2
Content
1. CHAPTER 1 - GENERAL ...................................................................................................... 5 1.1. INTRODUCTION .............................................................................................................. 6 1.2. THE CONSULTANTS - KITCO LTD ................................................................................ 10 2. CHAPTER 2 - LOCATIONAL ATTRACTIONS - ALAPPUZHA .............................................. 12 2.1. ALAPPUZHA – AN OVERVIEW ....................................................................................... 13 2.1.2. GEOGRAPHY AND CLIMATE ....................................................................................... 14 2.1.3. CONNECTIVITY .......................................................................................................... 15 3. CHAPTER 3 – PROJECT RATIONAL & DEMAND SIDE ...................................................... 16 3.1. TOURISM – KERALA AN OVERVIEW ............................................................................. 17 3.1.1. FOREIGN TOURIST ARRIVAL TO KERALA ................................................................ 19 3.1.2. DISTRICT WISE DISTRIBUTION OF FOREIGN TOURIST VISITS ........................... 21 3.1.2.1. FOREIGN TOURIST ARRIVAL – HOUSE BOAT CLASSIFICATION WISE IN 2010 ... 22 3.1.2.2. PERCENTAGE DISTRIBUTION OF PROPERTY TYPE WISE ARRIVAL OF FOREIGN TOURISTS 2010 ........................................................................................................................ 23 3.1.3. DOMESTIC TOURIST VISITS IN KERALA ................................................................. 24 3.1.3.1. MAIN SOURCE MARKETS OF DOMESTIC TOURISTS ................................................ 25 3.1.3.2. DISTRICT WISE DOMESTIC TOURIST VISITS ......................................................... 26 3.1.3.3. DOMESTIC TOURIST ARRIVAL – HOUSE BOAT CLASSIFICATION WISE IN 2010 27 3.1.4. PROPERTY TYPE WISE ARRIVAL OF DOMESTIC TOURISTS .................................... 28 3.2. EARNINGS FROM TOURISM IN KERALA ...................................................................... 30 3.3. DEMAND ARISING THROUGH LEGAL FRAME WORK ................................................... 31 4. CHAPTER 4 - THE PROJECT & TECHNICAL ASPECTS ..................................................... 36 4.2. HOUSE BOAT – THE STRUCTURE & FACILITIES ......................................................... 38 4.3. TECHNICAL PARAMETERS ............................................................................................. 38 4.3.1. BOAT REPAIR SYSTEM .............................................................................................. 38 4.3.2. TYPES OF DRY DOCK ................................................................................................. 39 4.3.2.1. SLIPWAY ..................................................................................................................... 39 4.3.2.2. FLOATING DOCK ........................................................................................................ 40 4.3.2.3. BOAT LIFT .................................................................................................................. 40 4.3.2.4. GRAVING DOCK ......................................................................................................... 41 4.3.3. PLANNING OF REPAIR-YARD FACILITIE .................................................................. 42 4.3.3.1. DESIGN BOAT SIZE ................................................................................................... 42 4.3.3.2. PLANNING APPROACH ............................................................................................... 42 4.3.3.3. DETAILS OF PROJECT FACILITIES ........................................................................... 43 4.3.3.4. DRY DOCK FACILITIES .............................................................................................. 43 4.3.3.5. AFLOAT REPAIR BERTH ............................................................................................. 44 4.3.3.6. WORKSHOP FACILITY ................................................................................................ 44 4.3.3.7. POWER SUPPLY .......................................................................................................... 45 4.3.3.8. SECURITY ARRANGEMENTS ...................................................................................... 45 4.3.3.9. IMPLEMENTATION SCHEDULE ................................................................................... 45 5. CHAPTER 5 - PROJECT COST AND FINANCIAL FEASIBILITY ........................................ 46 5.1. PROJECT COST .............................................................................................................. 47 5.2. CALCULATION OF ANTICIPATED REVENUE ................................................................. 48 5.3. O & M EXPENSES .......................................................................................................... 50 5.4. FINANCIAL STATEMENTS ............................................................................................. 50 5.5. PAY BACK PERIOD ........................................................................................................ 50 5.7. PROJECT INTERNAL RATE OF RETURN (PIRR) ........................................................... 51 6. CHAPTER 6 – INVESTOR’S RESPONSIBILITIES ............................................................. 52 7. ANNEXURE ......................................................................................................................... 54
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Executive Summary
Name of Project Dry docking and repair yard for houseboats at Alappuzha
Project Details
Tourism is a fast growing industry in Kerala. Backwaters and houseboats in Alappuzha attract a large number of tourists. More than thousand houseboats operate in the area. Kerala Inland Vessel Rules, 2010 regulates their operation in order to ensure the safety of tourists. The rules mandates for dry docking for inspection and repairs of hull once in 24 months. The capacity of the existing dry docking facility being inadequate in term of size and number, there is potential for the development of a dry docking facility for larger category of houseboats. The proposal is to develop facilities for dry docking vessels up to 36 m in length , 6m wide and draft of 1.5 m. The facilities comprise of dry dock facilities, afloat repair berth and workshop.
Location Alappuzha
Proposed Capacity Dry docking of 3 to 4 vessels at a time and 193 vessels per annum.
Period of Implementation
24 months
Financials
a Investment Rs. 440.63 lakhs
b Revenue streams
Dry-‐docking charges, Rent from occupation of dock, Rent from afloat repair berth.
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c Internal Rate of Return
23.72%
d Payback period
5 years
Benefits
Timely repairs and certification with minimum idling of houseboats. Increased employment potential. Availability of facility for ensuring safety of houseboats. Ensuring competitive repair cost.
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1. Chapter 1 - General
6
1.1. Introduction
With the Arabian Sea in the west, the Western Ghats in the east and
networked by 44 r ivers, Kera la enjoys unique geographica l features that
have made i t one of the most sought after tour is t dest inat ions in As ia.
The land of Kera la is b lessed with equable c l imate, a long shore l ine with
serene beaches, t ranqui l s t retches of emera ld backwaters, lush h i l l
s tat ions and exot ic wi ld l i fe , waterfa l ls , sprawl ing p lantat ions and paddy
f ie lds. The ayurvedic health hol idays, enchant ing art form, magica l
fest iva ls and h istor ic and cu l tura l monuments in the land of Kera la are
complementary attract ions for nat ional and internat ional tour is ts .
The Or ig in of Kera la has been l inked to a legend dat ing back to Satya
Yug. Accord ing to th is legend, Kera la rose up from the sea when Lord
Parasurama threw his axe into i t and the sea receded to br ing up th is
narrow str ip of land from the sea. Lord Parasurama, be l ieved to be the
s ixth avatar of Lord Mahavishnu, threw his axe from Gokarnam southward
across the ocean in rage and in repentance for h is act ions of k i l l ing
Kshatr iyas. The land of Kera la emerged from the waters of the Arabian
Sea with the b less ing of Varuna-the God of Oceans and Bhumidevi- the
Goddess of Earth. The sobr iquet “God’s own Country” thus bestows
i tse l f on Kera la.
The Western Ghats, border ing the eastern boundary of the State, form an
a lmost cont inuous mounta in wal l , except near Pa lakkad where there is a
natura l mounta in pass known as the Pa lakkad Gap. The average e levat ion
of the Ghats is about 1,500 meters above sea leve l , occas ional ly soar ing
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to peaks of 2000 to 2500 meters. From the Ghats, the land s lopes to the
west on to the p la ins, into an unbroken coast l ine.
The str ip of h i l ls and va l leys on the eastern edge, c lose to the Ghats,
compr ises of steep mounta ins and deep va l leys, covered with dense
forests . A lmost a l l the r ivers of the state or ig inate here. There are 44
r ivers in the state, of which 41 or ig inate from the Western Ghats and f low
towards west into the Arabian Sea. Only three tr ibutar ies of the r iver
Cauvery or ig inate in Kera la and f low east into the ne ighbour ing States.
In the Mid land P la ins of centra l reg ion, the h i l ls are not very steep and
the va l leys are wide. The va l leys have been developed as paddy f ie lds
and the e levated lands and h i l l s lopes are converted into estates of
rubber, f ru i t t rees and other cash crops l ike pepper, arecanut and
tap ioca. Tea and coffee estates have cropped up in the h igh ranges
dur ing the last two centur ies.
The Coasta l Be l t s tr ip is comparat ive ly p la in. Extens ive paddy f ie lds, th ick
groves of coconut t rees and p icturesque backwaters, interconnected with
canals and r ivers, are the features of th is reg ion. No wonder, A lappuzha
an o ld seaport town of th is reg ion is known as the 'Venice of the East' .
The name Alappuzha is der ived from the geographica l pos i t ion and
phys ica l features of the p lace. I t means the land between the sea and
network of r ivers f lowing into i t .
A lappuzha is an important tour is t dest inat ion in India. Backwaters of
A lappuzha are wor ld famous and are the most popular tour is t attract ion in
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Kera la. I t connects Kumarakom and Kochi towards north and Kol lam to
the South. The Nehru Trophy Boat Race, he ld annual ly on the Punnamada
Lake, in A lappuzha, is the most compet i t ive and popular of the boat races
in India, which attracts both domest ic and internat ional tour is ts in large
numbers.
The average e levat ion is 1 meter (3.3 feet) . A lappuzha covers an area of
1,414 square k i lometers and is f lanked by 2,195 square k i lometers of
Vembanad Backwater System, where the magnif icent union of s ix major
r ivers, which spread out extens ive ly before jo in ing the 80 ki lometer
coasta l l ine of the d istr ic t . The town of A lappuzha is cr isscrossed by a
system of canals . Nat ional waterway 3 passes through Alappuzha,
connect ing Kochi on the North and Kol lam on the South v ia Backwater
System.
The sh immer ing water of vast expanse of the Vembanad Backwater
System, surrounded by the never-ending panorama of lush green paddy
f ie lds, tower ing coconut trees, and the interconnect ing canals in the
town, attract domest ic and internat ional tour is ts in large numbers for
cru is ing in Houseboats . Today A lappuzha has become a ‘must seen’
backwater tour is t dest inat ion, attract ing severa l thousands of tour is ts
each year. A lappuzha is a lso famous for i ts beaches, mar ine products,
and co ir industry.
From mere two houseboats in the ear ly N inet ies, the number of
houseboats has now gone up more than 1000. Many of the present
houseboats are a ir - condit ioned. At present, A lappuzha has emerged as a
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hub of the houseboat industry with a major i ty of them operat ing in the
backwaters around Alappuzha i tse l f .
As the domest ic and internat ional tour is ts are very much attracted in
cru is ing in houseboats in the backwaters, i t is very important to take
adequate measures to ensure the safety of tour is ts . R ight ly ident i fy ing
the growing interest of tour is t towards houseboat cru is ing, the
Government of Kera la has brought the operat ion of Houseboats under the
ambit of “The Kerala Inland Vessel Rule, 2010” (IV Rule). Accord ing
to the IV Rule, the inspect ion of vesse l by a surveyor in dry-dock or
s l ipway once in every 24 months is mandatory. Hence i t is essent ia l that ,
a l l repairs are carr ied out before the above sa id statutory inspect ion.
Current ly , the dry-dock ing fac i l i t ies ava i lab le near A lappuzha are
inadequate. Hence, the Kera la Ports Department proposes to create
addit ional fac i l i ty for the same at A lappuzha with pr ivate part ic ipat ion.
With th is regard, the Kera la Ports Department entrusted KITCO Ltd with
the task of preparat ion of feas ib i l i ty report on Dry-dock Fac i l i ty at
A lappuzha.
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1.2. The Consultants - KITCO LTD
KITCO was establ ished in 1972 as the f i rs t Technica l Consultancy
Organisat ion in India to promote entrepreneursh ip and industr ia l
development in Kera la by Industr ia l Development Bank of India (IDBI),
Government of Kera la, Kera la State Industr ia l Development Corporat ion,
Kera la F inanc ia l Corporat ion, 7 Publ ic Sector Banks, Industr ia l F inance
Corporat ion of India and ICICI Bank. The Wor ld Bank and the As ian
Development Bank has empanel led KITCO as the ir consultant.
KITCO’s act iv i t ies cover a broad spectrum of consultancy serv ices f rom
conceptual izat ion, des ign, est imat ion, tender ing and implementat ion of
project to i ts operat ion and maintenance. This enables KITCO to
undertake projects of any magnitude on a “Concept to Commiss ion ing
bas is” . The Project Consultancy Div is ion of KITCO prepares Deta i led
Project Reports , Feas ib i l i ty Reports , Appra isa l Reports and undertakes
Market Studies, Rev iva l & Rehabi l i tat ion Studies, etc . KITCO’s Deta i led
Engineer ing Div is ion offers P lanning and Des ign in Arch i tecture, C iv i l ,
Structura l , E lectr ica l and Mechanica l engineer ing and a lso in spec ia l ized
areas l ike HVAC, F i re F ight ing, Inter ior Des ign, Water Supply, Ef f luent
Treatment, etc .
KITCO’s c l ients inc lude A irports Author i ty of India, Cochin Internat ional
A irport Ltd. , Cochin Spec ia l Economic Zone, Madras Export Process ing
Zone, Spices Board, Rai l V ikas Nigam Ltd. , Cochin Port Trust , Nat ional
D iary Development Board, H industan Latex Ltd. , Mar ine Products Export
Development Author i ty , Indian Rare Earths Ltd. , Kochi Ref iner ies Ltd. ,
Kera la Feeds Ltd. , Roads and Br idges Development Corporat ion of Kera la
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Ltd. , Department of Sc ience and Technology, Govt . of Ind ia apart f rom
var ious departments of the Govt. of Kera la and a large number of ent i t ies
in both the publ ic and pr ivate sectors.
KITCO employs more than 150 h ighly competent and exper ienced
spec ia l is ts in var ious branches of engineer ing, f inance, economics,
informat ion technology and management. I t a lso has a panel of spec ia l is t
consultants in f ie lds re lated to i ts act iv i t ies . Dur ing 39 years of i ts
ex is tence, KITCO has prepared more than 3000 project reports and
implemented more than 500 projects and in the process has earned an
except ional reputat ion for competence, re l iab i l i ty and qual i ty .
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2. Chapter 2 - Locational Attractions - Alappuzha
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2.1. Alappuzha – An overview Alappuzha is an important tourist destination in India. Backwaters of
Alappuzha are world famous and is the most popular tourist attraction in
Kerala. It connects Kumarakom and Cochin towards north and Quilon to
the South.
Nehru Trophy Boat Race, held annually on the Punnamada Lake, in
Alappuzha, is the most competitive and popular of the boat races in India,
which attracts both domestic and international tourists in large numbers.
Apart from Backwaters
some other attractions in
Alappuzha are Alappuzha
Beach (offering one of the
most beautiful views of
the Arabian Sea), Ambalappuzha Sri Krishna Temple, Edathua Church,
Krishnapuram Palace etc. Coir is the most important commodity
manufactured in Alappuzha.
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2.1.2. Geography and Climate Alappuzha is located at 9.54°N 76.40°E. The average elevation is 1 metre
(3.3 ft) Alappuzha covers an area of 1,414 square kilometres and is
flanked by 2,195 square kilometres of Vembanad Lake, where one can
witness the magnificent union of six major rivers which spread out
extensively before joining the 80 km
coast line of the district. The town of
Alappuzha is crisscrossed by a system
of canals, which is a part of the
National Waterway 3.
Owing to its proximity to the sea, the
climate of Alappuzha is humid and hot
during the summer. Although the
place remains fairly cool and pleasant
during the months of October and November. The average monthly
temperature is 25 o C. The district also gets the benefit of two good
monsoons as in the case of other parts of the
state. Alappuzha experiences a long monsoon
season with heavy showers as both the
Southwest monsoon and Northeast monsoon
influences the weather of Alappuzha. The South-west monsoon affects the
climate in between the months from June to September. On the other
15
hand the North-east monsoon rings rain from October to November. The
average rainfall received by the region is 2763 mm.
2.1.3. Connectivity Alappuzha can be accessible through air, rail, road and water. Cochin
International Airport which is 86 kilometres to the North is the nearest
airport to the district. Thiruvananthapuram International Airport located
159 kilometres to the South is the other airport that links the district with
other countries. International
tourists utilize this facility to
reach Alappuzha.
One major rail line passes through Alappuzha. The railway station is about
4 kilometres away from the center of the town. Alappuzha Railway Station
is linked by rail to cities like Trivandrum, Cochin, Chennai, Bokaro and
Mumbai. A total of four trains originate from Alappuzha to Cities like
Kannur, Chennai, Dhanbad, and Tatanagar. Since Alappuzha is a prime
location many trains to important cities like Banglore, Manglore, Calicut,
Amritsar passes through this station.
Alappuzha is also well connected by National Highway NH 47 to other major
cities like Kochi, Thrissur, Kollam and Trivandrum.
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3. Chapter 3 – Project Rational & Demand Side
17
Kera la, the Gods own country, is one of the important dest inat ions for
domest ic and internat ional tour is ts . A lappuzha 'Venice of the East' i s
one of the most va luable d iamonds in the neck lace. The major attract ion
in A lappuzha is the houseboat cru ise through the backwaters. I t is
important to prov ide utmost safety to a l l tour is ts dur ing the ir journey in
houseboats. Therefore, per iod ic inspect ion and repair of houseboats is
essent ia l to avoid any breakdown or fa i lures dur ing the journey. The
proposed Dry-Dock fac i l i ty at A lappuzha is p lanned to g ive infrastructura l
support for houseboat repair . Hence, the importance of the project is
d i rect ly l inked to the tour ism industry in the Sate of Kera la spec i f ica l ly in
A lappuzha.
3.1. Tourism – Kerala an Overview
Tour ism has p layed a major ro le in the economic development of var ious
countr ies a l l over the wor ld. Even some of the countr ies l ike Maur i t ius,
Mald ives, Thai land, etc thr ive main ly on tour ism. The revenues from
Wor ld Travel & Tour ism are projected to surpass USD 15 tr i l l ion by the
year 2020. Present ly Ind ia accounts for less than 1% of the wor ld tour ism
revenues. Acknowledging the tour ism potent ia l of the country and the
ro le i t can p lay in the overa l l economic development, Government of Ind ia
started g iv ing spec ia l at tent ion to the tour ism sector . The launching of
“Incredib le India” Campaign and promot ing the trad it iona l va lue of
“Ath i th i Devo Bhava”, Ind ia has now become one of the major tour is t
dest inat ions of the wor ld of fer ing a var iety of natura l tour ism spots with
d i f ferent c l imat ic condit ions a l l over the country. The fore ign tour is t
arr iva ls in India dur ing 2010 were 5.58 mi l l ion, a growth rate of 8.1%
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over the prev ious year. The fore ign exchange earn ings a lso recorded a
growth of 18.07% to reach a f igure of Rs.64,889 crores.
The Nat ional Geographic Travel ler adjudges Kera la as one of the ten
paradises of the wor ld and i t is famous espec ia l ly for i ts ecotour ism
in i t iat ives. I ts unique cu l ture and tradi t ions, coupled with i ts var ied
demography, has made Kera la one of the most popular tour is t
dest inat ions in the wor ld. With the fastest growth rate, the tour ism
industry is a major contr ibutor to the state 's economy.
Unt i l the ear ly 1980s, Kera la was a h i therto unknown dest inat ion, with
most tour ism c ircu i ts concentrated around the north of the country.
Aggress ive market ing campaigns launched by the Department of Tour ism
and Kera la Tour ism Development Corporat ion—the Government agenc ies
that oversees tour ism prospects of the state—la id the foundat ion for the
growth of the tour ism industry. In the decades that fo l lowed, Kera la
Tour ism was able to transform i tse l f into one of the n iche hol iday
dest inat ions in India. The tag l ine Kera la- God's Own Country was
adopted in i ts tour ism promot ions and became synonymous with the
state. Today, Kera la Tour ism is a g lobal super brand and regarded as one
of the dest inat ions with the h ighest brand reca l l .
Popular attract ions in the state inc lude the beaches at Kovalam, Chera i ,
Bekal and Varka la; the h i l l s tat ions of Munnar, Nel l iampath i , Ponmudi and
Wayanad; and nat ional parks and wi ld l i fe sanctuar ies at Per iyar and
Erav iku lam Nat ional Park. The "backwaters" reg ion - an extens ive network
of inter lock ing r ivers, lakes, and canals that centre on A lappuzha,
Kumarakom, and Punnamada - a lso see heavy tour is t t raf f ic . Her i tage
19
s i tes, such as the Padmanabhapuram Palace, Thr ipoonithura Hi l l Pa lace
and Mattancherry Pa lace are a lso important tour is t dest inat ions. C i t ies
such as Kochi and Thiruvananthapuram are popular centres for shopping
and trad i t ional theatr ica l performances. The state 's tour ism agenda
promotes eco log ica l ly susta ined tour ism, which focuses on the loca l
cu l ture, wi lderness adventures, vo lunteer ing and personal growth of the
loca l populat ion. Ef forts are taken to min imise the adverse ef fects of
t rad i t iona l tour ism on the natura l env ironment, and enhance the cu l tura l
integr i ty of loca l people.
Kera la has an act ive tour ism industry, which has been accepted as one of
the most su i ted industr ies for Kera la. As per the ‘Kera la Tour ism Stat is t ics
2010’ publ ished by Department of Tour ism, the Fore ign Tour is t arr iva l to
Kera la dur ing the year 2010 was 6,59,265. I t showed an increase of
18.31% over the prev ious year. Domest ic Tour ist arr iva l to Kera la dur ing
the year 2010 was 85,95,075. I t shows an increase of 8.61 % over the
prev ious year. Fore ign exchange earn ings for the year 2010 were
Rs.3797.37 Crores. This recorded an increase of 33.09 % over the
prev ious year. Tota l Revenue ( inc lud ing d irect & ind irect means) f rom
Tour ism dur ing 2010 was Rs.17,348 Crores, showing an increase of
31.12% over the prev ious year ’s f igure. In India, Fore ign Tour is t Arr iva l
dur ing 2010 was 5.58 mi l l ion with a growth rate of 8.10% as compared to
the prev ious year.
3.1.1. Foreign Tourist Arrival to Kerala
Fore ign tour is t v is i ts in Kera la dur ing 2010 were 659,265 as compared to
557,258 in the prev ious year and thus reg istered an increase of about
20
18.31 percent. Fore ign tour is t arr iva ls s ince 1999 in Kera la are g iven
be low.
21
I t can be seen that, there is a steady increase of fore ign tour is ts arr iva l
in Kera la at the rate of about 20% per annum except dur ing the recess ion
in 2009
3.1.2. District wise distribution of foreign tourist visits
The d istr ic t -wise d istr ibut ion of fore ign tour is t v is i ts in Kera la dur ing
2004 to 2010 is g iven be low.
Ernakulam distr ic t rece ived the h ighest share of fore ign tour is t v is i ts
dur ing 2009 and 2010 fo l lowed by Tr ivandrum. A lappuzha was in the
fourth pos i t ion in respect of rece iv ing fore ign tour is ts .
22
3.1.2.1. Foreign Tourist arrival – House Boat Classification Wise in 2010
The House Boat c lass i f icat ion wise arr iva l of fore ign tour is ts in 2010 is
prov ided be low.
23
House Boat with No c lass i f icat ion rece ived 60.2 percent of fore ign tour is ts
who chose House Boat as accommodat ion. Least favor i te c lass i f icat ion
among the House Boat c lass i f icat ion is Green Palm, which rece ived only
0.4 percent of fore ign tour is t arr iva ls among the other categor ies.
3.1.2.2. Percentage distribution of property type wise arrival of foreign tourists 2010
Out of the tota l fore ign tour is t arr iva ls to A lappuzha 27.60% have stayed
in houseboats. This data shows the importance of houseboats in the
A lappuzha tour ism.
24
3.1.3. Domestic Tourist Visits in Kerala As per the publ ished data of Domest ic tour is t v is i ts in Kera la by the
Tour ism Department, dur ing 2010 were about 8.60 mi l l ion domest ic
tour is ts v is i ted the State. The same dur ing 2009 was 7.91 mi l l ion. There
has been a moderate increase in domest ic tour is t v is i ts in a l l the prev ious
ten years except dur ing 2005. The year wise d istr ibut ion of domest ic
tour is t v is i ts to Kera la is shown below.
25
3.1.3.1. Main Source Markets of Domestic Tourists The or ig in of tour is ts State wise is shows that out of 8.60 mi l l ion
domest ic tour is t v is i ts , 6.10 mi l l ion v is i ts (71.03 percent) were made by
the Kera l i tes, Tami l Nadu contr ibuted 13.02 percent of the domest ic
tour is t v is i ts fo l lowed by Karnataka with a share of 6.46 percent and
Maharashtra with a share of 3.38 percent. The other major source
markets are Andhra Pradesh (1.99 percent) , Delh i (1.46 percent) , Gujarat
(0.50 percent) and West Bengal (0.38 percent) . The state wise tour is t
v is i ts a long with the percentage share are g iven in be low.
26
3.1.3.2. District Wise Domestic Tourist Visits The h ighest share of domest ic tour is t v is i ts is recorded by Ernakulam
distr ic t in a l l the years s ince 2004. Dur ing 2010, the share of Ernakulam
distr ic t was 23.13 percent. The second largest share of domest ic tour is t
27
v is i ts is recorded in Thr issur d istr ic t . The The d istr ic t – wise domest ic
tour is t v is i ts s ince 2004 are g iven be low.
3.1.3.3. Domestic Tourist arrival – House Boat Classification Wise in 2010
Among the House Boat c lass i f icat ion wise arr iva l of domest ic tour is ts in
2010, House Boat with No c lass i f icat ion rece ived 68.5 percent of domest ic
28
tour is ts who chose House Boat as accommodat ion. Least favor i te
c lass i f icat ion among the House Boat c lass i f icat ion is Green Pa lm which
rece ived only 0.2 percent of domest ic tour is t arr iva ls among the other
categor ies. The deta i ls are prov ided be low.
3.1.4. Property Type Wise Arrival of Domestic Tourists The property wise domest ic tour is t arr iva ls are prov ided in the fo l lowing
tab le.
29
30
3.2. Earnings From Tourism in Kerala The earn ings are increas ing steadi ly over the years. Only in 2009 % of
change became negat ive. The earn ing from tour ism dur ing 2001 to 2010
is prov ided be low.
31
The Statistics shows that 41,977 foreign tourist and 1,83,416
domestic tourists visited Alappuzha during 2010. Out of the total
2,25,393 tourist arrived, 39,348 stayed in houseboats. The vast
expanse of backwaters and surrounding scenic beauty viewed
from a houseboat is the major attraction in Alappuzha for tourists.
Development of Facil it ies and institutional framework for ensuring
pleasant tourism without compromising the safety wil l attract
more tourists to the district. It is very important to ensure safety
in al l the tourist ’s mode and places. The proposed houseboat dry
docking facil ity for repair and inspection wil l support the
Alappuzha tourism industry as a whole.
3.3. Demand Arising Through Legal Frame Work In exerc ise of the powers conferred by sect ion 19(1), 19 R, 29(1), 30, 30
A, 52(1), 53(1), 54 (1), 54(b) and 67(1) of the In land Vesse ls Act , 1917
(Centra l Act 1 of 1917) and in supersess ion of the Travancore Publ ic
Canals and Publ ic Ferr ies Rules, 1100 ME, issued under the Publ ic Canals
and Publ ic Ferr ies Act , 1096, the Cochin Publ ic Canals and Backwaters
Navigat ion Rules, 1114 ME issued under the Cochin Publ ic Canals and
Backwaters Navigat ion Act , 1092 and the Canals and Publ ic Ferr ies Rules,
1917 issued under the Canals and Publ ic Ferr ies Act , 1890, to the extent
they apply to mechanica l ly propel led vesse ls and the In land Vesse ls
Survey and Registrat ion (Kera la) Rules, 1999 issued,1999 the Government
of Kera la had formulated and issued “Kerala Inland Vessel Rules
2010” .
Part 1 of the Kera la In land Vesse l Rules 2010, st ipu lates the condit ions
regard ing Survey & Registrat ion requirements as fo l lows.
32
Types of Survey-
1. Every vesse l to which the prov is ions of the Act apply sha l l be
subjected to the surveys spec i f ied be low;
1.1. A survey before the vesse l is put in serv ice.
1.2. A periodical survey once in every twelve months.
1.3. Addit ional surveys as occas ion demands.
2. The survey before the vesse l is put in serv ice shal l inc lude a complete
inspect ion of the hul l , machinery and equipments to ensure that
arrangements, mater ia l , scant l ings of hul l , main and auxi l iary
machinery, l i fe-sav ing appl iances, f i re appl iances and other
equipments fu l ly comply with the requirements under the Act and
these Rules as are appl icab le in i ts case prov ided that the bottom of
the vesse l which has been surveyed or examined by a surveyor before
the vesse l is launched may be exempted unless the surveyor has
spec ia l reasons for cons ider ing i t necessary.
3. The per iod ica l survey of the vesse l sha l l inc lude an inspect ion of the
whole of the hul l , machinery and equipments to ensure that hul l ,
machinery and equipments are in sat is factory condit ion and f i t for the
serv ice for which the vesse l is intended and that she compl ies with
the requirements under th is Act and these ru les as are appl icab le in
i ts case.
4. All Vessels shall be inspected once in every twenty four
months by a surveyor in a dry dock or on a sl ipway such that
al l portions of hull external can be examined during the hours
of daylight
33
Prov ided that a vesse l may be exempted from inspect ion in a dry dock
or a s l ip way only where the approved c lass i f icat ion soc iety
conduct ing the per iod ica l survey of the vesse l does not ins is t for the
same.
5. No survey of the externa l hu l l sha l l be carr ied out dur ing the hours of
darkness unless spec ia l ly author ized in any except ional case by
the competent author i ty .
6. The per iod of va l id i ty of a cert i f icate of survey shal l be twelve months
from the date of survey.
7. A survey e i ther genera l or part ia l , accord ing to the c i rcumstances
shal l be made
7.1. The eff ic iency or competence of i ts equipments has changed or
whenever a request for extens ion of cert i f icate of survey is
be ing cons idered,
7.2. Every t ime a defect is d iscovered or an acc ident occurs which
af fects the safety of the vesse l ,
8. The survey shal l be conducted in such a way to ensure that the
necessary repairs or renewals have been ef fect ive ly made, that the
mater ia l and workmanship of such repairs or renewals are in a l l
respects sat is factory and that the vesse l is f i t for the serv ice for
which she is intended.
Categorization of Vessels - For the purpose of survey in land vesse ls is
be ing c lass i f ied into two categor ies as fo l lows.
Category A
• Vesse ls dr iven with more than 300 HP in board engine
34
• Passenger Vessels/House Boats with deck above the free
board deck
• Vesse ls with F ibre Reinforced P last ic hul l hav ing a passenger
capac i ty of more than 25
• Vesse ls other than houseboats of more than 24m length
• Hovercrafts and Hydro fo i ls
• House Boats of length more than 30 m. with no upper deck.
Category B
• Al l mechanica l ly propel led vesse ls not inc luded in Category A.
Category A vesse ls sha l l be required to be bui l t under the c lass survey
of c lass i f icat ion soc iety as may be spec i f ied by the Government and
Category B vesse ls bu i l t e i ther under c lass survey of c lass i f icat ion soc iety
or under the inspect ion of State Survey author i ty , ass is ted by cert i f ied
Naval Arch i tects or Mar ine Engineers for approval of drawings, stage
survey etc .
There are about 1,000 houseboats plying in the Alappuzha
backwaters. As per the Kerala Inland Vessel Rules 2010, periodic
inspection of vessels in a dry dock / sl ipway in every 24 months is
mandatory. Hence, in an year minimum of 500 vessels need to be
docked for inspection. Further, to comply with the inspection
requirements these vessels need to carry out repair and
maintenance before inspection. In addition, over and above the
normal inspection, repairs may be required during the normal
operation also.
35
At present there are f ive Repairyards for House Boat at Alappuzha
with a total capacity of docking 19 boats at a t ime. It is reported
that in certain yards several boats are drydocked in the same dock
simultaneously and the boats have to wait for completing the
repairs of al l other boats docked, for f loating out of the dock. The
average docking time is about 30 days. As such the existing
capacity is 110 - 120 boats per annum. Hence it is essential to
establish additional multi faci l ity dry-docks in Alappuzha.
36
4. Chapter 4 - The Project & Technical Aspects
37
Per iod ica l inspect ion and carry ing out necessary repairs and prevent ive
maintenance works are essent ia l for ensur ing the safety and pro longed
serv ice l i fe of houseboats. The hul l of the Boat is a lways exposed to
water with extreme temperature condit ions and hence constant ly
subject ing i t to a h igh ly corros ive env ironment. Further the overhaul ing
of boats invo lves repairs of mechanica l and e lectr ica l systems,
rep lacement of corroded parts , etc . Inspect ion and repaint ing of under
water part of the boats are carr ied out in a dry dock. As the dry dock is a
cost ly fac i l i ty , the above water repairs are usual ly done outs ide the dock
at an Af loat repair Berth.
The t ime required for repair of the boat is an important f inanc ia l concern
for the boat owner. As the dock ing per iod be ing of id l ing, there wi l l be
loss of earn ing for the boat dur ing per iod of dock ing repair . The longer
the t ime required for repair of boat, the more would be the loss.
Therefore the owner ’s interest is to choose a fac i l i ty with low cyc le t ime
even i f the cost is l i t t le h igher compared to the yards with cheaper repair
tar i f f , which take longer cyc le t ime.
With th is regard Kera la Ports Department is intending to develop a Dry-
Dock ing fac i l i ty at A lappuzha for houseboats in A lappuzha with pr ivate
part ic ipat ion.
38
4.2. House Boat – The Structure & Facilities The houseboats are innovat ive
adaptat ions of the trad i t ional cargo
carr iers loca l ly known as
‘kettuva l lams’ . Jo in ing wooden p lanks
with co ir-ropes and coconut husk
f ibres, stuf fed in between, makes the
Hul l . Then, the st icky res in co l lected
from cashew nut she l ls dur ing process ing is appl ied on the long- last ing
coconut f ibre and the b ind ing ropes made with i t , sea l ing the gap
between the wooden p lanks. There are spec ia l ized art isans with th is
technica l sk i l l in Kera la to bui ld a wide var iety of houseboats. The roof of
Kera la houseboats are usual ly made us ing bamboo, cane, arecanut tree
stems, and other eco-fr iendly natura l mater ia ls . The framework can be
made with bamboo poles. Sp l i t bamboo, th inned and smoothened is
woven into mats and is used as roof cover. I t is made waterproof, and
wi l l last for severa l years. The shape of the roof d i f fers accord ing to the
des ign. Houseboats are of var ious s izes and fac i l i t ies . The s izes of
houseboats vary f rom smal l ones with s ing le bedroom to large ones
having up to s ix bedrooms. There are houseboats for ho ld ing conferences
upto 100 seat ing capac i ty . Major i ty of the houseboats are a ir -condit ioned.
They are a lso fu l ly equipped for cooking and serv ing food.
4.3. Technical Parameters
4.3.1. Boat Repair System An appropr iate boat repair system compr ises of berth fac i l i t ies for af loat
repairs and dry dock for repairs of the under water surfaces and gears.
39
Dry dock is h igh ly capita l intens ive fac i l i ty and therefore, the boat is
normal ly reta ined in the dry dock for an opt imum per iod required for
complet ing the repairs of under water surfaces and gears
4.3.2. Types of Dry Dock There are 4 types of dry dock systems - S l ipway, F loat ing Dock , Boat
L i f t and Grav ing Dock. These systems are eva luated in the context of the
present requirements.
4.3.2.1. Slipway Conceptual ly , s l ipway is the s implest among the var ious boat/sh ip repair
systems. S l ipway is a s lop ing base with a ra i l and a carr iageway
connected to a winch. The ra i l extends deep in to the water so that
sett l ing i t into the carr iageway can l i f t the boat. Then the carr iageway is
pu l led us ing the winch so that the boat is hauled out of the water to the
land area. With s ide sh i f t ing arrangements, mult ip le boats can be
attended concurrent ly .
In a s l ipway vesse ls are carr ied on crad les, which in turn moves on ra i ls .
The cradle has length of ha l f to one th ird length of vesse l . Therefore a
substant ia l port ion of vesse l overhangs without support . But, because of
the unique construct ional features of House Boats, overhang beyond 1.5m
is not normal ly a l lowed. This would require longer crad le, which wi l l in
turn increase the length of s l ipway and a lso depth requirement at
waters ide end of s l ipway beyond economica l cons iderat ions. The
requirement of mainta in ing a larger water depth cont inuous ly by dredging
and the ted ious operat ion involved are the other major d isadvantages of
th is system. A substant ia l land area is required for haul ing and s ide
sh i f t ing. Hence a s l ipway is not recommended for the present purpose.
40
4.3.2.2. Floating Dock Float ing Dock is usual ly a f loat ing structure of stee l with b i lge and keel
b locks on i ts top and moored to a jetty. The structure is lowered in to the
water to required depth by f i l l ing water in i ts ba l last tanks. Once the boat
is proper ly pos i t ioned over the b locks, the water in the ba l last tanks are
pumped out which ra ises the dock br ing ing the boat a long with i t above
the water leve l . The F loat ing Dock can be sh i f ted from one p lace to
another as required. This type of system is su i ted for medium type
vesse ls in v iew of the l imitat ion in s ize of such f loat ing structure and i ts
operat ion. The F loat ing Dock requires more water depth to be mainta ined
by dredging compared to other systems and hence more idea l where deep
natura l depth at waterfront is ava i lab le. H igh leve l of maintenance is
required for the dock structure and i ts operat ion is more complex
requir ing h igher degree of sk i l ls . Apart f rom the above, for smal l s ize
vesse ls , which are now under cons iderat ion the unit cost of dock, wi l l be
h igh s ince f loat ing pontoon is to be made for fu l l - length support and i t
should have min imum depth for ins ide access and maintenance s ince
water is intermit tent ly f i l led for lower ing dur ing dock ing. Hence the
f loat ing dock system is not recommended for the present purpose.
4.3.2.3. Boat Lift Boat L i f t is the latest system that combines the concepts of other dock
systems so that the d isadvantages are min imised. L ike in F loat ing Dock,
Ship L i f t a lso invo lves lower ing of a structure – a large e levator in th is
case us ing hoist ing machinery and pos i t ion ing the vesse l and l i f t ing i t to
the ground leve l . Further, with the he lp of haulage system and ra i l
mechanism, the vesse l could be transferred to a yard on land for repairs .
41
With a proper system of t ransfer t racks and park ing bays, a number of
boats can be moved and independent ly parked for dry dock repairs ,
prov ided suff ic ient land area is ava i lab le for the same. The operat ion of
Ship L i f t requires h igher degree of sk i l ls . The maintenance costs are a lso
h igh. In India, a l though sh ip l i f t has been insta l led in some of sh ip repair
yards, ind igenous technology is on ly in the develop ing stage. Hence th is
system is not recommended.
4.3.2.4. Graving Dock Graving Dock is usual ly a rectangular bay created at waterfront with
water t ight gates at i ts entrance. The gate is opened to let the water to
f i l l the bay so that the sh ip can be f loated into the bay fu l l of water. The
gates at the entrance, which are now behind the sh ip, are c losed and the
water in the bay is pumped out us ing large pumps. The c iv i l works
invo lved in the construct ion of a Grav ing Dock is cons iderable and spec ia l
emphas is is required for the bottom s lab and s ide reta in ing wal l . Th is is
due to the requirement for keeping the dock f loor at lower leve l and
empty ing i t for g iv ing access to the bottom of vesse l in dry condit ion. In
v iew of requirement for dry-dock ing severa l vesse ls at a t ime, an
innovat ive system having one chamber at a lower leve l l ike a grav ing
dock and addit ional chambers with bottom leve l above the genera l water
leve l of the area is cons idered.
In th is case, vesse l wi l l f i rs t enter the chamber with lower f loor leve l and
then s ide sh i f ted or t ransferred to the adjacent chambers based on the
pr inc ip les of hydro l i f t , by pumping in and ra is ing water leve l . A l l
chambers are prov ided with gate for ho ld ing water at required leve l
dur ing the transfer of vesse ls . After the transfer and pos i t ion ing of
42
vesse l , water wi l l be re leased for keeping the vesse l in dry condit ion. As
the construct ion of addit iona l chamber can be done with i ts f loor at
h igher leve l the cost of construct ion and maintenance of the dock wi l l be
comparat ive ly less.
4.3.3. Planning of Repair-yard Facilitie
4.3.3.1. Design Boat size More than thousand houseboats are in operat ion in the A lappuzha
Backwaters system. Out of th is , more than 800 boats are with length
more than 20m, which require Grav ing dock l ike, repair system. Based on
the deta i ls obta ined from the Boat owner ’s assoc iat ion in A lappuzha,
there are a number of boats with 36m length and 6m width. The draft of
the boat var ies f rom 1.10m to 1.40m. As the draft is a wide ly vary ing
factor and i t is an important factor in the dry-dock ing, des ign boat s ize is
se lected with the fo l lowing d imensions.
4.3.3.2. Planning Approach For the opt imum ut i l isat ion of the fac i l i t ies in a yard, repairs of severa l
vesse ls wi l l have to be carr ied out s imultaneous ly so that the d i f ferent
categor ies of works wi l l be in progress at d i f ferent locat ions and sk i l led
workers in d i f ferent d isc ip l ines could be ef fect ive ly ut i l i sed cont inuous ly .
The layout of the dock should a lso be that the vesse l could be taken out
of the dock soon after the complet ion of i ts repairs . A lso, more number of
boats can be inspected at one v is i t of the inspect ion party. The common
cost would a lso be shared by a number of boats. A l l these wi l l br ing in
43
cost ef fect iveness to the users. The yard should a lso be capable for
future expans ion only with a margina l cost .
After cons ider ing a l l the above factors, i t is proposed to develop a
fac i l i ty , which can accommodate three boats in normal course and four
boats on spec ia l cases.
4.3.3.3. Details of Project Facilities The yard is for undertak ing the repairs of vesse ls which require grav ing
dock fac i l i ty for dry-dock ing. The proposed fac i l i t ies compr ise of dry-dock
fac i l i ty , af loat repair berths, workshop fac i l i t ies , power supply etc. Br ief
descr ipt ion of these fac i l i t ies is presented be low.
4.3.3.4. Dry Dock Facilities Dry-dock fac i l i t ies have an entry chamber of 40m x 10m, a Repair bed of
40m x 10m and two repair chambers each of 40m x 10m. These fac i l i t ies
have been des igned to accommodate the largest boat (36m long x 6m
wide) with 2m c learance on a l l s ides for access for repair works from a l l
s ides. The f loor leve l of the entry chamber is 1.5m below the lowest
water leve l (Chart Datum – CD) so that vesse ls with draft upto 1.5m can
be taken for repairs with t ida l advantage of 0.50m. The bottom leve ls of
Repair bed and Repair chambers are 1.0m above CD. The top leve l of the
s idewal ls of a l l chambers and repair bed is at 4.0m above CD and water
can be impounded up to th is leve l by pumping, for l i f t ing the boats for i ts
t rans i t between the Entry chamber and Repair bed / Repair chambers.
The entry chamber is prov ided with two gates, one gate with top leve l at
4.0m above CD for impounding water for boat t rans i t between chambers
and the other gate with top leve l at 2.0m above CD for de-water ing the
entry chamber for us ing i t as Grav ing Dock in case of emergency. The
44
Repair Chambers are prov ided with independent gates so that the boat
dock ing in other areas can be done when a vesse l is in the Repair
chamber. A l l gates are of Mitre type and of stee l construct ion. Three
Numbers low head h igh d ischarge pumps each of 150 Cu.m per hour
capac i ty are proposed for water impounding. The water d ischarged from
the dock wi l l be channel ised through the dock entrance for avo id ing
s i l tat ion. The deta i ls are shown in the attached drawings.
Three vesse ls can be docked at a t ime, one in the Repair bed and two in
the Repair chambers. In emergency cases the entry chamber can a lso be
used for dock ing for short per iod.
4.3.3.5. Afloat Repair Berth A 40m long x 6m wide berth is proposed cont iguous to the shore l ine for
the berth ing of the boats for af loat repairs . Double banking can berth 3
to 4 boats.
4.3.3.6. Workshop Facility As per the estab l ished pract ices, the boat owners have the opt ion to
ut i l i se the repair fac i l i t ies in the Repair-yard after dry-dock ing the vesse l
to make the ir own arrangements for the repairs . Therefore min imum
fac i l i t ies are prov ided in the workshop attached to the repair yard.
Accord ingly, a workshop bui ld ing of 15m x 7m is proposed. Essent ia l
machiner ies and equipment are a lso inc luded in the proposal which
compr ises of the fo l lowing.
a. Lathe : 1 No
b. Wood work ing Lathe : 1 No
c. Portab le Gr ind ing Machine : 1 No
45
d. Manual Meta l Arc Weld ing : 2 Nos
e. Gas Cutter : 1 No
f . Tool K i t : 1 No
g. Pu l ley B lock with Tr ipod : 1 No
4.3.3.7. Power supply Power supply arrangements have been p lanned with due cons iderat ion to
the requirements of the outs ide repair contractors d irect ly engaged by
the boat owners. Source of supply is f rom the KSEB gr id.
4.3.3.8. Security Arrangements Compound wal l w ith gate is proposed for the secur i ty of the yard.
4.3.3.9. Implementation Schedule The ant ic ipated implementat ion schedule for the project is prov ided
be low.
46
5. Chapter 5 - Project Cost and Financial Feasibility
47
5.1. Project Cost
The est imated tota l project cost and ant ic ipated year wise fund
requirement schedule are prov ided be low;
48
Note: I t has been assumed that the ent i re fund wi l l be mobi l ised as
equity capita l , as the debt equity rat io may vary for each investors,
hence no interest has been taken in to cons iderat ion.
The land wi l l be prov ided by the Government on lease bas is .
5.2. Calculation of Anticipated Revenue
Revenue stream comprises of the fo l lowing:
• Drydock ing charges cover ing both in and out operat ion
• Rent for occupat ion of Drydock
• Rent for occupat ion of af loat repair berth
The revenue is arr ived based on the fo l lowing assumpt ions.
49
50
5.3. O & M Expenses
The operat ion and maintenance expenses are est imated at current pr ice is
as fo l lows.
5.4. Financial Statements
The Projected Balance Sheet, Prof i t and Loss Account and Statement
showing Cash from Operat ion & Cash f low Statement are prov ided as
Annexure I to III .
5.5. Pay Back Period
The Pay Back Per iod of the project is about 4.5 years f rom the date of
commencement of operat ion.
51
5.7. Project Internal Rate of Return (PIRR)
As the economic l i fe of a Vesse l is about 20 years the IRR is ca lcu lated
for the same per iod. Hence, The project y ie lds a PIRR of 23.72% for a
per iod of 20 years. The PIRR is without cons ider ing any terminal va lue
for the assets. The ca lcu lat ion of PIRR is prov ided as Annexure IV.
Note: The above f inanc ia l ind icators are worked out without
cons ider ing the lease charges to Government of Kera la the land.
Government of Kera la may f ix lease charges based on the
fa i r/commerc ia l va lue of the land.
52
6. Chapter 6 – Investor’s Responsibilities
53
The fo l lowing dut ies and respons ib i l i t ies have to be taken up by the
investor who takes up the project;
A. Required L icenses/Approvals f rom concerned Department /
Author i t ies .
B. Should conduct a l l necessary studies for re-conf i rming v iab i l i ty of
the project
C. Al l approvals , l icenses, sanct ions, etc . f rom the author i t ies should
be obta ined as and when required
D. Should comply a l l the regulat ions of the State and Centra l
Government
E. Al l fac i l i t ies inc lud ing land and water area should be obta ined or
created through own means
F. The fac i l i t ies should be open for inspect ion by any Government
author i t ies at any t ime
54
7. ANNEXURE
Annexure - I - Projected Balance Sheet
56
Annexure - II - Projected Profit & Loss Account
57
Annexure - III – Cash From Operation & Cash Flow Statement
58
Annexure - IV – IRR
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