running and multifacted tie-up - spanning equity, technical, & marketing - with Thai Union Frozen Products Public Co. Ltd., of Thailand, which is the world's largest sea food manufacturer, as well as a major player in feed and hatchery.

Reputation for Highest Quality Feed

Better Management Bandwith

Over the years, Avanti has built up a name for itself in delivering fine quality feeds. Made from world-class raw materials, Avanti's feeds are nutritionally well-balanced, ensuring greater appetite, faster growth rate, and high Survival rate, in both shrimp and fish. For the farmers, this readily translates

For many years now, Avanti Feeds is being led by Alluri Indra Kumar as its Chairman and Managing Director. A BE Chemical Engineer from University of Bangalore, Indra Kumar has been instrumental in bettering almost all facets of the business since he took over the operations from his father. It was Indra

definitely do a good degree of risk mitigation. We work on our own, we collaborate with some foreign universities, and also with the governments. The key for disease management in shrimps is adherence to best practices. The farmers should undertake to do this, and how we help is by offering farmer training programs, and working with them on a day-to-day basis to spread awareness and ensure compliance.

We donâ&#x20AC;&#x2122;t farm on our own, but procure everything from farmers. We sell feed to them and buy shrimp from them, but apart from that there is no connection. They are independent businesses.

key inputs. Then fish meal which is sourced from the sea is also affected by climate and other factors. But Avanti is always on the lookout for alternative sources of proteins, and we are developing such options to mitigate seasonal risks with regard to key inputs.

Is it true that after introduction of Vannamei shrimps, the diseases are better managed?

We can compete only on better quality. Indian pricing canâ&#x20AC;&#x2122;t be much better than MNCs as we have to ensure top-notch quality, and that requires finest quality ingredients.

Synergistic Divisions From its inception onward, Avanti Feeds has steered clear of being a one-trick pony. Instead it has successfully forayed into all synergistic operations in the aquaculture domain including the core feed manufacturing and shrimp processing operations. This has helped the company scale up impressively, especially during the second decade of its operations. This also enables the company to better control its market share in both the segments.

Export Focus When Avanti started out in the early 90s itself, the company understood the need to tap the export markets. Towards this, Avanti perfected its quality standards, and today the company has a long list of loyal customers from USA, Europe,

Vannamei is more resistant to diseases than the earlier varieties, but as in any live organism there are certainly some risks for diseases. But with consistency in ensuring best farming practices, the risks are mitigated. Do you procure 100% of your shrimps from farmers? And since you are in feeds and processing, do farmers tieup with you for both?

Your products compete with a lot of MNC products from larger corpora tions. What is your main-selling point, whether it is the better prices or the better quality or a combination of such factors?

There is an often aired view that a key long-term risk for fish feed companies is the emerging shortage of certain inputs sourced from the sea. How far is this view true? It is not a long-term risk, but a seasonal risk. For example, monsoon affects the availability and price of soya, one of our

You have a stated plan to be a billion dollar company within a few years. What are your strategies for achieving this impressive objective? How much will value-added and consumer-oriented products help in this? Yes, we do have an ambition to be a billion dollar company within the next few years. That is why our new plants for both feeds and shrimps have been created in a state-of-the-art fashion. We will pursue all avenues including organic and inorganic growth for achieving the billion dollar objective. We want to do a lot more of value-added and end-user oriented products that will better our margins. We are also planning to enter into new SEASONAL MAGAZINE

Kumar who forged the tie-up with Thai Union, and his marketing accumen signed up several new customers in key markets like USA, Europe, and South Africa.

Stress on Quality and Traceability In aquaculture, traceability of issues is a major challenge. At Avanti Feeds, quality of processes is taken seriously. A qualified and experienced team performs stringent tests for evaluation of raw material quality. Close monitoring and testing is done at every stage right from the raw materials to the finished products. This has resulted in the implementation of a practical tracea bility system.

Superior Technical Services to Farmers Avanti serves shrimp farmers through its highly equipped quality testing Labs in the coastal regions, for shrimp seed quality analysis, PCR testing, and Water & soil tests for shrimp culture. The company also guides the farmers in seed selection, and culture practices. Resolving farmer complaints happen within 48 hours.

Exceptional Wealth Creation Avanti has been an investorâ&#x20AC;&#x2122;s delight for markets overseas. Avanti Feeds has proved to be an excellent wealth creator in recent years with your stock zooming more than 100 times. You have also put in place an attractive dividend policy in recent years. What is your philosophy with regard to ensuring investor returns? Avanti Feeds has given more than 1000 times return in its lifetime considering the dividends too. We give 350% dividend. We value our investors and we have put in transparent systems to ensure investor returns. As a young business leader who successfully built upon a foundation

the past 5 years, when its share price surged by nearly 106 times. Powering the market cap expansion was its earnings expansion that was nearly 5 times in 5 years. In the market, Avanti is also noted for its high dividend yield (around 1.5% now), while the growing nature of the aquaculture market in India, especially after the introduction of the vannamei shrimps, is ensuring that the base effect will favour Avanti, going forward too.

Prudent Financial Management Avanti Feeds is noted in the financial management circles for its small equity and low-debt model. The company also comes across as strong in several other core metrics like Return on Equity (RoE)

that your father made, to reach exponentially higher levels, what all are your success secrets? Industry sources say you work hard, even resorting to sleeping in your plant premises some days. How far is this true? I still live in the factory campus. If we need to be successful we need to work with passion. We need to be updated with developments across the world, and implement it here in India. I travel a lot across the world visiting our key markets and meeting our customers. I also travel a lot in India meeting our farmers and getting to know their problems and helping to solve them. Lastly, to be successful we need to be part of an industryâ&#x20AC;&#x2122;s growth.

and Return on Capital Employed (RoCE), which shows the prudent financial management in the company. This has enabled the company to focus on sales and profit growth in good times as well as not so good times for aquaculture.

Impressive CSR Activities CMD Indra Kumar, through group concern, AVR Trust, offers best quality education to thousands of poor and needy students through ABN & PRR Colleges of Science located in Kovvur, West Godavari District. Indra Kumar also runs the "Home for the Aged" which was started by his mother Late Alluri Subhadra Devi under "Sowbhagya Durga Trust" in Kannapuram, West Godavari District. The inmates are provided shelter, food and medical care, completely free of cost, in a very pleasant environment.

KMML advt

SPECIAL ISSUE on Kerala Government’s 1st Anniversary

A SOCIALIST REVOLUTION IN AGRICULTURE

The agrarian revolution in Kerala has its roots in the state’s socialist ethos dominated by its Communist Parties. A Young Turk of the Communist Party of India (CPI), VS Sunil Kumar, has this agrarian blood running in his veins, and his first stint as a Minister in Kerala is causing rapid changes in the Agriculture Ministry and sector that he heads. His hands-on approach was evident during an hour-long interaction where he articulated eloquently on the various initiatives including insurance enhancement for crops, organic farming, paddy farming revival, pesticide usage enforcement, attracting youth to farming through value-added products, and turning around agri-PSUs. At the heart of all initiatives is Sunil Kumar’s priority – the farmer. Seasonal Magazine recently met VS Sunil Kumar for an exclusive interview, excerpts of which are given below: When the government completes its first year, what is the primary achievement of the agriculture ministry? Farmers who farm for their daily living were highly insecure in Kerala. The prime reason for this was that the insurance scheme against crop damage wasn’t updated with reasonable compensation since 1995. We changed that. Compensation against damage has been increased multi-fold now. For paddy, it has been increased from Rs.12,500 to Rs.35,000. Similarly for a banana plant it has been raised from Rs.50 to Rs.300, for a nutmeg tree from Rs.200 to Rs.3000, for a coconut palm from Rs.700 to Rs.2000, and likewise for 26 different agricultural crops. This has made the lives of farmers in Kerala more secure. As a state dependent on rice as the staple food, what all have been your achievements in the paddy sector? The government had announced the year as the ‘Nel Varsham’ (Year of Paddy). For the last several years the trend was paddy fields either lying waste or being converted into plots for real estate and construction activities. Within one year, we have reversed that trend. We could cultivate 15,000 acres of land lying waste, this year. Even once-famous fields like Methran Kayal, the rejected

Aranmula Airport land, and Kanimangalam field have been cultivated. Also, we are encouraging everyone to be farmers. Paddy can be cultivated even in regular lands adjoining houses. We encouraged that, and under that scheme around 3000 acres of land were cultivated for paddy. This on-going year, we will increase this to 10,000 acres. The budget allocated for paddy cultivation has doubled from Rs.35 crores to Rs.70 crores. Promotion of vegetable cultivation, especially organic vegetables has been a focus area. What are the achievements in this regard? Yes, this is one of the areas where maximum achievements have been made by this government. For the first time in India, a state has launched an organic brand of its own, called ‘Kerala Organic’. We are encouraging organic clusters of farmers and they are producing organic vegetables in over 10,000 hectares now. For ensuring quality, we have introduced Good Agricultural Practices (GAP), and farmers are being trained for it, and agricultural officers have been given authority to enforce the standards. A Honey Mission has been launched. Organic honey is being promoted under the Central scheme of Participatory Guarantee Certification (PGC) for which

Vegetable & Fruit Promotion Council (VFPC) has been appointed the nodal agency. Organic manures and pesticides using micronutrients, microorganisms, beneficial bacteria etc are being produced in a decentralised manner by giving scientific training to farmers. Overuse of pesticides has been a major issue in Kerala. How are you battling it, and is organic farming a real alternative to fertilizers and pesticides? Yes. Around 1250 metric tons of pesticides are consumed in Kerala. This is way too much. Over the last year, we have introduced strict controls to curb this abuse. The problem was that the Pesticide Act of 1966 was not being enforced. Direct demonstration of pesticides to farmers by pesticide companies and agencies has been banned now. Companies still resorting to it will lose their license. Tons of banned pesticides have been confiscated in around a dozen cases. Farmers have been instructed to use pesticides only according to the guidelines given by agricultural officers, and the officers have been given enforcement powers to routinely inspect pesticide stocks lying with companies and agencies. We can’t totally ban pesticides and fertilizers, and introduce everything organic. Organic farming

needs animal inputs, and without growing animal wealth in proportion, we can’t scale up organic farming. It can be done only step by step without affecting production and costs. The focus is to introduce and grow organic farming as the alternative in a scientific and systematic way. Is the high cost or poor quality of seeds affecting agriculture in a big way? Yes, it is a major issue in Kerala. Now the situation is such that anyone can produce seeds and sell it anywhere, and this is being done to exploit the newfound interest of the masses in agriculture. This has resulted in very poor seed quality, and the government is now acting forcefully to curb this malaise. On the other hand, several bigger companies are touting their socalled high-breed seeds which are often unsuitable for Kerala. So to curb all these we have given a notice to all these operators to publish all essential disclosures within six months and thus obtain a valid licence to sell standardised seeds in the state. This is going to be enforced strictly. Farmer suicides have been an issue in Kerala. How are you tackling it? It was an issue, but not anymore. Not even one farmer has committed suicide during our first year, and I am hopeful that no farmer will in our full term just because government didn’t support them. Apart from the insurance enhancement I mentioned, we have introduced Direct Benefits Transfer (DBT) in paddy, urea etc. Whenever and wherever there are farming contingencies like it recently happened in Alappuzha and Palakkad, we have

rushed there with emergency financial aid which ensures that farmers don’t lose their financial security, and that they come back to farming in the next season. What are your plans for attracting youngsters into agriculture? Already many youngsters in Kerala are opting for farming. But to make this sustainable, our plan is to direct them more to the production of value added agricultural products. We conducted a well-attended seminar in December to study this issue in detail, and a slew of measures are now being implemented. Agro Parks are going to be established in all districts. Around 1000 entrepreneurs will be enabled to start their agro produce units with the support of NABARD. Producer companies, procurement facilities, and marketing systems are being created so that middlemen are eliminated, farmers get good remuneration, and consumers get excellent produce at fair prices. The effect of this will be evident in the upcoming Onam and Vishu seasons. How are you making the contributions from Kerala Agricultural University more productive? KAU does a lot of good research but it should benefit the farmers in the state.

Towards this, we are forming a new triangular relationship between agricultural department, KAU, and farmers. One initiative that we have facilitated in this regard is publishing their ‘Package of Practice’ in Malayalam. Until now, this Bible for agriculture professionals including our officers was available only in English. Also, a new Organic Package of Practice has been introduced. What are the other achievements of the Agriculture Ministry during this past year? One notable achievement is that we have made some agri PSUs profitable again like in KERAFED; cut losses in some agri PSUs like Plantation Corporation, Farming Corporation etc; and revived defunct PSUs in the sector like Jive, Coconut Development Corporation etc. Equipment companies like KAMCO have been given revival plans with new tieups. Corruption at PSUs like Horticorp has been addressed and a synergy formed with Vegetable & Fruit Promotion Council (VHPC). Haritha Keralam Mission has been launched which is addressing water availability and afforestation issues effectively.

“THIS GOVERNMENT HAS FAILED ON ALL COUNTS” EXCLUSIVE INTERVIEW WITH RAMESH CHENNITHALA, LEADER OF OPPOSITION

Leader of Opposition Ramesh Chennitala makes his boisterous presence felt in person as much as he does in the assembly when pushing the ruling party on the backfoot. A popular political figure in the state, Chennithala is leading the way with his scathing attack of the LDF government’s 1st year in office for what according to him has been “a total failure on all fronts”. He even goes to the extent of calling it the ‘worst government’ in Kerala’s history. However, even if people might disagree with his assessment, it is an easily noticeable fact that Ramesh Chennitala has brought in a fresh lease of life into the role of a constructive Opposition. The 4-time MLA from Haripad agrees that the Opposition should fully cooperate with the government for smooth functioning of the state, but laments that there is nothing noteworthy done by this government that deserves support. From price rise to political killings, Chennithala hasn’t spared the government any criticism while at the same time ensuring his party speaks in a unified voice. He is optimistic of the view that the Pinarayi Vijayan government doesn’t enjoy public support but regrets that the state may be moving backwards after 2 terms under Congress rule. Seasonal Magazine caught up with Kerala’s former Home Minister to understand his perspective of the LDF government’s 1st year in office and his reasons for giving the Pinarayi Vijayan government a thumbs down:

Seasonal Magazine (SK): In the last 1 year, what according to you has been the LDF government’s biggest failures? Ramesh Chennitala (RC): Firstly, this government has nothing worthwhile to mention. A full year in office is a sufficiently long period in politics. So when somebody asks, “what is the achievement of this government?”, there isn’t a single initiative that this government can highlight. Of course, there is nothing wrong in continuing the policies of the previous government. However, apart from this, there is no fresh initiative, programme or project. SK: But they often point out how they’ve managed to make 13 PSUs profitable in a short period… RC: No, but that’s a very routine affair. It’s not like they’ve launched new PSUs or anything. Due to favourable market conditions, certain sectors do well and there is nothing new about this. There are also situations where the national & international markets become sluggish. In such times, PSU performances stagnate. Therefore, the so-called profitability is due to seasonal factors. The government hasn’t done anything special to make these units

profitable. Even they have nothing to say about this. SK: Are there efforts to procure products from Kerala’s PSUs to other state’s departments/PSUs? RC: We all know that we live in an age of globalization. Protectionism isn’t very practical. It is the age of competition where only the fittest will survive. Therefore, market conditions resulted in profits. If they had created a new PSU & ensured its profitability, that would have been understandable. It is the duty of every government to streamline the functioning of all PSUs. Secondly, the issue of price rise. Yes, it is a phenomenon existing in our country and not the creation of state government. But the LDF government hasn’t introduced any policy or intervened in the market to alleviate concerns of people. PDS is completely in shambles. They will say that the Food Security Act is the reason for this. However, whichever state has implemented the Act has not faced this problem. Even ration cards haven’t been delivered in time to the common man. Door-delivery of ration cards hasn’t been done enough. As a result of that, prices of all commodities have gone up. For example, rice which now costs Rs. 50 per kg. This is what hits the common man the hardest. Effective policies are expected to tackle inflation concerns but nothing has been done on this front. Thirdly, there is a lack of cohesion within this government. CPI(M) & CPI are often not on the same page. As a result of that, smooth functioning of the government has been affected. For example, in the case of Munnar, the CM and Revenue Minister don’t agree with each other. When the Revenue officials are taking action, CPI(M) criticizes them. When action against encroachments on government lands are beingtaken by the Revenue department, the CM is against it. Even the Electricity minister is taking a different stand. As a result, Munnar eviction has been completely stopped. SK: You recently stated that only CPI seems to be standing up for socialistic ethos.. RC: No, that’s not what I said. I stated that CPI is standing by public opinion. For example on the Law Academy issue, Munnar eviction issue, fee hike for PG courses, Jishnu’s mother Mahija’s

protest, RTI Act etc. I wonder why CM PinarayiVijayan is taking an anti-people stand. I am not sure what has happened to him. Maybe because of his ego or maybe he thought if he takes an antipeople stand he will appear stronger? I am just showing you the divisions existing within the LDF. The CM said that he wasn’t aware that Section 144 was announced. What is his authority to continue? What moral right does he have to continue as CM after this? This inefficiency and infighting has severely affected governance in the state. Also, take the issue of the question paper leak. For the first time the Education department has come under the scanner. 9 students had secured A+ in all subjects but the 10 th student couldn’t because the mathematics examination had to be re-taken. This has happened to many more students. The result would’ve been better if the question paper leakage hadn’t happened. This is solely due to the government’s ignorance and inefficiency. Moreover, this smells of a big racket by KSTA. This is what they’ve done. So, people are very unhappy about that. SK: There is also a general feeling that the Opposition has failed to pin down the government on corruption charges… RC: Not at all. It has only been a year actually. Also you should understand that the question paper leak scam can be treated as one. Moreover, two of their ministers have had to resign. Is that their achievement? Such incidents speak volumes about the failure of this government. They can never justify this. Additionally, the law and order situation has been very poor. Political killings are becoming a permanent feature. 18 political murders have taken place so far. It is troubling to note that almost a murder a day seems imminent in Kerala. From 2 year olds to 92 year old women being raped, the government has failed to ensure women’s. Other atrocities against women are on the rise. The Home ministry is under the CMO. It is his responsibility to ensure a conducive law and order situation. Please find out if any person of this state is content with what this government is doing. People are totally against the actions of the government.

There was so much expectation when he came to power as he had strong control over party and government. However, this government is like an “NPA” (non-performing asset). SK: What is your take on KIIFB? RC: It is totally unconstitutional and puts the assembly in the dark. It is an illusionary body. Finance Minister Thomas Isaacsaid that he has funds amounting to Rs. 3000 crore, but asking for Rs. 50,000 crore debt. We had raised this in the assembly. Otherwise, any government can ask for money in this manner. This is going to lead to a situation of financial anarchy. Thomas Isaac is just fooling the people. KIIFB doesn’t require any approval from SEBI or RBI. So who has the authority to give so much money? Also, it is not accountable to the assembly. Every penny being spend requires the consent of the assembly and Parliament. That’s why we have budget sessions. But this is outside the budget. So when they ask for a huge amount of money from outside the budget, what is the guarantee? This is bound to create a burden for the future governments. The possibility of mismanagement is very high. The CM’s reply to this is that he has appointed competent people to manage the affairs of KIIFB. However, that is not enough. The issue is that there is no scope for scrutiny. In my opinion, there is no rational basis for having something like the KIIFB. Departments are clueless and just keep parroting “KIIFB, KIIFB”. Apparently, the mantra of this government is KIIFB, but nothing is going to happen. SK: But in these testing times, how does the developmental agenda gain any traction? RC: The point is that I’m not against getting private investment. Every government is in need of private investment. Attracting investors is a major task of every government. But there has to be a method to this. I would like to ask the Finance Minister if anybody invested in the last one year. The answer is no. This government got only the petrol tax and motor vehicle tax. Other than that, nobody has invested and is going to invest in the state. This is because the first thing that happened was a vigilance enquiry in the KIIFB office. Do you think anybody

would want to invest in such an environment? Secondly, he is saying that he is going to collect funds through NRI chits. NRIs will join it certainly, but once it matures they’ll take it back. These are simply the thoughts of a Finance Minister living in a dreamworld! Even in his previous term, the Finance Minister promised to raise 40,000 crore through Islamic bank, but this hasn’t materialized. They said through sand mining they will raise another 10,000 crore. But nothing has happened. He is simply fooling people. The entire burden will be transferred to next government. SK: There are also talks about launching a Kerala Cooperative Bank…. RC: It is totally absurd and is going to ruin the cooperative sector. This is because in the last many years, we have had 3 tier system: primary bank, district bank & state cooperative banks. They are the same people who opposed the merger of SBI & SBT. Why is that? The banking sector itself is facing a lot of problems. Recently, the Central government had infused Rs. 80,000 crores for making these banks functional. NPAs are increasing, restructuring of loans are taking place and capital adequacy is very low. That is why the credibility of banks are at an all-time low. That’s the reason for the mergers. This begs the question as to why the very same people who opposed the SBI-SBT merger are now singing a different tune. Also, the 3-tier system is foolproof in every respect so what is the need for tweaking it? You see, they just want to take money for KIIFB from the cooperative banks. As a result of that nobody is going to invest in the state. SK: As a responsible Opposition leader, who wishes for progress in the state, what are the suggestions you have for your counterparts in power? RC: You see, in a democratic setup, it is the responsibility of the government to take the Opposition into confidence. They had requested for our cooperation for 4 missions. We sincerely extended our help but nothing has happened on this front. Even he isn’t in a position to say anything constructive about these 4 missions. The real problem is that the CM isn’t in touch with his fellow ministers and other people. Files are being piled up

in his office as well as in his ministers’ offices. IAS officers are also against this government. The administrative delay is costing us very dear. SK: What about the impact of the restrictions on alcohol availability for tourism sector, corporations etc? RC: We are in total favour of phasing out alcohol availability. Although it takes a hit on state revenue, it is only for the betterment of society. It will help people lead healthier lives. Crucially, women will no longer be subjected to alcohol abuse. It is due to these reasons that the UDF introduced such a policy. But this government, on the other hand, is promoting alcohol sales. Also, I don’t think it affects tourism very much. You see, I’m talking about the few restrictions that have been put in place, not the ban on alcohol per se. People who want to drink, will find the means to do so. The intention is to ensure young people don’t resort to alcoholism. SK: What about the fall in rubber prices? Do you think the government has done anything to tackle this problem? RC: No, they haven’t done anything. It is due to the strength of our government’s policy that the rubber prices hadn’t fallen. In the international markets, the prices are coming down. Like us, there are many rubber-growing countries where the tapping has significantly increased. There has to be some sort of market intervention by this government. Ultimately it is about protecting the interests of farmers. SK: Where do you think the government went wrong in the Senkumar appointment case? RC: It was utter foolishness to not execute the Supreme Court order reinstating his appointment. A brilliant article was written by TJS George on this issue. It aptly summarized the government’s folly on this very matter. He stated that the CM has become a standing monument to foolishness. When a similar issue happened in Karnataka, swift execution of SC order took place. I read the verdict and found no grounds for disapproval. Why should PinarayiVijayan have a problem then? Shouldn’t his advisors apprise him about this? But let me tell you, the problem is his advisors. The government can only take decisions based on appointments & suspensions according to Kerala Police Act.

SK: Even in the JishnuPranoy case, the government seems to have gone a bit too far… RC: See, the police mismanaged the entire issue. If anybody is going to hold a strike, the police is duty bound to ensure things don’t go out of hand, not unnecessarily create problems. This only required the DGP to talk to the aggrieved parties and sort out the matter. The action of the police towards Jishnu’s mother was despicable. All this points to the uneasiness of the government towards the right to hold protests for the common man. The CPIM has always known to be a party that only knows how to protest and not govern. Therefore, it is surprising that they curb protests against them. We know they are trying to smear our name in this issue, but we have the public’s support. That’s all that matters. This gives people the opportunity to compare the two governments. SK: What about the future of your party’s alliance with KM Mani? RC: You see, every party has the right to take their own decisions. Therefore, we aren’t going to do anything right now to make a case for his return. As far as UDF is concerned, we did exceedingly well in the Malappuram election winning by a comfortable majority. In the current times, we strongly think that public sentiment is against this government. The LDF government has failed to introduce a single spectacular, far-reaching policy initiative in the last one year. Therefore, right now, our sole objective is to raise the flaws of this government and push them to correct their mistakes. We don’t intend to protest unnecessarily. We are strongly of the view that we are a constructive Opposition.