Revised Final Report - Keralaports Marina DFR with passenger... · Revised Final Report ... RfP...

(Private & Confidential)

Review and Update of Detailed Project Report for the Development of Alappuzha marina

Revised Final Report

Submitted to

The Directorate of Ports, Government of Kerala

Submitted by

Deloitte Touche Tohmatsu India Pvt. Ltd.

July 2012

Review & Update of the Detailed Project Report for development of Alappuzha Marina

2 © 2012 Deloitte Touche Tohmatsu India Private Limited

List of Abbreviations

GoI Government of India

GoK Government of Kerala

DoP Directorate of Ports

PESTLE Political, Economic, Social, Technological, Legal, Ecological

PPP Public Private Partnership

CAGR Compounded Annual Growth Rate

RfP Request for Proposal

SWOT Strengths, Weaknesses, Opportunities, Threats

MHHWL Mean Highest High Water Level

MHLWL Mean Highest Low Water Level

MLHWL Mean Lowest High Water Level

MLLWL Mean Lowest Low Water Level

MSL Mean Sea Level



Contents 1 Executive summary ......................................................................................... 11

2 Introduction ...................................................................................................... 18

2.1 Project background & rationale ............................................................................. 18

2.2 Structure of the Report .......................................................................................... 20

3 Overview of business landscape ................................................................... 23

3.1 PESTLE analysis ................................................................................................... 23

3.2 SWOT analysis of Alappuzha for developing tourism based infrastructure .............. 28

4 Marina development at Alappuzha ................................................................. 31

4.1 Introduction to the concept of Marina .................................................................... 31

4.2 Comments on the Marina model proposed by L&T Ramboll ................................... 34

4.3 Assessment of Alappuzha for developing full service sea side marina ....................... 41

4.4 Proposed Inland Marina System ............................................................................ 44

4.5 Other infrastructure proposed at Alappuzha .......................................................... 50

4.6 Key findings of the primary survey ......................................................................... 51

4.7 Benefits to tourism at Alappuzha through the marina and beach based tourism

infrastructure ................................................................................................................... 53

4.8 Tourism development between Thykkal to Thottappally ......................................... 55

5 Prefeasibility analysis for inland marina ....................................................... 60

5.1 Control of water hyacinth ...................................................................................... 60

5.2 Bridges in the canal and depth restrictions ............................................................. 66

5.3 Sewage collection and treatment for Alappuzha town .............................................. 68

6 Market assessment .......................................................................................... 70

6.1 Overview of tourism in Alappuzha ......................................................................... 70

6.2 Comments on the L&T –Ramboll traffic assessment ............................................... 75

6.3 Approach to market potential assessment of proposed inland marina and other land

and water based facilities .................................................................................................. 75

6.4 Market Demand Estimation ................................................................................... 81

6.5 Market demand assessment – Assumptions and Workings ...................................... 87

7 Site investigations ......................................................................................... 103

7.1 Geographical setting ............................................................................................ 103

7.2 Land ................................................................................................................... 104

7.3 Inland connectivity .............................................................................................. 105

7.4 Topography ......................................................................................................... 106

7.5 Physical environment ........................................................................................... 107

7.6 Meteorological conditions .................................................................................... 111

7.7 Oceanographic conditions .................................................................................... 112



7.8 Studies undertaken .............................................................................................. 115

8 Infrastructure planning ................................................................................. 116

8.1 Introduction ........................................................................................................ 116

8.2 Inland Marina: Planning Considerations for the inland marina ............................. 116

8.3 Land side facilities: Theme park ........................................................................... 119

8.4 Utilities for Marina and theme Park ..................................................................... 121

8.5 Land side facilities: Water Park .......................................................................... 123

8.6 Land side facilities: Dolphin pool ......................................................................... 125

8.7 Land side facilities: Ayurvedic Health Spa ........................................................... 127

8.8 Water side facilities: Water sports ........................................................................ 129

9 Cost estimates ............................................................................................... 131

9.1 Capital cost estimates for individual facilities ........................................................ 131

10 Tariff analysis ............................................................................................. 142

10.1 Tariff regulatory framework ................................................................................ 142

10.2 Tariff determination ............................................................................................ 142

11 Financial analysis ....................................................................................... 144

11.1 Identification of revenue streams .......................................................................... 144

11.2 Assumptions of investment and expenditure ......................................................... 145

11.3 Financial projections ........................................................................................... 150

12 Passenger terminal .................................................................................... 152

12.1 Passenger traffic potential at Alappuzha ............................................................... 152

12.2 Passenger berth layout and functional planning .................................................... 154

12.3 Breakwater.......................................................................................................... 157

12.4 Cost estimates ...................................................................................................... 158

12.5 Tariff determination ............................................................................................ 161

12.6 Identification of revenue streams .......................................................................... 161

12.7 Assumptions of investment and expenditure ......................................................... 162

12.8 Revenue and profitability estimates ...................................................................... 165

12.9 Financial indicators – NPV, IRR and DSCR ......................................................... 166

13 Conclusions & recommendations............................................................. 168

13.1 Summary of conclusions ...................................................................................... 168

13.2 Recommendations................................................................................................ 172

Annexure 1: Clarifications to Technical Committee Queries on draft DPR .... 174

Annexure 2 : Stakeholders contacted for the market assessment study ....... 179

Annexure 3 - Layout Showing Inland Marina and Theme Park ........................ 181

Annexure 4 - Section showing details of landing facilities for inland marina 182

Annexure 5 - Layout of Water Park ..................................................................... 183



Annexure 6 - Layout of dolphin pool .................................................................. 184

Annexure 7 - Cross section 1 of the dolphin pool ............................................. 185

Annexure 8 - Cross section 2 of the dolphin pool ............................................. 186

Annexure 9 - Layout of health spa ...................................................................... 187

Annexure 10 – Layout of Passenger Terminal ................................................... 188

Annexure 11 – Summary of integrated financial statements for the facilities of Inland Marina, beach side facilities and water sports ( excluding passenger terminal) ................................................................................................................ 189

Annexure 12 – Financial statements of Passenger Terminal ........................... 200

Annexure 12(a) – Financial statements of Passenger Terminal under the scenario that the breakwater cost is borne by the private player .................... 200

Annexure 12(b) – Financial statements of the Passenger Terminal under the scenario that the breakwater cost is borne by the state government ............. 208

Annexure 13 – Topography of designated project area for inland marina area and theme park ..................................................................................................... 216

Annexure 14 – Numerical model studies ........................................................... 217

Annexure 15 – Rapid Environmental Impact Assessment Study..................... 218



List of Tables Table 1-1: Demand summary for Inland Marina ........................................................................ 11 Table 1-2: Financial feasibility indicators for inland marina ......................................................... 12 Table 1-3: Proposed land side & water side activities ................................................................. 13 Table 1-4: Demand for number of users for land side facilities .................................................... 13 Table 1-5: Demand for number of users for water side facilities .................................................. 13 Table 1-6: Financial feasibility indicators for landside & waterside facilities .................................. 14 Table 1-7: Infrastructure planning / phasing for inland marina .................................................... 14 Table 1-8: Infrastructure planning / phasing for waterside activities ............................................ 14 Table 1-9: Traffic projections for the proposed passenger terminal ............................................. 15 Table 1-10:Total Capex in Phase 1 and Phase 2 for the entire passenger ferry terminal ................. 15 Table 1-11: Projected Gross Revenues ..................................................................................... 15 Table 1-12: Estimated PAT for the project in Rs. Million ............................................................. 16 Table 1-13: Financial feasibility indicators for passenger terminal ............................................... 16 Table 1-14: Comparative of the financial indicators in the event of funding of breakwater by the state government .......................................................................................................................... 16 Table 2-1: Ports in Kerala ........................................................................................................ 18 Table 2-2: Structure of the Detailed Project Report (DPR) .......................................................... 22 Table 3-1: Tourism in Kerala – economic indicators ................................................................... 25 Table 3-2: Foreign exchange earnings from tourism in Kerala ..................................................... 26 Table 4-1: Comments on various marina models proposed by L&T Ramboll ................................. 38 Table 4-2: Proposed deviations from the marina model suggested by L&T Ramboll ....................... 39 Table 4-3: Comparison of Oceanarium and Dolphin pool ............................................................ 40 Table 4-4: Proposed landside infrastructure facilities / activities ................................................ 51 Table 4-5: Proposed waterside infrastructure facilities / activities .............................................. 51 Table 4-6: Summary of key findings of primary survey .............................................................. 53 Table 5-1: Details of bridges with their air draft and pier-pier distance ....................................... 66 Table 5-2: Typical dimensions of the boats expected to operate in the marina ............................. 66 Table 6-1: Stakeholders identified for the study ....................................................................... 79 Table 6-2: Framework for market demand estimation ............................................................... 82 Table 6-3: Market segments for proposed activities .................................................................. 84 Table 6-4: Distribution of Domestic Tourists (Kerala) according to the number of persons accompanied Source: Kerala Tourism Statistics 2007 ................................................................. 85 Table 6-5: Distribution of Domestic Tourists (Non-Keralite) according to Age Distribution ............. 85 Table 6-6: Distribution of Domestic Tourists (Non-Keralite) according to Specific Purpose of Visit .. 85 Table 6-7: Sex ratio (females per thousand males) .................................................................... 85 Table 6-8: Distribution of Foreign Tourists according to Main Attractions in Kerala ...................... 85 Table 6-9: Distribution of Domestic Tourists according to Main Attractions in Kerala .................... 86 Table 6-10: Methodology for market demand assessment for inland marina ............................... 90 Table 6-11: Demand forecast for number of users for inland marina – peak season ...................... 90 Table 6-12: Demand forecast for number of users for inland marina – low season ....................... 90 Table 6-13: Demand forecast for types of boats for inland marina – peak season ......................... 91 Table 6-14: Demand forecast for types of boats for inland marina – low season .......................... 91 Table 6-15: Methodology for market demand assessment for waterside activities ....................... 95 Table 6-16: Demand forecast for number of users for water side facilities ................................... 95 Table 6-17: Demand forecast for equipment for water side facilities .......................................... 96 Table 6-18: Methodology for market demand assessment for landside activities ......................... 98



Table 6-19: Demand forecast for number of users for landside facilities (foreign tourists) – peak season.................................................................................................................................. 98 Table 6-20: Demand forecast for number of users for landside facilities (foreign tourists) – low season.................................................................................................................................. 99 Table 6-21: Demand forecast for number of users for landside facilities (domestic tourists) – peak season.................................................................................................................................. 99 Table 6-22: Demand forecast for number of users for landside facilities (domestic tourists) – low season.................................................................................................................................. 99 Table 6-23: Demand forecast for number of users for landside facilities (all tourists) – peak season99 Table 6-24: Demand forecast for number of users for landside facilities (all tourists) – low season ......................................................................................................................................... 100 Table 6-25: Inland marina – summary of demand forecast for low, medium & high scenarios ...... 100 Table 6-26: Waterside activities (water scooters) – summary of demand forecast for low, medium & high scenarios ..................................................................................................................... 100 Table 6-27: Waterside activities (banana boat rides) – summary of demand forecast for low, medium & high scenarios ..................................................................................................... 101 Table 6-28: Waterside activities (speed boat rides) – summary of demand forecast for low, medium & high scenarios .................................................................................................................. 101 Table 6-29: Landside activities (water park) – summary of demand forecast for low, medium & high scenarios ............................................................................................................................ 101 Table 6-30: Landside activities (dolphin pool) – summary of demand forecast for low, medium & high scenarios ..................................................................................................................... 101 Table 6-31: Landside activities (theme park) – summary of demand forecast for low, medium & high scenarios ............................................................................................................................ 101 Table 6-32: Landside activities (health spa) – summary of demand forecast for low, medium & high scenarios ............................................................................................................................ 102 Table 6-33: Landside activities (restaurant) – summary of demand forecast for low, medium & high scenarios ............................................................................................................................ 102 Table 7-1: Monthly rainfall pattern of Alappuzha during 2005-2010 ......................................... 107 Table 7-2: Wind velocity and wind direction of Alappuzha ....................................................... 108 Table 7-3: Description of the soil and geology of the Alappuzha area, including age, formation and lithology ............................................................................................................................. 109 Table 7-4: Ground water chemistry of Alappuzha ................................................................... 110 Table 7-5: Wind data ........................................................................................................... 112 Table 7-6: Rainfall distribution .............................................................................................. 112 Table 7-7: Wave characteristics at Alappuzha ......................................................................... 113 Table 7-8 : Wave height distribution ...................................................................................... 114 Table 8-1 : Inland Marina Boat specifications .......................................................................... 116 Table 8-2 : Man power details for inland marina ..................................................................... 119 Table 8-3 : Man power requirements for Theme Park .............................................................. 121 Table 9-1: Cost estimates for facilities specific to Inland Marina ................................................ 133 Table 9-2: Cost estimates for augmentation of boats for Inland Marina ..................................... 133 Table 9-3: Allocated cost for Inland Marina - for common facilities (theme park and inland marina) ......................................................................................................................................... 134 Table 9-4: Total cost for Inland Marina after considering allocation of common facilities ............. 134 Table 9-5: Cost estimates for infrastructure for Dolphin pool .................................................... 135 Table 9-6: Cost estimates for periodic replacement of Dolphins ................................................ 136 Table 9-7: Cost estimates for infrastructure for Water park ...................................................... 137 Table 9-8: Cost estimates for infrastructure for Ayurvedic Health Spa’s ..................................... 138 Table 9-9: Cost estimates for infrastructure facilities specific to Theme Park .............................. 139 Table 9-10: Allocated cost for Theme parkfor common facilities (theme park and inland marina) . 140 Table 9-11: Total cost for Theme park after considering allocation of common facilities .............. 141



Table 9-12: Cost estimates for infrastructure for Water Side facilities ........................................ 141 Table 10-1: Tariffs considered for the proposed facilities ......................................................... 142 Table 11-1: Projected tourist demand for financial modeling .................................................... 144 Table 11-2: Allocation of restaurant demand to Dolphin pool and Ayurvedic Health Spa .............. 144 Table 11-3: Bifurcation of demand for Dolphin pool, Water Park, and Ayurvedic Health Spa into domestic and foreign tourists ............................................................................................... 145 Table 11-4: Bifurcation of demand for Theme Park, Inland Marina, and Water Sports into domestic and foreign tourists ............................................................................................................. 145 Table 11-5: Summary of investment details for Marina facilities ............................................... 146 Table 11-6 : Financing assumptions ....................................................................................... 146 Table 11-7: Operation and maintenance assumptions.............................................................. 148 Table 11-8: Operations related assumptions ........................................................................... 148 Table 11-9: Common facilities expenses related assumptions ................................................... 149 Table 11-10: Depreciation rates for various assets ................................................................... 149 Table 11-11: Tax rates .......................................................................................................... 149 Table 11-12: Projected Gross Revenues (in INR Million) ........................................................... 150 Table 11-13: Estimated operating profit (EBIDT) for the project in Rs. Million. Figures in brackets denote loss. ........................................................................................................................ 150 Table 11-14: Financial feasibility indicators ............................................................................. 151 Table 12-1: Sensitivity analysis of the low, medium and high traffic growth scenarios for passenger terminal demand ................................................................................................................. 154 Table 12-2: Sensitivity analysis of the number of 100 passengers sized vessels calling on the passenger terminal .............................................................................................................. 154 Table 12-3:Sensitivity analysis of the number of 250 passengers sized vessels calling on the passenger terminal .............................................................................................................. 154 Table 12-4: Summary of the tourist traffic and indicative number of berths in the Passenger Terminal ......................................................................................................................................... 154 Table 12-5: Capex for Breakwater / Approach Trestle in Rs. Million ........................................... 159 Table 12-6: Technical study charges for Breakwater / Approach Trestle in Phase 1 in Rs. Million .. 159 Table 12-7:Capex for the passenger ferry terminal in Rs. Million ............................................... 160 Table 12-8: Technical study charges for Passenger Terminal in Phase 1 in Rs. Million .................. 160 Table 12-9: Total Cumulative Capex for the passenger terminal and breakwater / trestle in Rs. million ......................................................................................................................................... 161 Table 12-10: Tariff for passenger ferry vessels ........................................................................ 161 Table 12-11: Projected passenger traffic for financial modeling ................................................ 162 Table 12-12: Financing assumptions ...................................................................................... 162 Table 12-13: Operation and maintenance assumptions ............................................................ 163 Table 12-14: Waterfront royalty to GoK ................................................................................. 164 Table 12-15: Passenger terminal related assumptions ............................................................. 164 Table 12-16: Common facilities expenses related assumptions ................................................ 164 Table 12-17: Depreciation rates for various assets ................................................................... 165 Table 12-18: Tax rates ......................................................................................................... 165 Table 12-19: Projected Gross Revenues in Rs. Million .............................................................. 165 Table 12-20: Profit after Tax for the project in Rs. Million ......................................................... 166 Table 12-21: Financial feasibility indicators for passenger terminal ........................................... 166 Table 12-22: Comparison of the key financial indicators ........................................................... 167 Table 13-1 : Phasing of infrastructure required for Inland marina .............................................. 169 Table 13-2 : Phasing of infrastructure required for water sports................................................ 170 Table 13-3: Traffic projections for the proposed passenger terminal ......................................... 171

List of Figures



Figure 2-1: Location of Alappuzha............................................................................................ 19 Figure 3-1: Framework for PESTLE analysis ............................................................................... 23 Figure 3-2: SWOT analysis of Alappuzha for tourism based infrastructure at Alappuzha ................. 29 Figure 4-1: Types of yachts ..................................................................................................... 31 Figure 4-2: Sea-going and inland waterway yachts ..................................................................... 32 Figure 4-3: Grand Harbour Marina, Malta ................................................................................. 32 Figure 4-4: A floating pontoon system to provide safe & convenient access to each yacht. ............ 33 Figure 4-5: Schematic representing Marina model proposed by L&T Ramboll ............................... 34 Figure 4-6: Schematic representing Marina model proposed by DTTIPL ....................................... 41 Figure 4-7: Marina Bander al Rowdha, Oman ............................................................................ 43 Figure 4-8: Commercial canal system at Alappuzha ................................................................... 44 Figure 4-9: Top level view of proposed inland marina system ..................................................... 45 Figure 4-10: Overgrowth of water hyacinth in Alappuzha canals ................................................. 46 Figure 4-11: Current slow dredging in canals Figure 4-12: Productive multi-purpose dredger & engineering vessel. 46 Figure 4-13: Refurbishment of existing port area ....................................................................... 47 Figure 4-14: Signal station at Alappuzha .................................................................................. 48 Figure 4-15: By pass road to be constructed / under construction at Alappuzha ........................... 49 Figure 4-16: Example of an under-pass at Alappuzha ................................................................ 49 Figure 5-1: Alappuzha canal system ........................................................................................ 60 Figure 5-2: Salinity effect on water hyacinth production (by Casabianca and Laugier (1995)) ......... 62 Figure 5-3: Divisions of canal into four quarters Q1, Q2, Q3 and Q4 ............................................ 64 Figure 5-4: Box Culvert .......................................................................................................... 67 Figure 5-5: Layout of the drains (assumes STP at the west/beach end, but it could also be at the east/backwater end). ............................................................................................................. 68 Figure 6-1: Tourist arrival in Alappuzha, 1999-2008 .................................................................. 70 Figure 6-2: Tourist arrival in Kerala during last 12 years ............................................................. 71 Figure 6-3: Country of origin of foreign tourists ........................................................................ 72 Figure 6-4: Distribution of domestic tourists ............................................................................ 72 Figure 6-5: Broad level approach for market potential assessment ............................................. 76 Figure 6-6: Market assessment flowchart for marina and other facilities at Alappuzha ................. 78 Figure 6-7: Framework for Market assessment ......................................................................... 81 Figure 6-8: Market segmentation for proposed activities ........................................................... 83 Figure 7-1: Overview of the project location .......................................................................... 103 Figure 7-2: Land at the project location available with Port...................................................... 104 Figure 7-3: Road network in the district of Alappuzha ............................................................. 105 Figure 7-4: Rail network in the district of Alappuzha ............................................................... 106 Figure 7-5: Inland waterways network in Alappuzha .............................................................. 106 Figure 7-6: Section over the coast around Alappuzha Town ..................................................... 108 Figure 8-1: Layout Showing Inland Marina and Theme Park ..................................................... 117 Figure 8-2: Section showing Details of landing facilities ........................................................... 118 Figure 8-3: Layout of wave pool ............................................................................................ 123 Figure 8-4: Layout of dolphin pool ........................................................................................ 126 Figure 8-5: Cross section of the dolphin pool ......................................................................... 127 Figure 8-6: Layout of proposed Health Spa ............................................................................ 128 Figure 12-1: Layout showing breakwater and the passenger ferry berths .................................. 155 Figure 12-2: Over all passenger berth layout with other proposed facilities ................................ 156 Figure 12-3: Cross section of the breakwater A of length 200 meters. ........................................ 157 Figure 12-4: Cross section of the breakwater B of length 575 meters. ........................................ 158 Figure 12-5: Cross section of the breakwater at Round head .................................................... 158



NOTE

The scope of work included feasibility study for a cargo port and marina facilities. During the course of the feasibility study, a passenger terminal facility was also included along with the cargo terminal for handling tourists coming from Cochin to Alappuzha. However, a decision was taken by Government of Kerala to drop the cargo terminal facility due to non-feasibility, while the passenger terminal facility was retained since it would serve as a gateway for tourists planning to come through sea-cruises to Alappuzha.

In context of the above changes, the Final report is being submitted in the following manner

1. Main report –

– Contains the details of marina tourism related facilities and passenger terminal facility. Herein, it is to be noted that post the removal of the cargo terminal, the design and layout of passenger terminal has also undergone a change and the revised passenger terminal layout and financial feasibility analysis is included in the main report

2. Addendum –

– Comprises of the detailed feasibility assessment of cargo cum passenger terminal, as was envisaged originally (prior to the government’s decision to remove the cargo terminal)



1 Executive summary

Alappuzha has long been considered an ideal location for developing tourism based infrastructure considering the high amount of tourist traffic (domestic & international) it attracts every year on account of its famous backwaters. However except for the houseboats which ply in the backwaters, small motorboats and a few resorts, no other tourism centric infrastructure has come up which could give an impetus to the local economy. Towards this, the sea front at Alappuzha and the beach which fall under the purview of the Directorate of Ports (DoP) were and are being seen as potential tourist attractions and hence a study was commissioned by the DoP in 2003-04 to evaluate the feasibility of developing a sea side marina and /or a commercial port. M/s L&T Ramboll, appointed for this purpose submitted their report in 2004 and identified four business model options focusing on different combinations of Marina, Water Park and commercial port. Deloitte Touche Tohmatsu India Pvt. Ltd., (DTTIPL) were further appointed in 2010by the DoP to review the Detailed Project Report (DPR) submitted by L&T Ramboll, and suggest further updation.

DTTIPL along with Arrol Ltd.,(marina consultant) explored the port area (comprising the sea front, the beach, signal station, and existing warehouses), backwaters, the canal system, the houseboat terminal and the east side of the town from the perspective of developing a full service sea-side marina and other recreational infrastructure. Based on - a) characteristics of the marine environment at Alappuzha, b) key operational / technical pre-requisites for developing a full service sea-side marina, and c) analysis of marinas in other locations, it was concluded that it would be more appropriate and feasible to develop an inland marina on the commercial canal system instead of a full service sea-side marina.

The Inland marina would be developed at the other end (near Alappuzha beach) facing the beach and would be utilized as anchorage for various types of boats which would provide canal boating services. Peak market demand estimates for the Inland marina / canal boating are expected to be as follows:

Demand per type of boat Number of tourists per day (Peak season (Oct-Mar)

2012 2015 2020 2025 2030 2035 2040

Demand for Non-motorised 4-seater boats 185 222 309 443 659 1,012 1,603

Demand for 08-10 seater fibre glass (motor) boats 79 89 108 131 160 195 237

Demand for 15-20 seater fibre glass (motor) boats 72 80 98 119 145 176 215

Table 1-1: Demand summary for Inland Marina

The key market drivers for canal boating would be the leisurely experience and excellent view it would provide of heritage structures along the canal shoreline. One of the key prerequisites for development of the inland marina would be cleaning of the canals through dredging and removal of water hyacinths and prevention of re-growth through controlled infusion of seawater to raise the salinity of the canals. Current initiatives such as canal cleaning operations undertaken by the canal management society and revival of heritage sites (approved by state cabinet) blend in well with the development of the inland marina. A pre-feasibility study conducted by DTTIPL also confirms operational feasibility of canal boating and financial analysis confirms commercial feasibility of the inland marina considering an



operational period of 9 months. Projected investment and returns from the inland marina and some of the key financial indicators are as below:

Year Inland Marina

Internal Rate of Return (IRR) in % 13.77%

Net Present Value (NPV) in Rs. Million 12.76

Capital Investment (in Rs. Million) 48.68

Profitability Index1 1.26

Payback period in years 17

Average DSCR (3.96)

Table 1-2: Financial feasibility indicators for inland marina Other than the canals, the port area itself also offers interesting options both on the landside and the water side and many of them have been covered in the L&T Ramboll report. DTTIPL has considered these options and based on overall market attractiveness and operational characteristics, DTTIPL has proposed the following activity mix:

Land sideactivities

Water park A water park is a big attraction for all age groups. It features water play areas like water slides, lazy river, water playgrounds and wave pool. The proposed water park has an area of 6510 sq m in the midst of natural beauty and a clean environment. It is packed with fun filled activities for all age groups. It is proposed to have water slides, wave pool and lazy river along with other facilities like separate changing rooms, lockers, first aid center, indoor games section and food courts serving various delicacies.

Dolphin pool The dolphin pool is an aquarium meant for dolphins. Normally, the dolphins are kept in a large pool for public performances. The dolphins are trained to do acrobatic maneuvers in the pool on various themes and props. The dolphin pool require expert trainers and life support staff who specialize in its training and daily operations. This concept is very popular from the world over for its uniqueness and huge crowd puller world over. As of date, there are no existing dolphin pools in India.

Theme park The Theme Park is being planned in the same plot as the marina. The theme park shall provide the visitors a glimpse of the vibrant culture of Kerala. Kerala is home to various classical art forms ,colorful festivals, spices ,and the famous martial art form known as "Kalarypaiyattu". The proposed facility shall consist of the following:

An Exhibit area

An Amphitheater

An artifact space

Open spaces

1 Profitability index (PI) is the ratio of investment to payoff of a proposed project. It is calculated by the following formula:

PI = PV of future cash flows ÷ Capital Investment. It is a useful tool for ranking projects because it quantifies the amount of value created per unit of investment.



Ayurvedic Health spa

The objective of Ayurvedic therapy is to restore this balance in order to maintain good health. Kerala has a number of natural herbs and medicinal shrubs such as Aswagandha, Amalki, Katphal, Brahmi, Bharangi, Yashtimadhu, and Shankhupusham. The rainy season, from June to September, is the ideal time for Ayurvedic treatments because the atmosphere remains cool, moist, and dust free.

Water based activities

Water scooters, Banana boat rides Speed boat rides

It has been observed that there is a huge demand for water based facilities among the tourist who arrive in Kerala, which is about 40 % of the total tourist arrivals. There are several rides within the water sports namely: banana boats, water scooters & speed boats. The ideal sailing conditions are variable for all the sporting vehicles.

Table 1-3: Proposed land side & water side activities

The market assessment was done based on the available tourist arrival data, interactions with stakeholders during primary research, profile of users, tourist preferences / behavior and skill requirements for using respective facilities. Some of the activities proposed in the earlier report by L&T Ramboll such as parasailing, wind surfing etc., require higher level of user skills which many of the tourists may not possess, hence it is proposed to drop these activities. Peak market demand estimates for the proposed facilities are as given below:

Demand for each facility (All Tourists)

Number of tourists per day (Peak season (Oct-Mar))

2012 2015 2020 2025 2030 2035 2040

Demand for Water park 352 400 497 622 788 1,014 1,330

Demand for Dolphin Pool 159 187 247 336 471 708 1,006

Demand for Theme Park 212 257 365 633 886 1,281 1,916

Demand for Health spa 75 88 120 168 242 362 560

Demand for Restaurant 133 153 197 269 357 462 634

Table 1-4: Demand for number of users for land side facilities

Waterside Activities Number of tourists per day (during November-April)

2012 2015 2020 2025 2030 2035 2040

Demand for Water Scooters 81 91 111 135 165 200 244

Demand for Banana Boat Rides 103 116 141 172 209 255 310

Demand for Speed Boat Rides 219 246 300 365 444 540 657

Table 1-5: Demand for number of users for water side facilities

Projected cost and returns from the landside and waterside facilities, and some of the key financial indicators are as below:

Year Dolphin pool

(including restaurant)

Water Park

Ayurvedic Health Spa (including

restaurant)

Theme Park

Water Sports

Combined Entity

Internal Rate of Return (IRR) in %

14.01% 67.61% 26.11% 25.81% 125.76% 21.64%



Net Present Value (NPV) in Rs. Million

93.91

490.17 340.57 286.68 64.35 1,366.34

Capital Investment (in Rs. Million)

592.58 46.87 69.77 94.73 3.40 819.42

Profitability Index2

1.16 11.46 5.88 4.03 19.91 2.67

Payback period in years

12 2 8 6 1 8

Average DSCR 0.57 16.50 3.48 3.84 46.10 2.46

Table 1-6: Financial feasibility indicators for landside & waterside facilities Infrastructure planning for the facilities is done considering market demand at the end of the forecast period, except for inland marina where it is done considering the demand in year 2030. In terms of phasing, the inland marina operations can only begin once the canals are cleaned up hence it is assumed that canal boating shall begin only in 2012. While the berthing facilities for the boats in inland marina are proposed to be built in single phase, addition of boats for canal boating shall be as shown below:

Table 1-7: Infrastructure planning / phasing for inland marina

Rest of the facilities (landside & waterside) are recommended to start functioning concurrently once the developer is selected. The phase wise addition for water sports equipments will be as shown below:

Table 1-8: Infrastructure planning / phasing for waterside activities

Passenger terminal

The rationale of having the passenger berth is to provide a unique cruise-cum-marina experience to

its patrons. The passenger berths would facilitate the influx of tourists through coastal sea cruises

which would have inboard entertainment and would serve as a prelude to the other maritime



Year 2012 2017 2022 2027 2030

4 seater(small) 8.0 11.0 15.0 22.0 27.0

8-10 seater (medium) 2.0 3.0 0.0 4.0 4..0

15-20 seater (large) 1.0 0.0 0.0 2.0 2.0

Year 2012 2013 2015 2016 2020 2025 2028 2029 2033 2036 2038 2039

Water Scooter

4 1 0 1 1 1 0 2 1 1 1 1

Speed Boat 1 0 1 0 0 0 1 0 0 1 0 0

Banana Boat

1 1 0 1 0 0 0 1 0 0 1 0



related activities planned for the tourists in the Marina at Alappuzha. The proposed sea-cruises

would ply between Alappuzha and Kochi.

The passenger projections and accordingly the number of vessel calls per day and the number of

berths planned is indicated in the table below. The passenger facility will be operational between

the months of October to April.

Passenger terminal demand Number of tourists per day ( Oct-Apr)

2015 2020 2025 2030 2035 2040

Number of tourists per day during fair season ( Foreign + Domestic)

302 460 707 1,097 1,726 2,756

Total number of vessels calling at Alappuzha daily during peak season

2 4 5 7 10 15

Number of berths required at the Passenger Terminal 1 2 2 3 4 5

Table 1-9: Traffic projections for the proposed passenger terminal

It is planned to have the passenger ferries coming to the port to berth along floating landing pontoons. Break waters would be required to be provided to achieve tranquility in the harbor during loading and unloading. Since the floating pontoons are located in sheltered water, not much disturbance is expected. The expected capex for phase 1 and phase 2 of the passenger terminal is mentioned below

In Rs. Million

Parameter Phase 1 Phase 2 ( 2025 onwards)

Total

Capex for Breakwater / trestle

353.99 6.14 360.13

Capex for Passenger Terminal

53.10 81.93 135.03

Total Capex 407.09 88.07 495.16

Table 1-10:Total Capex in Phase 1 and Phase 2 for the entire passenger ferry terminal

The projected revenues from operations for the passenger terminal is as per the table below

Rs. Million Year Passenger terminal

2015 40.74

2020 90.05

2025 186.03

2030 425.15

2035 948.16

2040 2,158.79

Table 1-11: Projected Gross Revenues

The Profit / (Loss) after tax calculated for the passenger terminal is indicated in the table below.



In Rs. Million Year Passenger Terminal

2015 -24.72

2020 19.44

2025 110.50

2030 296.62

2035 765.50

2040 1873.43

Table 1-12: Estimated PAT for the project in Rs. Million

The summary of the financial indicators for the passenger terminal is indicated below:

Description Passenger terminal

Internal Rate of Return (IRR) in % 16.12



DSCR 1.47

Table 1-13: Financial feasibility indicators for passenger terminal

A key component for the vessel operations at Alappuzha would be the breakwater (for providing

necessary tranquility). However the cost associated with the construction of a breakwater is around

65% of the total project cost in phase 1. In the event, the breakwater cost is funded through

appropriate government resources, the project cost loading is reduced to that effect and

subsequently, the project viability margins improves significantly thereby attracting more potential

developers. . The table below indicates the comparative financial indicators under such options if the

costs of breakwater (Rs. 317.87 million after allocation and appropriations) are funded by the

Government.

Description Breakwater funding borne by

the private developer Breakwater funding borne by Government of Kerala


16.12 26.63


199.07 411.75

Payback period in years 13 8

DSCR - phase 1 1.47 7.28

Table 1-14: Comparative of the financial indicators in the event of funding of breakwater by the state government

Based on above comparative analysis it can be concluded that, in order to attract prospective

bidders to develop the passenger terminal on PPP basis, the necessary breakwater cost should be

borne by the Government.



Recommendations

It is recommended that the proposed facilities be packaged into following three separate RfPs –

a. Inland Marina and theme park

b. Land based recreational facilities ( water park, dolphin pool, health spa, restaurant) and water sports

c. Passenger terminal

A developer can choose to develop and operate either one or more projects. The project can be developed either by a single party or through consortium.

The project requires, both soft and hard support from various state government departments such as tourism, finance, district administration etc., with the Department of Ports taking the lead role. This support includes economic contribution as mentioned above as well as speedy approvals, provision of fiscal and non-fiscal incentives, provision of data / information, logistics support, assistance for technical studies etc.



2 Introduction

2.1 Project background & rationale

This chapter encapsulates the background information about the client, project and underlines the

purpose and scope of this detailed project report.

The state of Kerala is gifted with a coastline of 590 kms on west coast of India and accommodates a

total of 18 ports which includes 1 major port at Cochin.

During the times (till the

1970's) when bulk and

break bulk cargo used to

be handled manually, most

of these non-major and

Intermediate Ports were

active. Later on, due to the

increased containerization

and propensity to reduce

turnaround time of vessels

calling at ports,

mechanization of cargo

handling activities became

vital. Besides, ports need

to be operational during

all weathers. However,

most of these non-major &

intermediate ports were

seasonal and lacked the

modern infrastructure to

handle medium and large

sized vessels.

Table 2-1: Ports in Kerala

To promote the economic growth of the region and the nation at large, development of

infrastructural facilities is essential. Particularly, the seaborne transportation plays a crucial role in

enhancing foreign trade between countries and hence provides impetus for high growth.

Acknowledging the importance of water transportation in the economic growth, the Government of

Kerala (GoK) plans to develop maritime resources of the state. GoK has mandated Directorate of

Ports (DoP) to develop and administer port & maritime resources in the state of Kerala.

To leverage Kerala’s proximity to the international sea route, the DoP has decided to develop several

Green field ports along the Kerala coast under the Public Private Partnership (PPP) model. This

initiative is in line with the State’s ambition of becoming a maritime state and ensuring world class

infrastructure as articulated in the document ‘Vision 2025 for State of Kerala’ compiled for the

Kerala State Council of Confederation of Indian Industry (CII).

Type of port Nos. Port Administered by

Major 1 Kochi Ministry of Shipping,

GoI

Intermediate 3 Neendakara Directorate of Ports,

Government of Kerala Alappuzha

Kozhikode

Non-major 14 Vizhinjam Directorate of Ports,

Government of Kerala Valiyathura

Thankasserry

Kayamkulam

Manakkodam

Munambam

Ponnani

Beypore

Vadakara

Thalasserry

Manjeswaram

Neeleswaram

Kannur

Azzhikal

Kasaragode



Alappuzha is one among the seven port locations

chosen initially for development by GoK. Till

1989, lighterage operations did exist in

Alappuzha. The district of Alappuzha has

experienced spurt in economic activities in

tourism, agriculture and marine sector.

Traditional industries based on coir and coir

products, marine products, handlooms,

handicrafts, toddy tapping, etc have been

leading the economic growth of the district. To

take advantage of commercial and tourism

opportunities, the state wishes to develop a

cargo harbour and a marina at Alappuzha.

The DoP engaged Deloitte Touche Tohmatsu

India Pvt. Ltd. (DTTIPL) with the objective of

facilitating development of Alappuzha as cargo

harbor and marina through Public Private

Participation (PPP) route. The proposed project

site at Alappuzha is situated at a latitude of 9o

30’ N and a longitude of 76o 19’ E in the state of

Kerala. The adjacent district head quarters are

Ernakulam (Kochi, 50 km to the North),

Kottayam (40 kms to the East) and Kollam (85

kms to the South). Figure 2-1: Location of Alappuzha

DTTIPL was required to conduct a review and to update the detailed project report prepared by L&T

Ramboll for developing the Alappuzha marina and suggest phasing and any changes, if required.

Deloitte was further required to prepare revised cost estimates, financial structuring of the project,

provide assistance to GoK in selection of a developer for the project and in technical and financial

closure of the project. The assignment was phased under following three components:

i. Detailed review and updating of project report prepared by L&T Ramboll and suggest

phasing and changes, if any required, and financial structuring of the project

ii. Selection of developer for the project

iii. Assistance towards technical and financial closure of the project till commencement of

commercial cargo operation



The broad level scope of work is spelt out below:

Based on the agreed terms, the Deloitte had completed first part of the assignment and has

prepared this detailed project report, incorporating detailed review of project report prepared

earlier.

2.2 Structure of the Report

The report contains chapters on project background, overview of business landscape, market

analysis, site investigations, marina planning aspects, operational aspects, determination of tariff

and other revenue streams, project cost estimation, financial analysis and recommendations as

structured in the table below. Some of the terms such as “activities” and “facilities”, “Cochin” &

“Kochi”, “land based” and land side”, “water based” and “water side” have been used

interchangeably.

The details of the passenger terminal were earlier provided in a separate DFR report, wherein it was

clubbed with the proposed cargo terminal facility at Alappuzha. However considering that the cargo

terminal facility is not feasible, it has been proposed to concentrate only on the development of the

passenger terminal as part of the tourism related facilities at Alappuzha. The relevant details of the

passenger terminal are mentioned in chapter 12. The DFR study undertaken for the cargo terminal is

attached as a separate addendum to this report .

Technical

• Conducting a detailed reviewing and updating of the project report prepared by L&T Ramboll and

suggest any changes if required and carry out the modification after approved by Government.

• Suggest measures to develop areas from Thykkal to Thottappally as a tourism zone along with the

Marina project.

• Determine the extent of land required for the project including reclamation if any required.

Demarcate areas proposed for Marina and Cargo harbour in Master Plan

• Feasibility of constructing a submerged breakwater for creating a calm basin for the Marina may be

established after detailed technical studies including necessary Model studies.

• Determine and fix levels to which capital and maintenance dredging is required with a detailed

dredging plan after conducting a Model study based on littoral drift, wave coastline characteristic

etc.

• Prospects of linking Marina with backwater tourism

• Details of firefighting, sanitary arrangements, water and waste water management and obtaining of

all necessary clearances from relevant authorities in this regard

• Examining the prospects of developing coastal shipping through Alleppey port

• Preparation of proper security plan under ISPS code.

Financial

Revised cost estimation for Marina, both capital and operation maintenance.

Suggest methods by which Port land can be optimally used for the project

Fixation of tariffs structure and revenue estimate

Economic and financial analysis

Project structuring option along with recommendation. The Consultant shall suggest all possible

option of Ownership which can be adopted.

Project implementation methodology and time schedule

Funding options/arrangements for the project and identify the resource for meeting the project.



.

This entailed revision of the layout plan of the passenger terminal and subsequently revising the cost

estimates and accordingly the financial viability.

Chapter Topics Covered

Chapter 1 Provides executive summary of the Detailed Project Report

Chapter 2 This chapter on introduction covers project background , rationale, & report structure

Chapter 3 This chapter deals with the overview of business landscape – PESTLE and SWOT

analyses

Chapter 4 This chapter gives an insight into the concept of marina as is understood universally and

also presents an assessment of Alappuzha as a location for development of a full service

marina.

Chapter 5 This chapter presents a prefeasibility analysis for inland marina from an operational

standpoint

Chapter 6 This chapter describes the tourism activity in Alappuzha which is the mainstay for the

proposed infrastructure, explains the approach followed for estimating the market

demand and presents the actual market demand in terms of end users and

infrastructure required, derived from secondary data and primary search.

Chapter 7 This chapter covers the details of the site investigations including environmental details,

connectivity issues, topography of the region, bathymetry, tide, wave, wind, current

and profile of the existing infrastructure such as power, water, roads, railway,

telecommunications etc.

Chapter 8 This chapter deals with planning for Marina and other land and water based

infrastructure facilities and narrates the

Planning considerations

Marina layout

Marina facility requirements

Planning criteria – tranquility requirements, turning circle, marine operational

criteria and storage area levels

Specifications of operations - width and depth of channel

Chapter 9 This chapter provides details of capital costs and operation & maintenance costs for the

various facilities so planned

Chapter 10 This chapter covers the overview of tariffs, regulatory framework, and tariff

determination

Chapter 11 This chapter deals with the financial analysis covering the identification of revenue

streams, cost structure, debt-equity ratio, projected profitability and cash flow

statements, estimation of net present value (NPV), internal rate of return (IRR)

Chapter 12 This chapter provides the details of the passenger terminal including its revised layout,

cost estimates of the facilities forming part of the said terminal. The details of the

passenger terminal were earlier provided in a separate DFR report, wherein it was

clubbed with the proposed cargo terminal facility at Alappuzha

Chapter 13 The last chapter of the main report provides the strategic recommendations about the



Chapter Topics Covered

proposed marina and other land and water based infrastructure facilities

Annexures This includes details of the stakeholders contacted for the primary survey, layout plans

for various facilities, detailed financial calculations, topography of the area designated

for the inland marina, details of the REIA study and model studies undertaken.

Table 2-2: Structure of the Detailed Project Report (DPR)



3 Overview of business landscape Business landscape is a broad view of macro-economic factors which affect the industry players and

determine the investment attractiveness of the destination. The elements covered under business

landscape include Government policies, legal & regulatory framework, socio-cultural dynamics,

technological advancements, among other things. While Kerala has a commendable Human

Development Index (HDI) and impressive socio-economic indicators such as literate workforce,

availability of science & technology personnel; the state is lagging behind other states in terms of

industrialization. In this chapter, we assess the business landscape through PESTLE analysis and

analyze the inherent strengths & weakness along-with a view of external environment through

SWOT analysis.

3.1 PESTLE analysis

PESTLE stands for Political, Economic, Social, Technological, Legal, and Environmental. PESTLE

analysis refers to a framework for evaluating existing as well as likely future state of macro-

environment factors that have bearing on the business organizations. The organizations can better

adapt their strategies towards expected future scenario by understanding PESTLE analysis.

The model explores six strategic dimensions which are briefed below. Our aim to conduct a PESTLE

analysis was to analyze:

a) Regulatory policies, legislation and standards imposed on the industry in Kerala

b) Developments in the region and international scenario

c) Social and political factors likely to impact the proposed cargo harbor at Alappuzha.

Each element of PESTLE analysis is presented on following pages.

Figure 3-1: Framework for PESTLE analysis



3.1.1 Political

Kerala has been under coalition politics ruling at the State level most of the time. The current

government in state of Kerala has completed four years. The state has achieved a high degree of

success in social health care, literacy, land reforms, education, and social service initiatives.

However, in terms of industrialization, it is way behind other states like Gujarat, Maharashtra, Tamil

Nadu and Haryana. Traditionally, it has been home to small scale industries like coir making, fishing

and agricultural / horticultural products like spices, cashew, rubber, etc.

Having said this, Kerala has been India’s leading state in terms of developing tourism and

attracting large number foreign and domestic tourists. Various government agencies connected

with the management, development, regulation & promotion of tourism have taken proactive

initiatives and transformed Kerala into an international tourist destination through innovative

programmes, marketing / branding and promotion.

The government has been pro-actively seeking to attract and enhance investments in the state and

therefore, policies should continue to be conducive to business; more so in future. The government

has successfully undertaken infrastructure projects on PPP mode in past and is very likely to

continue to use PPP route in future. In fact, Kerala was the first state to successfully develop an

airport under the Public Private Partnership mode. Today, Kerala boasts a total of eleven contracts

under PPP mode, the values of which total up to approx INR 11,973 Crores3. With PPP now covering

most of the infrastructure projects including highways & ports, and the state having demonstrated

its commitment with CIAL4, the road ahead for other project developments under the PPP mode

should not be difficult.

Particularly for development of port / maritime sector, the union government has formulated an

ambitious plan under the National Maritime Development Plan (NMDP), which envisages phased

developments of maritime resources in the country including Kerala.

3.1.2 Economic

We analyze the economic scenario at three levels viz. national level, state level and the district level.

India

India’s gross domestic product (GDP) is estimated to have grown by 7.4 per cent during the 2009-10

fiscal, up from 6.7 per cent in the year 2008-09. The government is optimistic about the spurt in GDP

growth and views the figures as further confirmation of the economy’s recovery. Further, the World

Bank has forecasted GDP growth for India at 8.5 percent and 9.0 per cent in 2010-11 and 2011-12

respectively. Real GDP growth is forecast to average around 6% for the next nearly 20 years, making

India one of the fastest-growing economies in the world.

Kerala

Kerala’s economic performance is driven by the secondary and tertiary sectors. The state‘s GDP grew

at a compounded annual growth rate (CAGR) of ~ 12 per cent between 1999-00 and 2008-09 to

3 www.pppindiadatabase.com

4 Kochi International Airport (CIAL), a public company, was set up with the support of Non-resident Indians, a 13 % holding each by the Government of Kerala and the Central government and the balance 74 % majority held by private players.

http://www.pppindiadatabase.com/



reach US$ 40.5 billion5. Driven by manufacturing, construction, electricity, gas and water, the

secondary sector has been the fastest growing sector, at a CAGR of around 14.5 per cent. The per

capita income of Kerala was Rs. 49316 in 2009-10, as compared to all-India average of Rs. 374906.

The tertiary sector, the largest contributor to Kerala‘s economy, accounted for 60.94% contribution

to GSDP in 2009-10 as compared to 60.06% and 59.03% in 2008-09 and 2007-08 respectively7. The

sector was driven by trade, hotels, real estate, transport and communications.

Significance of Kerala’s tourism economy

Kerala is rightfully recognized as the pioneer and trendsetter in tourism development and promotion

in India and is one of the top upscale tourist destinations. In terms of monetary impact, tourism

accounts for 7.70% of the State’s GDP with the total revenue generated by tourism at Rs. 11,433

crore in 2007. Tourism accounts for about 10 lakhs in total employment generated in Kerala. These

include skilled, semi-skilled and unskilled labourers. The tourism industry invests approximately Rs.

1,000 crores per year in Kerala.

Economic indicators of Tourism in Kerala

Earnings from Domestic Tourists 2007 Rs. 5978.65 crore

Earnings from Domestic Tourists 2006 Rs. 4891.94 crore

% Variation over previous year 22.21%

Total Earnings (Direct) 2007 Rs. 8619.59 crore

Total Earnings (Direct) 2006 Rs. 6880.34 crore


Total Revenue Generated 2007 Rs.11433 crore

Total Revenue Generated 2006 Rs.9126 crore


The average per day expenditure of a foreign tourist Rs.3200.

The average per day expenditure of a domestic tourist Rs.1500

Table 3-1: Tourism in Kerala – economic indicators

Foreign exchange earnings

from Tourism

Earnings (Rs. Cr) % variation

1996 196.38 23.70

1997 273.20 39.12

1998 302.08 10.57

1999 416.07 37.74

2000 525.30 26.25

2001 535.00 1.85

2002 705.67 31.90

2003 983.37 39.35

2004 1266.77 28.82

2005 1552.31 22.54

2006 1988.40 28.09

2007 2640.94 32.82

5 Kerala State - Budget in Brief 2009-10

6 Kerala State – Economic Review 2009

7 Kerala State – Economic Review 2009



Table 3-2: Foreign exchange earnings from tourism in Kerala

Source: Kerala Tourism Statistic 2007 Report, Department of Tourism

New Tourism Policy Initiatives Various initiatives taken by the GoK for growth of the tourism sector are: • New policy initiative on Responsible Tourism • Formulation of Destination Management Committees in every tourist destinations • Initiated schemes for promoting souvenir industry • District Tourism Promotion Councils reconstituted • Initiated schemes for promoting adventure tourism • Initiated schemes for promoting Ethnic Food tourism • Comprehensive development of Alappuzha heritage city • Comprehensive development of Kerala Kalamandalam • Development of Astamudi cruise circuit • Kadinamkulam Backwater project • Bringing the merit of IT for the Tourism Industry • Launching of a series of online initiatives branded Login. Kerala • Partnership with Google

Promotion of monsoon tourism

Source: Kerala state Economic Review 2009

Alappuzha

The economy of Alappuzha is based on two principal activities - coir products and backwater

tourism. The district is known as the traditional home of coir industry. The major export

commodities from the district include coir yarn and fibre. Apart from coir, Alappuzha and

surrounding regions produce lime shell, plywood, potassium chloride and coconut, copra, coconut

oil, glass, mats, marine food and matches, which have an important contribution the district’s

economy. Alappuzha is a centre for exporting coconut oil, arecanut, cardamom, sugar and pepper

from surrounding region.

The total investments made in the micro-industries sector in Alappuzha district during the year

2009-10 was Rs. 40.23 crores entailing about 4000 new employment opportunities. In the year 2010-

11, it is expected to have a fresh investment of about Rs. 50 crores in the same sector.

On the tourism front, Alappuzha accounted for 2.33% of the total tourist arrivals of Kerala in 2009, which includes 31,556 foreign tourists and 162,877 domestic tourists. Alappuzha, popularly referred to as the ‘Venice of the East’, is a leading tourist destination in Kerala. Alappuzha offers almost everything –backwaters, boat races, beaches, pilgrim destinations, local cuisine, and much more. Over the last decade Alappuzha has grown in importance as a backwater destination, attracting several thousands of tourists each year – domestic as well as foreign.

3.1.3 Social

The socio-cultural dynamics play an important role in determining the future business potential of a

proposed venture and success of port / marina development is no exception. Given the current state

of affairs and future growth potential of the region, port / marina development activities would

provide the necessary impetus for development of trade and industry in the region.



3.1.4 Technological

Kerala boasts of 100% literate workforce and easy availability of science and technology personnel.

Therefore, the state is well versed in use of technology. The government has embarked upon

‘Information Kerala project’ for modernization and integration of government functions using IT by

networking and computerizing the 1214 local self-governing bodies

With the globalization and market pressures to be competitive through high degree of efficiency and

smooth operations at different interfaces during water transportation, technology deployment and

integration has assumed significant importance for development and growth prospects of a Port.

Advancements in port technology, particularly relating to containerization and information

exchange, are warranting the need for major financial commitments to stay ahead of the technology

wave.

Cochin is the first port to have successfully launched the concept of ‘ePort’, which essentially

integrates the port’s operational, financial, real estate, & human resources on an integrated Port

Information system. It also ensures a single window facility to trade for filing out application,

receiving service bills, payments & enquiries. Once fully functional, ePort will provide interface

between customs, port users, banks, and port community system of all India Ports Association.

A late entry in a competitive setup implies immense potential to incorporate the best and latest of

technology in their proposed operational set-up, without worrying about the compatibility with the

legacy systems. Upcoming ports like Alappuzha can draw on this opportunity by providing advanced

technologies like Global Positioning System (GPS), Warehouse Management System (WMS), Radio

frequency identification (RFID), and thereby gain competitive edge over the operational ones.

However, it technology deployment has huge cost implications and can be beneficial only in case of

huge cargo volumes.

3.1.5 Legal and regulatory

The ports sector in India is governed by Ministry of Shipping at union level for major ports and

departments of ports / maritime boards at the state level for minor and intermediate ports. Four

states, Gujarat, Maharashtra, Orissa and Tamil Nadu have set-up maritime boards at the state level

for developing and administering ports under the state government purview. Other coastal states

have a department / directorate for ports in the state.

While there have been progressive reforms in the regulatory regime in infrastructure including ports

sector, nationwide there are still issues hampering the proper functioning of maritime and logistics

in the country. Major issues can be broadly grouped as under:

Customs

1. Legacy customs formalities including documentation taking long time for clearance and

causing huge delays

2. Complex / ambiguous rules & regulations leaving interpretation to the discretion of

authority/ies concerned

Taxation / Bureaucracy

a) Multiple taxes render Indian shipping internationally non-competitive

b) Lack of coordination and interaction among different regulatory agencies for logistics -

Involvement of multiple agencies such as Commerce Ministry for ICD/CFS/SEZ, Rail ministry



for private rail terminals, Ministry of Surface Transport for Roads, & Shipping Ministry for

Ports / Shipping leading to cost overruns, inconvenience & delay

c) Applicability of multiple acts such as Railway Act, Merchant Shipping Act, Indian Ports Act,

MMTG Act rendering compliance cumbersome as regards multi-modal operations

Intervention at the Central level is indispensable in getting these issues resolved. However, pro-

activeness & commitment of State Maritime Boards / Port departments can go a long way in helping

the sector sail through regulatory hurdles. Gujarat’s success in developing a good port sector was

also possible due to phased privatization followed by fully private ports.

3.1.6 Environmental

Kerala state is endowed with rich natural resources - minerals, marine products, and agri-products.

Kerala’s coastal stretch is characterized by the presence of lagoons, kayals, estuaries and coastal

dunes. It also has a rich biodiversity and is home to many exotic species of birds, animal and plants.

Particularly Alappuzha boasts of picturesque canals, backwaters, beaches, and lagoons along its

coastline.

Any developmental activities along the coast may pose a threat to the environment in form of soil

erosion, pollution, salt-water intrusion, etc and this can adversely impact the region’s biodiversity.

Hence, environment assumes a very high significance for developmental projects, especially

infrastructure projects such as ports.

3.2 SWOT analysis of Alappuzha for developing tourism based

infrastructure

SWOT analysis is a strategic tool to make an assessment of internal environment and scrutiny of

external environment, with an objective to take maximum benefits by having an appropriate

business proposition. SWOT analysis assesses the inherent strengths and weaknesses within the

organization / venture and evaluates the likely impact of opportunities and threats from external

environment. With regards to building tourism infrastructure at Alappuzha, this exercise will help us

identify the important factors to be considered while designing the future action and strategic plan

for its development.

The diagram below encapsulates the SWOT analysis for tourism based infrastructure at Alappuzha.



Figure 3-2: SWOT analysis of Alappuzha for tourism based infrastructure at Alappuzha

3.2.1 Strengths

Alappuzha is the nucleus of all backwater tourism in Kerala. While there are also other

backwater circuits in Kerala, the uniqueness of the Alappuzha backwater tourism lies in the

fact that it offers a rich, proximate view of the rural backwater life. Characterised by endless

vast and tranquil expanse of backwaters it goes till the eye can see.

There are various products options at Alappuzha such as backwater tourism using

houseboats (including rural tourism and canals in the villages), Agricultural activities and

Marari beach (located south of Arthungal).

Alappuzha ‘s tourism sector will from now on have an added attraction apart from its houseboats and backwaters, one that will revolve on the heritage value of the quaint little coastal town, known across the globe as Venice of the East.

The State government's project for Alappuzha, will be on the lines of the Rs.140-crore Muziris Heritage Project (MHP) spread over Thrissur and Ernakulam districts, though in a smaller scale. This is part of four similar projects. The ongoing Muziris project is the first one, Thalassery the second, Alappuzha the third, and the fourth in line is Wayanad. It shall include preservation and conservation of existing heritage buildings, a regular maintenance action plan for the historic canals here, a link between the backwaters of Kuttanad and the canals, showcasing of handicrafts, Alappuzha ‘s age-old coir factories and so on will be part of the project.

Attitude of local people has changed drastically. Hence there should be no problems for developing infrastructure for marina. Private entrepreneurs are ready to invest in tourism.

3.2.2 Weaknesses

Alappuzha has dominance of trade unions which dictate the norms for industrial labour and

the region is notorious for labour problems. This poses a big challenge for development of a

port and subsequently smooth operations round the year at the port.

Strengths

- Existing tourist attractions- Ready tourism market- Government plans

Weaknesses

- Potential labor issues

Opportunities- Ready tourism market- Multiple tourist attractions

Threats

- Competitive threat



Most of the Kerala roads are narrow and Alappuzha suffers from the same problem. In terms

of road connectivity to the port, Kottayam’s road access to Ernakulum is better than

Alappuzha.

3.2.3 Opportunities

Alappuzha‘s inherent attractions such as the existing canal system, beautiful backwaters, a

clean beach provide an ideal environment for developing tourism based infrastructure.

The high amount of tourist inflow is a ready available market for newer attractions.

3.2.4 Threats

Tourists arriving in Kerala get distributed over numerous destinations. Hence all of them are

in a way a competitive threat, especially Kumarokam which is also a famous backwater

tourism.

While the locals are in principle supportive of development, political support will be a critical

success factor especially since it will require coordination amongst multiple agencies.



4 Marina development at Alappuzha

This chapter gives an insight into the concept of marina as is understood universally and also

presents an assessment of Alappuzha as a location for development of a full service marina. It

recommends the type of marina that is appropriate for Alappuzha and other recreational land and

water based infrastructure. The chapter also covers key findings from the primary study and includes

comments on the marina model suggested by L&T Ramboll.

4.1 Introduction to the concept of Marina

4.1.1 Definition

Yachting

Before defining a marina it is worthwhile to define yachting. A "yacht" is a vessel used primarily for

pleasure, further classified as motor yacht and sailing yacht.

Small (<6m) open sailing vessels, although technically yachts, tend to be called sailing boats

or sailing dinghies.

Similarly small motor vessels tend to be called motor boats.

Figure 4-1: Types of yachts

A yacht can be large or small, and powered by sail or motor (hence ‘sailing yacht’ and ‘motor yacht’)

and also certain classes of vessels are specially designed for leisure use by tourists on inland

waterways, canals and backwaters.



Figure 4-2: Sea-going and inland waterway yachts

Important: Sea going yachts are entirely different from inland waterway yachts and will not use one another’s waters. Consequently the marina requirements for both are different

Marina

Going by the internationally recognised definition, a marina is a sheltered harbour designed

primarily for yachts and other small craft and where services geared to the needs of recreational

boating are found. It is a facility required for safe anchorage and parking of small speed boats,

pleasure crafts and yachts.

A “marina” is a harbour purpose-designed to suit yachts.

Marinas offer safe berths, utility supplies, safety & security, and onshore facilities such as

restrooms, F&B, provisioning, repair services etc.

Marinas are the ‘infrastructure’ of the boating and nautical tourism industry.

Marinas and yachting / boating ownership and tourism is a multi-billion dollar business in

Europe, North America, & Australia.

In India people are just beginning to engage in water sports like yacht-owning, jet-skis,

dinghy sailing, canoeing, pleasure cruises, but these all need infrastructure, and specifically

marinas.

For the services such as dockage, bunkers, repairing, etc a service fee or membership fee can be

charged. The concept of marinas has evolved from the early “parking lots for boats” concept to one

where an overall marine experience is provided and where hospitality and lifestyle elements play a

big role.

Figure 4-3: Grand Harbour Marina, Malta

Source: Grand Harbour Marina, Malta - courtesy of Marinetek Group



Figure 4-4: A floating pontoon system to provide safe & convenient access to each yacht.

Source: Arrol Ltd

4.1.2 Facilities

The modern marina has multiple facilities like re-fuelling, washing and repair facilities, stores and

restaurants. Marinas also include ground facilities such as parking lots for vehicles and boat trailers,

picnic area, club-house for a shower, etc. These facilities can be availed through fixed fee packages

or depending on the individual need.

4.1.3 Types of Marinas

The full-service, international class marina: This would typically offer berthing for a wide range

of yacht sizes (up to and including some berths for super yachts), and its own boatyard /

technical support, fuel, and low season boat storage (either on site or close by), waterfront

commercial / retail activity including F&B, a yacht club, a social and events programme, and

classification as a Port of Entry.

The basic marina: This would typically offer a range of berth sizes appropriate to the local

market, key commercial / retail facilities (including a modest F&B outlet), and fuel if none is



available nearby. A boat lifting facility might be provided to allow essential repairs to be carried

out, but owners would rely on nearby boatyard facilities for more extensive work.

The yachting station: This is targeted towards cruising yachts and would typically take the form

of a small conventional marina, or it might take the form of a quay / jetty and / or mooring

buoys. The characteristics and aim to provide safe short-term, a safe landing place, and access to

potable water and restrooms.

4.2 Comments on the Marina model proposed by L&T Ramboll

In their study, L&T Ramboll have suggested four business model options some of them for exclusive marinas while others comprising a marina and commercial port. The marina model though broadly can be depicted as follows:

Figure 4-5: Schematic representing Marina model proposed by L&T Ramboll

It will be noted that L&T Ramboll use the word "marina" in the local sense rather than in the internationally accepted sense as described earlier above. Hence their model includes activities for the general public as well as for the yacht owner.

Our comments on the same are mentioned below:

4.2.1 Comments on Business Models proposed by L&T Ramboll

# Business Model Option (BMO)

Description DTTIPL comments

1. BMO 1 Marina & water park Commercial cruise ships There do not seem to be compelling reasons which might encourage international cruise vessels calling at Cochin port to also call at



Alappuzha enroute. If we were to consider the backwaters as a potential attraction then the direct road link between Kochi & Alappuzha would be a cheaper and easier option. Secondly, possibility of cruise passengers (mostly international) themselves visiting Alappuzha in smaller vessels, after disembarking at Kochi port, appears weak as they mostly prefer visiting attractions located in the close vicinity of Kochi such as Fort Kochi. Having said this, there is a certain merit in the concept of a passenger cruise activity centered around Alappuzha and DTTIPL has explored this option and actually recommended a domestic passenger cruise service between Kochi & Alappuzha wherein the cruise experience itself and on-shore recreational attractions at Alappuzha would be the market driving factors. Details of this proposed activity have been mentioned in the DPR on Cargo harbour submitted separately by DTTIPL. Passenger terminal While the L&T Ramboll model recommends small launches carrying passengers to main cruise vessels anchored in open sea, the rather rough nature of the sea waves may not fully support such passenger lighterage operations from a safety perspective. At the very least smooth water would have to be created at the beach to allow safe embarkation, perhaps by the construction of a detached breakwater offshore. Marina The marina as conceived by L&T Ramboll under this BMO serves NOT as “parking” bay for individual boat owners (as the market demand is weak) but primarily as anchorage for various boats / vessels / equipments required for running of operations proposed under the water side activities. This alternative way of looking at Marina in principle looks acceptable; however all of the proposed operations do not look viable in context of cost / operational / safety related



issues.

A. Water based activities:

Sailing in open sea All the three categories of boats recommended – yachts, catamarans and sailing boats are likely to be expensive hence rather than considering all of them it would be more appropriate if we consider only one category of such high end vessels. Here too, we believe speed boats may be a more exciting proposition as compared to other pleasure rides. Therefore, DTTIPL proposes to operate “speed boats” instead for providing rides in the open sea. Water sports Some of the proposed water sports activities by L&T Ramboll such as parasailing, wind surfing, water skiing etc., may require higher user skills which many of the tourists may not possess. Also considering the short span of time available for each individual user, imparting training would be difficult. B. Land based activities:

Water Park Activities proposed for the water park viz., wave pool, water slide & banana boating look acceptable, however in case of banana boating, the real value of the experience will be gained only if it is enjoyed in the open sea. Hence we propose that Banana boating be provided in the open sea instead of inside the water park. Amusement park The amusement park / theme park will be an added attraction; however we propose a slight variation wherein it shall focus more on the local culture and tradition. More details on the theme park are explained in the chapter on Infrastructure planning. Oceanarium There is already a bigger Oceanarium being planned at Puthu Vypeen near Kochi with a budget of almost Rs. 450 crore. This may create stiff competition for the Oceanarium at Alappuzha as proposed by L&T Ramboll.



Instead a Dolphin pool could be a better option as explained in the next section. Government support DTTIPL agrees that government support in the form of fiscal incentives and speedy approvals will be critical in realizing the project on ground. Market analysis

As pointed out by L&T Ramboll report, DTTIPL agrees that the immediate catchment area does not show prospects of individual boat owners. Also with the pontoon based marina at Bolgatty Palace in Kochi now operational, the same would serve the needs of international yachters.

2. BMO 2 Commercial port: A: All weather commercial port B: Fair weather commercial port

Comments on this model are covered in the DPR on Cargo harbour and passenger terminal submitted separately by DTTIPL.

3. BMO 3 Marina & commercial port Under this BMO, L&T Ramboll has positioned the commercial port as the principal activity with a marina alongside. The Marina is envisaged only as a parking bay for pleasure crafts, sailing boats, yachts etc.,

For the commercial port, L&T Ramboll have considered EXIM cargo, possibility of which looks unlikely because of draft restrictions and low volumes. Instead coastal shipping would be a better alternative. This is covered in the DPR on Cargo harbour and passenger terminal submitted separately by DTTIPL.

4. BMO 4 High end international tourism

BMO 4 assumes market demand to come mainly from foreign tourists interested in pleasure and recreational activities. Here the general feedback we have received during the field study is foreign tourists usually are keen on avenues which will provide then an experience of the local life & culture, also many of them visit to relax and explore natural attractions at leisure. While a portion of foreign tourists could show interest in the activities proposed under this BMO, it may however not be entirely correct to consider them as the



only / main segment of users.

Also under this BMO, foreign yachters from Europe are assumed to avail marina services. In this regard, the marina at Bolgatty Palace in Kochi which is now operational, would serve the needs of international yachters and yachters may not have a compelling reason to visit Alappuzha.

5. General comments

Detailed financial analysis is not available in the DPR prepared by L&T Ramboll.

Details of backwater tourism and relevance / synergies with proposed Marina not explained.

Table 4-1: Comments on various marina models proposed by L&T Ramboll

4.2.2 Deviations from the business model proposed by L& T Ramboll and rationale

DTTIPL has proposed retaining some of the activities proposed by L&T Ramboll while discontinuing some of them which might pose cost / operational / safety challenges. This is covered in the table below

# Activity as per L&T Ramboll

Substitute activity proposed by DTTIPL

Rationale

1. Commercial cruise Passenger cruise from Kochi to Alappuzha

Higher probability of domestic tourists interested in cruise experience.

Less probability of international cruise ships calling at Kochi port to also call at Alappuzha enroute.

Safety challenges associated with passenger “lighterage” operations.

2. Sea-side Marina system

Inland Marina system alongside commercial canals

A full fledge sea-side marina system shall require an expensive harbour.

Instead, an inland marina system is being proposed as a new addition by DTTIPL. Inland marina can leverage on the unique canal boating experience it can offer along with a view of the town life and heritage structures along the canal shoreline.

A detailed rationale is provided in subsequent sections in this regard.

3. Water side activities Retained Core concept retained with some deviations as described below



# Activity as per L&T Ramboll

Substitute activity proposed by DTTIPL

Rationale

Yachting / Sailing / Catamarans

Speed boats & banana boat rides

Yachts, catamarans and sailing boats are likely to be expensive. Also speed boats may be a more exciting proposition as compared to other pleasure rides.

Water scooters Retained -

Wind surfing Not proposed to be retained

Wind surfing, water skiing and parasailing may require higher user skills which many of the tourists may not possess. Also considering the short span of time available for each individual user, imparting training would be difficult.

Water skiing

Parasailing

4. Land side activities Retained Core concept retained with some deviations as described below

Oceanarium Dolphin Pool There is already a bigger Oceanarium being planned at Puthu Vypeen near Kochi with a budget of almost Rs. 450 crore. This may create stiff competition for the Oceanarium at Alappuzha as proposed by L&T Ramboll. Hence instead of the Oceanarium, a Dolphin pool which will be a novelty is being proposed. The Dolphin pool is concept very popular from the world over for its uniqueness and as of date, there are no existing dolphin pools in India.

A brief comparison of the Oceanarium and Dolphin pool is given below

Snorkelling Not proposed to be retained in context of Oceanarium being replaced by Dolphin pool

Amusement park Retained as “theme park” with more local flavor

5. Health spa Retained with emphasis on basic Ayurvedic treatment

6. Restaurant Retained

Table 4-2: Proposed deviations from the marina model suggested by L&T Ramboll



Comparison of Oceanarium & Dolphin pool

Particulars Dolphin Pool Oceanarium

1. Capital Costs Lower capital costs

1. Lesser number of species 2. Less volume of water 3. Less space requirements 4. Less or no requirements for

costly acrylic glass panels

Higher capital costs

1. Higher number of species 2. More volume of water 3. More space requirements 4. Large requirement for costly

acrylic glass panels

2. Operating Costs ( For aquariums world over, 35% operating profit margin)

Lower Operating costs

1. Less frequent replenishment of species

2. Less volume of water will have to be treated and filtered

3. Well trained staff will be required

Higher Operating costs

1. Large number of species hence frequent replenishment required

2. Large volumes of water will have to be treated and filtered

3. Well trained staff will be required

4. Needs very experienced and efficient management.

3. Number of Species Same species ( trained Dolphins) More number of colourful species are highly recommended for success of this facility

4. Novelty factor and repeat audience

Dolphins can be trained to do different acrobatic maneuvers which will appear visually pleasing

Novelty factor can be increased by introducing new and more colourful species

5. Financial Suitability with regards to the Overall project

Lower capital costs and higher operating margins will enable this component to achieve early breakeven and gather swift cash flows to cross subsidize other capital intensive infrastructure.

Higher capital costs and lower operating margins may not enable this component to achieve early breakeven.

Table 4-3: Comparison of Oceanarium and Dolphin pool



4.2.3 Summary of model proposed by DTTIPL

Based on the explanation presented in the above sections, the marine tourism infrastructure model

proposed by DTTIPL can be broadly depicted as follows:

Figure 4-6: Schematic representing Marina model proposed by DTTIPL

The following sections present an analysis of the type of tourism infrastructure that can come up at

Alappuzha starting with assessment of Alappuzha for a full service sea-side marina. As mentioned

earlier, DTTIPL is proposing an Inland marina instead of a full service sea-side marina.

4.3 Assessment of Alappuzha for developing full service sea side

marina

Alappuzha has been a prominent domestic and international tourist destination, largely on account

of the expansive and serene backwaters, and houseboat cruises have become quite popular.

Considering this, there has been a long felt need to leverage on the high tourist inflow and offer

other engaging avenues, such as recreational and adventure sports based facilities which might

appeal to the tourist population. Therefore the project proponents had a desire to develop a full

service sea-side marina at Alappuzha.

In this section, the word "marina" is used in the accepted international sense, meaning a harbour for

the berthing of yachts and other small craft.

The development of Marina / marina based infrastructure at Alappuzha involves seeking and

confirming answers to following aspects:

Why is the marina being developed? What is its core purpose?

Who are the end users and what are their needs?



What type of marina will meet the above needs?

What are the requirements for constructing the type of marina chosen?

How well does the identified location / site meet the above requirements?

What should be the scale / magnitude of the marina?

What are the main services to be offered? What are the allied services?

In order to address the above aspects, DTTIPL team along with global marina consultant Mr. Simon Arrol from “ Arrol Ltd.,” undertook a site visit and interacted with relevant stakeholders in Alappuzha. During the site visit, apart from the port area, other areas such as the canal system (especially commercial canals), houseboat terminal, existing jetties on the east side of the canal and backwaters were also visited by the team. The team also took a ferry service from Alappuzha to Thotappally in order to understand the backwater experience in a better way and also explore possibilities of developing tourism in the stretch between Thykkal and Thotappally. Adequate videography was done and site pictures were taken for further analysis. Apart from the Alappuzha port office, DTTIPL team also interacted with the Irrigation department, one of the agencies responsible for maintenance of the canals and district tourism council, Travancore chambers of commerce and some local houseboat operators. The following sections deal with observations of the project team regarding the proposed marina development in Alappuzha:

4.3.1 Local features of Alappuzha

Generally marinas and their surrounding environment lend / should lend a certain aesthetic feel and character to the area and provide a pleasant and relaxing view to the users and public at large. It is noted from worldwide observations that members of the public enjoy visiting the marina environment and watching the yachting activity. From this perspective, it is noted that Alappuzha can offer the following features which shall supplement the core marina facility or any other tourism based marine infrastructure.

Backwaters and houseboats Canal system of Alappuzha Aranmula snake boat race Sri Krishna Temple, Ambalappuzha Alappuzha Beach Mullackal Rajarajeswari temple: Kuttanad paddy fields Chavara Bhavan

Arthunkal Church

Krishnapuram Palace

These features are described in detail in the chapter on market assessment.

4.3.2 Possibilities of full service sea-side marina at Alappuzha

Alappuzha has been a prominent domestic and international tourist destination and the project aim

is to leverage on this strength and develop a leisure or tourism based infrastructure such as a marina

which might appeal to the tourist population. However, the conventional sense of a Marina i.e. a

safe and calm harbour for berthing yachts and other small craft, may not hold true with respect to

Alappuzha, as the possibility of individual boat owners is very less. The proposed Marina / marina

based infrastructure, therefore needs to be positioned more as a ‘recreational and sports attraction’

with water being the predominant theme, rather than a ‘parking’ base.



Initial analysis based on site observations and review of technical data seemed to suggest that while the land portion i.e. the beach and port area could be suitable for development of allied marina facilities, the nature of the sea waves and absence of natural protection or a breakwater would pose a challenge for developing the core sea side marina in its true form – the one that probably was being thought of earlier. In such a scenario, a yacht marina could be built in a new harbour but may not be sufficiently profitable to justify the cost of the harbour construction. Also as shown in the pictures below, such a marina would have to be expensively constructed to withstand storms and it may disturb the coastal regime resulting in problems of beach erosion and accretion.

Figure 4-7: Marina Bander al Rowdha, Oman

Source: Marina Bander al Rowdha, Oman; unattributed.

Based on - a) characteristics of the marine environment at Alappuzha, b) key operational / technical pre-requisites for developing a full service marina, and c) analysis of marinas in other locations it was concluded that it would be more appropriate and feasible to develop an inland marina on the commercial canal system instead of a full service sea-side marina requiring a massive breakwater . The Inland marina would thus be developed at the west end of the canal system, adjacent to the beach.

4.3.3 Leveraging the canal system for building an Inland Marina

Alappuzha canals Alappuzha is known for its distinctive feature of a city-canal system. There are six navigable canals in the town. These canals were used a means of transporting cargo and people. On the western side, the canals end near the pier on Alappuzha Beach. The unique feature of these canals is that they run “through” to the east side of the city and connect with the extensive backwaters. There are attractive structures along the shoreline reflecting colonial architecture and reminiscent of the old era which can attract tourists especially foreign tourists.



Figure 4-8: Commercial canal system at Alappuzha

Source: DTC Alappuzha, site pictures by DTTIPL

The development and maintenance of the canal system is entrusted with the Canal Management Society, which is headed by The District Collector. The society also has representatives from the department of Irrigation, department of tourism and local politicians. Currently the society has undertaken cleaning of the canals by dredging and removal of water hyacinths. This initiative in a way facilitates and supports the development of the Inland marina.

4.4 Proposed Inland Marina System

4.4.1 Inland marina system

Boat basin It is suggested that the Inland marina will be constructed by widening the end of the canal to create a boat basin and marina as shown in the schematic below. This will act as a terminus for the canal traffic. Boating operations will be introduced once the canal cleaning work is complete.



Figure 4-9: Top level view of proposed inland marina system

Source: Arrol Ltd, www.googleearth.com

Canal boating

The canal system is quite unique in terms of its overall spread. The eastern end of the canal system interfaces with the larger backwaters and the western end terminates adjacent the beach, separated by the port road. The canals pass through the heart of the old city and therefore can offer an excellent view of the town area through canal boating. It is proposed that canal boating shall offer pleasure / leisure rides in the commercial canals in the following types of boats:

1) Non-motorized 4-seater boats, 2) Motorized 08-10 seater & 3) Motorized 15-20 seater fibre glass boats.

The non-motorized 4-seater boats shall be let out for 1 hour rides and it is assumed each boat shall be let-out for 6 rides daily. The 08-10 seater fibre glass boat & 15-20 seater fibre glass boat round-trip shall take 2 hours including embarking and disembarking at the Inland marina. Therefore, one boat shall make four trips per day. Canal boating in the Inland Marina shall be functional for nine months only (October to June). It shall not be operational during the monsoon season.

End users

The target end users for the proposed Marina are tourists - both, domestic and foreign tourists,

although in the immediate term, foreign tourists are likely to patronize the Marina more than the

domestic tourists. Tourists anywhere, basically look for an “experience”, and shall have varied

expectations and needs, and therefore the services / amenities at the proposed Inland marina

therefore will have to centered around these needs. As is true for tourist destinations, the real value

it can offer to its customers, i.e. tourists would be on overall relaxing, enriching, and entertaining

experience.

Scale of the marina

The size / scale of the Marina will be depend on various factors like market size, future tourism

growth, proposed tariff levels, project costs, return on investment, incentives for developers /

operators, etc., While the designing and planning should take into account medium term scenario,

Widen canal to create a marina basin.

Floating pontoon jetties.



the scaling up or down will largely depend on market response and profitable returns. But having

said that, the marina at the west end of the canals cannot be very large because the basin will be

constrained by the many buildings around, and by the port road on the west and the railway to the

east. Should the market expand such that more marina berths are required then these should be

provided in a large, full-service marina to be provided at the eastern end of the canal system

adjacent the backwaters

4.4.2 Creating a conducive marina “ecosystem”

Improving the existing canals

For the canal boating operations to start, the existing canal system will have to be cleared. The two

main east-west canals (the Commercial Canal & the Vada Canal) each about 3Kms long, plus various

link canals, total about 11Kms of canals. Most of the canals are closed to navigation because of

rampant water hyacinth and by siltation. Closed canals are unsuitable for tourism, generate no

economic benefit, and adversely affect the tourism image. The canals are Alappuzha‘s most valuable

& famous asset and should be brought back into full use as soon as possible.

Figure 4-10: Overgrowth of water hyacinth in Alappuzha canals

Source: Site pictures by DTTIPL

It is understood that a study was recently carried out into dredging and repairing all the canals. In the future we suggest that a combination of traditional manual labour and specialist dredging machinery should be applied to execute the dredging & bank repair work faster, and to maintain the canals thereafter.

Figure 4-11: Current slow dredging in canals Figure 4-12: Productive multi-purpose dredger

& engineering vessel.

(Source: Site pictures by DTTIPL) (Source: www.watermaster.fi)

In order to improve the canals and the shoreline surrounding the canals following initiatives can be undertaken: Measures should be undertaken to improve water quality in the canals for the sake of public

health in general and tourism in particular.



Landscaping and structures along the canal should be better cleaned and maintained so as to improve the visual ambiance.

A waterbus service for locals and tourists could be developed. Boat trips with trained, multi-lingual guides can be started which will become a major tourist

attraction.

Source: Amsterdam Tourism.

RESULT - Create a vibrant area offering amenities and experiences for families, and for domestic and foreign tourists.

Improve landside area

The port area encompassing the proposed inland marina has potential to transform into a tourist

attraction by undertaking some of the following measures:

Refurbish the godowns for traditional craft workshops (e.g. carving, coir, jewelers), specialty retail, café/restaurants, and for local food products.

Figure 4-13: Refurbishment of existing port area


Refurbish the historic lighthouse (including making it safer for public access). Connect it to the

other areas of the project via the newly landscaped traffic-free areas. Refurbish the historic signal station and create a “Port & Canal Museum”.



Figure 4-14: Signal station at Alappuzha


All areas in and around the Beach, the Lighthouse, the Marina and the Signal Station to be traffic-free and landscaped for peaceful and safe enjoyment.

The By – pass road

The presence of a busy four-lane national highway (the new Alappuzha bypass) will have a major impact on the quality and enjoyment of the beach and the activities that take place there. Fortunately the problem could be easily solved.



Figure 4-15: By pass road to be constructed / under construction at Alappuzha

Source: Google earth & Arrol Ltd.,

The practical and environmentally sound solution is to place the road in a box tunnel, just below the surface. This will be almost invisible and noise output will be negligible. This would be a far better solution than a flyover which would spoil the visual appeal of the recreational activities on the beach and of the inland marina

Figure 4-16: Example of an under-pass at Alappuzha

The by-pass road in a box-culvert (tunnel) would run between the beach and the project area causing minimal disturbance to beach users and the facilities.



Source: Arrol Ltd.

4.5 Other infrastructure proposed at Alappuzha

Apart from the inland marina and general improvement of the port area surrounding the canal, following facilities have been proposed to leverage the existing and burgeoning tourist inflow in Alappuzha.

Land side activities:

Water park

Dolphin pool

Theme park

Health spa Water based activities

Water scooters,

Banana boat rides

Speed boat rides

Restaurant

Landside facilities

Description Land side facilities shall constitute of – a) Water park, b) Dolphin pool, c) Theme park, d) Health spa and e) Restaurant.

The Water park shall consist of -i) Water slides and ii) Wave pool.

The Theme park shall offer insight into the local lifestyle, art forms, culture, diversified eco-tourism and wildlife sanctuaries of Kerala.

The Health spa shall primarily provide Ayurvedic massages and treatment.

Customer segments Domestic & foreign tourists

Growth drivers The landside facilities are expected to provide a wholesome experience to the entire family. There shall be multiple options to choose from for different members from varying age groups. The restaurant shall treat the tourists to a delicious local and multi



cuisine.

Operational period The land side facilities shall operate during the entire year but the tourist inflow during the monsoon season is expected to be minimal and therefore tourist arrival data for this period is not considered.

Table 4-4: Proposed landside infrastructure facilities / activities

Waterside activities

Description Waterside activities shall constitute of water scooter rides, banana boat rides and speed boat rides near the beach area.

Water scooter rides: One ride will last for 15 minutes plus 5 minutes for change-over. Therefore 3 rides, catering to one tourist each, are possible in one hour.

Banana boat rides: One ride will last for 20 minutes plus 10 minutes for change-over. Therefore 2 rides, catering to five tourists per ride, are possible in one hour.

Speed boat rides: One ride will last for 30 minutes including change-over time. Therefore 2 rides, catering to ten tourists per ride, are possible in one hour.

Customer segments Domestic tourists only. Foreign tourists are assumed not to participate in these activities as they travel mostly for leisure purposes and also are likely to have access to better facilities in their own countries.

Growth drivers Adventure sports: Adventure water sports such as water scooters, banana boat rides, etc are popular with the younger travelers and working executives. The availability of such activities at limited locations in India is expected to attract the domestic tourists visiting Alappuzha.

Diversification of tourism products: Tourism in India is mostly restricted to sightseeing and pilgrimage. The availability of water sports in Alappuzha enriches the tourists’ experience as the tourists along with the scenic beauty and backwaters can have access to diversified tourism products.

Operational period The waterside activities shall operate during the fair weather season only and hence is expected to be operational for six months during the year (November-April).

Table 4-5: Proposed waterside infrastructure facilities / activities

4.6 Key findings of the primary survey

The project team interacted with various stakeholders such as tour operators, government departments, cruise operators, houseboat operators, water park operators, yachting clubs and resort owners to share with them the above concepts and obtain their feedback. Some of the key findings of these interactions are enumerated below:



Inland Marina & canal boating

Water front activities

Land side Activities

Drivers 1. Proximity of the backwaters/canals and sea.

2. Attitude of local people has changed drastically. Hence there should be no problems for developing infrastructure for marina. Private entrepreneurs are ready to invest in tourism.

3. Canal boating would bring in innovative experience of boating through the town area. But they have to be cleaned thoroughly and there should not be hindrances to the free movement of boats.

4. Foreign tourists will be interested in canal boating providing that the canal-side ambience and views are right.. Domestic tourists will be interested in canal boating, waterside activities and landside activities

5. Houseboat owners would be willing to enter the area of canal boating. They already own shikaras and new investments won’t be required immediately.

6. The state cabinet has approved plan for revival of the heritage sites of Alappuzha. It includes preservation and conservation of existing heritage buildings, a regular maintenance action plan for the historic canals, a link between the backwaters of Kuttanad and the canals, showcasing of handicrafts, Alappuzha ‘s age-old coir factories and so on will be part of the

1. Water front activities will be used by locals and domestic tourists.

2. Beach at Alleppy is normally full on weekends, with locals and people from neighbouring towns. Hence additional activities should help.

3. Students and persons in the age group of 25-40 would be interested in waterside activities

4. The tour operators can promote the proposed activities at Alleppy to the organised tourists if they are confident of the quality of services offered.

5. Marketing in North India will help attract domestic tourists for waterside activities.

1. Domestic tourists will be interested in canal boating, waterside activities and landside activities

2. Clubs, water sports, beachfront restaurant, etc should attract more tourists to Alleppy.

3. Alleppy can be the weekend destination for people from Cochin city, who can drive down by road (Kochi-Cherthala stretch has good roads)

4. Resorts can be a viable business option in Alleppy and waterside activities can be an additional feature of the resort.



Inland Marina & canal boating

Water front activities

Land side Activities

project.

Challenges 1. Some of the bridges have been constructed using the box culvert; hence it is not possible to dredge the canal bottom under these bridges. Maximum size of the boats for canal boating cannot be more that the size of the box culvert.

2. Canal boating would need coordination between different departments

3. Canals are getting clogged due to the presence of water hyacinth. This did not happen earlier as the sea water used to flow in the canals during high tide thereby preventing the growth of water hyacinth and kept the canal clean of other waste.

4. The Chungam bridge and Zilla Court bridge shall be main impediments to canal boating.

1. Creation of breakwater is important if activities are to be pursued in the sea.

2. Any infrastructure development and services offered should be affordable to the locals and domestic tourists.

1. Any infrastructure development and services offered should be affordable to the locals and domestic tourists.

2. Theme park is difficult as use of sea water will affect the infrastructure. And use of fresh water would require installation of a desalination plant, which would be costly.

3. Maintenance of assets on the beach will be difficult due to the salinity quotient in the atmosphere.

Table 4-6: Summary of key findings of primary survey

Some of the challenges cited above for the Inland marina (existing bridges & removal of water hyacinth) warranted more investigation and hence the project team separately carried out a pre-feasibility study for developing the inland marina / canal boating operations. This is covered in the next chapter.

4.7 Benefits to tourism at Alappuzha through the marina and

beach based tourism infrastructure

4.7.1 Significance of tourism for Alappuzha

Alappuzha has been a prominent domestic and international tourist destination, largely on account of the expansive and serene backwaters, and houseboat cruises have become quite popular. Additionally, Alappuzha‘s inherent attractions such as the existing canal system, heritage structures, a clean beach provide an ideal environment for developing tourism based infrastructure. However except for the houseboats which ply in the backwaters, small motorboats and a few resorts, no other tourism centric infrastructure has come up which could give further impetus to the tourism



activity and to the local economy. In order to offer engaging avenues to the tourists following recreational and adventure sports based facilities are being recommended as a part of the Alappuzha Marina and cargo / passenger harbor projects by the Directorate of ports.

4.7.2 Tourism benefits

4.7.2.1 Tourism hub

Alappuzha shall be poised to become a major tourism hub as the above facilities shall appeal to both foreign as well as domestic tourists. Facilities such as the inland marina, theme park, Ayurvedic spa shall attract foreign tourists while the sea cruise, dolphin pool water park, etc, hold more attraction for the domestic tourists.

4.7.2.2 Interest from tour operators

It was noted through various interactions with tour operators, that they would be happy to strongly promote Alappuzha as a tourism destination. However the absence of multiple tourism experiences and appropriate accommodation were acting as bottlenecks. This can be addressed through development of the above facilities.

4.7.2.3 Increase in stay at Alappuzha

Currently the average stay of tourists at Alappuzha is around 4 days. With introduction of the above facilities, tourists are expected to extend their stay , thereby providing tourism revenues.

4.7.2.4 Increase in number of tourists

With adequate promotion through various channels, these attractions could encourage more tourists to visit Alappuzha leading to direct tourism receipts and also benefits to the local economy such as employment, etc.,

4.7.2.5 Blends with state government’s tourism project

One of the State government's projects for Alappuzha revolves on the heritage value of the coastal town and is on the lines of the Rs.140-crore Muziris Heritage Project (MHP) spread over Thrissur and Ernakulam districts, though in a smaller scale. It shall include preservation and conservation of existing heritage buildings, a regular maintenance action plan for the historic canals, a link between the backwaters of Kuttanad and the canals, showcasing of handicrafts, Alappuzha ‘s age-old coir factories and so on will be part of the project. The facilities proposed above complement this initiative of the state government.



4.8 Tourism development between Thykkal to Thottappally

The stretch from Thykkal to Thottappally can be divided into two sub-stretches viz. Thykkal -Alappuzha and Alappuzha-Thottappally

The first stretch from Thykkal -Alappuzha covers places like

1. Marari Beach Resort 2. Mararikulam 3. Arattungal 4. Kannangarapally 5. Pathiramanal 6. Mannancherry 7. Punnamada 8. Kainakari (Chavara Bhavan)

The second stretch Alappuzha-Thotappally covers places

1. Ambalappuzha 2. Karumadikuttan 3. Kanjippadam 4. Thottapally 5. Thakazhy 6. Padakkaram Mukku 7. Chambakulam 8. Nedumudi 9. Pallathuruthi 10. Chennamkari

4.8.1 Tourism attractions from Thykkal to Thottappally

4.8.1.1 Marari Beach Resort / Mararikulam

The Marari Beach is located north of Alappuzha town. The fishing village is called Mararikulam and is barely 11 km from Alappuzha town. The beach is clean and safe for swimming and thereby an ideal vacation spot.

Actually, the Alappuzha-Marari is a 15 km stretch of beach area and attracts considerable tourist population. Places like Thumbloy, Pollathei and Pathirapalli have beautiful beaches and some of major hotels are situated in the vicinity. Tourism includes witnessing the local population involved in coir making & processing, fish farming, handicrafts with coir or wood, etc.

Located in the vicinity is the Marari Beach Resort offering multiple facilities to tourists viz. pool, tennis, water sports and ayurvedic treatments. The ayurvedic centre attached to the resort offers a host of ayurvedic treatments and packages and the staffs consists of well experienced doctors and masseurs.



4.8.1.2 Arthunkal

The Church at Arthunkal is one of the most sacred churches in Kerala and attracts lakhs of devotees both Christians and non-Christians every year from all parts of the State. The travel time to Arthunkal from Alappuzha town is barely 30 minutes. The feast of St. Sebastian is celebrated on a grand scale every year in the month of January.

The straight road from the church leads to the Arthungal beach. The beach is wide and used mainly for fishing activities. Not many tourists venture to this beach. The most captivating scene though is the sight of the backwaters flowing from the village side and stops short of meeting the sea.

4.8.1.3 Pathiramanal

This is a small beautiful island in the Vembanad Lake and is accessible only by boat from Kumarakom and Muhamma. According to mythology a young Brahmin dived into the Vembanadu lake to perform his evening ablutions and the water made way for land to rise from below, thus creating the enchanting island of Pathiramanal.

This little island on the backwaters is a favourite place of hundred of rare migratory birds from different parts of the world. It is possible to see such birds as golden-backed woodpeckers, night herons, kingfishers, paradise fly-catchers, egrets, bulbuls, shrikes, morning doves, crow pheasants and drongos.

Situated in the proximity of Pathiramanal is a place named Muhamma which consists of large number of coir making units and fish producers. Another place in the vicinity is Ponnadu. This beautiful village in the backwaters on the way to Pathiramanal consists of coir making units.

4.8.1.4 Mannancherry

Mannanchery is one of the small beautiful villages in Alappuzha district, Kerala. It is situated about 10 km towards north from Alappuzha. The famous Vembanad Lake forms the eastern boundary of this beautiful village and adds to its scenic beauty.

The famous temple called the `Sri Mahadeva Temple' (Siva Kshetram) under Travancore Devasom Board lies in the vicinity. The said temple was built by the Kochi Maharaj hundreds of years ago. There is also a known church located in Mannacherry.

Mannancherry is known for its coir products and is a the Mannancherry market is good place for local shopping. Majority of the population are engaged in Coir manufacturing and related works, others are engaged in fishing and agriculture.

4.8.1.5 Punnamada Lake

Punnamada Lake is a lake in the backwaters near Alappuzha. The lake hosts the annual Nehru Trophy Boat Race, which is held every August. The lake spreads over 10.5 acres with water frontage stretching over a kilometre

The Punnamada Lake is surrounded by coconut and areca nut trees and lush vegetations. A journey in the country-made boats through the lake will provide splendid sights of paddy fields and stretches of coconut palm groves.



4.8.1.6 Kainakari

Kainakari, another village in Alappuzha district accessible only by boat, is famous for Chavara Bhavan. The Chavara Bhavan is the ancestral home of the blessed Father Kuriakose Elias Chavara, one of the three Malayali candidates under consideration for sainthood by Rome. It is now a holy shrine and spiritual resort where thousands of devotees gather for prayer. Here, a 250 year old historically important beacon of light is preserved intact in its original and primitive form.

4.8.1.7 Ambalappuzha

It is situated 14 kms from Alappuzha town. The Sri Krishna Temple at Ambalappuzha has been built in the typical Kerala architectural style. The temple is famous throughout Kerala for 'Palpayasam' (milk porridge) of exceptional sweetness offered to the deity. The temple's main festival is held in March/April every year.

It is also witnesses the performance of Pallipana by Velans (sorcerers) once every twelve years. Paintings of the Dasavatharam (the ten incarnations of Lord Vishnu) are on display on the inner walls of the temple. The “Ottanthullal”, a satiric art form based on social themes was the brain child of the poet Kunchan Nambiar who performed it for the first time in the premises of this temple.

4.8.1.8 Karumadikuttan

Karumadikuttan is situated 3 km east of Ambalappuzha and known for its 10th century Karumadikuttan statue. The statue is a black granite figure of the great Buddha. Kerala‘s Ay kings were patrons of Buddhism in the State. This place attracts tourists due to many interesting legends connected to this idol. The idol has now been installed in a smaller shrine to protect and preserve it.

4.8.1.9 Thottappally Spillway

The spillway is located about 20 kilometres south of Alappuzha town and was built in 1954. Due to southwest monsoon, floodwaters used to accumulate in the rivers of Kuttanad making a second crop during autumn impossible. The spillway was constructed to solve this problem by diverting floodwaters directly to the Arabian Sea. Thottappally is also a favorite stop for nature lovers. The fishing harbor is the main attraction.

4.8.1.10 Thakazhy

The village of Thakazhy is a village of agricultural and cultural importance. It is located in the Kuttanad taluka of Alappuzha District. The place is famous for the Sree Dharma Sastha temple which attracts large number of devotees every year. There is long and interesting mythology related to this temple. The temple is presently own and maintained by the Travancore Devaswom Board.

The famous novelist and Jnanapith award winner Thakazhi Sivasankara Pillai was born in this village.

4.8.1.11 Champakulam

The Champakulam village (also known as the water logged village) is the place of oldest market, known as Kalloorkkadu angadi, in Kerala. The Nadubhagum and Champakulam snake boats which take part in the annual snake boat races are another attraction of this village.

But the most famous attraction of the village is the St. Mary Forane Church built in 427 A.D. The church is one of the oldest churches in Kerala and is said to be one of the seven churches established



by St. Thomas. The shrine draws hundreds of devotees, especially during the annual feast in October. The feast of St Joseph in March is also an important event.

The church is also famous for its beautiful mural paintings. Wooden statues of Christ, made nearby, are exported to various countries.

4.8.1.12 Chennamkari

Chennamkari is known for the St. Joseph’s church located in the village. This church is believed to be the first Catholic Church dedicated to St. Joseph ever erected in the whole of the continent of Asia. The church attracts scores of pilgrims every year.

4.8.2 Measures to develop areas from Thykkal to Thottappally as a tourism zone

The tourism authorities in Kerala and based out of Alappuzha are promoting tourism in Alappuzha as well as the neighbouring areas. The District Tourism Promotion Council at Alappuzha conducts the following tours to explore Alappuzha and its neighbouring tourist destinations:

a) Daily back water tours

b) Alappuzha - Kollam /Kollam - Alappuzha backwater cruise: The tour covers Karumadikuttan, Kumarakody, Kayamkulam Lake and Alumkadavu. Along the way the tourists get to see various attractions like the fishing using Chinese nets, coir making, vast paddy fields, typical Nalukettu Kerala houses, etc.

c) Kuttanad Boat Cruise: The tour route is Alappuzha – Kumarakom – Alappuzha

d) Village Tour using row-boats

The areas from Thykkal to Thotappally can further be developed as a tourism zone using the following measures:

4.8.2.1 Tour rides:

One day rides can be organised from Alappuzha to Thykkal / Thotappally and back. These tours shall be morning to evening tours by road in buses, minibuses or cars. The vehicles shall take a circular route starting from Alappuzha in the morning and returning to Alappuzha in the evening after taking the tourists to all the tourists’ places in the particular circuit.

Another option is similar one-day tours using the boats and waterways of Kerala. The boats though would be able to cover limited places during the day but the tour to new and unexplored attractions shall be selling point, in addition to tourist destinations like Kuttanad, Pathiramanal, Kummarakom, etc.

4.8.2.2 Combo-packages

The developer can attract tourists, particularly domestic and local, through combo-packages. The packages can include transfer to tourist locations in vehicles, visits to tourist destinations in and around Alappuzha, boating in the canals of Alappuzha, waterside activities and landside facilities.

4.8.2.3 Village accommodation facilities

Experiencing village life is something every tourist longs for, particularly foreign tourists and high-end domestic tourists. The developer should identify virgin destinations and develop facilities where



the tourists can stay in vintage cottages and experience the ambience of rural Kerala. But the developments should be carefully done on a restricted scale so as not to spoil the place.

4.8.2.4 Tie-ups with tour operators

Most of the tourists plan their visit to Kerala through tour operators. The tour operators have the influence to promote tourist destinations. The developer should consider tie ups with tour operators to promote the areas from Thykkal to Thotappally as a tourism zone.

4.8.2.5 Publicity through print media and internet

The developer should adequately publicise the tourist destinations through print media and the internet. Information counters at airports, railways stations and bus depots should play a definite part in the promotion of the tourist destinations.



5 Prefeasibility analysis for inland

marina

Aim of this prefeasibility report is to summarize and suggest methods to overcome the bottlenecks in the two main canals of Alappuzha for navigation of boats through them. The two canals run in the east west direction. Both are interconnected in the west and join the backwaters in the east. The connecting canals and small drainage lines entering into the Alappuzha Town Canals contains garbage, water hyacinths, pistia, grease or oils, fallen trees, domestic sewage etc. The main canals are now non-navigable due to the above pollutants as well as siltation and encroachments. At some places, the surface of the canal is covered with water hyacinths so that even country boats cannot travel through these canals. The municipal wastes and suspended solids settle to the bottom or wash upon the banks causing odours and depleting oxygen in town canals. This sludge creates hideous conditions and prevents the use of the canals for recreational purposes like boating. It also enhances flooding by diminishing the canal bed volume.

Figure 5-1: Alappuzha canal system

Source: Google earth

5.1 Control of water hyacinth

5.1.1 Introduction

Water hyacinth grows fast from seeds and from shoots, which break off and grow into new plants. The number of plants doubles every 5 to 15 days, so in a single season, 25 plants can multiply to reach up to 2 million. This means that if water hyacinth gets into a new river or lake, it grows until it covers the water with a thick floating mat of tangled weed. Some of the problems with hyacinth are:

The plants use up precious water. Water is lost over 3 times faster than from a clear water surface because of evapo-transpiration from the leaves. The quality of water is also reduced

Rivers are clogged up. When the rains come, floods occur because water cannot drain from the area

People cannot travel by boat due to blockage by water hyacinth



Fish and other river creatures die because of lack of oxygen Mosquitoes and other disease-carrying organisms breed in the water hyacinth, and increase

the occurrence of diseases like malaria, schistomiasis and cholera Snakes and other reptiles also hide amongst the weeds Tourists no longer visit the infested area There are several popular control mechanisms for preventing the spread of, or eradication of

water hyacinth. The main mechanisms used are biological, chemical, physical control and salination.

5.1.2 Chemical treatment

Treatment with chemicals has been effective in controlling small infestations of water hyacinth, and in areas climatically unfavorable to the growth of the weed. In order to provide effective and long-term control over the weed, application of chemicals requires skilled operators, strict spray regimes, long term vigilance and frequent re-application. The rigorous management regime needed to make this method effective is unlikely in practice to be reliably enforced and this fact would tend to rule out this approach. Spraying an entire heavy infestation can cause water hyacinth to sink and result in pollution from the rotting weed. This problem can be avoided by spraying strips of the weed or by mechanically removing much of the weed before spraying. For this reason, it is vital to destroy scattered plants when they appear rather than delaying treatment until the entire water body has been choked. The main concern when using herbicides is the environmental and health related effects. Further, the costs associated with use of herbicide generally limit the application of chemicals to an emergency control measure at critical sites. Chemical control is the least favored due the unknown long-term effects on the environment and the communities, with which it comes into contact.

5.1.3 Biological

Biological control is the use of host specific natural enemies to reduce the population density of a pest. Several insects and fungi have been identified as control agents for water hyacinth. These include a variety of weevils, moth and fungi. Biological control of water hyacinth is said to be environmentally benign as the control agents tend to be self-regulating.

Control programs are usually inexpensive due to the fact that the control agents are known and only a small numbers of staff are required to run such programs. One major drawback is the number years taken for the insects to reach a population density sufficient to tackle the pest problem. Again, this method relies on accurate and careful management and this may not be forthcoming. And the project cannot wait years for this method to work.

5.1.4 Mechanical

Physical removal is historically the most widely used form of control. It is however costly, using either land-based ‘clamshell’ bucket cranes, draglines or booms. Alternatively, water based machinery such as mowers, dredges, barges or specially designed aquatic weed harvesters will be required. Such methods are suitable for only relatively small areas. Many of these techniques require the support of a fleet of water and land-based vehicles for transporting the large quantities of water hyacinth which is removed. Mats of water hyacinth can be enormous and can have a density of up to 200 tons per acre.

In many areas, mechanical harvesters have been developed to increase the speed of physical removal of water hyacinth. A few of these have been effective in particular situations, but most have been abandoned as ineffective and/or too expensive to operate. Floating booms and barriers are used to maintain areas free of weed and to reduce the downstream spread of an infestation. Plants



accumulate rapidly against the booms and must be removed frequently, either physically or by herbicide spraying. Draining a water body will lead to the death of water hyacinth plants but seeds usually germinate when water is re-introduced. Mechanical control is not suitable for large infestations and is generally regarded as a short-term solution.

5.1.5 Salination

Many studies were conducted to assess the effect of salinity on the growth of hyacinth. In some places, it was effectively adopted to kill the hyacinth infestation. Some of the studies and results from all over the world are discussed below:

P. Neuenschwander, O.Ajuonu, and V.Schade studied the development of water hyacinth infestations in southern Benin from 1991 to 1995. They observed that the salinity of 0.6% was lethal to the growth of hyacinth.

Nwankwo and Akinsoji (1988) reported that water hyacinth is killed in waters that are more than about 0.2% saline. This is seen in estuarine areas e.g. the coastal lagoons of West Africa.

Casabianca and Laugier (1995) reported that there is an almost linear drop in water hyacinth growth rate as salinity increases from 2 g/l to 6 g/l. No growth occurs at salinity >6 g/L and any present water hyacinth deteriorates beyond recovery within a few hours. Salinity for water hyacinth death is 7 g/l.

Figure 5-2: Salinity effect on water hyacinth production (by Casabianca and Laugier (1995))

Olivares and Colonnello (2000) reported that salinity is the main obstacle for growth of water hyacinth in coastal areas.

Haller, Sutton and Barlowe (1974) studied the effect of salinity on the growth of water hyacinth and other aquatic macrophytes by placing each species in different containers with salt solutions for 4 weeks. The growth rate of water hyacinth decreases with increase in salinity. Beyond 3.33% salinity, the plants had died and decayed within 4 weeks duration.



From the above reported studies, it can be seen that the various studies reported various values for lethal concentrations of salinity for hyacinth growth. These differences might be due to water hyacinth adaptation.

It can be concluded that introducing saline water with salinity levels more than 7 ppt in the canals appears to be the most effective and economical solution. Since saline water can be detrimental to the paddy fields, it is proposed to set up a system of controlled incursion of saline water into the canals. This will help in maintaining the optimum duration of saline water inflow, control salinity levels and arrest hyacinth growth without undermining the growth of paddy. Sea water has a salinity of 35 ppt. The salinity of the water should not be more than 2 milli mhos or 1.4 ppt for the irrigation of paddy fields. The table below summarizes the level of salinity detrimental to the growth of paddy and hyacinth

Plant type Salinity (ppt or g/l)

Water Hyacinth > 7

Paddy > 1.4

Assessment of quantity of saline water and concentrations required for the destruction of hyacinth.

5.1.6 Calculations for resultant concentrations

Volume of the water in the canals (v1) = 165,000 m3 (approximately) Salinity of water in the canals (s1) = 0 ppt Salinity of sea water (s2) = 35 ppt Resultant salinity required in the canals after mixing with sea water(s) = 7 ppt Volume of sea water required (v2) = v1*(s1-s)/(s-s2) =41096m3 SAY 41,000m3

But the canal water is not stagnant. It is getting flushed by the tide which, although small, is still apparent in the backwater at Alappuzha. The flushing (i.e. water exchange) is maximum towards the backwater (east) end and least towards the sea (west) end of the canals. The fresh-water flushing will reduce the previous salinity concentration. This water can be accounted for as follows.



Divide the channel into four quarters as shown in figure 5-3.

Figure 5-3: Divisions of canal into four quarters Q1, Q2, Q3 and Q4

Source: Google earth

Assume the tide rise in each quarter as follows

1st quarter - 0.6m 2nd quarter - 0.45m 3rd quarter - 0.3m 4th quarter – 0.2m Let the time between high tide and low tide be six hours. Assuming a linear relationship between tide and time, the rate of rise of water for each quarter during flood tide can be

1st quarter- 0.6m/6 hr = 0.1m/hr 2nd quarter-0.45/6 = 0.075m/hr 3rd quarter-0.3/6 = 0.05m/hr 4th quarter=0.2/6 = 0.03m/hr The volume of water entering into each quarter per hour is calculated as:

1st quarter - 2055 m3

2nd quarter - 3082 m3 3rd quarter - 2568 m3 4th quarter - 2055 m3

The above volume of water is obtained by calculating the product of surface area and the rate of rise of tidal height per hour. For calculating the surface area it is assumed that the average depth in quarter 1 is 1.5 meters, quarter 2 is 1.0 meters, quarter 3 is 0.8 meters and quarter 4 is 0.6 m. These depths were based on the information given by official from irrigation department and the local boat operators during the site visit to Alappuzha.

An addition of sea water will be required to counter-balance the diluting effect of this flushing. The volume of 7 ppt seawater needed will be about:



1st quarter - 514m3/hr 2nd quarter - 771m3/hr 3rd quarter - 643m3/hr 4th quarter - 514 m3/hr. It is proposed to set up a main pipeline along the length of the canal with laterals opening into the canal in each quarter.

5.1.7 Calculation of pipeline size

Assuming a discharge velocity of 2m/sec and assuming that the 41,000m3 is pumped over a period of one month, discharge rate will be 0.015 m3/sec. Assuming the same discharge velocity, and one discharge point for each quarter discharges of 0.14m3/sec, 0.21m3/sec, 0.17m3/sec and 0.14m3/sec in should be provided to supply saline water to account for the tidal influx quarter1, quarter 2, quarter 3 and quarter 4 respectively.

From the above discussion it can be seen that the provided pipeline should have a total discharge of at least 0.155m3/sec, 0.227m3/sec, 0.185m3/sec and 0.155m3/sec in the quarter 1, quarter 2, quarter 3 and quarter 4 respectively. Diameter of the lateral pipeline required at input points of various quarters will be 0.32m, 0.38m, 0.35m and 0.32m respectively.

Assuming that two main pipe lines are laid all along the two channels, the required discharges will be half of the above discharges. The diameter of the pipeline at the input end in various quarters (i.e. lateral pipelines) will be 0.22m, 0.27m, 0.24m and 0.22m respectively. In the first quarter the of the canals the main pipeline will be of diameter 0.49m and reduces to 0.42m, 0.33m and 0.22m in quarter 2, quarter 3 and quarter 4 respectively.

The sizes of the pipelines can further be reduced by increasing the salinity of the sea water. It should be noted the calculations shown above were reproduced to explain the design methodology and parameters and are purely indicative and only a first order approximation. The flushing / water exchange mechanism in a long canal system like this is complex and to obtain accurate results it would be necessary to conduct site investigations to get the tidal prism, salinity levels, extent of hyacinth and their adaptation and prevailing depths in the canal. The final values of tidal height variation and flushing characteristics along the channel can only be understood by using a

hydrodynamics model. This might be a numerical model but equally it might well be a physical model or combination of both. In any case it is suggested to conduct a pilot study on hyacinth to decide on the exact levels of salinity and duration required to kill the hyacinth in the canals before taking up of any actual design work.

5.1.8 System for bringing in the saline water into the canals

It is proposed to set up a sump for saline water on the beach and there by pump this water into pipe lines which will run along the length of the canals. Actual yield into the sump should be calculated based on site investigation before deciding on the size of sump required. The pumping should be done only during the non monsoon period when paddy is not cultivated to avoid any increase in salinity levels in the paddy fields.



5.2 Bridges in the canal and depth restrictions

The depths in the north canal vary from 0.6 m to 2.5 m. This canal is dredged once in every three years. Boats ply in the North canal from the back water up to the YMCA bridge, however, the bridge can be approached only during high water. In the past one year, dredging was undertaken in sections of the North canal to increase the depth to 1.5 meters. Depth in the South canal where no dredging is undertaken is around 0.6 m. Tidal variation in the canal is reported to be about 0.4m.

There are bridges crossing the canals at several points. Most of the old bridges are built on piers which allow boats to pass below without any problem. The newly built bridges are all of the box culvert type which restricts navigation draft to 1.2 meters, and air-draft to 4.7m at low water. The details of the bridges with their air draft and pier-pier distance are given in the table below. Please note that the air draft was taken above water level Water level fluctuations were not taken into account for this measurement. Please note that the depths at each bridge could not be ascertained because of the thick hyacinth growth below most of the bridges

Bridge Description Air draft(m) Pier-pier distance(m)

1 Walkway 6.1 15.5

2 Walkway 5.4 13.6

3 Arch type 3.8 11.9

4 Box 3.8 5.9

5 Box 3.3 6.0

6 Box 3.2 4.6

7 Pier structure 3.4 9.7

8 Box 4.2 3.8

9 Box 3.2 5.6

10 Box 4.9 6.4

11 Walkway 4.3 4.9

12 Walkway iron 5.0 -

13 Box 4.0 7.6

14 Walkway 3.5 10

15 Walkway 3.8 6.7

16 Box 4.2 6.0

17 Walkway 2.0 5.0

18 Walkway 2.7 5.3

19 Walkway wooden 0 -

20 Walkway steel bridge(broken) 2.5 -

21 Railway bridge 2.2 -

Table 5-1: Details of bridges with their air draft and pier-pier distance

S.N Passengers Length Breadth Draft Depth Air- Draft

1 15-20 7.7 2.1 0.7 1.2 0.5

2 8-10 5.5 1.75 0.4 0.7 0.5

3 4 3.9 1.7 0.25 0.6 0.3

Table 5-2: Typical dimensions of the boats expected to operate in the marina

It can be clearly seen from table 5-1 and table 5-2 that except for a wooden walkway in the south canal (bridge 19) which is almost at the level of water all the other bridges do not offer any obstruction for the movement of the boats in the canal. This wooden bridge (a walkway) in the southern canal should be replaced to allow free passage of boats in that canal up to the backwaters.



A typical cross section of the box culvert as reported by the PWD is given in figure 13 below. The bottom of the box culvert is at a depth of 1.2 m from the water surface at low water. If the shallower depths of all along the length of canal the canals are dredged up to this depth, the 15-20 passenger boat will have a minimum depth/draft ratio of 1.7 and a under keel clearance of at least 0.5 meters in the canal. This clearance will ensure that the boats move comfortably without any restrictions and it can even take care of siltation in the canal for 2-3 years.

Figure 5-4: Box Culvert

It is proposed that the shallower portions of the canal should be dredged to at least 1.2m to allow boat movement in the canal. This dredging may also increase the flushing characteristics of the canal. The total quantity of the dredging is estimated to be 92000 m3 approximately.

One option is to undertake the dredging with an excavator placed on a pontoon which loads into

barges. It is proposed that the dredging should be done with an excavator placed on a pontoon. The

dredged material should be placed on another pontoon which is later emptied on to dumpers at a

jetty using another excavator. As the beds of the canals are full of contaminated solids, this method

will prevent spillage of bed material on the streets. The dumpers should directly take the material to

a dumping location, which is a pit on land lined with geo textile. This is the method being used

currently but this equipment is very small, the re-handling is inefficient and costly, and production

rates are so slow that to remove the said 92,000m3 in this way will take an inordinately long period

of time, thus delaying the whole project. A more productive, efficient, modern, and cost-effective

method would be to use a small cutter-suction dredger which would pump the spoil via pipeline to

the disposal area. Laying of pipelines through built-up areas is standard practice in the dredging

industry. The key to this method is to find a place for the disposal lagoon within a reasonable

distance.



5.3 Sewage collection and treatment for Alappuzha town

As mentioned above in section-1, all the sewage generated in town of Alappuzha is directed into the canals. To maintain the overall cleanliness, a sewage collection system is required to prevent the entry of the sewage into the canal. The calculation for the drain sizes and the layout of the drains are given below.

5.3.1 Layout of the drains

It is suggested that the drains should be laid along both the sides of the canal into which the sewerage discharge from all the buildings, and the rainwater run-off from buildings and roads would be fed. This arrangement is known by engineers as an "interceptor sewer". The flow would be directed to a sewage treatment plant (STP). Providing that the STP meets international standards for tertiary treatment then the resulting effluent can be safely discharged into the sea or even into the backwaters. These issues along with the exact quantum of sewage and type of sewage treatment plant should be assessed at a later stage through a more detailed study.

Figure 5-5: Layout of the drains (assumes STP at the west/beach end, but it could also be at the east/backwater end).

5.3.2 Drain Size Calculation

5.3.2.1 Calculation of Discharge

The total discharge (Q = 1.5Qr + Qs) was found to be 13.53 m3/s

5.3.2.2 Run-off Discharge

The run-off discharge is calculated using the formulae given below Run-off, Qr = kiCA Where,



Qr = Discharge in m3/s K = 0.00278 I = rainfall in mm/hr (27.173 mm/day for Alappuzha town) A = Catchment area in ha (7000 ha for Alappuzha town) C = Runoff coefficient (taken 0.3 considering topography of Alappuzha) The calculated run off discharge was found to be 6.61 m3/s

5.3.2.3 Sewage Discharge

The peak hour sewage discharge can be computed using the following equation Sewage discharge, Qs=3.P.D Where, Qs = Discharge in m3/s P = Forecasted population D = per capita discharge in m3/person/sec (135 liters/person/day) Population of Alappuzha town for the year 2030 was forecasted from population of 2001 (177,029) with a growth rate of 5.21% (as per census 2001) and was found to be 772,144. The calculated Peak Sewage discharge was found to be 3.6 m3/s

5.3.3 Design of Drains

The dimensions of drains are arrived using manning’s equation V=1/n .R3/2 .S1/2 Where, V = velocity in m/s R = the hydraulic mean radius in m (Area/Wetted perimeter) N = manning’s coefficient (taken 0.011 for concrete lining) S = slope of the Channel (taken as 1 in 3100) For the outer drains which are shown red in colour, 40% of the calculated discharge was assumed requiring a width of 2.4m and depth of 2.1m with a slope of 1 in 3,100. For the inner drains which are shown yellow in colour, 10% of the calculated discharge was assumed requiring a width of 1.4m and depth of 1.5m with a slope of 1.5 in 3,500.



6 Market assessment This chapter describes the tourism activity in Alappuzha which is the mainstay for the proposed infrastructure, explains the approach followed for estimating the market demand for the proposed activities and presents the projected market demand in terms of end users and infrastructure required, derived from secondary data and primary search.

6.1 Overview of tourism in Alappuzha

6.1.1 Key tourism indicators

Alappuzha, popularly referred to as the ‘Venice of the East’, is a leading tourist destination in Kerala.

Alappuzha offers almost everything –backwaters, boat races, beaches, pilgrim destinations, local

cuisine, and much more. Over the last decade Alappuzha has grown in importance as a backwater

destination, attracting several thousands of tourists each year – domestic as well as foreign. This is

evident from the data on tourist arrivals in Alappuzha.

Figure 6-1: Tourist arrival in Alappuzha, 1999-2008

Source: Kerala Tourism statistics 2007, Department of Tourism

The domestic tourist arrivals in Alappuzha during the ten-year period from 1999 to 2008

have shown a steep increase and this trend is expected to continue. The foreign tourist

arrivals have grown at a modest rate.

The tourist arrivals in Kerala state have shown a positive trend in the last 12 years. The year-

to-year growth percentages in case domestic tourists are much better as compared to

foreign tourists.



Figure 6-2: Tourist arrival in Kerala during last 12 years


The backwaters of Kerala (Alappuzha & Kumarakam) are categorised as one of the officially promoted Tourist Circuits by the Ministry of Tourism, Government of India. Kerala had 8.34 million tourists arrivals in 2009 which included over half million foreign tourists from different parts of the globe. Alappuzha accounted for 2.33% of the total tourist arrivals of Kerala in 2009, which includes 31,556 foreign tourists and 162,877 domestic tourists. The tourist arrivals in Alappuzha however suffered a blow due to the overall economic recession in 2009. The total tourist arrivals in 2009 fell by 31.67% as compared to the total tourist arrivals in 2008. The graph below shows that one-third of the tourists visiting Kerala are British. Other major tourist origin countries are USA, France and Germany.



Figure 6-3: Country of origin of foreign tourists

Figure 6-4: Distribution of domestic tourists


The statistics shows that almost one-third of the foreign tourists visiting India first arrive in

Kerala.

Most of the domestic tourists visiting Kerala are from the neighbouring state of Tamil Nadu.

The neighbouring states (Karnataka and Tamil Nadu) account for nearly 50% of the domestic

tourist arrivals in Kerala.

The peak foreign tourist season is from October to March, while March and April are low seasons for

foreign tourists, witnessing mainly Indian tourists. Generally, average tourist stay in Allepey is 2

days. However a recent trend seen is tourists renting out residential places for a month and making

Alappuzha as their base while exploring Alappuzha itself and other places in Kerala.

The main barrier to tourism growth as cited by tour operators is the lack of quality hotels in

Alappuzha. Currently there are only couple of international class hotels in Alappuzha which in a way

restricts tourist stay to 1 or maximum of 2 nights. Foreign tourists are generally interested in

experiencing the heritage and local culture / slice of life as opposed to high-end luxurious

experiences.

6.1.2 Tourism attractions in Alappuzha

Backwaters and Houseboats of Alappuzha Alappuzha is the nucleus of all backwater tourism in Kerala. While there are also other backwater circuits in Kerala, the uniqueness of the Alappuzha backwater tourism lies in the fact that it offers a rich, proximate view of the rural backwater life. Characterised by endless vast and tranquil expanse of backwaters it goes till the eye can see. Possibly, the best way to explore the backwaters is through a 22-hour cruise on the much acclaimed houseboats of Alappuzha.

Source: Pictures taken by DTTIPL

The boat cruise along the backwaters of Alappuzha takes the tourist through inland waterways, lakes and canals and gives a firsthand experience of the Kerala traditional village life style - toddy tapping, fishing for small fry, coir-making, prawn farming. The cruise takes the tourist through the waters of the prominent Punnamada Lake – the venue of the legendary Nehru Trophy Snake Boat Race. There



are multiple routes to be explored on the backwaters and each route is more enthralling than the other.

1. Alappuzha to Alappuzha: It is a one night round about cruise which takes the tourist through the Legendary Punnamada Lake.

2. Alappuzha to Kumarakom: This too is a one night cruise which offers sighting of water birds and other migratory birds.

3. Alappuzha to Kottayam: This cruise takes the tourist to experience the rural life of Kerala including watching toddy tappers at work and farming done at below sea level.

4. Alappuzha to Thottappally: This cruise takes the tourists to many historical places. 5. Alappuzha to Mankotta: This cruise travels through the Punnamada Lake and provides an

opportunity of visiting the coir making villages and other historically important sights. 6. Alappuzha to Alumkadavu: This offers both a one night cruise as well as a two night cruise and

takes the tourist to the place of origin of the house boats.

R-Block is the most famous spot for backwaters. One can witness the greenery, marine life and scenic beauty of Alappuzha very closely by taking a journey through these backwaters. R- Block is also among those rarest places in the world where farming is done below sea level. Pathiramanal is a renowned island situated on these backwaters between Thaneermukkom and Kumarakom. It is a hub for migratory birds. Most of the distinctive birds from all over the world visit this place in winters.

The Canal System of Alappuzha Alappuzha is known for its distinctive feature of a canal system along the periphery of the town. There are six navigable canals in the town. These canals were used a means of transporting cargo and people. The Vadai Canal North Bank (VCNB) And South Bank (VCSB) roads and commercial Canal North Bank (CCNB) and South Bank roads run parallel to each other. In the east, these canals open to the backwaters and the VCNB and VCSB roads lead to the Alappuzha boat jetty. On the western side, the canals end near the pier on Alappuzha Beach.


Source: DTPC, Alappuzha



Others Attractions of Alappuzha

Aranmula Snake Boat Race

Alappuzha is famous for its historic Aranmula Snake Boat Race which is an annual event. The boat races are held on the second Saturday of August, every year. This competition - the Nehru boat race takes its name from India's first Prime Minister Jawaharlal Nehru, who inaugurated in 1952. It exciting to see each boat manned by over a hundred oarsmen, with the oars cut through the waters like wind. These races generally take place in the harvest season (July-

August-September). It is the

major centre of attraction in Onam Festival. The event is a tremendous success with tourists and the local population alike.

Sri Krishna Temple, Ambalappuzha The Sri Krishna Temple at Ambalapuzha, 14 kms from Alappuzha, is among Kerala's more famous temples and boasts of the typical temple architectural style of the state. The temple's main festival occurs in March/April.

Alappuzha Beach This is one of the most popular picnic spots in Alappuzha. A beautiful garden on the shore gives an exclusive sight. Imposing buildings of a colonial past overlook the shore. The pier, which extends into the sea is more than 140 years old and is a rare sight. There is also an old lighthouse which is a fascination to visitors. An old signal station within the port area reflecting maritime history of Alappuzha and the old railway tracks are also interesting from a tourism perspective.


Mullackal Rajarajeswari temple: The temple is located at the heart of Allepey town. The temple celebrates two festivals every year. The nine-day 'Navarathri' festival is especially important. Colourful processions participated by nine elephants are held in the evening. It is witnessed by thousands of devotees.

Kuttanad: Kuttanad is called the rice bowl of Kerala because of its wealth of paddy crops. It lies at the very heart of the backwaters. The scenic countryside of Kuttanad with its shimmering waterways also has a rich crop of banana, cassava and yam. This perhaps the only region in the world where farming is done 1.5 to 2 metres below sea level. Inland waterways which flow above land level are an amazing feature of this region.



Chavara Bhavan: Chavara Bhavan is 6 kms from Alappuzha and accessible only by boat. It is the ancestral home of the blessed Kuriakose Elias Chavara. Here, a 250 year old historically important beacon of light is preserved intact in its original and primitive form.

Arthunkal Church: It is situated 22 kms north of Alappuzha. The church was built by the Portuguese during their prominence in the district. It is one of the sacred churches in Kerala, attracts lakhs of devotees both Christians and non-Christians every year from all parts of the State.

Krishnapuram Palace: The 18th century Krishnapuram Palace was built during the reign of the Travancore monarch, Marthanda Varma and showcases typical characteristics of Kerala architecture. It houses one of the largest mural paintings in Kerala called the Gajendra Moksham. Source: Pictures taken by DTTIPL

Karumadi: Close to the Ambalappuzha, the village of Karumadi is famous for its Karumadi Kuttan, a black granite figure of Buddha said to be atleast a thousand years old.

6.2 Comments on the L&T –Ramboll traffic assessment

The following are some of our comments on the L&T Ramboll traffic Assessment

While the report mentions world, national, state and district tourism, there is no link shown between all of these datasets.

The basis for market capture for water based and land based activities is not completely explained. If competing facilities (non Marina) have been considered while computing the market share, then details of these facilities are not given.

The method for developing traffic forecasts beyond the base year is not explained.

Details of backwater tourism and relevance / synergies / competitive assessment of this segment to Marina not explained.

6.3 Approach to market potential assessment of proposed inland

marina and other land and water based facilities Considering that the “Inland marina” was going to be a new infrastructure, it was essential to develop the concept first and then to assess its market prospects. In case of conventional infrastructure, for example cargo handling facilities, users and stakeholders are generally aware of what to expect in terms of facilities and services. Also, having seen or patronized similar facilities elsewhere, they are able to relate to the proposed infrastructure and offer their views in terms of how well it would meet their expectations and whether they would patronize it. However in case of the marina, it was important that potential users and stakeholders were first given an insight into the general idea of a marina and of the one that could potentially come up at Alappuzha and then seek their response.



Proceeding along these lines, the following approach was adopted:

Figure 6-5: Broad level approach for market potential assessment

6.3.1 Developing preliminary concepts of marina and other facilities at Alappuzha

Site visit The DTTIPL team along with global marina consultant Mr. Simon Arrol from “Arrol Ltd.” undertook a site visit and interacted with relevant stakeholders in Alappuzha. The objectives of the visit were to gain an appreciation of the site environment, collect relevant data, explore other locational features in Alappuzha including the backwaters, interact with various government agencies relevant to the study and obtain a firsthand response on their expectations. During the site visit, apart from the port area, other areas such as the canal system (especially commercial canals), houseboat terminal, existing jetties on the east side of the canal and backwaters were also visited by the team. Apart from the Alappuzha port office, DTTIPL team also interacted with the Irrigation department, one of the agencies responsible for maintenance of the canals and district tourism council, Travancore chambers of commerce and some local houseboat operators.

Review of information

a) Review of relevant technical data Area maps, site data, technical data regarding sea water movement (tidal, wave patterns, wind movement) etc to the extent available, and details of existing infrastructure in the port area (including the pier) were collected from the port office. Additionally, relevant information regarding the canal and backwater systems was obtained from respective offices.

Initial analysis based on site inferences and review of data seemed to suggest that while the land portion i.e. the beach and port area could be suitable for development of allied marina facilities, the nature of the sea waves and absence of natural protection or breakwater would pose a challenge for developing the core marina in its true form – the one that probably was being thought of earlier in

Review of relevant technical data

Review of existing marina facilities in

other locations

Evolution of concept marina at

Alappuzha

Presentation to stakeholders

Site visit

Market assessment

Review of marina models proposed by L&T Ramboll



the L&T Ramboll Report. Also the possibilities of individual boat / yacht owners in the immediate market area are bleak, and this coupled with the fact that a marina for foreign yachters had just come up in Kochi, meant that alternative formats of the marina and other beach based infrastructure need to be evaluated.

b) Review of existing marina facilities in other locations Marina facilities in other locations such as Europe (UK, Turkey) and including the upcoming Bolgatty marina at Kochi were reviewed to understand their models, scale of operations and location prerequisites. DTTIPL team also visited the Kochi marina and interacted with a few officials to understand their plans. Experience of the marina consultant (Arrol Ltd) in managing / developing marinas in the Europe and Middle East (Dubai) also supplemented the analysis.

c) Review of marina models proposed by L&T Ramboll Business models suggested by L& T Ramboll were reviewed and their suitability for Alappuzha was analyzed. This has been covered in detail in the earlier chapter.

6.3.2 Evolution of concept marina and other infrastructure at Alappuzha As discussed in an earlier chapter, a full service sea side marina at Alappuzha is not feasible on technical grounds. Therefore instead of a full fledge sea side marina, it has been proposed to construct an inland marina on the sea side of the commercial canal offering canal boating experience to tourists visiting Alappuzha. Apart from the inland marina, following facilities have been proposed mainly to leverage the existing and burgeoning tourist inflow in Alappuzha.

Land based activities:

Water park

Dolphin pool

Theme prk

Health spa

Restaurant


Water scooters,

Banana boat rides

Speed boat rides

6.3.3 Presentation to stakeholders DTTIPL – Arrol Ltd, made a presentation on the preliminary concepts to various stakeholders with an intention to provide clarity on what kind of marina can be developed at Alappuzha. The initial concept of developing a full service marina on the sea was proposed to be dropped due to technical issues and high cost for creating a harbour. Instead, construction of an inland marina and other facilities were proposed. The adverse environmental impact of the proposed highway along the beach frontage was also discussed and a solution offered.

6.3.4 Market assessment for proposed inland marina and other facilities at Alappuzha The following chart broadly depicts the approach followed for estimating market potential for the proposed infrastructure:



Market assessment

objectives & scope of market study

Secondary search

Tourism Data & trends

Tourist profile

Existing facilities

Primary search

Identify stakeholders

Preparing questionnaire

Interviews

Data compilation

Market size estimation

Figure 6-6: Market assessment flowchart for marina and other facilities at Alappuzha

1. Setting the objectives & scope of the market study Establishing the right objectives and scope of the market assessment is crucial as it drives subsequent activities for the study and also influences the data and information collected. Market study also involves interaction with relevant stakeholders and in a sense creates awareness about the project. Broadly the following objectives and scope were laid down for the study with the end outcome being projecting the “market demand “for each of the proposed facilities. Since tourism would be the single most important mainstay of the proposed infrastructure, significant part of the market study would revolve around tourism dynamics.

Objectives / end outcomes / scope of the study:

Collection of tourism related data

Ascertaining growth drives for tourism

Activities that can be proposed for each of the proposed infrastructure

Meetings with stakeholders

Initial response for the proposed activities

Specific services/products

Collaboration possibilities

Competitive assessment

2. Secondary search Secondary research, besides helping in preparation of the primary research, also provides a start to the market study in terms of gathering basic information, e.g. tourism scenario in Kerala, market dynamics, basic tourism data, key pointers, contact list ., etc. Following information was collected though secondary research:

a) Tourism data & trends

Tourism data / trends: o Tourist arrival in a) Kerala and b) Alappuzha for the past 10 years o Average tourist stay in Kerala and Alappuzha – domestic and international



o Average tourist spends in Kerala and Alappuzha – domestic and international o Backwater tourism in Alappuzha o Other relevant statistics

b) Tourist profiles

Demographic profile of domestic tourists

Demographic profile of foreign tourists

Reasons for visiting Kerala / Alappuzha

c) Research on existing facilities Gathering research on similar or complementary activities existing in other locations or being developed gives an important perspective into the positioning and deciding the overall outline / features of the proposed infrastructure. While some of the proposed facilities such as Inland marina / canal boating, being new, credible research inputs were limited, however activities such as recreational water sports, and Oceanarium are also being developed in other locations in India (Oceanarium at Vypeen Islands near Kochi) and information regarding these facilities proved to be an useful input for deciding the scope of the proposed infrastructure.

3. Primary research The objectives of the primary research were to:

Get key insights for deriving market potential for the proposed inland, and other infrastructure

Obtain qualitative insights into tourism and

Understand synergies with tourism development organisations, associations and intermediaries, and competitive insights

Following activities were undertaken as part of primary research

a) Identify stakeholders Following stakeholders were identified for the study

Tourism departments

Department of Tourism, Government of Kerala

Kerala Tourism Development Corporation

District tourism councils

Tour operators

International tour operators in Kochi, Alappuzha, Trivandrum

Domestic tour operators in Kochi, Alappuzha, Trivandrum

Houseboat operators

Backwater tourism operators in Alappuzha

Houseboat owners in Alappuzha

Competitive facilities

Kochi Marina and passenger terminal

Any other

Potential individual boat owners

Coir exporters

Sea food exporters

Industry associations

Alappuzha

Hospitality / recreation

Table 6-1: Stakeholders identified for the study



b) Preparing questionnaire This activity involved preparation of questionnaires to be used in primary meetings with various categories of stake holders viz. regulatory bodies, service providers, tourism intermediaries, infrastructure providers, etc. Separate questionnaires were provided for every stakeholder category

c) Interviews in Trivandrum Kochi and Alappuzha: The project team met a host of stakeholders including officials from the Directorate of ports , Government departments & bodies, local politicians, tour operators, houseboat operators, cruise shipping agents, Kochi port officials, Bolgatty marina, District Tourism Promotion Council, etc.

d) Data compilation This activity involved preparation of detailed transcripts for all the meetings conducted during the primary visit, analysis of information collected from various stakeholders and drawing conclusions based on such information. Tourism statistics focused on Kerala were also collated.

4. Market demand estimation

1. Defining the framework This activity involved preparing a framework for arriving at the market demand and stating assumptions for the same. Assumptions were based on analysis of multiple parameters such as . annual tourist inflow in Kerala/ Ernakulum/Alappuzha, monthly distribution of tourists in these places, identification of the target population for the project, tourists’ age groups, tourist group size, sex ratio, purpose of visit to Kerala/Alappuzha, presence for water based activities, etc.

2. Determining the growth drivers This involved establishing growth drivers in general for the tourism activity in Alappuzha and in specific for each of the proposed infrastructure.

3. Arriving at the market demand projections

This activity involved calculation of market demand for each of the proposed infrastructure facilities Key inputs for this derivation were tourist arrival data for Alappuzha, feedback from primary research, tourism trends, qualitative aspects such as tourist behavior and their preferences. etc.,



6.4 Market Demand Estimation

6.4.1 Defining the framework The framework within which the market demand for the proposed infrastructure facilities is assessed is depicted below:

Figure 6-7: Framework for Market assessment

Inputs

Tourist arrival data This comprises of tourist arrival in Alappuzha from 1998-2009. Data was taken from the Tourism Statistics 2007 published by Department of Tourism

Tourist demographics Demographics constitute the profile of foreign and domestic tourists mainly in terms of their age and sex.

Tourist trends / preferences Tourist trends and preferences are important inputs for deriving the market demand. For example, the percentage of tourists visiting Kerala for experiencing local culture is a good indicator for estimating the market demand for Theme Park. Since the theme park will showcase cultural aspects like local traditions / customs, rural lifestyle, artifacts by local artisans, etc., tourists visiting primarily for experiencing local culture shall patronize the theme park more as compared to others. Similarly, other revealed preferences have been used in estimating demand for the proposed infrastructure facilities.

Growth rates These are estimates of year-on-year growth rates assumed for the purpose of forecasting the base tourist arrival data for the next 30 years. These rates are based on historical CAGR and qualitative feedback from primary search.

Operations This comprises of:

a) Manner in which the infrastructure shall operate. For example the inland marina shall offer canal boat rides in various types of boats of varying durations for certain period of the day. These operational aspects help in



deciding the market demand for various products / services under each proposed infrastructure and also the scale of the facility. Similarly, operational characteristics of other facilities were considered for estimating the demand and size of the infrastructure.

b) Operational period of the infrastructure facility – this comprises the operational period for the proposed infrastructure and may vary. For example 9 months are considered for the inland marina, excluding the main monsoon season.

Outputs

Market demand Market demand is defined as “number of users availing the respective infrastructure facility per day”. The process of deriving the market demand is explained in a subsequent sub section.

Infrastructure Infrastructure means the size / capacity of the infrastructure required. For example, number of non motorized and motorized boats for the Inland marina. Derivation of the infrastructure requirement is explained in a subsequent sub section.

Table 6-2: Framework for market demand estimation

6.4.2 Market segmentation & customer profiles

Market segmentation as depicted in the schematic is primarily done at two levels – a. At top level - Foreign and domestic b. At infrastructure facility level – as per various parameters

Description of the market segments is given in the table below the schematic:



Figure 6-8: Market segmentation for proposed activities

Market segmentation

Top level

Foreign Represents foreign tourists from various nationalities and age groups arriving in Alappuzha

Domestic Represents domestic tourists (Keralites & non Keralites) from various parts of India arriving in Alappuzha

Infrastructure facility level

1. Inland Marina

Tourists travelling in groups Comprises of tourists travelling as individuals and in groups of 2 to 7. This segmentation is relevant since different types of boats will be provided for canal boating. It is assumed that foreign tourists generally do not travel in large groups and hence may patronize the non motorized boats more as compared to domestic tourists who tend to travel in larger groups.

2. Water side activities

Tourists travelling for reasons other than business / official activities

Represents tourist travelling for non official purpose e.g., for leisure, adventure, sightseeing etc.,

Market segmentation

Foreign tourists

Inland marina Water sportsWater park & Dolphin pool

Domestic tourists

Theme park & Health spa

Tourists travelling

in groups of 2 to 4

Tourists travelling

in groups of 5 to 7

Tourists travelling

for reasons other than business /

official activities

Tourists (males &

females) in age group <21 to 55

Tourists travelling


official activities

Tourists (males &

females) mainly in age group 5 to 55 &

55+ (for Dolphin pool)

Tourists possessing

required costumes

Tourists travelling


official activities

Tourists interested in

local culture

Tourists residing in

Ayurvedic centers



Tourists (males & females) in age group <21 to 55

Comprises of domestic & foreign tourists of various age groups. It is assumed that in case of tourists below 21 years, participation shall be more from tourists upwards of 12 years considering the level of skill and safety issues.

Tourists wearing suitable attire Some of the proposed water sports activities require users to wear a certain (casual) style of attire. Considering that several Indian female tourists generally wear formal ethnic clothing (“sari”) they may not be able to avail the services. Therefore a certain proportion of these tourists has been excluded for water sports

3. Water park & Dolphin pool



Tourists (males & females) mainly in age group 5 to 55 & 55+ (for Dolphin pool)

For the proposed water park, this comprises of domestic & foreign tourists in the age group 5 to 55 years. For the Dolphin pool, it is assumed that tourists above 55 years shall also visit the facility.

4. Theme park & Health spa



Tourists interested in local culture Comprises of tourists visiting Kerala for experiencing or getting an insight into the local culture. As the theme park would mostly showcase local culture, it is assumed that this segment of the tourists will be more interested in the theme park

Tourists residing in Ayurvedic centers Represents tourists who reside in Ayurvedic centers in Kerala. It is assumed that the Health spa which will offer basic massages and Ayurvedic treatment, shall be frequented by tourists falling in this segment more than others.

Table 6-3: Market segments for proposed activities

6.4.3 Customer profiles & determining tourism growth drivers

Demographic characteristics The project team undertook a study of the profile of the customers (tourists) who form the market for the proposed development. The intention was to understand demographic characteristics of tourists visiting Kerala, more importantly Alappuzha and Ernakulum. The Kerala Tourism Statistics 2007 handbook was referred for gauging the customer profiles, in addition to various other secondary sources. In certain instances, where the information for foreign and domestic tourists was not available, the relevant available information for Tourists in India as whole or domestic tourists from within Kerala has been sparingly used by the project team. The demographic information referred and used is reproduced here.

No. of persons 2004-05 2005-06 2006-07 2004-07

None 13.6 10.1 6.8 9.3

1 25.1 15.3 21.5 20.1

2 14.2 11.6 16.4 14.3

3 11.8 13.0 13.0 12.8



4 11.1 11.7 16.7 13.9

5 8.2 6.8 9.9 8.5

6 4.8 5.2 5.5 5.3

7 + 11.2 26.3 10.2 15.8

Total 100.0 100.0 100.0 100.0

Table 6-4: Distribution of Domestic Tourists (Kerala) according to the number of persons

accompanied Source: Kerala Tourism Statistics 2007

Age Distribution 2004-05 2005-06 2006-07 2004-07

Upto 21 9.6 5.1 2.0 4.1

22 - 35 59.6 57.2 53.4 55.4

36 - 55 26.1 33.8 43.1 37.9

55 + 4.7 3.9 1.4 2.6

Total 100.0 100.0 100.0 100.0

Table 6-5: Distribution of Domestic Tourists (Non-Keralite) according to Age Distribution

Source: Kerala Tourism Statistics 2007

Purpose of Visit 2004-05 2005-06 2006-07 2004-07

Leisure 76.3 69.4 61.2 65.8

Pilgrimage 6.3 5.2 8.8 7.6

Business 6.8 8.3 14.1 11.5

Visiting friends & relatives

7.3 8.4 10.1 9.2

Official 3.3 7.6 5.8 5.7

Others - 1.1 - 0.2

Total 100.0 100.0 100.0 100.0

Table 6-6: Distribution of Domestic Tourists (Non-Keralite) according to Specific Purpose of Visit


Particulars Females per ‘000 Males

India 933

Rural 946

Urban 900

Table 6-7: Sex ratio (females per thousand males)

Source: Census Data 2001

Main Attractions 2004-05 2005-06 2006-07

Nature’s beauty 22.3 39.7 73.7

Beaches & Backwaters 44.0 40.8 15.3

Climate 2.6 18.4 5.0

Culture 15.0 1.5 3.0

Ayurveda & yoga 14.0 2.6 0.6

Pilgrim centers 0.7 1.6 2.4

Others 1.4 11.6 -

Total 100.0 --- 100.0

Table 6-8: Distribution of Foreign Tourists according to Main Attractions in Kerala




Main Attractions 2004-05 2005-06 2006-07

Beaches & backwaters 38.3 40.3 18.7

Culture / pilgrim centre

13.4 13.1 7.5

Wildlife 5.7 14.8 7.5

All these 62.8 53.6 79.5

Table 6-9: Distribution of Domestic Tourists according to Main Attractions in Kerala


Determining tourism growth drivers Since market demand for all the facilities shall be driven by tourism, the growth drivers for tourism in general shall also apply to the proposed facilities. Some of the most prominent growth drivers for tourism in Alappuzha are discussed below:

1. Alluring backwaters: The backwaters in Alappuzha are one of its kinds in the world. The backwaters of Kerala stretch over 1500 kms, with a network of multiple rivers, lagoons and lakes from north to south and Alappuzha which form the main part of this network. Backwater tourism has grown by leaps and bounds over the last decade and is the main crowd puller for tourism in Alappuzha.

2. Houseboats: While initially it was backwater tourism that gave rise to the houseboat activity,

they now share a fabulous synergy with backwater tourism. Houseboats are a fabulous way to explore the fascinating beauty of the backwaters. The houseboats normally offer a 22 hours package, where the houseboats travel into the backwaters and the tourists have a magnificent experience of staying on board the houseboat for an entire day. The number of houseboats in Alappuzha has grown multifold and the construction of a boat terminal for the houseboats at Alappuzha, in itself are proof enough that houseboats are one of the main growth drivers of tourism in Alappuzha.

3. Village tours and local cuisine: The villages of Kerala, which are remotely connected and can be

accessed by boats only, are an attractive destination for foreign tourists. These villages provide a calm and scenic environment devoid of pollution for the tourists to explore. The traditional cuisine of Kerala is another attraction. The cuisine flavoured with the local specialties and consisting of delicious fish and prawns, sells hard.

4. Ayurvedic Packages: Ayurvedic therapy centres consisting of cottage accommodation, ayurvedic treatment under consultation, massage, ayurvedic diet, etc are a big hit with foreign tourists.

5. Nehru Boat Race: The Nehru Boat Race draws huge tourist crowds to Alappuzha. The

development of the Nehru Centenary Pavilion at Punnamada, Alappuzha is definitely expected to boost the influx of tourists in Alappuzha.

6. Others attractions: The proximity of numerous religious centres to Alappuzha viz. Arthunkal

church, Ambalappuzha Sree Krishna Temple, Karumadi, to name a few; draws lots of local tourists to Alappuzha. Other attractions include the Alappuzha beach.



6.5 Market demand assessment – Assumptions and Workings

The market demand assessment for each of the facilities is described in the following tables

6.5.1 Inland marina - Canal boating

Inland marina - Canal boating

Description Canal boating shall offer pleasure / leisure rides in the commercial canals in the following types of boats:

1) Non-motorized 4-seater boats,

2) Motorized 08-10 seater boats &

3) Motorized 15-20 seater fibre glass boats.

The non-motorized 4-seater boats shall be let out for 1 hour rides and it is assumed each boat shall be let-out for 6 rides daily.

The 08-10 seater fibre glass boat & 15-20 seater fibre glass boat round-trip shall take 2 hours including embarking and disembarking at the Inland marina. Therefore, one boat shall make four trips per day.


Key basis for demand estimation

Propensity of tourists to travel in groups

Key Assumptions Facilities for the Inland Marina have to be planned based on the daily tourist demand. The number of boats required shall be calculated on the daily tourist number during peak season.

Canal boating in the Inland Marina shall be functional for nine months only (October to June). It shall not be operational during the monsoon season (July to September).

Timings for canal boating are assumed to be from 10am to 6pm

Domestic tourist groups consisting of 2 to 4 persons will prefer the non-motorized 4-seater boats for canal boating.

Foreign tourist groups are assumed to comprise of 4 or less than 4 persons. Therefore, foreign tourists shall prefer non-motorized 4-seater boats

Domestic tourist groups consisting of 5 to 7 persons will prefer the 08-10 seater fibre glass boats for canal boating.

Provision for replacement of boats, at the end of their useful life, has not been made.

Growth drivers Unique experience: Canal boating in the canals of Alappuzha town is expected to be a very unique experience. The boat rides will take the tourists around the town area surrounding the canals where they can experience the day-to-day life and visit other tourist attractions.

Alappuzha has always been referred to as the ‘Venice-of-the-



East’, the canal boating experience shall look to reproduce the Venice experience.

Method of calculation of market demand

1) Tabulate tourist arrival data (for foreign & domestic tourists) in Alappuzha from 1998 – 2009 and calculate the CAGR.

Note: The CAGR for Domestic tourists has been taken at 4.0% based on the period 1998-2008. If we consider domestic tourist arrival for 2009, then the CAGR becomes 0.3%, mainly due to the fall in the domestic arrivals in 2009 alone, this being an aberration will not provide an appropriate basis for future growth rates.

2) Take the arrival of foreign & domestic tourists for 2009 as the base input data.

3) Forecast tourist arrival data for next 30 years based on a year-to-year growth rate of 12 % for foreign tourists & 4% for domestic tourists.

4) Consider the fair season (Oct - June) and calculate number of tourists.

5) Assume % of foreign & domestic who shall avail canal boating based on feedback received from primary survey:

a) 30% of foreign tourists visiting Alappuzha are expected to engage in canal boating in the Inland Marina.

b) 50% of foreign tourists visiting Alappuzha are expected to engage in canal boating in the Inland Marina.

6) Calculate the number of tourists per month and per day taking the above percentage – for peak and low seasons.

Data used Distribution of domestic tourists (Kerala) according to the number of persons accompanied is available for Keralite tourists in Kerala.

It has been assumed that domestic tourists from other parts of the country shall exhibit similar trends. This information is relevant to assess the kind and quantity of boats required for canal boating. The table below shows the number of persons accompanying the surveyed tourist during the period 2004 to 2007.

Domestic Tourists (Kerala) according to the number of persons accompanied

No. of persons 2004-07 %

None 9.3

1 20.1

2 14.3

3 12.8

4 13.9

5 8.5

6 5.3

7 + 15.8



Total 100.0

Based on the above figures, it has been assumed that tourist groups consisting of 2 to 4 persons (i.e. one tourist accompanied by 1,2 or 3 persons) will prefer the non-motorised 4-seater boats for canal boating. The total percentage of such tourists in total domestic tourist population is 47.2%.

It is also assumed that tourist groups consisting of 5 to 7 persons will prefer the 08-10 seater fibre glass boats for canal boating. Total percentage of such tourists in total tourist population is 27.7%.

The balance tourists i.e. groups larger than 8 persons plus tourists travelling alone, will prefer using the 15-20 seater fibre glass boats for canal boating.

Sample calculation of market demand

1. Foreign tourist arrival for 2011 = 39,584

2. Foreign tourist arrival for 2012 considering growth rate of 12% = 44,334

3. Foreign tourists arrival for fair season (Oct-June ’12) = 80% of 44,334 = 35,467

4. Number of foreign tourists expected explore inland marina / canal boating = 30% of 35,467 = 10,640

5. Average number of tourists per month

Peak season (Oct-Mar) = 85% of 10,640 = 1,507 Low season (Apr-Jun) = 15% of 10,640 = 532

6. Number of tourists per day

Peak season (Oct-Mar) = 1507/30 = 50 Low season (Apr-Jun) = 532/30 = 18

Sample calculation of infrastructure (boats)

Number of tourists for various types of boats

1. Projected number of foreign tourists for 2012 per day during Peak season (Oct-Mar) = 50. All these are expected to avail the 4 seater non motorised boat.

2. Projected number of domestic tourists for 2012 per day during Peak season (Oct-Mar) = 285

3. Number of domestic tourists who shall prefer non-motorized 4-seater boats (47.2%) = 135

4. Number of domestic tourists who shall prefer 08-10 seater fibre glass boats (27.7%) = 79

5. Balance number of domestic tourists who shall use 15-20 seater fibre glass boats = 72

6. Total number of tourists (foreign + domestic) who shall prefer non-motorised 4-seater boats = 185



Number of boats required of various types

1. Number of non-motorised 4-seater boats required at the Marina (considering 6 no of trips in a day and 4 persons per boat) = 8

2. Number of 08-10 seater fibre glass boats required at the Marina (considering 4 no of trips in a day and 9 persons per boat) = 2

3. Number of 15-20 seater fibre glass boats required at the Marina

(considering 4 no of trips in a day and 18 persons per boat) = 1

4. Total no of boats of all types = 11

Final demand The market potential (number of users & number of boats) for canal boating over a thirty year period (every 5 years), according to the type of boats, is as given in the tables below:

Table 6-10: Methodology for market demand assessment for inland marina


2012 2015 2020 2025 2030 2035 2040

Demand for Non-motorised 4-seater boats

185 222 309 443 659 1,012 1,603

Demand for 08-10 seater fibre glass boats

79 89 108 131 160 195 237


72 80 98 119 145 176 215

Table 6-11: Demand forecast for number of users for inland marina – peak season

Demand per type of boat Number of tourists per day (Low season (Apr-Jun))

2012 2015 2020 2025 2030 2035 2040

Demand for Non-motorised 4-seater boats

133 155 202 269 370 525 769


68 76 93 113 137 167 203


61 69 84 102 124 151 184

Table 6-12: Demand forecast for number of users for inland marina – low season



Demand of type of boats Number of boats required

2012 2015 2020 2025 2030 2035 2040

Non-motorised 4-seater boats 8 9 13 18 27 42 67

08-10 seater fibre glass boats 2 2 3 4 4 5 7


Table 6-13: Demand forecast for types of boats for inland marina – peak season

Demand of type of boats Number of boats required (Low season (Apr-Jun))

2012 2015 2020 2025 2030 2035 2040

Non-motorised 4-seater boats 6 6 8 11 15 22 32



Table 6-14: Demand forecast for types of boats for inland marina – low season

6.5.2 Waterside activities

Waterside activities

Description Waterside activities shall constitute of water scooter rides, banana boat rides and speed boat rides near the beach area.

Water scooter rides: One ride will last for 15 minutes plus 5 minutes for change-over. Therefore 3 rides, catering to one tourist each, are possible in one hour.

Banana boat rides: One ride will last for 20 minutes plus 10 minutes for change-over. Therefore 2 rides, catering to five tourists per ride, are possible in one hour.

Speed boat rides: One ride will last for 30 minutes including change-over time. Therefore 2 rides, catering to ten tourists per ride, are possible in one hour.

Customer segments Domestic tourists only. Foreign tourists are not expected to participate in these activities in a big way as it is assumed that they would primarily be interested in experiencing leisure activities. Also many of them would have access to better facilities in their own countries.

Key basis for demand estimation

Waterside activities involve agility and strength and therefore the number of tourists eligible and capable for engaging in waterside activities has been worked out on the basis of age group information available for domestic tourists

Key Assumptions The waterside activities shall operate during the fair weather season only and hence is expected to be operational for six months during the year (November-April). Therefore, only 50% of tourist arrivals in Allepey are expected to be the target market.

National Transportation Planning and Research Centre (NATPAC)



had conducted a survey for development of water sports in Alappuzha in 1998. We have considered some of the percentages from this survey as mentioned below:

37% of eligible (as per age / dressing habits) tourists would prefer Water Scooters. Percentage based on the preference for Wind Surfing as per NATPAC report.

47% of eligible (as per age / dressing habits) would prefer Banana Boat Rides. Percentage based on the preference for Yachting as per NATPAC report.

52% of eligible (as per age / dressing habits) tourists would prefer Speed Boat Rides. Percentage based on the preference for Sailing as per NATPAC report.

Growth drivers Adventure sports: Adventure water sports such as water scooters, banana boat rides, etc are popular with younger travelers and working executives. The limited availability of such activities in Indian locations is expected to attract the domestic tourists visiting Alappuzha.

Variety in tourism experiences: Tourism in India is mostly restricted to sightseeing and pilgrimage. The availability of water sports in Alappuzha enriches the tourists’ experience as the tourists along with the scenic beauty and backwaters can have access to a variety of tourism experiences.


(Example given here is for water scooters. Similar method has been followed for other activities)

1) Tabulate tourist arrival data (for domestic tourists) in Alappuzha from 1998 – 2009 and calculate the CAGR. Note: The CAGR for Domestic tourists has been taken at 4.0% based on the period 1998-2008. If we consider domestic tourist arrival for 2009, then the CAGR becomes 0.3%, mainly due to the fall in the domestic arrivals in 2009 alone, this being an aberration will not provide an appropriate basis for future growth rates.

2) Take the arrival of domestic tourists for 2009 as the base input data

3) Forecast tourist arrival data for next 30 years based on a year-to-year growth rate of 4% for domestic tourists

4) Consider the fair season (November - April) and calculate number of tourists

5) Filter the number the tourists visiting Kerala for business and official activities. Only the remainder number of tourists to be taken for further calculations.

6) Calculate the number of tourists as per age group classification who are eligible for driving Water Scooters

7) Calculate the number of tourists expected to drive Water Scooters considering Indian dressing habits

8) Use the preference percentage as per NATPAC for Wind Surfing



and arrive at the number of tourists who are expected to engage in Water Scooters rides

9) Calculate the number of tourists per month and per day taking the above numbers – for peak and low seasons.

Data used Waterside activities involve agility and strength and therefore the number of tourists eligible and capable for engaging in waterside activities has been worked out on the basis of age group information available for domestic tourists. The rationale for percentages allocated for filtering the respective age-group population is mentioned in the table below.

Distribution of Domestic Tourists (Non-Keralites) according to Age Distribution

Age-Group

(in years)

% distribution

What % shall use

water scooters

Effective percentage

Rationale

Upto 21

4.1 75.0 3.1 Certain percentage would not be eligible for driving water scooters / banana boat rides due to age & height factor.

22 - 35

55.4 100.0 55.4 Assumed that this group would have almost all tourists eligible for driving water scooters / banana boat rides

36 - 55

37.9 75.0 28.4 Assumed that this group would have tourists eligible for driving water scooters / banana boat rides but inclination would differ.

55 + 2.6 Nil Nil Considered separately



Total 100.0 86.9

Further filtering of the tourist population has been done based

on the specific purpose of visit of the domestic tourists to Kerala. This distribution, though for Kerala as a whole, has been assumed to apply to tourist arrivals in Alappuzha equally. Tourists visiting Kerala for business and official purposes have been excluded from the probable customers for the waterside activities. The percentage of domestic tourists who visit Kerala for purposes other than Business & Official is 82.8%.

Distribution of Domestic Tourists (Non-Keralite) according to Specific Purpose of Visit

Purpose of Visit 2004-07

Leisure 65.8

Pilgrimage 7.6

Business 11.5

Visiting friends & relatives 9.2

Official 5.7

Others 0.2

Total 100.0

The preference of tourists to engage in waterside activities, particularly in the Indian context, depends on the sex of the person. Females in India are normally very conservative and their dressing habits do not support participation in waterside activities especially if it means getting wet and necessitates changing of clothes.

Sex ratio (females per thousand males)

Particulars Females per ‘000 Males

India 933

Rural 946

Urban 900

The percentage of females in urban India population is 47.4%. According to the Domestic Tourism Study 2002-03, the total tourist household male-female ratio stood at 1.1:1 for the country as a whole and therefore the percentage of females in urban India population is 47.6%.

Considering the above statistics, it can be assumed that the domestic tourist population consists of 47.5% females. It is expected that 84.2% of the 47.5% (i.e. 40% of the total population) shall abstain from participation in water-based activities. Therefore, only 60% of the domestic tourist population is expected to participate in water side facilities.


1) Projected domestic tourist arrival for 2010 = 169,392

2) Projected domestic tourist arrival for 2011 considering growth



rate of 4% = 176,168

3) Domestic tourists arrival for the operational period (Nov - April) = 50% of 176,168 = 88,084

4) Percentage of tourists visiting Kerala for other than Business and official activities = 83% of 88,084 = 72,933

5) Number of tourists as per age group classification are eligible for driving Water Scooters (87%) = 63,379

6) Number of tourists expected to avail water scooters considering Indian values / dressing habits (60%) and number of tourists who would prefer Water Scooters (37%) (as per NATPAC for Wind Surfing)

= (60%)*(37%)*63,379 = 14,070

7) Average number of tourists per month (during the six months period) = 2,345

8) Number of tourists per day (during the six months period) = 78

Sample calculation of infrastructure (water scooters)

1) Number of tourists per day (during November-April) = 78

2) No. of tourists catered by each ride is one and duration of each individual ride is 20 minutes including change-over time

3) Number of tourists catered in an hour = 3

4) Number of tourists catered by one water scooter in an eight hour day (3 * 8) = 24

5) Number of water scooters required (78/24) ~ 3

Final demand The market potential for water side activities (number of users / tourists and number of equipments, e.g., water scooters) calculated in similar manner, over a thirty year period is as given in the tables below.

Table 6-15: Methodology for market demand assessment for waterside activities


2012 2015 2020 2025 2030 2035 2040




Table 6-16: Demand forecast for number of users for water side facilities



Waterside Activities Number of boats / scooters required per day

2012 2015 2020 2025 2030 2035 2040

Number of water scooters required 3 4 5 6 7 8 10

Number of banana boats required 1 1 2 2 3 3 4

Number of motor boats required for banana boating 1 1 2 2 3 3 4

Number of speed boats required 1 2 2 2 3 3 4

Table 6-17: Demand forecast for equipment for water side facilities

6.5.3 Landside facilities

Landside facilities

Description Land side facilities shall constitute of a Water park, Dolphin pool, Theme park, Health spa and Restaurant.

The Water park shall consist of Water slides and a Wave pool. The Theme park shall offer insight into the local life-style, culture, diversified eco-tourism and wildlife sanctuaries of Kerala.

The Health spa shall primarily deal in providing Ayurvedic massages and treatment. The Water park shall consist of Water slides and a Wave pool.


Key basis for demand estimation (Water park)

The idea of a Water Park is to get drenched and have unlimited fun. The number of tourists who would want to use the water park would depend on their mind-set towards fun and enjoyment. The percentage of tourists are likely to use the water park has been assessed on the basis of age group information available for domestic tourists.

Age-Group (yrs)

% distributio

n

What % shall use

water park

Effective percentage

Rationale

Upto 21

4.1 75% 3.1 Certain percentage would not be eligible for water park activities due to age & height factor.

22-35 55.4 90% 49.9 Assumed that this group would have almost all tourists opting for water park



36-55 37.9 50% 19.0

55+ 2.6 0% -

100.0 71.9

Based on the above calculation, 71.9% of the tourists are expected to use the water park. And keeping the 55+ age-group aside, 25.5% of the population is not expected to use the water park facility.

Key Assumptions (covering all land side activities)

Though land side facilities can operate during the entire year but the tourist inflow during the monsoon season is expected to be minimal and therefore tourist arrival date for this period is not considered.

The percentage distribution of tourists visiting Kerala, based on the specific purpose of visit, shall remain the same for tourists visiting Alappuzha.

Theme park: Accordingly all the tourists visiting Kerala to experience the local culture shall be interested in visiting the Theme park. And 50% of tourists who visit Kerala for attractions other than the local culture, shall visit the theme park.

Dolphin pool: Tourist population in the 55+ age-group and 30% of the tourist population which is not expected to use the water park facility shall visit the Dolphin Pool.

Health spa: All tourist visiting Kerala for residing in Ayurvedic centers and 10% of tourists visiting Kerala not residing in Ayurvedic centers, shall visit the Health spa for Ayurvedic treatment.

Restaurant: 25% of water park tourists shall use the Restaurant and 10% of tourists visiting other facilities (dolphin pool + theme park + health spa), shall use the Restaurant.

Growth drivers The landside facilities are expected to provide a wholesome experience to the entire family. There shall be multiple options to choose from for different members of the same family from varying age groups. The restaurant shall treat the tourists to a delicious local cuisine.


(Example given here is for water park. Similar method has been followed for other land side activities)

1) Tabulate tourist arrival data (for foreign & domestic tourists) in Alappuzha from 1998 – 2009 and calculate the CAGR.

Note: The CAGR for Domestic tourists has been taken at 4.0% based on the period 1998-2008. If we consider domestic tourist arrival for 2009, then the CAGR becomes 0.3%, mainly due to the fall in the domestic arrivals in 2009 alone, this being an aberration will not provide an appropriate basis for future growth rates.

2) Take the arrival of foreign & domestic tourists for 2009 as the base input data

3) Forecast tourist arrival data for next 30 years based on a year-to-year growth rate of 12 % for foreign tourists & 4% for domestic tourists



4) Consider the fair season (Oct - June) and calculate number of tourists

5) Consider % of tourists visiting Kerala for other than Business and official activities

6) Consider percentage of tourists as per age group classification who will indulge in water park activities

7) Calculate the number of tourists per month and per day taking the above percentage – for peak and low seasons.

Data used Distribution of Domestic Tourists (Non-Keralites) according to Age Distribution (please refer table sown in section “key basis for demand estimation”)


1. Projected domestic tourist arrival for 2010 = 169,392

2. Projected domestic tourist arrival for 2011 considering growth rate of 4% = 176,168

3. Domestic tourists arrival for fair season (Oct-June ’12) = 80% of 176,168 = 140,934

4. Percentage of tourists visiting Kerala for other than Business and official activities = 83% of 140,934 = 116,694

5. Number of tourists as per age group classification who will indulge in water park activities (72%) = 83,885

6. Average number of tourists per month Peak season (Oct-Mar) = 70% of 83,885 = 9,787 Low season (Apr-Jun = 30% of 83,885 = 8,389

7. Number of tourists per day Peak season (Oct-Mar) = 9787/30 = 326 Low season (Apr-Jun) = 8389/30 = 280

Final demand The market potential (number of users / tourists) for each of the landside facilities over a thirty year period is as given in the tables below.

Table 6-18: Methodology for market demand assessment for landside activities

Demand for each facility (Foreign Tourists)


2012 2015 2020 2025 2030 2035 2040

Demand for Water park 13 18 32 57 101 177 313

Demand for Dolphin Pool 26 37 65 114 201 266 469

Demand for Theme Park 67 95 167 211 372 655 1,155



Table 6-19: Demand forecast for number of users for landside facilities (foreign tourists) – peak

season



Demand for each facility (Foreign Tourists)

Number of tourists per day (Low season (Apr-Jun))

2012 2015 2020 2025 2030 2035 2040



Demand for Theme Park 58 81 143 181 319 562 990



Table 6-20: Demand forecast for number of users for landside facilities (foreign tourists) – low

season

Demand for each facility (Domestic Tourists)


2012 2015 2020 2025 2030 2035 2040

Demand for Water park 339 382 464 565 687 836 1,017



Demand for Health club 59 66 80 97 119 144 175


Table 6-21: Demand forecast for number of users for landside facilities (domestic tourists) – peak season

Demand for each facility (Domestic Tourists)


2012 2015 2020 2025 2030 2035 2040






Table 6-22: Demand forecast for number of users for landside facilities (domestic tourists) – low season



2012 2015 2020 2025 2030 2035 2040






Table 6-23: Demand forecast for number of users for landside facilities (all tourists) – peak season





2012 2015 2020 2025 2030 2035 2040

Demand for Water park 302 343 426 533 675 869 1,140





Table 6-24: Demand forecast for number of users for landside facilities (all tourists) – low season

Common note for demand estimation for all facilities: The compounded annual growth rate (CAGR) for foreign tourist arrivals in Alappuzha over an eleven-year period is 11.14% and for the domestic tourists is 0.30% only. The CAGR for the ten-period till 2008 for both the categories is much higher and has dropped due to the recessionary pressures in 2008-09. We have used CAGR for the period from 1998-2009 for foreign tourists with the assumption that such corrections can occur in the future. The CAGR for domestic tourists however, has been taken at 4.0% based on the period 1998-2008. If we consider domestic tourist arrival for 2009, then the CAGR becomes 0.3%, mainly due to the fall in the domestic arrivals in 2009 alone, this being an aberration will not provide an appropriate basis for future growth rates.

6.5.4 Summary of Market assessment scenarios

In order to provide a range of potential market demand, we have considered a low, medium and a high scenario. The key differentiator for these three scenarios is the proportion of tourists availing the infrastructure facilities. Summary of the market demand for the peak season for the three scenarios is given below. It may be noted that the infrastructure design and capacity planning is done for the medium term scenario.

Canal Boating in Inland Marina


2012 2015 2020 2025 2030 2035 2040

Low scenario 298 347 455 610 842 1,200 1,769

Medium scenario 335 391 514 694 964 1,383 2,055

High scenario 372 435 574 778 1,086 1,567 2,340

Table 6-25: Inland marina – summary of demand forecast for low, medium & high scenarios

Demand for Water Scooters Number of tourists per day (during November-April)

2012 2015 2020 2025 2030 2035 2040

Low scenario 70 79 96 117 142 173 211

Medium scenario 81 91 111 135 165 200 244

High scenario 92 104 126 154 187 227 277

Table 6-26: Waterside activities (water scooters) – summary of demand forecast for low, medium & high scenarios



Demand for Banana Boat Rides

Number of tourists per day (during November-April)

2012 2015 2020 2025 2030 2035 2040

Low scenario 92 104 126 154 187 227 277

Medium scenario 103 116 141 172 209 255 310

High scenario 114 129 156 190 231 282 343

Table 6-27: Waterside activities (banana boat rides) – summary of demand forecast for low, medium & high scenarios

Demand for Speed Boat Rides

Number of tourists per day (during November-April)

2012 2015 2020 2025 2030 2035 2040

Low scenario 198 223 271 330 401 488 594

Medium scenario 219 246 300 365 444 540 657

High scenario 240 270 329 400 487 592 720

Table 6-28: Waterside activities (speed boat rides) – summary of demand forecast for low, medium & high scenarios

Demand for Water park Number of tourists per day (Peak season (Oct-Mar))

2012 2015 2020 2025 2030 2035 2040

Low scenario 347 388 470 572 705 878 1,113

Medium scenario 352 400 497 622 788 1,014 1,330

High scenario 358 412 525 676 881 1,171 1,592

Table 6-29: Landside activities (water park) – summary of demand forecast for low, medium & high scenarios

Demand for Dolphin Pool Number of tourists per day (Peak season (Oct-Mar))

2012 2015 2020 2025 2030 2035 2040

Low scenario 157 180 232 304 411 600 818

Medium scenario 159 187 247 336 471 708 1,006

High scenario 162 193 264 371 541 836 1,241

Table 6-30: Landside activities (dolphin pool) – summary of demand forecast for low, medium & high scenarios

Demand for Theme Park Number of tourists per day (Peak season (Oct-Mar))

2012 2015 2020 2025 2030 2035 2040

Low scenario 208 248 339 574 773 1,071 1,530

Medium scenario 212 257 365 633 886 1,281 1,916

High scenario 216 267 393 699 1,017 1,534 2,404

Table 6-31: Landside activities (theme park) – summary of demand forecast for low, medium & high scenarios



Demand for Health spa


2012 2015 2020 2025 2030 2035 2040

Low scenario 73 85 112 151 210 300 442

Medium scenario 75 88 120 168 242 362 560

High scenario 76 92 128 186 280 438 710

Table 6-32: Landside activities (health spa) – summary of demand forecast for low, medium & high scenarios

Demand for Restaurant


2012 2015 2020 2025 2030 2035 2040

Low scenario 131 148 186 246 315 396 522

Medium scenario 133 153 197 269 357 462 634

High scenario 135 158 210 295 404 540 772

Table 6-33: Landside activities (restaurant) – summary of demand forecast for low, medium & high scenarios

6.5.5 Linkages to earlier tourism studies / reports

The project team has referred the tourism study reports mentioned below: 1. Detailed Project Report for Development of Marina and Revival of Alappuzha Port - March

2004 L&T-Ramboll Consulting Engineers Limited & Ramboll, Denmark -

2. Kerala Tourism Statistics - 2007 Research and Statistics Division, Department of Tourism, Government of Kerala

3. Domestic Tourism Study - 2002-03 National Council of Applied Economic Research

4. Study of amusement & theme park industry in India - May 2009 Ernst &Young

The information on demographic profiles of foreign and domestic tourists has been sourced from the report on Kerala Tourism Statistics 2007 and Domestic Tourism Study 2002-03.



7 Site investigations

7.1 Geographical setting

The name Alappuzha is derived from the geographical position and physical features of the place. It

means the land between the sea and network of rivers flowing into it. Alappuzha district admeasures

around 1,414 sq.km and comprises of six talukas namely Cherthala, Ambalappuzha, Kuttanad,

Karthikappally, Chengannur and Mavelikkara. The entire district is a sandy strip of land intercepted

by lagoons, rivers and canals. Alappuzha has a flat, unbroken sea coast of 82 km length, which is

13.9 percent of the total coastal line of the state. There are no forest areas in the district, nor are

there any mountains or hills except for some scattered hillocks lying between the eastern portions of

the district.

The proposed project site at Alappuzha is situated at a latitude of 9o 30’ N and a longitude of 76o 19’

E in the state of Kerala. The adjacent district head quarters are Ernakulam (Kochi, 50 km to the

North), Kottayam (40 kms to the East) and Kollam (85 kms to the South).

Figure 7-1: Overview of the project location

Source: Hydrographic survey wing, Neendakara

Towards the land side of the project site, there are network of canals included in the west coast canal system which are used for navigation. The important canals are Vadai canal, commercial canals



and the link canals between these two canals. Apart from these, there are many inland canals, which are primarily used for passenger navigation.

7.2 Land

The main land available with the port is what exists on the beach. The beach is 1500 meters in length

and 100 meters in width (15,000 sq.meter ) around 4 acres. Apart from the beach, there are some

parts of land adjacent to the beach road that lies under the purview of the Port. These include -

Port office and signal station

The small triangular patch of area adjacent to the Bank Road

The godown and the workshop area

Figure 7-2: Land at the project location available with Port

While planning the infrastructure facilities, emphasis will be made on the utilization of existing land available with the port thereby negating the need of additional land warranting lengthy land acquisition procedures.



7.3 Inland connectivity

7.3.1 Roads

National Highway (NH-47) stretched across the

Alappuzha district from the North to Southern

part of the district and is the main arterial link,

connecting Alappuzha to the other parts of the

state and the country. NH 47 route in

Alappuzha passes through the following routes

of Karunagappally - Kayamkulam - Haripad -

Ambalappuzha - Alappuzha - Cherthala (bypass)

– Aroor ( from South to North).

The National highway (NH-47) is just half a

kilometer away from the proposed project

location. A by-pass connection is being

developed on the Southern end of the beach

road (adjacent to the proposed project site) to

NH-47. The other roads connecting the project

location to Kerala and Tamil Nadu include the

state highways viz., Alappuzha - Changanassery

Highway (SH-11), Alappuzha – Madurai Road

(SH-40), Alappuzha-Arthunkal-Chellanam-

Thoppumpady (Kochi) road (SH-66)

The other state highways connecting other

parts of the Alappuzha district include SH-5

(Kayamkulam – Punalur), SH 6 (Kayamkulam –

Thiruvalla), SH-12 Ambalapuzha - Thiruvalla

Highway

Figure 7-3: Road network in the district of Alappuzha

Source: Maps of India

7.3.2 Rail

There are two railway lines in the Alappuzha district viz Kayamkulam - Ernakulam (via Chengannur) of length 35.70 km and Kayamkulam - Ernakulam (via Alappuzha) , which is a coastal railway of length 88.18 km.

The later broad gauge railway line passes

just at a distance of 100 m from the

proposed project location. In addition, the

Alappuzha railway station is also located

within proximity of 1 km from the project

location



Figure 7-4: Rail network in the district of Alappuzha


7.3.3 Inland waterways

Alappuzha has a large network of inland canals and hence is the ideal headquarters for backwater

tourism. Passenger services are available

between Alappuzha to the following locations

–

Cherthala

Kottayam

Nedumudi

Krishnapuram (Kavalam)

Kidangara

Pulinkunnu

Quilon

Edathua

There is no through fare or direct service

between Alappuzha and Kochi by backwaters.

Figure 7-5: Inland waterways network in Alappuzha


7.3.4 Air connectivity

Alappuzha district at the moment does not have direct air connectivity. The Kochi International

Airport is the nearest airport and is approximately 60 kms away from Alappuzha.

7.4 Topography

The geological formations of the district are classified as:

a belt of crystalline rocks of the archean group

a belt of residual laterite

a narrow belt of warkalli bed of tertiary group

a western most coastal belt of recent deposits

The most relevant crystalline rock type is Charnokites. Residual laterite is the resultant product of

the in situ alteration of the crystalline rocks. Warkalli beds consist of a succession of variegated clays

and sand stone. The coastal belt consists of sediments like aluvium, marine and lacustrine



7.5 Physical environment

7.5.1 Climate

The climate of the region is characterized as tropical humid, with an oppressive summer and

plentiful seasonal rainfall. The hot season, lasting from March to May, is followed by the south-west

monsoon from June to September. The north-east monsoon occurs from October to November. The

rest of the year is generally dry. The annual rainfall amounts to approximately 3300 mm, of which

the most (63.8%) is received during the south-west monsoon. Excessive rain during June to August

causes frequent floods in the rivers and canals in the area, submerging low-lying areas (See Table

7.1).

Months Rainfall in mm

2005 2006 2007 2008 2009 2010

January 18.9 11.7 0.0 0.0 1.7 1.9

February 11.8 0.0 30.5 88.2 4.4 3.4

March 39.2 58.4 2.2 175.5 45.3 73.8

April 248.9 73.6 139.7 166.3 131.9 165.6

May 177.4 495.3 284.2 127.8 256.4 305.2

June 552.1 481.5 597.3 366.5 559.8 515.4

July 521.7 442.6 780.2 660.7 503.3 540.9

August 114.2 332.4 368.3 189.4 164.0 294.4

September 344.1 400.2 417.6 332.6 250.9 343.3

October 276.8 450.8 306.8 313.7 210.9 554.9

November 197.3 268.1 173.4 122.3 318.5 205.7

December 96.4 6.0 6.4 41.9 54.6 -

Table 7-1: Monthly rainfall pattern of Alappuzha during 2005-2010

(Source: IMD)

The annual mean temperature varies from 23.9°C to 30.7°C with March and April being the hottest

months and December and January the coldest. The humidity is high in the area, the annual average

of the relative humidity being 82% during the mornings and decreasing to 77% in the evenings. The

observation on wind velocity and the dominant wind direction is shown in Table 7.2.

Month Maximum Velocity

Direction Predominant Direction

January 58 SSE W

February 53 N W

March 80 SSW W

April 88 SSW W

May 112 WSW W

June 86 WNW W



July 93 SW NW

August 93 NNW NW

September 77 WNW NW

October 67 NNW W

November 69 WNW W

December 64 SSE W

Table 7-2: Wind velocity and wind direction of Alappuzha

(Source: IMD)

7.5.2 Soils and Geology

The study area lies fully in low land region with a sandy strip of land intercepted by lagoons, rivers

and canals. Coastal alluvial soils are the main soil type of the study area. These kinds of soils have

been developed from marine and estuarine deposits and are very deep and usually have a high

water table. The soils have low base saturation and are usually acidic with pH values lower than 6.5.

The texture is dominated by sand fractions and the soils are excessively drained with very high

permeability. The soil horizon is thin and the usual surface textures are loamy and sandy loam.

Coastal alluvial soils have a very low fertility level and a low content of organic matter.

The land slopes gently towards northwest with a few local depressions that are located below mean

sea level. The underlined crystalline rocks are mostly composed by charnockite and khondalite. The

charnockite group show great diversity in lithology, but the most predominate are charnockite and

charnockite gneiss. Khondalite is predominated by garnet-sillimanitegneiss.

Figure 7-6: Section over the coast around Alappuzha Town

(Source: Central Ground Water Board 1992)



Table 7-3: Description of the soil and geology of the Alappuzha area, including age, formation and lithology

(Source: Central Ground Water Board, 1992; Soman, 1997).

7.5.3 Water Environment

The major source of drinking water is through piped distribution network of Kerala Water Authority

(KWA) and from wells. About 20% of the tap water samples from Alappuzha are above desirable

limits prescribed by Bureau of Indian Standards. The contamination of the source water (due to lack

of community hygiene) and insufficient treatment are the major cause for the coliform

contamination. Water samples from Alappuzha have high ionic and fluoride content which could be

attributed to the geology of the region (Table 2.4).

Quality of underground water in and around Alappuzha Town was not safe due to high

concentration of chloride, fluoride and iron. Fluoride content was above the permissible limit of 1

ppm (mg/l) in almost all wells as reported by Kerala Water Authority (KWA). Studies also revealed

that 35.64% of the school children in Ambalapuzha taluk were affected by dental fluorosis and its

prevalence was 55.28% in urban area.



Parameters Observed values

Min Max Mean

pH 6.40 8.20 7.31

Temp (°C) 25.9 31.4 27.85

Eh (mV) -18.00 496.00 67.74

EC (S/cm) 360.00 3170 920.53

Na+ (mg/L) 14.96 589.19 147.51

K+ (mg/L) 4.77 21.07 13.31

Mg2+ (mg/L) 5.86 20.20 14.53

Ca2+ (mg/L) 7.67 46.71 24.14

F- (mg/L) 0.30 1.60 0.94

Cl- (mg/L) 6.21 686.40 129.98

SO42-

(mg/L) 0.52 51.40 9.43

NO3- (mg/L) 0.15 13.80 3.09

HCO3- (mg/L) 174.26 325.83 256.09

PO4-P (mg/L) 0.06 0.42 0.26

Al (g/L) 22.73 332.55 112.72

Mn (g/L) 6.19 40.95 16.16

Fe (g/L) 37.07 1956.70 341.25

Cu (g/L) 0.44 57.06 4.48

Zn (g/L) 9.08 122.09 34.79

Sr (g/L) 249.60 1221.95 593.58

Ba (g/L) 24.76 172.72 73.71

Si (g/L) 5727.46 8638.85 6380.00

La (g/L) 3.31 8.64 5.35

Table 7-4: Ground water chemistry of Alappuzha

Source: Tomas Blom & Elin Cederlund (2006)

7.5.4 Air Environment

The air environment of the study region is very clean and pleasant because there are not many

influencing factors. The number of industries as well as that of vehicles is considerably low.

Noise

The major source of sound pollution in the region is the vehicles and indiscriminate use of loud

speakers.

7.5.5 Land Environment

The main land available with the port is what exists on the beach. The beach is 1500 m. in length and

100 m. in width (150,000 m2). Apart from the beach, there are some lands adjacent to the beach

road that also comes under the Port which includes Port office and signal station, the small

triangular patch of area adjacent to the Bank Road, and the godown and the workshop area.

Agriculture is the dominant land use type in the nearby coastal belt. Settlement (built-up area),



mixed tree crops and coconut are found along the sandy ridges. The soil is less fertile and water-

holding capacity is also very low.

7.5.6 ECOLOGICAL RESOURCES

7.5.6.1 Coastal Environment

As per Sajeev, et al 1997, the drift along Alappuzha coast shows seasonal variations. There is

prominent southerly drift during monsoon and in all other months, drift will be northerly. Low

magnitude of drift was observed along the mud banks. The mud banks of Alappuzha persist for very

long time from the start of the monsoon to the end of the monsoon. They are found 3-4 km along

the coast and 1-1.5 km across the coast. By the end of monsoon, the turbulence get reduced and the

mud particles settles and the coarser particles settles faster and suspended particles will be taken

away by the currents. This leads to the decrease in viscosity of sea water and all the damping effects

will be diminished and the water body will be rough again. It was also observed that, the eroded

particles get caught in mud banks and because of this the supply of sediment in the shore decreases

which leads to erosion. The mud bank extended up to 1.5 km out into the sea and traces of thin layer

of mud extended up to 3.5 km.

7.5.6.2 Terrestrial Environment

No forest, wild life sanctuaries or other environmentally sensitive area is near to the project site

(within 10 km radius of the project site) and no rare or endangered species have been reported from

the region. No mangrove or wet land or turtle nesting sites is observed at or near to the site.

Coconut trees, Mango trees, Tamarind, Betel nuts, Jackfruits, Casuarina Sp., etc., are very common

around the site. Although Alappuzha retains extensive backwater systems, its wetlands have been

extensively damaged by reclamation for coconut growing and foreshore developments.

Consequently, the district has one of the lowest proportions of mangroves resources in the State.

7.5.6.3 Socio-Economic Environment

Fishery is the main activity in the region. Cultural significance of the area is remarkable. The area is

rich with a large number of historic temples and churches. People belonging to various faiths and

creeds are living here in harmony for centuries. The area is also known for its architectural variety,

with a number of traditional houses and mansions that represent the famous Kerala architecture.

7.6 Meteorological conditions

7.6.1 Wind

General idea of wind directions are given in table below. The observation suggest during monsoon season the dominant wind direction is from west to south west. During non monsoon seasons the wind direction is from north east during morning and west during evening due to the effect of land breeze.



Month Maximum Velocity Direction

% time speed exceed 20kmph

Predominant Direction

January 58 SSE 10 W

February 53 N 20 W

March 80 SSW 26 W

April 88 SSW 23 W

May 112 WSW 23 W

June 86 WNW 13 W

July 93 SW 13 NW

August 93 NNW 16 NW

September 77 WNW 15 NW

October 67 NNW 6 W

November 69 WNW 5 W

December 64 SSE 3 W

Table 7-5: Wind data

7.6.2 Rainfall

Alappuzha receives maximum rainfall during monsoon i.e. from June to September. The normal

seasonal rainfall distribution is show in table above below.

Duration in Months Jan-Feb Mar-May June-Sept Oct-Dec

Normal Seasonal Rain fall (c.m.) 1 to 5 20 to 50 100 to 150 50 to 100

Table 7-6: Rainfall distribution

Source: Indian Meteorological Department

7.6.3 Humidity

The relative humidity in Alappuzha is high compared to other parts if India and it varies in between

75% in non monsoon periods and 90% in monsoon periods.

7.6.4 Temperature

Temperature at Alappuzha varies from about 22oC to 31oC. There are not much distinct seasonal

variations in the temperature, which more or less uniform throughout the year. Highest

temperatures tend to occur in the months of March to May.

7.7 Oceanographic conditions

7.7.1 Bathymetry

Hydrographic survey done in 1999 was used for this study. The depths in the admiralty chart no. 2035 were based on the surveys done in 1982.



7.7.2 Tides

Alappuzha experiences semi diurnal tides. The tidal level as per naval Hydrographical chart No.2004 as follows.

Mean Sea Level, MSL : +0.60m

Mean Highest High Water Level, MHHWL : +0.90m

Mean Highest Low Water Level, MHLWL : +0.60m

Mean Lowest High Water Level, MLHWL : +0.80m

Mean Lowest Low Water Level, MLLWL : +0.30m

7.7.3 Waves

As per review by T.S. Shahul Hameed on wave data recorded from 3rd July 1980 to 31st December

1984(Chapter 4, OCEAN WAVES AND BEACH PROCESS,1988) in which wave data recorded for two

periods in a year rough season (May-Oct) and fair season (Nov-Apr), the following values were

arrived (Table 1.7.1). The waves will be more or less parallel to the shore during rough season and

the effect of refraction will be smaller as the periods are lower. The large period waves were

observed coming from directions around 255oN during both the seasons and high waves with small

period were more or less parallel to the shore.

Parameters Rough season Fair season

Significant wave height, Hs 3.00m 1.40m

Height of the highest wave, Hmax 3.40m 2.00m

Time period of predominant waves 8-10s 9-11s

Percentage of times Hs exceeds specified wave heights

30% 1.30m 0.65m

50% 0.95m 0.52m

75% 0.62m 0.42m

Percentage of times Hmax exceeds specified wave heights

30% 1.90m 0.90m

50% 1.35m 0.72m

75% 0.85m 0.58m

Wave Direction considering majority of waves 230-265oN 235-240oN

Wave direction range and percentage of times that rage is experienced

245-260oN, 50% 230-245oN, 44%

235-265oN, 83% 235-255oN, 61%

Predominant wave direction and time period 250-265oN, 8-10s 230-240oN, 10-11s

Table 7-7: Wave characteristics at Alappuzha

Source: Wave climatology and littoral processes at Alleppey by T S Shahul Hameed , CESS

Percentage Exceedence

Wave Height (m) Rough Season Fair Season

Hs Hmax Hs Hmax

0.25 95 98 96 98

0.50 82 89 59 86



Table 7-8 : Wave height distribution

Source: Wave climatology and littoral processes at Alleppey by T S Shahul Hameed, CESS

7.7.4 Longshore Currents

Various studies on Long shore currents around Alappuzha shows similar pattern. The currents are

weak and they are northerly in direction most of the times except during monsoon. During pre-

monsoon season the current changes its direction southerly during March but during May, a strong

northerly current is observed and shifts back to southerly currents by June as the monsoon

strengthens.

During June the wave increases in height and becomes parallel to beach and currents change

direction depending on the topography of the shore. By July, the monsoon will be at its peak and

strong southerly currents of about 92 cm/s are recorded. In post monsoon period, the northerly

currents will be reestablished along with the monsoon retreat. The currents are weak and

inconsistent during non monsoon period and direction varies depending on wave breaking and

topography of foreshore.

7.7.5 Littoral Drift

As per Sajeev et al 1997, the drift along Alappuzha coast shows seasonal variations. There is prominent southerly drift during monsoon and in all other months, drift will be northerly. Low magnitude of drift was observed along the mudbanks.

As per review by T.S. Shahul Hameed on data recorded from 3rd July 1980 to 31st December 1984, during monsoon there will be erosion along the coast towards the south and there will be deposition on the northern side of the pier leading to rapid erosion along the southern side of the pier. During the other seasons the erosion as well as deposition due to longshore currents is not predominant as they are weak.

7.7.6 Mudbanks

Mudbanks are very rare and curious phenomenon found along the south west coast of India during

South West monsoon. It is observed that due to a fine mud in state of suspension results in damping

of wave energy and facilitates easy fishing operations. Though the phenomenon is not fully

explained there are lot of hypothesis put forward to explain the source of mud and role in calming

down the waves.

The Calmness of the mudbank is attributed to the high viscosity of the mudbank water bodies. Due

this high viscosity the relative motion of particles get damped or resisted and results in reduction of

wave amplitude.

The mud banks of Alappuzha persists for very long time from the start of the monsoon to the end of

the monsoon They are found 3-4 km along the coast and 1-1.5 km across the coast. By the end of

monsoon the turbulence get reduced and the mud particles settles and the coarser particles settles

faster and suspended particles will be taken away by the currents. This leads to the decrease in

viscosity of sea water and all the damping effects will be diminished and the water body will be

1.00 47 68 5 20

1.50 22 42 0 8

2.00 8 20 0 0

2.50 4 14 0 0



rough again. It was also observed that the eroded particles get caught in mud banks and because of

this the supply of sediment in the shore decreases which leads to erosion.

The mud bank extended up to 1.5 km out into the sea and traces of thin layer of mud extended up to

3.5 km.

7.8 Studies undertaken

7.8.1 Numeric model studies

Numeric model studies were also undertaken and the same is attached as Annexure 14.

It is to be noted that the numerical model studies also covered the cargo terminal which now, is no longer a part of project based on the decision taken by Government of Kerala.

7.8.2 Environmental study

A Rapid Environmental Impact Assessment (REIA) Study has been undertaken by Centre for

Environment and Development, Trivandrum and the report of their findings is attached as Annexure

15

It is to be noted that the REIA study also covered the cargo terminal which now, is no longer a part of project based on the decision taken by Government of Kerala.



8 Infrastructure planning

8.1 Introduction

Alappuzha known as Venice of East is a very important tourist destination in the state of Kerala. The town earned this sobriquet due to the large network of canals built in the town. The most important of them are Vadai canal, commercial canal and the canals connecting these two canals. Vadai canal is north to the commercial canal. These canals run in the East –West direction covering the full length of the town. These canals empty into the backwaters on eastern end. A section of vadai canal is used for navigation purposes even today. Other sections of the canals are silted and filled with Hyacinth making them unsuitable for navigation. Efforts are on to clean the canals and revive navigation through the whole length of the canals. As part of the above, an inland Marina is proposed to be established at the western end of the canals. This report outlines the planning of the inland marina and associated facilities.

The Theme Park is being planned in the same plot as the inland marina. The theme park shall provide the visitors a glimpse of the vibrant culture of Kerala. Kerala is home to various classical art forms ,colorful festivals, spices ,the famous martial art form known as "Kalarypaiyattu" and last but not the least, ”Ayurveda” - the ancient Indian system of medicine and panchakarma, the rejuvenation therapy which has helped Kerala gain a global reputation of a must visit destination. The layout showing both marina and Theme Park is given in Fig. 1

8.2 Inland Marina: Planning Considerations for the inland

marina

8.2.1 Dimensions of the Boats

The dimensions, capacities and number of boats are given in table below. These dimensions of boats are arrived from the traffic estimates.

Boat type

Length Breadth Draft Capacity Nos

Large 7.7 2.1 0.7 20 27

Medium 5.5 1.75 0.4 10 4

small 3.9 1.7 0.25 4 2

Table 8-1 : Inland Marina Boat specifications



8.2.2 Marina Layout

8.2.2.1 Widening of the canal

The location selected for marina development is bounded by a railway bridge on the East, road on the west, road on the South and port buildings on the North. The width of the canal at this location is around 25m. Total canal area available at the proposed location for the development of marina is 2000 m2. Since this area is not sufficient to accommodate the number of boats shown in table 1, it is proposed to demolish the buildings and dredge some more area to the North of the proposed location to widen the Canal so that an area of 3500 m2 is available for the development of Marina. For this purpose a dredging of 7918 m3 of soil needs to be done.

Figure 8-1: Layout Showing Inland Marina and Theme Park

8.2.2.2 Berthing facilities

It is proposed to provide double berthing facilities using finger piers. A total of 14 finger piers are provided for small boats, 3 finger piers for medium boats and 1 finger pier for large boats. The widths provided for small finger pier and larger finger piers are 1.0m and 2.5 m respectively. The lengths for the small, medium and large finger piers are 4m, 6m and 8m respectively. The finger piers should be provided with bollards to tie the boats securely to them. A person landing on the finger pier is led on to a walkway of 2m width. Please note that the number of berths mentioned above is for the traffic expected to come to the marina by 2030. The marina can start with 8 number



of small finger berths, 3 numbers of middle size finger berths and 1 large finger berth and the number of berths can be increased as and when new boats are purchased to cater to the increase in the traffic. The width between each small finger piers is taken as 5 meters and 7.2 meters for the larger piers.

8.2.2.3 Landing facility

The ground surrounding the canal is around 4.0 m above the level of the water in canal. The existing depth at the canal is around 0.6 m. it is proposed to increase this depth to 1.2 m to provide sufficient under keel clearance for the for the boats to move around in the canal. For negotiating this difference in depth of 4 meters, 16 steps are provided with 0.2 m rise and 0.3m width all around the water area. These steps lead to a walkway of 2 meter width. This walkway leads to the finger berths from where passengers can get on to the boats. A retaining wall needs to be constructed at the interface of water and finger jetties to retain the soil for building the steps and walkway. The finger berths should be made of RCC deck of 150mm thick. The deck rests on beams of size 300mm x 450mm connecting pile foundations. The general span considered for this purpose here is 6m. All the facilities should be designed for a live load of 4.5 kN/m2. The details of landing facility are given in figure 1.2

Figure 8-2: Section showing Details of landing facilities

8.2.2.4 Other facilities

Two security buildings need to be provided at both ends of the main marina walkways to accommodate security persons. Buildings such as Ticket counter, Fuel stations, dry storage and Boat lifting and maintenance should also be provided for the marina as shown in figure no. 1.1

8.2.3 Operations

The area of the bigger boats and the small boats should be separated using buoys and markers. The trips by the bigger boats can be planned in such a way that they completely traverse the two channels and the backwaters and come back to the starting location. Such a trip takes around 1.8 hours or 109 minutes. By the end of 2030, 25 trips can be planned by the bigger boats from 10:00



am to 6:00 pm every day with an interval of 15 minute between departure of boats. By planning the departures in this manner it can be assured that sufficient distance is maintained between the boats so that there is no clogging of boat traffic in the channel. The smaller boats can be used to go into the channel for a shorter duration and come back. The smaller should have departure at every five minutes to achieve the expected traffic figures.

8.2.4 Man power for Marina

The details of man power in the marina are shown in the table below (Table 1.5.1). This man power required is by 2030. The marina can start with a man power of 21 people and later add more personnel as and when required with the growth in traffic.

People/activity Man power required initially

Manpower Requirement by 2030

Boat Drivers

Small Boat 1 9 27

Medium Boat 1 2 4

Large Boat 2 2 4

Other Staffs

Ticketing 2 2 6

Admin staff 4 3 9

Fuel station and repairs

1 1 1

Security 2 2 4

Civil engineer 1 1 1

Electrician 1 1 1

Boat Mechanic 1 1 1

Admin Officer 1 1 1

Table 8-2 : Man power details for inland marina

8.3 Land side facilities: Theme park

The Theme Park is being planned in the same plot as the marina. The theme park shall provide the visitors a glimpse of the vibrant culture of Kerala. Kerala is home to various classical art forms ,colorful festivals, spices ,the famous martial art form known as "Kalarypaiyattu" and last but not the least, ”Ayurveda” - the ancient Indian system of medicine and panchakarma, the rejuvenation therapy which has helped Kerala gain a global reputation of a must visit destination.

The proposed facility shall consist of the following:

An Exhibit area

An Amphitheater

An artifact space

Open spaces

8.3.1 Exhibit Area exhibit

The area will house a wax museum and an art gallery. The building will cover an area of 745m2. This Admin office and ticket counter will also be the part of this building.



8.3.2 Wax museum

The Wax museum shall consist of wax figures of personalities or installation art depicting local art forms. An indicative list is given below, however more such statues / still creations could added to the museum Personalities Thunchath Ezhuthachan Kumaran Asan Vallathol Narayana Menon Mattannur Sankarankutty Marar Art forms: Kathakali Thiruvathirakali Ottamthullal Mohiniattam Kalarypaiyattu

8.3.3 Art Gallery

The art gallery will have paintings by the much acclaimed Raja Ravi Varma; Kerala Murals are paintings mainly seen on the walls, ceiling, of temples and palaces showing events of pre-historic times and many themes from Indian mythology. The murals of Kerala are unique in their style, color and visual impact. They are considered among the finest in India due to unique depiction, variety of ornamentation, and richness in color. Kerala Murals often reflects the tradition, culture and religious beliefs and majority of this art can be found on the walls of ancient temples, churches and palaces.

8.3.4 Auditorium

The amphitheatre or auditorium with a seating capacity more than 650 and will host plays and various performances like Kathakali, Kalarypaiyattu, Mohiniyattom etc. Kathakali is a highly stylized classical Indian dance-drama noted for the attractive make-up of characters, elaborate costumes, detailed gestures and well-defined body movements presented in tune with the anchor playback music and complementary drumming. Kalarypaiyattu is an Indian martial art from Kerala. Although the auditorium is a part of the theme park, it can be used independently for separate shows. Thus, the auditorium can be a multipurpose asset which can host variety of events which are always welcome in Kerala. The auditorium is planned for an area of 1610m2.

8.3.5 Artifact area

The artifact area shall consist of stall which will sell the specialties such as handicraft, handloom products and spices of Kerala. The building is planned in an area of 510 m2.

8.3.6 Open Spaces

Open spaces with landscaping and walkways are essential for any park. The proposed open spaces come up to an area of 2750m2. The landscaped area will be beautified with verities of trees, gardens, fountains and sculptures. These open spaces can be used by the tourists visiting both marina and Theme park.

http://en.wikipedia.org/wiki/Kerala



8.3.7 Old signal station

The old signal station in the vicinity of the theme park can be refurbished and turned into a museum. This centre can display some photographs, paintings, records and agreements depicting maritime history of Alappuzha area or may be that of whole Kerala. Marine related instruments and accessories which were used in the olden days can also be displayed in the centre.

8.3.8 Other facilities

Facilities like food courts and restrooms are provided. An area of 520m2 is allotted for table space and food court stalls are occupied by 135 m2. The food court roofing will be of glass which adds to the beauty and ambiance. It will be large compared to table space area so that during rain it shields the entire area of food court and it comes around 745 m2.

8.3.9 Man power for Theme park

Component/activity Manpower requirement

Museum

Housekeeping 3

Security 2

Auditorium

Housekeeping 4

Security 2

Artifacts

Housekeeping 0

Security 0

Landscaping

Gardening 2

sweepers 2

Table 8-3 : Man power requirements for Theme Park

8.4 Utilities for Marina and theme Park

8.4.1 Water Demand

The water demand for marina cum theme park is calculated on the basis of number of tourists supposed to visit theme park and the marina. The per capita water demands for various purposes are given below. Drinking - 3 liters Flushing - 25 liters Restaurants - 70 liters Manpower - 45 liters The water demand is calculated, for the peak flow of traffic for both marina and theme park. In which 60% will use the food courts



Water demand = (3*(2034+964) + 70*(60/100)*(2043+964) + 74*45)/1000 ≈139 m3 Flushing demand = 25*(2043+964)/1000=77 m3

8.4.2 Water Supply

Thus water has to be stored in a sump and it has to store water for two days in case of emergency. The water stored in the Sump will be pumped to the over head tanks using high HP pumps. The sump and the pumps will be provided under the auditorium. The flushing water demand will be satisfied by treated water from the Sewage treatment Plant. Over head tanks are provided for firefighting which are filled by treated water from STP if required. The Pump capacity is arrived such a way that it should be capable of pumping total water demand in 1 hour. So if water is not available it can be filled as fast as possible and lack of power at times doesn’t affect the water supply. The pump capacity will be, P Q is discharge for filling 139 m3 in 1 hour h, height of pumping (taken as 12m considering losses and height).

, Density of water. g, acceleration due to gravity

, pump efficiency, taken 0.6. The components for water supply include Over head tanks, Sump, Pump and pipes. Over head tanks will be Synthetic tanks of capacity 5m3 each and the number of tanks calculated according to the required water demand and flushing demand. The pipe used to carry water to the sump is taken as 40mm G.I. pipe. The Pump required should be of 11HP power. A sump of dimension of 4m*11m*6.5m with top covers and wall thickness of 0.35m was provided. Arrangements need to be made with Kerala Water Authority to supply the port with the required water. The water supply charge is takes as Rs. 25 per Kilo liter or m3. The electric consumption is calculated on the basis of electric consumption of pump operating for pumping required water demand per day. The rate of electric unit is 3.5 Rs. per kWh (As per Kerala State Electricity Board tariff). The electric consumption in kWh per day is calculated as (P*t)/P.F. Where, P is Pump power in kW, t is the pumping duration which is 1 hour P.F. is power factor (0.8).

8.4.3 Sewage treatment Plant

The capacity of the STP is arrived at by calculating the quantity of effluxes to be treated per day. The effluent quantity is arrived by assuming 85% of the water demand will be left for treatment. Effluent quantity per day will be 85% of 139 m3 i.e. 118 m3 per day or Kilo Liters per Day (KLD). PVC pipes are employed to carry water to STP and water back to overhead tanks for flushing and fire fighting. 20 % of the treated water will be lost in the process and the rest will be 95m3 per day of which 77 m3 can be used for flushing and remaining 17 m3 can be used for watering the landscaping. The operational cost STP is taken as Rs.20 per Kilo Liter or m3 and an additional cost for pumping it for flushing. The pumping cost is arrived as explained for electric consumption for water supply.



8.5 Land side facilities: Water Park

A water park is a big attraction for all age groups. It features water play areas like water slides, lazy river, water playgrounds and wave pool.

Figure 8-3: Layout of wave pool

8.5.1 Infrastructure:

The proposed water park has an area of 6510 sq m in the midst of natural beauty and a clean environment. It is packed with fun filled activities for all age groups. It is proposed to have water slides, wave pool and lazy river along with other facilities like separate changing rooms, lockers, first aid center, indoor games section and food courts serving various delicacies. The water park will feature slides that will entertain the entire family having a full day of fun. The water park will consist of:

8.5.1.1 Adult Slides:

There will be 5 adult slides; each of them will drop the slider in the landing pool. The slides will be circular, straight, and thrilling slides. The slides will be as follows:

FLOAT FLUME SLIDE: This slide will be an open circular serpentine type slide. Inflatable floats suitable for two persons will be used for sliding on this slide.

BOD Y FLUME SLIDE: This slide will be an open circular serpentine type slide. HARAKIRI WAVE SLIDE: This is straight slide. A person can sit in the float and can come down

with very little water flowing. HARAKIRI FREE FALL SLIDE: This is dry straight slide with very little water. Here the people

can sit in the float and can come down with very little water flowing. 3 LANE WAVE SLIDE: This slide is a multi lane slide. It will be having three lines with bumps at

regular intervals creating a wave like structure.

8.5.1.2 Kids Pool:

The kid’s pool is an important section/ area of the water park. The proposed water park shall have a special section for the kids with an interactive play area where they can have all the fun with slides of lesser heights making it safe for them. The kid’s area will have the following fun slides:

BODY FLUME SLIDE: This slide will be an open circular serpentine slide. BODY TUBE SLIDE: This slide is an enclosed tube slide.



FAMILY SLIDE: This slide is a straight free fall slide having bumps at regular intervals. It is not just for kids but for the entire family.

MUSHROOM UMBRELLA: It is in the shape of a mushroom. In this slide water is pumped to the top and allowed to flow down the surface of the structure. The water mushroom is just plain fun for the entire family.

FUN FLOATS: Fun Floats (walk over bridge/Lily Pad walks) for Kids. It will float on the water and children can balance themselves on them and cross the pool by holding the end tied across the pool.

8.5.1.3 MULTIPLAY SYSTEM:

It is a multipurpose water play system with interactive activities like water slides, pumps, tilting bucket, and piping.

8.5.1.4 Lazy River:

It usually consists of shallow (2½ ft. to 3½ ft.) pool that flows similarly to a river. There is generally a slow current, usually just enough to allow guests to gently ride along lying on tubes. The proposed water park will consist of a lazy river, 3 m wide and the running length of approximately 130 m.

8.5.1.5 Wave Pool:

Wave pools have been one of the most popular water park features. It can be enjoyed by adults as well as kids. It is a swimming pool in which artificial reasonable waves are generated similar to that of oceans. The proposed water park will consist of a wave pool of length 26.5 m and its shore end will be 22m wide. There will be a machinery room with a complete wave pool mechanism set and an air chamber located at the back end of the pool which will push the water up at regular intervals thus creating waves of maximum 5 ft height. The wave pool is deeper at the end where the wave generating machine is located, from there it shallows down until it reaches zero depth which is the beach area. The kids can have a nice time enjoying the waves in the shallow water areas. Here you can enjoy the thrills of crashing waves, jump into them or try riding them out in inner tubes.

8.5.2 Manpower

The proposed water park will require employees working under different departments for the smooth functioning of the park. Experienced personnel’s should be appointed who can add value to the organization and also make it a pleasurable experience for the visitors.

The water park will require the following personnel’s to ensure its smooth and efficient functioning:

Manager Admin Assistants Ticket Counter Attendants Lifeguards Control Room Attendants Slide Attendants Pool Maintenance Crew



8.5.3 Safety needs

The water park should be a safe and secure place for the visitors. There should be water filtration systems installed that will filter the water on regular basis. The pool maintenance crew should constantly monitor the pools to check the water quality and the chlorine balance in it. There should be regular inspections done for the pools and also the other facilities like changing rooms, wash rooms, lockers, etc to ensure that the guests/visitors to the park are safe from any infections caused by contaminated water or unclean surroundings. The water in all the pools should be fully replaced once in every 3 months time.

There should be well trained and experienced lifeguards in the water park. A minimum number of 2 lifeguards should be there at every pool. Apart from the lifeguards there should also be slide attendants who will guide/ instruct/ assist the sliders on the water slides. Each slide should have a minimum of 2 attendants to cater to the needs of the sliders. There should be floats and life jackets to ensure life safety in water. There should also be a First Aid Center in case of small accidents/ casualties. There should be well qualified and trained personnel’s to cater to first aid needs

8.5.4 Power and water

Approximately 225 KW of power will be required and an initial water requirement will be around 2000 cu.mt which will be recycled through filtration system. Later there is a daily requirement of water of 2% - 3% of water to make up for evaporation losses. An additional quantity of 40-60 m3/day should be supplied to the water park to counter the evaporation losses. This water can be sourced from municipality.

The water park has been designed keeping in mind the needs of all age groups. The water park has fun filled rides which will make the experience of the entire family a memorable one.

8.6 Land side facilities: Dolphin pool

8.6.1 Overview

The dolphin pool is an aquarium meant for dolphins. Normally, the dolphins are kept in a large pool for public performances. The dolphins are trained to do acrobatic maneuvers in the pool on various themes and props. The dolphin pool require expert trainers and life support staff who specialize in its training and daily operations. This concept is very popular from the world over for its uniqueness and huge crowd puller world over. As of date, there are no existing dolphin pools in India. The Dolphins used in the Marina should be Sea dolphins. Fresh water dolphins cannot be used because these dolphins are very few in number.

8.6.2 Layout

The layout of the Dolphin pool along with the restaurant has the following layout:



Figure 8-4: Layout of dolphin pool

8.6.3 Features

The Dolphin pool comprises of three main components:

1. The actual pool and playing area for the dolphins

2. The spectator stands for the people

3. Restaurant

Additionally, the elevated spectator stands shall have underground basement which shall provide

for:

1. Gallery for viewing dolphins being fed by the trainers

2. Touch pools for any other species

3. Filtration tanks

4. Acclimatizing tanks for the species

The water losses due to evaporation per day can be replenished by having water pumped from the

sea into the filtration tanks.

The dimensions of the infrastructure are as illustrated below:



Figure 8-5: Cross section of the dolphin pool

8.7 Land side facilities: Ayurvedic Health Spa

8.7.1 Overview

The history of Ayurveda and associated therapies can be traced back to the Vedic Ages which lays importance on fighting illnesses through therapies such as massages, herbal medicines, diet control and exercise. Removal of toxic rudiments from the body is the major motive of this curing therapy. The system gets purified when the poisonous elements are removed from the body. It not only rejuvenates the body but also mind, and soul. The objective of Ayurvedic therapy is to restore this balance in order to maintain good health. Kerala has a number of Ayurveda treatment centres which offer various packages. Kerala has a number of natural herbs and medicinal shrubs such as Aswagandha, Amalki, Katphal, Brahmi, Bharangi, Yashtimadhu, and Shankhupusham. The rainy season, from June to September, is the ideal time for Ayurvedic treatments because the atmosphere remains cool, moist, and dust free. During this time, the pores on the skin open up and this makes the human body more receptive to herbal oils and therapy.



8.7.2 Layout

Figure 8-6: Layout of proposed Health Spa

8.7.3 Features

8.7.3.1 Ayurvedic spa

The spa facility comprises of 140 platforms or enclosures. These enclosures will cater to the ayurvedic messages of various kinds. Specially trained and supervised staff shall be responsible for these message therapies for the guests.

As per the layout, 84 platforms/enclosures will be on the ground floor and 56 platforms/enclosures on the 1st floor. Each enclosure of 7 sq.mtr area shall comfortably provide for comfort and privacy.

8.7.3.2 Restaurants

The pool side restaurant and the terrace restaurant shall be open to guests and normal public. The swimming pool and the sea shore will be visually pleasing for the guests here. These restaurants shall cater to Indian and Continental cuisine.

The support facilities for the restaurants shall be the common kitchen on the ground floor. Ample parking space is also provided for the guests.



8.7.3.3 Sauna & Swimming pool

The guests may also avail facilities like a swimming pool, sunbathing near the swimming pool or the sauna on the 1st floor. A 400 square meter (20mx20m and 3 m depth) swimming pool is provided for the guests at the forefront. A sauna facility of 200 square meters is provided on the 1st floor which can comfortably accommodate 10 to 15 people.

8.7.3.4 Provision for Support Services

The booking and administrative requirements of the spa shall be met by the receptionists and the manager at the administration block. The terrace restaurant and the platforms on the 1st floor shall be accessed through the spacious staircase.

8.8 Water side facilities: Water sports

It has been observed that there is a huge demand for water based facilities among the tourist who arrive in Kerala, which is about 40 % of the total tourist arrivals. There are several rides within the water sports namely: banana boats, water scooters & speed boats. The ideal sailing conditions are variable for all the sporting vehicles.

The rides proposed at the planned facility are as follows;

8.8.1 Banana Boats

The demand for such boats at the facility has been estimated to be around one in the initial year of operation and is expected to increase to four by the year 2040. A Banana boat 5.18 m long, 1.3 m wide and having a seating capacity of five can be proposed. These are inflatable and have main tube-like structure on which the riders sit along & rest their feet onto the adjacent smaller supporting tubes. They do not have an automated mechanism for the functioning. Hence they are attached to the water scooters and dragged along. The water depth required for it to stay afloat ranges from 0.46 m to 0.6 m.

8.8.2 Water scooter

Basis the demand assessment for such rides in the proposed facility, it has been estimated that in the initial year of operation four water scooters would be in operation and is expected to increase to 10 by the year 2040. The water scooters shall be 3.16 m long, 1.62 m wide and have a seating capacity of 2 people (one driver + one tourist). This scooter is run by an out boat motor of 25 horse power which can achieve a speed of 12-17 knots. They are small, fast, easily handled, fairly easy to use, affordable, and their propulsion systems do not have external propellers, making them safer for swimmers and wildlife. Water scooters are highly maneuverable, and many can, from full speed, be reversed.

8.8.3 Speed boat

A speed boat of length 5.4 m , breadth 1.72m and a seating capacity of 8-10 people has been planned This speed boat can achieve a speed of 20-22 knots with a 40 hp engine and 28-30 knots with 115 hp in calm waters . A speed boat has a high power to weight ratio and a hull design which allows for higher speed and improved handling. Also the shape of the actual boat is usually very streamlined, which minimizes air resistance and drag, therefore increasing speed.



All the above mentioned rides shall have the retrieval and launch from the beach front itself i.e. it wouldn’t have any pontoon like structure for embarking and disembarking. A temporary arrangement such a footboard can be provided for the tourists to get into the speed boats. It is proposed that the boats and water scooters shall be stored in a store house across the beach during the monsoon season. During non monsoon season, it is proposed that the boats be held at the passenger jetties during nights.

8.8.4 Storage area

The proposed waterside facility will also house a storage space for the above mentioned rides. The area required for a water scooter is approximately 3.4m2; banana boat 6.8m2 and 9.4m2 for a speed boat. The total area required for the storage is 173 m2. A closed storage shed shall be constructed to store boats and water scooters at ground level. To service the operation at the storage area, equipments such as trailer for stacking and retrieving the boats from water will be used .The storage area will have a single entrance, to cater to the security of the storage and firefighting equipments.



9 Cost estimates

The split up of the cost aspects has been undertaken to understand the project costing of the various facilities planned and also to ensure that the operation and maintenance cost is properly apportioned.

9.1 Capital cost estimates for individual facilities

9.1.1 Inland marina

The Inland Marina facility will be created to provide Canal Boating experience to tourists. The major elements of capex required for creating this facility are:

Dredging – for widening the canal for boating Berthing facilities – for parking the boats Landing facility – for movement of tourists from ground to the Inland Marina berth Other facilities – Buildings for ticket counter, fuel stations, dry storage etc. Boats – Four seater, Ten seater and Twenty seater boats that will be used for canal boating

For further details about Infrastructure required for Inland Marina, please refer the chapter of Infrastructure Planning. The cost estimates for Inland Marina infrastructure are provided hereunder:

9.1.1.1 Facilities specific to Inland Marina

Sr. No

Description Total cost ( in Rs. Million)

Capex for

2010

Capex for

2011

Capex for

2012

Total cost

1 Dredging

1.1 Dredging for marina 0.39 1.49 - 1.88

1.2 Expansion of canal (dredging) 0.29 1.10 - 1.38

2 Expansion of Canal

2.1 Retaining wall (marina) 0.13 0.48 - 0.61

2.2 Hand railing (marina) - - - -

3 Marina water front development

3.1 Area development - - - -

3.2 Finger pier 0.17 0.64 - 0.81

3.3 Fire fighting for marina 0.01 0.05 - 0.07

4 Restroom

4.1 Building cost 0.50 1.93 - 2.43

4.2 Plumbing & Sanitation 0.03 0.10 - 0.12

4.3 Fire fighting for building 0.02 0.09 - 0.12

4.4 Electrification including lighting 0.05 0.18 - 0.23



Sr. No


Capex for

2010

Capex for

2011

Capex for

2012

Total cost

5 Dry storage

5.1 Building cost 0.63 2.41 - 3.04



5.4 Electrification including lighting, air conditioning 0.09 0.34 - 0.43

6 Boat lifting & repairing unit

6.1 Building cost 0.25 0.95 - 1.08




7 Fuel station

7.1 Building cost 0.05 0.19 - 0.25



7.4 Electrification 0.00 0.02 - 0.02

8 Ticket counter for Marina

8.1 Building cost 0.08 0.31 - 0.40




9 Utilities

9.1 Transformer + Control panel + HT/LT gears+ cables

0.06 0.22 - 0.28

9.2 Lighting and cable cost 0.48 1.85 - 2.33

10 Equipments

10.1 Boat purchase

4-seater - - 3.78 3.78

08-10 seater - - 2.73 2.73

15-20 seater - - 1.89 1.89

10.2 Lifting equipment 1.20 4.62 - 5.83

10.3 Cleats + bollards 0.24 0.92 - 1.15

10.4 Pedestals - Power + water taps 0.05 0.18 - 0.23

10.5 Miscellaneous Equipments (Walkie talkies + l/jackets + l/buoys)

0.05 0.18 - 0.23



Sr. No


Capex for

2010

Capex for

2011

Capex for

2012

Total cost

10.6 Security Equipment

Metal Archs at Entrance to terminal 0.07 0.28 - 0.35

Security Check Metal Arcs 0.07 0.28 - 0.35

Personal Metal detectors 0.00 0.02 - 0.02

Surveillance System 0.05 0.18 - 0.23

Smoke Detectors (alarm systems) 0.00 0.01 - 0.01

Total 5.11 19.60 8.40 33.11

Table 9-1: Cost estimates for facilities specific to Inland Marina

Note: The total cost includes consultancy charges of Rs. 1.61 Million, contingency of Rs. 0.40 Million and capitalized borrowing costs of Rs. 2.35 Million.

Apart from the costs given above, periodic augmentation of boats would result in additional cost incurrence as per the following:

Description

Total cost ( in Rs. Million)

2016 2017 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Purchase of equipments / boats

1.70 0.40 0.40 0.40 0.40 0.40 2.20 1.70 0.40 0.80 0.80 0.40 0.80 0.80

Table 9-2: Cost estimates for augmentation of boats for Inland Marina

Some of the infrastructure related to Civil Construction like Security Buildings, Landscaping, Walkways etc. can be used by both Inland Marina and Theme Park. Currently 20% of such common cost has been allocated to Inland Marina. Details of the common costs are given hereunder:

9.1.1.2 Allocated cost for Inland Marina - for common facilities (theme park and inland marina)

Sr. No


Capex for

2010

Capex for

2011

Capex for

2012

Total cost

1 Demolition of building 0.11 0.42 0.53

2 Security building

2.1 Building cost 0.01 0.06 0.07

2.2 Plumbing & Sanitation 0.00 0.00 0.00



Sr. No


Capex for

2010

Capex for

2011

Capex for

2012

Total cost

2.3 Fire fighting for building 0.00 0.00 0.00

2.4 Electrification including lighting, air conditioning 0.00 0.01 0.01

3 Food courts stalls and building

3.1 Building cost 0.06 0.24 0.30

3.2 Plumbing & Sanitation 0.00 0.01 0.01

3.3 Fire fighting for building 0.00 0.01 0.01

3.4 Electrification including lighting, air conditioning 0.01 0.03 0.04

4 Landscaping area 0.04 0.15 0.19

5 Parking open area 0.04 0.14 0.18

6 Common Road 0.02 0.10 0.12

7 Walk way (pave tiles) 0.02 0.07 0.09

8 Table space 0.01 0.05 0.06

9 Transparent roof (food court + entry) 0.13 0.52 0.65

10 Steps(pave tiles) 0.02 0.09 0.12

11 Compound wall 0.01 0.04 0.05

12 Entry Gate 0.00 0.02 0.02

13 Chain Link (parking area) 0.01 0.05 0.06

14 Utilities

14.1 Water Supply – Piping 0.10 0.38 0.48

14.2 Sewage Treatment Plant & Piping 0.06 0.24 0.30

14.3 Transformer + Control panel + HT/LT gears+ cables 0.04 0.17 0.21

14.4 Lighting and cable cost 0.10 0.37 0.47

TOTAL 0.82 3.15 3.98

Table 9-3: Allocated cost for Inland Marina - for common facilities (theme park and inland marina)


9.1.1.3 Total cost for Inland Marina after considering allocation of common facilities

Sr. No


Capex for

2010

Capex for

2011

Capex for

2012

Total cost

A Specific cost 5.11 19.60 8.40 33.11

B Allocated common cost 0.82 3.15 3.98

C Total Cost 5.93 22.75 8.40 37.09

Table 9-4: Total cost for Inland Marina after considering allocation of common facilities



9.1.2 Land side facilities

9.1.2.1 Dolphin pool

The Dolphin pool will host Dolphin shows and thereby become a unique tourist attraction. Major elements of Capex required for developing of Dolphin pool are:

Dolphin Pool – the basic civil structure which will host the Dolphin Shows and provide seating space for spectators

Specimen (Dolphins) – the pool will host three Dolphins at a time and on an average these Dolphins will have to be replaced after every five years

Water filtration equipments – Advanced water filtration equipments are required for conservation of Dolphins

Dolphin pool being a unique attraction, a restaurant that can cater to majority of the tourists visiting the tourism facilities of Inland Marina and Theme Park has been combined with Dolphin pool.

For further details about Infrastructure required for Dolphin pool, please refer the chapter of Infrastructure Planning. The cost estimates for Dolphin pool’s infrastructure are provided hereunder:

Sr. No


Capex for 2010

Capex for 2011

Capex for 2012

Total cost

1 Civil Work

1.1 Dolphin pool 29.23 115.36 - 144.59

1.2 Stands & Basement 1.99 7.84 - 9.83

1.3 Restaurant 1.02 4.04 - 5.06

1.4 Landscaping (Chairs & Tiling etc) 2.44 9.61 - 12.05

2 Facility development

2.1 Specimen (Dolphins) 1.83 7.21 - 9.04

2.2 Acrylic Panels & fittings 0.22 0.87 - 1.08

2.3 Ancillary Area Development 2.44 9.61 - 12.05

3 Utilities

3.1 Transformers & electrical wiring 0.12 0.47 - 0.59

3.2 DG sets 0.41 1.62 - 2.03

3.3 Water Pumping equipment 0.02 0.10 - 0.12

4 Equipments

4.1 Surveillance system 0.33 1.30 - 1.63

4.2 Fire fighting equipment 0.69 2.74 - 3.43

4.3 Lighting requirements 0.87 3.42 - 4.29

4.4 Equipment & filtration requirements 73.07 288.40 - 361.47

4.5 STP equipment 0.26 1.04 - 1.30

Total 114.94 453.62 - 568.56

Table 9-5: Cost estimates for infrastructure for Dolphin pool



Note: The total cost includes consultancy charges of Rs. 28.31 million, contingency of Rs. 15.01 million and capitalized borrowing costs of Rs. 53.37 Million.

Apart from the costs given above, periodic replacement of Dolphins would result in additional cost incurrence as per the following:

Sr. No


2017 2022 2027 2032 2037

1 Replacement costs of Specimen (Dolphins)

10.55 13.47 17.19 21.94 28.00

Table 9-6: Cost estimates for periodic replacement of Dolphins

9.1.2.2 Water park

Water park is a popular family destination attracting tourists of all age groups. The water park shall comprise of various sections like water slides (separate for kids and adults), multiplay system comprising of lazy river, water playgrounds and wave pool.

The major elements of Capex required for developing a water park are:

Civil Construction – for developing the premises and structure of Water Park

Slides – water slides that will be used by tourists

Equipments – primarily for safety and wellbeing of tourists – e.g. water filtration, fire fighting, surveillance, sewage treatment etc.

For further details about Infrastructure required for Water Park, please refer the chapter of Infrastructure Planning. The cost estimates for Water Park’s infrastructure are provided hereunder:

Sr. No


Capex for 2010

Capex for 2011

Capex for 2012

Total cost

1 Civil Work

1.1 Pool development & other civil works 2.45 9.66 - 12.11

1.2 Landscaping unoccupied land 0.33 1.29 - 1.61

1.3 Landscaping Occupied Area 0.47 1.86 - 2.33

2 Facility development

2.1 Adult Slide 1.14 4.49 - 5.63

2.2 Kids slides 0.26 1.04 - 1.31

2.3 Other slides 0.58 2.28 - 2.85

3 Utilities

3.1 Transformers & electrical wiring 0.65 2.58 - 3.23

3.2 DG sets 0.51 2.01 - 2.52

4 Equipments




Sr. No


Capex for 2010

Capex for 2011

Capex for 2012

Total cost

4.2 Fire fighting equipment 0.16 0.64 - 0.80


4.4 Filtration equipment 0.35 1.39 - 1.74

4.5 STP equipment 0.26 1.04 - 1.31

4.6 additional equipment required 0.27 1.06 - 1.33

Total 9.48 37.40 - 46.87

Table 9-7: Cost estimates for infrastructure for Water park

Note: The total cost includes consultancy charges of Rs. 2.52 million, contingency of Rs. 1.24 million and capitalized borrowing costs of Rs. 4.40 Million.

9.1.2.3 Ayurvedic health spa

Ayurvedic health spa shall provide the authentic Kerala Ayurvedic treatment experience to tourists. The proposed Ayurvedic health spa is non-residential and hence does not require extensive capital investment. The major elements of Capex required to develop the Ayurvedic Health Spa are given below:

Civil construction – Mainly comprising of the treatment area having platforms or enclosures. Restaurant, sauna and swimming pool are the other major facilities inside the Ayurvedic Health Spa premises.

Utilities and Equipments – Lighting, Surveillance, firefighting etc.

Based on the inherent nature of this facility, the capex cost required for developing Theme Park primarily comprises of civil construction cost. For further details about Infrastructure required for Ayurvedic Health Spa, please refer the chapter of Infrastructure Planning. The cost estimates for Ayurvedic Health Spa’s infrastructure are provided hereunder:

Sr. No


Capex for

2010

Capex for

2011

Capex for

2012

Total cost

1 Civil Work

1.1 Area required for Ayurvedic treatment 4.21 16.63 - 20.84

1.2 Swimming pool 0.97 3.84 - 4.81

1.3 Pool side restaurant 0.28 1.09 - 1.37

1.4 Area for administrative block 1.00 3.96 - 4.96

1.5 Area for kitchen 1.77 6.97 - 8.73

1.6 Area for roof top restaurant 1.17 4.61 - 5.77

1.7 Area for Sauna 0.86 3.40 - 4.26

1.8 Area for landscaping 0.14 0.56 - 0.70

1.9 Civil design & site investigations 0.10 0.38 - 0.47



Sr. No


Capex for

2010

Capex for

2011

Capex for

2012

Total cost

2 Utilities

2.1 Transformers & electrical wiring - - - -

2.2 DG sets 0.40 1.60 - 2.00

3 Equipments


3.2 Firefighting equipment 0.21 0.82 - 1.03


3.4 STP costs 1.25 4.92 - 6.17

Total 14.11 55.67 - 69.77

Table 9-8: Cost estimates for infrastructure for Ayurvedic Health Spa’s


9.1.2.4 Theme park

The theme park shall provide the visitors a glimpse of the vibrant culture of Kerala. It shall comprise of the following major zones:

Exhibit area - housing a wax museum and an art gallery

Amphitheater / Auditorium – for hosting traditional plays and performances like Kathakali, Kalarypaiyattu, Mohiniyattom etc.

Artifact space – that will exhibit and sell regional specialties such as handicrafts, handlooms and spices of Kerala

Based on the inherent nature of this facility, the capex cost required for developing Theme Park primarily comprises of civil construction cost. For further details about Infrastructure required for Theme Park, please refer the chapter of Infrastructure Planning. The cost estimates for Theme Park’s infrastructure are provided hereunder:

A. Facilities specific to Theme Park

Sr. No


Capex for

2010

Capex for

2011

Capex for

2012

Total cost

1 Wax museum & art gallery & admin building

1.1 Building cost 3.07 11.96 - 15.03






Sr. No


Capex for

2010

Capex for

2011

Capex for

2012

Total cost

2 Shops for Artefacts sale

2.1 Building cost 2.10 8.19 - 10.29




3 Auditorium building

3.1 Building cost 6.64 25.85 - 29.35




4 Utilities

4.1 Transformer + Control panel + HT/LT gears+ cables 0.40 1.56 - 1.97

4.2 Lighting and cable cost 0.47 1.85 - 2.32

5 Security Equipment

5.1 Metal Archs at Entrance to auditorium 0.07 0.28 - 0.35

5.2 Personal Metal detectors 0.01 0.02 - 0.02

5.3 Baggage scanners 0.28 1.07 - 1.35

5.4 Surveillance System 0.24 0.92 - 1.16

5.5 Smoke Detectors (alarm systems) 0.01 0.01 - 0.02

Total 16.12 62.76 - 78.87

Table 9-9: Cost estimates for infrastructure facilities specific to Theme Park


B. Allocated cost for Theme park - for common facilities (theme park and inland marina)

Some of the infrastructure related to Civil Construction like Security Buildings, Landscaping, Walkways etc. can be used by both Inland Marina and Theme Park. Currently 80% of such common cost has been allocated to Theme Park.

Details of the common costs are given hereunder:

Sr. No


Capex for

2010

Capex for

2011

Capex for

2012

Total cost

1 Demolition of building 0.43 1.67 2.10



Sr. No


Capex for

2010

Capex for

2011

Capex for

2012

Total cost

2 Security building

2.1 Building cost 0.06 0.22 0.28 2.2 Plumbing & Sanitation 0.00 0.01 0.01 2.3 Fire fighting for building 0.00 0.01 0.01 2.4 Electrification including lighting, air conditioning 0.01 0.03 0.04

3 Food courts stalls and building

3.1 Building cost 0.24 0.95 1.19 3.2 Plumbing & Sanitation 0.01 0.05 0.06 3.3 Fire fighting for building 0.01 0.04 0.06

3.4 Electrification including lighting, air conditioning 0.03 0.13

0.17 4 Landscaping area 0.16 0.61 0.77 5 Parking open area 0.15 0.57 0.71 6 Common Road 0.10 0.38 0.48 7 Walk way (pave tiles) 0.07 0.27 0.34 8 Table space 0.05 0.19 0.23 9 Transparent roof (food court + entry) 0.53 2.07 2.60

10 Steps(pave tiles) 0.09 0.37 0.46 11 Compound wall 0.04 0.16 0.20 12 Entry Gate 0.02 0.06 0.08 13 Chain Link (parking area) 0.05 0.21 0.26 14 Utilities

14.1 Water Supply – Piping 0.39 1.51 1.90 14.2 Sewage Treatment Plant & Piping 0.24 0.95 1.19 14.3 Transformer + Control panel + HT/LT gears+ cables 0.17 0.67 0.85 14.4 Lighting and cable cost 0.38 1.48 1.86 TOTAL 3.24 12.62 15.86

Table 9-10: Allocated cost for Theme parkfor common facilities (theme park and inland marina)




C. Total cost for Theme park after considering allocation of common facilities

Sr. No


Capex for

2010

Capex for

2011

Capex for

2012

Total cost

A Specific cost 16.12 62.76 - 78.87

B Allocated common cost 3.24 12.62 - 15.86

C Total Cost 19.36 75.38 - 94.73

Table 9-11: Total cost for Theme park after considering allocation of common facilities

9.1.3 Water side facilities

Water sports and sea water rides shall attract tourists who seek thrill and excitement. Based on the inherent nature of this facility, core investment is required only in the equipments / scooters / boats that shall be used by tourists for availing water rides / water sports. Minor investment is required for developing ancillary facilities like storage building and equipments like life jackets and trailers. For further details about Infrastructure required for Water Side facilities, please refer the chapter of Infrastructure Planning. The cost estimates for Water Side facilities’ infrastructure are provided hereunder:

Sr. No


2011 2013 2015 2016 2020 2025 2028 2029 2033 2036 2038 2039

1 Rides

1.1 Water Scooter 25 HP

1.22 0.31 - 0.36 0.43 0.55 - 1.35 0.82 0.95 1.05 1.10

1.2 Speed Boat 40 HP 0.45 - 0.50 - - - 0.95 - - 1.41 - -

1.3 Banana Boat 0.08 - - 0.09 - - - 0.17 - - 0.27 -

2 Storage Building

2.1 Fire fighting 0.10 - - - - - - - - - - -

2.2 Electrification 0.10 - - - - - - - - - - -

3 Equipments

3.1 Trailers 0.16 - 0.15 - - 0.15 - - 0.15 - -

3.2 Life Jackets 0.28 0.02 0.08 0.10 0.02 0.02 0.08 0.13 0.02 0.10 0.10 0.02

Total 2.40 0.33 0.73 0.55 0.45 0.57 1.18 1.65 0.84 2.61 1.42 1.12

Table 9-12: Cost estimates for infrastructure for Water Side facilities



10 Tariff analysis

10.1 Tariff regulatory framework

The major ports in India are administered under the Major Ports Trust Act of the Union Government. The tariff is set by the Tariff Authority for Major Ports (TAMP). Alappuzha being a non-major port is being administered by the Directorate of Ports, Government of Kerala, which shall be vested with the powers for tariff setting and review. The tariff rates for Alappuzha inland marina and other facilities will be determined by the Special Purpose Vehicle (SPV) which will be set up with an equity stake of the Government of Kerala as well as the Private Developer and will be governed from time to time by the state government through the Directorate of Ports.

10.2 Tariff determination

The tariff for the Inland Marina, Land Side Facilities (Water Park, Dolphin Pool, Theme Park, Ayurvedic Health Spa) and Water Side Activities (Water Scooters, Banana Boat Rides, Speed Boat Rides) shall mainly be charged from the end-users (tourists). Although for the purpose of the financial analysis individual tariffs have been considered as given below for each facility, going forward, the private developer / SPV can consider introducing a common, single package / tariff for all the facilities.

Group Activity No. of persons catered

UOM Tariff taken

Water based

Water scooters 1 Per person per 15 minutes trip 250

Banana Boats 5 Per person per 20 minutes trip 225

Speed Boats 10 Per person per 30 minutes trip 100

Inland Marina

Canal boating - 4 seater

4 Domestic - Per person per 1 hour trip

45



90



90


4 Foreigner - Per person per 1 hour trip

225

Land based Water park Domestic - No. of persons 250

Water park Foreigner - No. of persons 1,250

Theme park Domestic - No. of persons 150

Theme park Foreigner - No. of persons 450

Dolphin pool Domestic - No. of persons 500

Dolphin pool Foreigner - No. of persons 1,200

Ayurvedic spa Domestic - No. of persons - per hour 875

Ayurvedic spa Foreigner - No. of persons - per hour 2,625

Restaurant No. of persons 150

Table 10-1: Tariffs considered for the proposed facilities

Note



1. These rates are only indicative in nature and the respective maritime authority shall take a final

decision on this.

2. Inland Marina and Theme Park being a tourism oriented business shall be subject for rate

revision of 5% every year.

The above tariffs have been primarily arrived at by considering the range of existing tariff for similar facilities located elsewhere in India. The range was fine-tuned to zero-in on tariff levels that:

Can be afforded by the tourists

Provide a minimum level of return that can attract private developers

In line with pricing policy followed at many popular tourism destinations, differential pricing has been recommended whereby, in general, foreign tourists pay between 3 times to 5 times the tariff for domestic tourists.

Following sources were referred for determining the tariff:

Water Park and Theme Park

Essel World / Water Kingdom

Veegaland

Wonderla

Nicco Park

Entertainment city

Ramoji film city

Normal Water parks range

Akshardham Delhi - entry fees

http://www.nationalmuseumindia.gov.in/

National Museum Delhi

Dolphin Show

http://www.goa-hotels.co.in/Dolphin_Fantasy

http://www.sharmexcursions.com/sharm-dolphin-show-excursion

Dolphin show – Egypt

Ayurvedic Spa

http://www.ayurvedaresortindia.com/Ayurveda_massage_packages.htm


http://www.indianislands.com/sports_store_boat_rentals_charters.htm

Bangaram Island Trip By Boat

Bangaram Island Trip By Speed Boat

Day trip to Kalpitty Island

Parali Island Night Turtles Watch

http://www.goa-tours-india.com/adventure-sports/water-scooters.html

http://www.go2india.in/kerala/thekkady.php

http://www.karnataka.com/tourism/bangalore/lakes.html

http://www.nainilake.com/

http://www.nationalmuseumindia.gov.in/

http://www.goa-hotels.co.in/Dolphin_Fantasy

http://www.sharmexcursions.com/sharm-dolphin-show-excursion

http://www.ayurvedaresortindia.com/Ayurveda_massage_packages.htm

http://www.indianislands.com/sports_store_boat_rentals_charters.htm

http://www.goa-tours-india.com/adventure-sports/water-scooters.html

http://www.go2india.in/kerala/thekkady.php

http://www.karnataka.com/tourism/bangalore/lakes.html

http://www.nainilake.com/



11 Financial analysis

This chapter provides the financial analysis and financial projections for the investments proposed in

the earlier chapter. Accordingly the NPV and IRR calculations have been carried out and the overall

financial projections have been projected from 2010 to 2040. The financial projections show the

financial performance and position over the investment horizon.

11.1 Identification of revenue streams

11.1.1 Demand forecasts

The demand projection of tourists for the Marina Facilities has been done for high, medium and low

case scenarios. Considering the macro-economic scenario, the past trends of tourism in Alappuzha

and the possibility of competition that can be faced; the medium case scenario has been used as the

base case. The tables below shows the summary of the tourist demand assumed for financial

forecasting.

Year Dolphin

pool

Water

Park

Ayurved

ic Health

Spa

Theme

Park

Restaura

nt

Inland

Marina

Water

Side /

Water

Sports

Total

2015 93,580 200,852 44,351 129,013 80,716 186,538 81,736 816,547

2020 123,918 249,070 60,149 182,879 105,363 241,023 99,445 1,061,847

2025 168,501 311,900 84,088 317,622 142,555 318,040 120,990 1,463,696

2030 236,624 395,102 121,529 444,182 179,603 430,647 147,202 1,954,529

2035 354,872 508,244 181,735 642,183 246,145 600,969 179,074 2,713,243

2040 504,564 666,895 280,811 960,664 317,814 866,907 217,895 3,815,550

Table 11-1: Projected tourist demand for financial modeling

The demand for restaurant has been allocated to the two restaurants at Dolphin pool and Ayurvedic Health Spa as per the following table:

Year Restaurant at Dolphin pool Restaurant at Ayurvedic Health Spa Total Restaurant Demand

Domestic Foreign Total Domestic Foreign Total Domestic Foreign Total

2015 61,227 5,565 66,793 8,252 5,671 13,923 69,480 11,236 80,716

2020 76,050 9,279 85,329 10,040 9,994 20,034 86,091 19,273 105,363

2025 100,108 12,618 112,727 12,215 17,613 29,829 112,324 30,232 142,555

2030 122,768 10,932 133,701 14,862 31,040 45,902 137,630 41,973 179,603

2035 154,093 19,266 173,360 18,082 54,704 72,786 172,175 73,970 246,145

2040 179,421 19,987 199,408 21,999 96,407 118,406 201,421 116,393 317,814

Table 11-2: Allocation of restaurant demand to Dolphin pool and Ayurvedic Health Spa



Year Dolphin pool Water Park Ayurvedic Health Spa

Domestic Foreign Total Domestic Foreign Total Domestic Foreign Total

2015 75,138 18,442 93,580 191,361 9,221 200,852 33,009 11,342 44,351

2020 91,417 32,501 123,918 232,820 16,251 249,070 40,161 19,988 60,149

2025 111,223 57,278 168,501 283,261 28,639 311,900 48,862 35,226 84,088

2030 135,319 100,944 236,624 344,630 50,472 395,102 59,448 62,081 121,529

2035 221,449 133,424 354,872 419,295 88,949 508,244 72,327 109,407 181,735

2040 269,426 235,138 504,564 510,137 156,759 666,895 87,997 192,813 280,811

Table 11-3: Bifurcation of demand for Dolphin pool, Water Park, and Ayurvedic Health Spa into domestic and foreign tourists

Year Theme Park Inland Marina Water Sports

Domestic Foreign Total Domestic Foreign Total Domestic Total

2015 81,525 47,488 129,013 160,751 25,786 186,538 81,736 81,736

2020 99,188 83,691 182,879 195,578 45,444 241,023 99,445 99,445

2025 211,800 105,822 317,622 237,951 80,089 318,040 120,990 120,990

2030 257,687 186,494 444,182 289,504 141,143 430,647 147,202 147,202

2035 313,516 328,667 642,183 352,226 248,743 600,969 179,074 179,074

2040 381,440 579,223 960,664 428,537 438,370 866,907 217,895 217,895

Table 11-4: Bifurcation of demand for Theme Park, Inland Marina, and Water Sports into domestic and foreign tourists

11.1.2 Tariffs

The tariffs form the second part of the revenue stream assumptions. The tariffs for the Marina facilities have been determined keeping in view the range of existing tariff for similar facilities located elsewhere in India. In line with pricing policy followed at many popular tourism destinations, differential pricing has been recommended whereby, in general, foreign tourists pay between 3 times to 5 times the tariff for domestic tourists. The proposed schedule of tariff for various Marina facilities has been provided in the previous chapter.

11.2 Assumptions of investment and expenditure

11.2.1 Investment in capacity development

For all the Marina facilities, the basic immovable infrastructure in terms of establishing buildings,

land development, landscaping etc. done in phase 1 is sufficient to cater to the traffic envisaged for

the concessionaire period. The only augmentation required would be in terms of adding equipments

like boats and lifejackets used by tourists and replacement of Dolphins for the Dolphin pool. The

phase wise investment expected (excluding IDC / pre-operative expenses) is summarized below:

Facility Capital Investment

(Amt. in Rs. Million)

Dolphin pool (including Restaurant) 592.58

Water Park 46.87

Ayurvedic Health Spa (including Restaurant) 69.77

Theme Park (including common costs apportioned) 94.73

Inland Marina (including common costs apportioned) 48.68

Water Sports 3.40



Total 856.04

Table 11-5: Summary of investment details for Marina facilities

Note: Asset procurement funded from internal accruals is not considered as investment for feasibility calculation and accordingly has not been shown in the table above.

11.2.2 Debt / equity financing assumptions

The assumptions pertaining to financing of the project are given hereunder:

Assumption description Unit

Debt percentage for funding project cost 70%

Equity percentage for funding project cost 30%

GoK’s share in equity 24%

Developer’s share in equity 76%

Cost of long term secured debt 11.5%

Cost of equity 16%

Weighted average cost of capital (discounting rate) 12.85%

Interest on Unsecured loan8 8%

Interest earned on investments 7%

Debt repayment period 10 years

Moratorium period for repayment of debt 2 years

Construction period 15 months

Working capital – Average receivables -

Working capital – Average payables 1 month

Year wise investment Year 1 – 20%

Year 2 – 80%

Table 11-6 : Financing assumptions

11.2.3 Operation & Maintenance cost estimates

The annual operating and maintenance costs including costs incurred on repairs can be best

estimated separately on each relevant component of the above estimated costs. For this purpose,

the following factors need to be taken into consideration:

Life of each type of infrastructure / equipment / asset

Nature / frequency of repair works required

Nature / frequency of maintenance works required

The efficiency of operations conducted

A realistic assessment of the operations and maintenance cost however often proves difficult as it

varies from project to project depending on the actual use of the equipment and the works,

maintenance standards, workforce employed and the local environment. As a practical approach the

annual O&M expense is fixed as a percentage of the capital expense. The expenses related to

operations other than O&M have been fixed as a percentage of the gross revenues.

8 It is assumed that deficiency in cash balance will be made good by way of unsecured loans from

promoters



Given the above, the table below shows such percentages assumed for the purpose of estimation of

the repairs and maintenance and admin and operating costs. The percentage of repairs and

maintenance will vary over life-cycle of the asset as when the equipments become old, they need

more maintenance than in earlier years.

As mentioned above, the operating and maintenance expenses are estimated as a percentage of revenue and capital expenditure respectively. The Table below shows these percentages

Sr.

No.

Description Facility Operations & Maintenance

1. Dredging

maintenance

Inland Marina 5% of the dredging capital cost (y-

o-y)

2. Civil works

maintenance cost

Dolphin pool, Theme Park,

Water Sports, Inland

Marina

1% of the capital cost of

respective civil works (y-o-y)

Water Park, Ayurvedic

Health Spa

1.5% of the capital cost of

respective civil works (y-o-y)

3. Mechanical

equipment

maintenance

Dolphin pool, Ayurvedic

Health Spa, Water Sports

6% of the capital cost of

respective equipments (y-o-y)

Water Park 3% of the capital cost of

respective equipments (y-o-y)

Theme Park, Inland Marina 1.5% of the respective capital

cost (y-o-y)

4. Electrical

maintenance

Dolphin pool 8% of the respective capital cost

(y-o-y)


Health Spa

3% of the respective capital cost

(y-o-y)

5. Fire fighting, lighting

& surveillance

system maintenance

Dolphin pool, Water Park, 6% of the respective capital cost

(y-o-y)

6. Water pumping

equipment

maintenance

Dolphin pool 10% of the respective capital cost

(y-o-y)

7. Insurance Dolphin pool, Water Park,

Ayurvedic Health Spa,

Theme Park, Water Sports,

Inland Marina

0.5 % of Capex (y-o-y)

8. Selling, general &

administrative

expenses

Dolphin pool 0.5% of initial Capex (y-o-y)


Health Spa

3% of initial Capex (y-o-y)

Theme Park Rs. 4 lakh per year for the year

2013 and an escalation of 5% per

year (y-o-y)

Inland Marina Rs. 3 lakh per year for the year

2013 and an escalation of 5% per

year (y-o-y)

Water Sports 1% of initial capex (y-o-y)



Sr.

No.

Description Facility Operations & Maintenance

9. Manpower training

costs

All facilities 5% of the manpower cost (y-o-y)

10. Average salary per

employee

All facilities Rs. 2,64,000/- ( Rupees Two Lakhs

and Sixty Four Thousand only)

11. Electricity cost per

unit

All facilities Rs. 3.5 per KWh

12. Diesel consumption 25 HP Water Scooters 6 litres / hour

8 litres / hour 40 HP Speed Boats

13. Diesel cost All facilities Rs. 45 per litre

14. Annual increase in

rate of expenses

All facilities 5%

Table 11-7: Operation and maintenance assumptions

11.2.4 Operations related assumptions for various Marina facilities

Sr.

No.

Description Facilities covered Assumption

1. Number of months for which facility

will remain operational

Dolphin pool, Water Park,

Ayurvedic Health Spa, Theme Park,

Inland Marina

9 months / 270 days

Water Sports 6 months / 180 days

2. No. of operational hours per day All 12 hours

3. No. of 4 seater non-motorized

boats

Inland Marina 27

4. No. of 10 seater boats Inland Marina 4

5. No. of 20 seater boats Inland Marina 2

6. Apportionment of common

facilities costs ( capex and opex)

between Theme Park and Inland

Marina

Theme Park, Inland Marina Theme Park - 80%

Inland Marina -20%

7. No. of Water Scooters Water Sports 14

8. No. of Speed Boats Water Sports 4

9. No. of Banana Boats Water Sports 4

Table 11-8: Operations related assumptions



11.2.5 Expenses related assumptions for common facilities shared between Inland Marina and Theme Park

Sr. No. Description Amount

1. Civil Works Maintenance 15. 1% of respective common capital cost

2. Insurance 16. 0.5 % of common capex

3. Electricity consumption 17. Rs. 3.5 per KWH

4. Administrative & Office

Overheads

18. Rs. 10 lakhs per year for the year 2013 and

escalation of 5% per year thereafter

5. Water Supply 19. Rs. 1.05 lakhs per year for the year 2013 and


6. STP 20. Rs. 0.71 lakhs per year for the year 2013 and


7. Manpower - Average cost

per person

21. Rs.180,000 per year for the year 2013 and


Table 11-9: Common facilities expenses related assumptions

11.2.6 Depreciation

The rates applicable for calculation of depreciation are tabulated as below:

Item Company Accounts

SLM

Rate %

Income Tax WDV

Rate %

Land & Land Development - 0%

Buildings 3.33% 10%

Marine Structures 2.50% 10%

Machinery and equipments 4.75% 15%

Utility (Water, electricity, commn &

firefighting)

4.75% 15%

Furniture & fixtures 6.25% 15%

Capital dredging 1.67% 10%

Table 11-10: Depreciation rates for various assets

Replacement of assets is not considered once the useful life of the asset is completed. Any

replacement of the asset that may be required will be done from internal accruals.

The tax rate applicable for the project is as per the table below

Income tax rates Rates

Income tax - corporate tax (including surcharge and cess) 33.22%

MAT Rate 18%

Table 11-11: Tax rates



11.3 Financial projections

Based on the assumptions and estimates, the profit and loss statement and cash flow statement and

feasibility calculations for the project were prepared. Following sections gives a brief overview of

financial projections.

11.3.1 Projected revenues

The projected revenues from operations of various Marina facilities are given hereunder.

Year Dolphin pool (including restaurant)

Water Park

Ayurvedic Health Spa (including restaurant)

Theme Park

Inland Marina

Water Sports

Total revenue / Revenue

of combined

entity

2015 72.57 72.16 71.30 40.84 20.49 16.11 293.46

2020 131.41 121.81 135.91 81.51 36.72 25.02 532.38

2025 246.20 211.09 267.73 157.19 68.07 38.85 989.13

2030 477.07 377.14 543.24 309.74 130.55 60.33 1,898.07

2035 873.46 696.65 1,130.34 628.66 258.61 93.68 3,681.40

2040 1,715.93 1,331.50 2,400.25 1,308.38 527.27 145.46 7,428.79

Table 11-12: Projected Gross Revenues (in INR Million)

11.3.2 Profitability

The operating profit (Earnings before Interest, Depreciation and Tax) calculated for the various

Marina facilities has been indicated in the table below.

Year Dolphin pool (including restaurant)

Water Park

Ayurvedic Health Spa (incl. restaurant)

Theme Park

Inland Marina

Water Sports

Total of Operating Profit

Operating Profit of Combined Entity

2015 24.30 56.98 6.72 18.25 (10.10) 8.67 104.82 109.32

2020 73.27 102.50 40.76 52.74 (2.39) 14.34 281.22 286.72

2025 179.43 186.68 121.57 120.72 17.33 25.44 651.17 657.22

2030 399.34 346.26 310.21 263.46 63.58 40.60 1,423.45 1430.10

2035 789.80 657.53 735.74 569.89 169.25 69.02 2,991.23 2998.56

2040 1,622.73 1,281.89 1,709.08 1,234.47 407.12 108.08 6,363.37 6371.43

Table 11-13: Estimated operating profit (EBIDT) for the project in Rs. Million. Figures in brackets

denote loss.



11.3.3 Financial indicators – NPV, IRR and DSCR

This section provides the overall financial feasibility analysis for the proposed investments.

Accordingly the NPV, IRR and the financial projections have been carried out for a period of 30 years.

DSCR calculations have been carried out for the period from availing the debt till its repayment.

While a positive NPV shows that the project is feasible, the purpose of the IRR calculations is to

assess whether the returns are adequately above the hurdle rate the stakeholders would have in

mind in terms of an adequate return on investment and the purpose of DSCR is to evaluate the

overall debt repayment capability. The P&L and the NPV, IRR working sheets of the Inland marina

facilities are attached in Annexure 11. The summary of the financial indicators is indicated below:

Dolphin pool (including restaurant)

Water Park

Ayurvedic Health Spa (including restaurant)

Theme Park

Inland Marina

Water Sports

Combined Entity


14.01% 67.61% 26.11% 25.81% 13.77% 125.76% 21.64%


93.91

490.17 340.57 286.68 12.76 64.35 1,366.34


592.58 46.87 69.77 94.73 48.68 3.40 819.42


1.16 11.46 5.88 4.03 1.26 19.91 2.67


12 2 8 6 17 1 8

Average DSCR 0.57 16.50 3.48 3.84 (3.96) 46.10 2.46

Table 11-14: Financial feasibility indicators

As evident from above table, NPV of all the facilities is positive. This implies that, even on standalone

basis, all the facilities are potentially feasible. However, there is a huge variation between the

Profitability Index values of different facilities with the range being 1.16 to 19.91. Also, it must be

noted that the Average DSCR for Inland Marina is negative and is less than one for Dolphin pool. If

the facilities are concessioned individually, then this could lead to a situation where bidders show no

or low interest in a facility like Dolphin pool which requires maximum capital investment but has the

lowest Profitability Index. Hence in the larger interest of the project and overall economic

development of Alappuzha, it is recommended that all the facilities should be clubbed and offered

for development as an integrated Marina-cum-tourism destination. This would not only attract

higher number of potential investors, but also generate operational efficiency and ease of

management during the actual operations of this project.





12 Passenger terminal

(The Passenger Terminal was previously a part of the cargo cum passenger terminal facility for which

a separate DFR was prepared. However based on the decision taken by the Government of Kerala to

go ahead with only the passenger terminal , the relevant section of the passenger terminal is now

included in this report)

12.1 Passenger traffic potential at Alappuzha

The details of the passenger terminal and the potential passenger numbers that might be expected

to patronize the passenger / ferry terminal has been tabulated below –

Passenger terminal

Description The passenger terminal at Alappuzha shall cater to the domestic sea cruise

vessels from Ernakulum.

The cruise vessels are expected to facilitate a one day excursion trip to Alappuzha

for the tourists from Kochi. The tourists can enjoy a one hour coastal sea-cruise

trip to Alappuzha from Kochi and can avail various entertainment activities /

games etc on the cruise. Once the tourists embark at Alappuzha passenger

terminal, they can indulge in the various recreational activities that will be

developed on the land side (e.g. Dolphin pool, theme park etc.,), sea side (water

sports) and also on the inland canal front.

In the evening, the tourists can either return back to Kochi by the coastal sea-

cruise ferry or can extend their stay in Alappuzha and return to Kochi next day by

the coastal cruise mode.

Customer

segments

The passenger terminal will cater to both the domestic and foreign tourists,

although domestic tourists are expected to show greater interest

Key Assumptions The sea-cruise will operate only during October to April every year.

One berth at the Passenger Terminal shall handle four cruise vessels in a day.

Vessels when not embarking / disembarking passengers shall be parked at

anchorage.

Based on the interactions with some of the ferry / cruise operators based in

Kochi, they were open to ply 250 and 100 passenger size vessels between Kochi

and Alappuzha, and therefore the same has been considered.

On the increase in the growth of the tourist traffic, the cruise operators will

suitably take decision on augmenting their fleet strength or alternatively new

cruise operators will deploy their vessels sensing economic opportunity on the

cruise operations.

Based on the interaction with some of the leading tour operators in Kochi and

Alappuzha, the average capacity utilization of vessels has been considered at 85%.

Growth drivers Sea cruise experience: The passenger terminal is expected to cater to the

medium-size cruise vessels (capacity 100-250 persons). Domestic tourists are

expected to show interest in experiencing the sea cruise from Cochin to

Alappuzha; as sea cruises are limited and the international cruises are often costly

for domestic tourists.



Passenger terminal

In addition, various beach based activities in Alappuzha shall also act as a growth

driver for attracting new tourist.

Method of

calculation of

market demand

1) Tabulate tourist arrival data (for domestic and foreign tourists) in Kochi from 1998

– 2009 and calculate the CAGR.

2) Take the arrival of domestic and foreign tourists for 2009 as the base input data

3) Forecast tourist arrival data for next 30 years based on a year-to-year growth rate

of 8% for domestic tourists and 14% for foreign tourists.

4) Estimate the percentage of tourists expected to avail the sea cruise. This is based

on interaction with domestic cruise operators in Kochi.

5) Consider the fair season (October to April) and calculate number of tourists

6) Calculate the number of tourists per month and per day taking the above

numbers.

7) Calculate the number of vessels (100 passenger size capacity and 250 passenger

sized capacity) required to cater to the tourist population expected to avail the

sea cruise

8) Calculate the number of berths required at the passenger terminal to handle the

vessels plying from Kochi

Data used Domestic and foreign tourist arrivals in Kochi during the period from 1998 to

2009.

Sample calculation

of market demand

1) Projected domestic tourist arrivals for 2012 = 2,284,209 and foreign tourist

arrivals = 354,434, considering the 8% annual growth for domestic tourists

arrivals and 14% annual growth for foreign tourists arrivals.

2) Number of tourists likely to avail sea cruise

o Domestic tourists (3. %) = 68,526

o Foreign tourists (2%) = 7,089

3) Number of tourists for sea cruise during fair season (Oct - April)

o Domestic tourists (65%) = 44,542

o Foreign tourists (70%) = 4,962

4) Average number of tourists per month (during the seven months period)

o Domestic tourists = 6,363

o Foreign tourists = 709

5) Number of tourists per day (during the six months period)

o Domestic tourists =212

o Foreign tourists = 24

6) Total number of tourists per day = 236

Sample calculation

of infrastructure

(number of berths)

1) Total number of tourists per day = 236

2) Total number of vessels calling at Alappuzha daily during peak season = 1

3) Number of berths required at the Passenger Terminal = 1

Estimated demand The market potential for passenger terminal, over a thirty year period has been

calculated under three scenarios, i.e. Low, Medium and High. The number of tourists

per day expected to use the sea cruise and the number of 250pax vessels and 100pax

vessels calling at the passenger terminal per day, under each of the three scenarios,

are given in the tables 4-18 and 4.19

Passenger Terminal Demand

Number of tourists per day (foreign + domestic)

2015 2020 2025 2030 2035 2040



Low scenario 249 378 578 894 1,399 2,220

Medium scenario 302 460 707 1,097 1,726 2,756

High scenario 355 542 835 1,301 2,054 3,293

Table 12-1: Sensitivity analysis of the low, medium and high traffic growth scenarios for passenger terminal demand


Total number of 100pax vessels per day

2015 2020 2025 2030 2035 2040

Low scenario 0 2 3 3 3 3

Medium scenario 1 3 3 3 3 3

High scenario 2 3 3 3 3 3

Table 12-2: Sensitivity analysis of the number of 100 passengers sized vessels calling on the passenger terminal


Total number of 250pax vessels per day

2015 2020 2025 2030 2035 2040

Low scenario 1 1 2 3 5 9

Medium scenario 1 1 2 4 7 12

High scenario 1 1 3 5 8 14

Table 12-3:Sensitivity analysis of the number of 250 passengers sized vessels calling on the passenger terminal

Based on the inputs obtained from the primary survey including interactions / opinion of the tour operators, the planning of the passenger terminal infrastructure has been based on the medium term growth scenario. The medium scenario is also referred to as the Realistic Scenario. Accordingly, the table below depicts the number of tourists per day expected to use the sea cruise and the total number of vessels (100 pax and 250 pax vessels) calling at the passenger terminal per day under the medium scenario.


2015 2020 2025 2030 2035 2040


302 460 707 1,097 1,726 2,756


2 4 5 7 10 15


Table 12-4: Summary of the tourist traffic and indicative number of berths in the Passenger Terminal

12.2 Passenger berth layout and functional planning

The Alappuzha beach has waves approaching it from the direction varying between 230-265oN during rough season and 235-240oN during calm season. The maximum wave height during the fair season is less than 2 meter. During fair season, the wave height exceeds 1 meter for 20 percent of the time which is uncomfortable for passengers to embark and disembark ferries at the passenger jetties. So for unhindered operations during even the fair season a breakwater is required. The proposed breakwaters and the ferry berth alignment are shown in figure 12.1. The proposed overall layout in relation with the other facilities is shown in figure12.2



Figure 12-1: Layout showing breakwater and the passenger ferry berths



Figure 12-2: Over all passenger berth layout with other proposed facilities

The breakwaters are planned in such way that the waves coming from west and south west are completely avoided. The Break water A in figure2.1 is of length 200 meters. Break water B in figure 12 -1 is of length 575 meters. The berth shown in the figure 12-2 is basically a trestle type structure of length 170 meters. It is planned to have the passenger ferries coming to the port to berth along floating landing pontoons each of dimensions 12 meters by 6 meters. The floating pontoons are planned to be situated on only one side of the trestle to avoid an increase in the break water length.

The passengers coming by the ferries shall disembark on to the floating pontoons held in place by guiding piles. These floating pontoons are connected to the trestle by means of a hinged steel ramp of length 35 meters. On the land-side of the trestle, there is a passenger terminal building wherein ticketing and other facilities for the refreshment of passengers are proposed to be provided. Fender piles are provided in front of the pontoons to take the impact of the vessels. There are five pontoons planned with four pontoons catering to 250 passengers’ capacity vessels and one pontoon catering to 100 passengers capacity vessel. The pontoon catering to the 100 pax vessel is situated in the



shallower depth of around 3 m to 3.5 m. The pontoon catering to the 250 pax vessel is in depth of around 4 m to 4.5 m. The maximum draft of vessel is around 2.5 m (for 250 pax vessels) and 1.7 m (for 100 pax vessels). Hence around 1 m to 1.5 m under-keel clearance is expected to be available for the passenger ferries. Since the floating pontoons are located in sheltered water, not much disturbance is expected. This under keel clearance should be sufficient. Hence no dredging is required.

12.3 Breakwater

Break waters are provided to achieve tranquility in the harbor for safe harboring and operational stability of the ship during loading and unloading. The dimensions of breakwater are arrived by taking wave height, allowable overtopping, water depth and settlement of the structure. For this project a rubble mount breakwater with a crown wall is proposed. The design guidelines are taken from Coastal Engineering Manual (CEM). The breaking wave height is taken as design wave height which will be approximately 0.78 multiplied by water depth. As water depth is less, so wave breaking is expected before it reaches the breakwater, justifying selecting of breaking wave height. The height of break water is fixed in such a way that the overtopping shall be below 0.05 m3/s per meter length of break water. Another important factor which governs the stability of break water is side slope, which is taken 1 in 2.The overtopping is estimated using formula by Pedersen and Burcharth (1992) and run-up is calculated using formulae by Battjes (1974), both recommended by CEM. The cross sections of breakwater for the sections shown in figure 12-2 are given below in figures-12.3 to figure-2.5

Figure 12-3: Cross section of the breakwater A of length 200 meters.



Figure 12-4: Cross section of the breakwater B of length 575 meters.

Figure 12-5: Cross section of the breakwater at Round head

12.4 Cost estimates

The Passenger terminal would be catering to the tourists coming from Kochi to patronize the Marina

at Alappuzha. The steady growth rate of tourists would require gradual addition of passenger jetties

in the subsequent phases.

The phase wise investment related to the breakwater/ trestle and passenger terminal are detailed

out in the below two separate tables

12.4.1 For Break-water / Trestle

Amount in Rs. Million


Basic cost

Consulting charges

Contingency charges

Total (Phase -1)

Basic cost

Consulting charges

Contingency charges

Total (Phase -

2)

Marine structures -

Break Water 260.15 31.22 26.01 317.38 - - - -




Basic cost

Consulting charges

Contingency charges

Total (Phase -1)

Basic cost

Consulting charges

Contingency charges

Total (Phase -

2)

Approach Trestle 25.07 3.01 2.51 30.59 - - - -

Utilities - - -

Water Supply – Piping

2.07 0.25 0.06 2.38 1.39 0.17 0.04 1.59

Sewage Treatment Plant & Piping

3.16 0.38 0.09 3.64 0.08 0.01 0.00 0.09

Other equipment - - -

Garbage Trucks - - - - 4.00 0.34 0.12 4.46

Total- Capex 290.45 34.85 28.68 353.99 5.46 0.52 0.16 6.14

Table 12-5: Capex for Breakwater / Approach Trestle in Rs. Million

Note – the Consulting charges and contingency charges are apportioned amongst the main cost

parameters. The break-up details of the consulting charges for Phase 1 is provided in the table below

Technical study charges In Rs. Million

Detailed Design Consultancy 2.90

Geo-tech, Hydraulic model, topographic studies 7.26

Project management and Environment study / clearance

24.69

Total 34.85

Table 12-6: Technical study charges for Breakwater / Approach Trestle in Phase 1 in Rs. Million

12.4.2 For Passenger terminal

Amount in Rs. Million


Basic cost

Consulting charges

Contingency charges

Total (Ph -1)

Basic cost

Consulting charges

Contingency charges

Total (Ph -2)

Passenger Berths -

Berth cost - - - - - - - -

Fire Fighting 0.36 0.02 0.04 0.42 0.17 0.01 0.02 0.19

Floating Pontoon, gangway and Ancillary equipments

8.76 0.66 0.88 10.29 13.14 0.99 1.31 15.44

Piles 3.13 0.23 0.31 3.68 4.70 0.35 0.47 5.52

Ferry Terminal on land & sea

- -

Terminal and security building cost

7.20 0.54 0.22 7.96 11.28 0.85 0.34 12.46

Plumbing & Sanitation 0.36 0.03 0.01 0.40 0.56 0.04 0.02 0.62

Fire fighting for building

0.36 0.02 0.01 0.39 0.56 0.03 0.02 0.61

Electrification including lighting, air conditioning

1.08 0.05 0.03 1.17 1.69 0.08 0.05 1.83

Walkway from jetty to terminal

- - - - - -




Basic cost

Consulting charges

Contingency charges

Total (Ph -1)

Basic cost

Consulting charges

Contingency charges

Total (Ph -2)

Other equipments - -

Buses - - - - - -

Admin equipment (Furniture, IT)

0.72 0.04 0.76 1.13 0.06 1.18

VHF for workers 0.15 0.01 0.16 0.15 0.01 0.16

Mooring Equipments - - - - -

Bollards 1.50 0.08 1.58 3.00 0.15 3.15

Fenders 1.50 0.08 1.58 3.00 0.15 3.15

Security Equipment - -

Metal Archs at Entrance to terminal

0.30 0.02 0.32 0.30 0.02 0.32

Security Check Metal Arcs

0.30 0.02 0.32 0.30 0.02 0.32

Personal Metal detectors

0.01 0.00 0.01 0.02 0.00 0.02

Baggage scanners 2.32 0.12 2.44 4.64 0.23 4.88

Surveillance System - - - - - -

Smoke Detectors (alarm systems)

0.06 0.00 0.07 - - -

Utilities - -

Transformer + Control panel + HT/LT gears+ cables

0.56 0.03 0.59 0.56 0.03 0.58

Lighting and cable cost 20.00 1.00 21.00 30.00 1.50 31.50

Total Capex for Passenger Terminal

48.69 2.92 1.50 53.10 75.20 4.50 2.22 81.93

Table 12-7:Capex for the passenger ferry terminal in Rs. Million

Note – the Consulting charges and contingency charges are apportioned amongst the main cost

parameters. The break-up details of the consulting charges for Phase 1 is provided in the table below

Technical study charges in Rs. Million

Detailed Design Consultancy 0.19

Geo-tech, Hydraulic model, Bathymetric & topographic studies

0.29

Environment clearance -

Project management 2.43

Total 2.92

Table 12-8: Technical study charges for Passenger Terminal in Phase 1 in Rs. Million



12.4.3 Total Capex for breakwater/ trestle and Passenger terminal

In Rs. Million


Total

Capex for Breakwater / trestle

353.99 6.14 360.13

Capex for Passenger Terminal

53.10 81.93 135.03

Total Capex 407.09 88.07 495.16

Table 12-9: Total Cumulative Capex for the passenger terminal and breakwater / trestle in Rs. million

12.5 Tariff determination

Heading Cost parameter Unit of Measurement Passenger vessels <500 GRT

Vessel related charges

Port dues Rs. per GRT 122.50

Pilotage charges Rs. per GRT 183.76

Berth hire charges Rs. per GRT per hour or part thereof

1.23

Passenger related charges

Terminal usage fees Rs per foreign passenger Rs per domestic passenger

147.00 49.00

Table 12-10: Tariff for passenger ferry vessels

Note

1. These rates are only indicative in nature and are of the base year.

2. An y-o-y increase of 7% has been considered over the base year tariff

12.6 Identification of revenue streams

12.6.1 Traffic forecasts

For the passenger terminal, the passenger/ tourists expected to come from Kochi to Alappuzha ( on a round trip basis) and the number of vessels calling at Alappuzha daily would form the basis of the revenue to be generated. The referred traffic so taken for the purpose of the financial modeling is indicated below

Year Number of tourists per day

during fair season

Total number of daily passenger

ships calls

2015 302 2

2020 460 4



Year Number of tourists per day

during fair season

Total number of daily passenger

ships calls

2025 707 5

2030 1,097 7

2035 1,726 10

2040 2,756 15

Table 12-11: Projected passenger traffic for financial modeling

12.6.2 Tariffs

The tariffs form the second part of the revenue stream assumptions. The passenger ferry terminal charges have been provided in the previous section.

12.7 Assumptions of investment and expenditure

12.7.1 Debt / equity financing assumptions

Assumption description Unit

Debt percentage for funding project cost 70%

Equity percentage for funding project cost 30%

GoK’s share in equity 24%

Developer’s share in equity 76%

Cost of long term secured debt 11.5%

Cost of equity 16%

Weighted average cost of capital (discounting rate) 12.85%

Interest on Unsecured loan10 8%

Interest earned on investments 7%

Debt repayment period 10 years

Moratorium period for repayment of debt 2 years

Construction period for Phase 1 3 years

Construction period for Phase 2 2 years

Working capital – Average 1 month

Year wise investment in Phase 1 Year 1 – 30%

Year 2 – 30%

Year 3 – 40%

Year wise investment in Phase 2 Year 1 – 50%

Year 2 – 50%

Table 12-12: Financing assumptions

10 It is assumed that deficiency in cash balance will be made good by way of unsecured loans from

promoters



12.7.2 Operation & Maintenance cost estimates

The annual operating and maintenance costs including costs incurred on repairs can be best

estimated separately on each relevant component of the above estimated costs. For this purpose,

the following factors need to be taken into consideration:

Life of each type of infrastructure / equipment / asset

Nature / frequency of repair works required

Nature / frequency of maintenance works required

The efficiency of operations conducted

A realistic assessment of the operations and maintenance cost however often proves difficult as it

varies from project to project depending on the actual use of the equipment and the works,

maintenance standards, workforce employed and the local environment. As a practical approach the

annual O&M expense is fixed as a percentage of the capital expense. The expenses related to

operations other than O&M have been fixed as a percentage of the gross revenues.

Given the above, the table below shows such percentages assumed for the purpose of estimation of

the repairs and maintenance and admin and operating costs. The percentage of repairs and

maintenance will vary over life-cycle of the asset as when the equipment become old, they need

more maintenance than in earlier years.

As mentioned above, the operating and maintenance expenses are estimated as a percentage of revenue and capital expenditure respectively. The Table below shows these percentages

Sr.

No.

Description Operations & Maintenance

1. Civil works maintenance cost 1% of the capital cost of respective civil works

(y-o-y)

2. Breakwater maintenance cost 2% of the capital cost (y-o-y)

3. Repairs and maintenance cost for

machineries, equipment and other

fixed assets

1.5% of the capital cost of all the equipments

(y-o-y)

4. Selling, general & administrative

expenses

5% of total revenue

5. Manpower for berth and yard For Ferry terminal

Phase 1 – 20

Phase 2 – additional manpower of 51

6. Average salary per employee Rs. 2,23,000/- ( Rupees Two Lakhs and Twenty

Three Thousand only)

7. Manpower training cost 5% of the manpower cost

8. Insurance 0.5% of capex cost ( year on year)

9. Electricity cost per unit Rs. 3.5 per KWh

10. Connected load 160 KVA till 2025

319 KVA 2025 onwards

11. Annual increase in rate of expenses 5%

Table 12-13: Operation and maintenance assumptions



12.7.3 Royalty payment to the Government of Kerala

The royalty payment that are expected to be paid to Government of Kerala are as per the table

below:

Description Rate (% of total revenue)

Full waterfront royalty to GoK – ferry terminal 12

Table 12-14: Waterfront royalty to GoK

12.7.4 Passenger terminal related assumptions

Sr.

No.

Description Passenger terminal related

assumptions

1. Number of months for which ferry terminal

will remain operational

7 months

2. No. of operational days in a year 210 days

3. No. of operational hours per day -

4. Capacity of phase 1 ( till 2025) Phase -1 (till 2025) - 707

passengers per day

5. Additional capacity in phase 2 from 2025

onwards

Phase -2 ( till 2040) – 2,756

passengers per day

6. Number of vessel calls Calls per day

2015 – 3 calls

2020 – 4 calls

2025 – 5 calls

2030 – 7 calls

2035 – 10 calls

2040 – 15 calls

Table 12-15: Passenger terminal related assumptions

12.7.5 Expenses related assumptions for breakwater / trestle

Sr. No. Description Amount

1. Water supply facility Rs.67,768 per month ( for phase 1)

Rs.1,26,102 per month ( for phase 2)

2. Sewerage Treatment Plant Rs.50,000 per month ( for phase 1)

Rs. 70,000 per month ( for phase 2)

3. Garbage trucks Rs.41,000 per month

4. Number of garbage trucks 2

Table 12-16: Common facilities expenses related assumptions



12.7.6 Depreciation

The rates applicable for calculation of depreciation are tabulated as below:

Item

Company Accounts

SLM

Income Tax

WDV

Rate % Rate %

Land & Land Development - 0%

Buildings 1.67% 10%

Marine Structures 2.5% 10%

Machinery and equipment 5% 15%

Utility (Water, electricity, commn &

firefighting) 6.67% 15%

Furniture & fixtures 6.67% 15%

Capital dredging 1.67% 10%

Table 12-17: Depreciation rates for various assets

Replacement of assets is not considered once the useful life of the asset is completed. Any

replacement of the asset that may be required will be done from internal accruals.

The tax rate applicable for the project is as per the table below

Income tax rates Rates

Income tax - corporate tax including surcharge and cess 33.22%

MAT Rate 18%

Table 12-18: Tax rates

12.8 Revenue and profitability estimates

Based on the assumptions and estimates, the profit and loss statement and cash flow statement and

feasibility calculations for the project were prepared. Following sections gives a brief overview of

financial projections.

12.8.1 Projected revenues

The projected revenues from operations for the passenger terminal are as per the table below

Rs. Million Year Passenger terminal

2015 40.74

2020 90.05

2025 186.03

2030 425.15

2035 948.16

2040 2,158.79

Table 12-19: Projected Gross Revenues in Rs. Million



12.8.2 Profitability

The Profit /(Loss) after tax calculated for the passenger terminal is indicated in the table below.

In Rs. Million Year Passenger Terminal

2015 -24.72

2020 19.44

2025 110.50

2030 296.62

2035 765.50

2040 1873.43

Table 12-20: Profit after Tax for the project in Rs. Million

12.9 Financial indicators – NPV, IRR and DSCR

This section provides the overall financial feasibility analysis for the proposed investments.

Accordingly the NPV, IRR and the financial projections have been carried out for a period of 30 years.

DSCR calculations have been carried out for the period from availing the debt till its repayment.

While a positive NPV shows that the project as feasible, the purpose of the IRR calculations is to

assess whether the returns are adequately above the hurdle rate the stakeholders would have in

mind in terms of an adequate return on investment and the purpose of DSCR is to evaluate the

overall debt repayment capability. The summary of the financial indicators is indicated below:

Description Passenger terminal

Internal Rate of Return (IRR) in % 16.12



DSCR 1.47

Table 12-21: Financial feasibility indicators for passenger terminal

The above indicators though positive but considering the market expectation it might not be very

attractive for the prospective developer. To develop the project on PPP basis, a better financial

viability for private players would be desirable.

Based on a preliminary interaction with potential developers, it has been given to understand that

small to medium enterprises would be the interested to develop the project. Considering the above

factor, the relatively longer payback period would perhaps dissuade these potential developers from

the project.

Since the proposed project is intended to be developed on a PPP model, the non-viability would act

as a dis-incentive for potential interested developers. Hence in the larger interest of the project and

overall economic development of Alappuzha, the state government may consider funding a certain

part of the project and make it more feasible for development under PPP mode



A key component for the vessel operations at Alappuzha would be the breakwater (for providing

necessary tranquility). However the cost associated with the construction of a breakwater is around

65% of the total project cost in phase 1.

In the event, the breakwater cost is funded through appropriate government resources, the project

cost loading is reduced to that effect and subsequently, the project viability margins improves

significantly thereby attracting more potential developers.

Accordingly a viability analysis was undertaken to assess the profitability margins considering the

funding of the breakwater from the state government. The table below indicates the comparative

financial indicators under such options if the basic costs of breakwater Rs.260.15 million (Rs. 317.87

million after allocation and appropriations) is funded by the Government. Description Breakwater funding borne by

the private developer Breakwater funding borne by Government of Kerala


16.12 26.63


199.07 411.75

Payback period in years 13 8

DSCR - phase 1 1.47 7.28

Table 12-22: Comparison of the key financial indicators

Based on above comparative analysis it can be concluded that, in order to attract prospective

bidders to develop the passenger terminal on PPP basis, the necessary breakwater cost should be

borne by the Government.

The following detailed key financial statements of the passenger terminal has been depicted in

Annexure 12 –

Balance sheet

Profit & Loss account

Cash flow statement

Feasibility calculation

The above financial statements have been prepared for both the scenarios

1. Breakwater related cost to be incurred by the private party- Annexure 12 (a)

2. Breakwater related cost to be incurred by the government – Annexure 12(b)



13 Conclusions & recommendations

13.1 Summary of conclusions

13.1.1 The Inland marina system at Alappuzha

1. A full service sea side marina does not look viable given the technical requirements, the high cost of building a harbour and limited commercial viability for individual boat owners. Nevertheless, an alternative format in the form of an “Inland Marina”, which shall leverage not only on the existing tourism activity in Alappuzha, but also its prominent commercial canals appears to be viable.

2. Market demand estimates for the Inland marina / canal boating are expected to be as follows:


2012 2015 2020 2025 2030 2035 2040

Demand for Non-motorised 4-seater boats 185 222 309 443 659 1,012 1,603

Demand for 08-10 seater fibre glass boats 79 89 108 131 160 195 237

Demand for 15-20 seater fibre glass boats 72 80 98 119 145 176 215

3. Cleaning of the canals is an important prerequisite for development of the Inland marina and

commencement of canal boating operations. The canals need to deepened by appropriate dredging methods and cleaned up by removal of water hyacinth by allowing controlled ingress of sea water as brought out in the DPR. The limited ingress of sea-water will almost certainly not have any adverse impact on the ecology of the canal or, more importantly, on the paddies adjacent the backwaters.

4. Equally the sea water ingress mechanism is not expected to have any adverse impact on the paddy fields cultivated in the backwaters, which lie much further away. Nevertheless a detailed study to validate this could be undertaken by a suitable agency.

5. The Inland Marina facility-cum-canal boating is not in any way a competing activity to backwater tourism as both the activities deliver unique / exclusive experiences to tourists. In fact the inland marina and its boating activities will draw more tourists to the town and thus benefit the backwaters also. While the backwater provides a glimpse of the day-to-day local life and a feel of the wonderful backwaters, canal boating is a short journey through the town side of Alappuzha, offering a glimpse of heritage structures along the canal shoreline. While houseboats operating in the backwaters offer an extensive journey and a luxurious stay and are much larger, boats proposed for canal boating offer short trips providing leisurely experience.

6. Existing small motorboat owners that currently operate in some portions of the canal (largely on the east side), may also be able to provide the proposed canal boating services. However, they have not been considered as part of the market analysis / infrastructure planning for this report. Commercial arrangements between these operators and the private sector developer who would develop the inland marina will have to be mutually worked out between them.

7. Initiatives being taken by the Canal management society to clean the canals as well as approval of plan to revive heritage sites of Alappuzha by the state cabinet, both, have a direct synergy and blend in perfectly with the proposed Inland marina / canal boating development.



8. Infrastructure development at the proposed facility is proposed to be done in a phased manner as shown below:

The operations start in 2012 and 335 people are expected to visit per day in the initial year and the traffic is expected to increase to 964 people per day in the year 2030. The marina will require 8 small boats and 2 medium sized boats and 1 large boat in the initial year and the number of boats required increases to 27 small boats, 4 medium boats and 2 large boats by 2030. The purchase of boats can be phased as shown in the table-1.

The berthing facilities for the boats in inland marina are proposed to be built in single phase.

Table 13-1 : Phasing of infrastructure required for Inland marina Note: Although the demand forecast has been done till 2040, the infrastructure planning is done considering 2030. Further infrastructure addition shall depend on the market response.

9. Following returns can be expected to be obtained from the inland marina:

Year Inland Marina

Internal Rate of Return (IRR) in % 13.77%


Capital Investment (in Rs. Million) 48.68

Profitability Index11 1.26


Average DSCR (3.96)

10. Development of the inland marina will require close coordination between the following agencies and will be a key success factor: Department of Ports and Alappuzha Port office Canal Management Society District Collector Office Department of Irrigation, Alappuzha office. Department of Tourism and District Tourism Council, Alappuzha. Houseboat owners association

A nodal agency maybe formed to execute the project comprising representatives from above departments.

13.1.2 Water and Land side activities

1. Proposed activities on the land side (dolphin pool, theme park, water Park, health spa, and restaurant) and water side facilities (water scooters, banana rides and speed boats) would be an attraction for the domestic tourists and should pick up gradually.

11

Profitability index (PI) is the ratio of investment to payoff of a proposed project. It is calculated by the following formula: PI = PV of future cash flows ÷ Capital Investment. It is a useful tool for ranking projects because it quantifies the amount of value created per unit of investment.

Year 2012 2017 2022 2027 2030

4 seater(small) 8.0 11.0 15.0 22.0 27.0

8-10 seater (medium) 2.0 3.0 0.0 4.0 4..0

15-20 seater (large) 1.0 0.0 0.0 2.0 2.0



2. Market demand estimates for the proposed facilities are as given below:

Demand for number of users for land side facilities



2012 2015 2020 2025 2030 2035 2040






Demand for number of users for water side facilities


2012 2015 2020 2025 2030 2035 2040




3. Some of the activities proposed in the earlier report by L&T Ramboll such as parasailing, wind

surfing etc., require higher level of user skills which many of the tourists may not possess, hence it is proposed to drop these activities.

5. Infrastructure development at the proposed facilities will be done in a phased manner as shown below:

The operations start in 2011 and the in initial year 388 people per day are expected to visit this facility. Number of people per day increases to 1211 by 2040. Purchasing of the water scooters, speed boat and banana boats can be phased as shown below:

Table 13-2 : Phasing of infrastructure required for water sports

6. Following returns can be expected to be obtained from the landside & waterside facilities:

Dolphin pool

(including restaurant)

Water Park

Ayurvedic Health Spa (including

restaurant)

Theme Park

Water Sports

Combined Entity


14.01% 67.61% 26.11% 25.81% 125.76% 21.64%

Net 93.91 490.17 340.57 286.68 64.35 1,366.34

Year 2012 2013 2015 2016 2020 2025 2028 2029 2033 2036 2038 2039

Water Scooter

4 1 0 1 1 1 0 2 1 1 1 1

Speed Boat 1 0 1 0 0 0 1 0 0 1 0 0

Banana Boat

1 1 0 1 0 0 0 1 0 0 1 0



Present Value (NPV) in Rs. Million


592.58 46.87 69.77 94.73 3.40 819.42


1.16 11.46 5.88 4.03 19.91 2.67


12 2 8 6 1 8

Average DSCR

0.57 16.50 3.48 3.84 46.10 2.46

7. In order to be successful, the overall project should be seen as an opportunity for the development of Alappuzha town and needs cooperation and support from all quarters including the local community. The GoK, especially Directorate of Ports shall of course make the most important contribution in terms of providing the port area for construction of the proposed facilities, other resources within its purview and the technical know-how.

13.1.3 Passenger Terminal

1. The passenger facility will be operational between the months of October to April and the

indicative passenger and vessel traffic during this season is indicated below


2015 2020 2025 2030 2035 2040


302 460 707 1,097 1,726 2,756


2 4 5 7 10 15


Table 13-3: Traffic projections for the proposed passenger terminal

2. A key component for the vessel operations at Alappuzha Passenger Terminal would be the

breakwater (for providing necessary tranquillity). However the cost associated with the

construction of a breakwater is around 65% of the total project cost in phase 1. In the event, the

breakwater cost is funded through appropriate government resources, the project cost loading is

reduced to that effect and subsequently, the project viability margins improves significantly

thereby attracting more potential developers

12

Profitability index (PI) is the ratio of investment to payoff of a proposed project. It is calculated by the following formula: PI = PV of future cash flows ÷ Capital Investment. It is a useful tool for ranking projects because it quantifies the amount of value created per unit of investment.



13.2 Recommendations

13.2.1 Project implementation

1. The project implementation begins with the approval of this report which shall enable DTTIPL to proceed with the next stage, i.e., assisting the DoP with induction of the private developer though a competitive bidding process.

2. Upon approval of the DPR, DTTIPL shall proceed with preparing the project information memorandum and the Request of Proposal documents which shall be released on the website designated for this purpose.

3. Additional studies as recommended (Ecological impact of sea water ingress on paddy fields in the backwaters) should be undertaken concurrently through the DoP.

13.2.2 Project structuring for PPP

2. Considering that presently, there does not exist any infrastructure on the sea side / land side, the scope of the private sector developer shall encompass the complete project life cycle, beginning right from the design stage itself (comprising detailed engineering designs and drawings for each of the proposed facilities), progressing through actual construction, government approvals, management of day-to-day operations and ultimate transfer of facilities at the end of the concessionaire period.

3. The recommended model for development is DBFOT. Under this model, the developer shall design, build, finance, operate and/or maintain a new facility under a long-term lease.

4. It is recommended that the projects be packaged into following three separate RfPs –

a. Inland Marina and theme park

b. Land based recreational facilities ( water park, dolphin pool, health spa, restaurant) and water sports

c. Passenger terminal

5. A developer can choose to develop and operate either one or more projects. The project can be developed either by a single party or through consortium. .

13.2.3 Contribution by Government of Kerala

1. It is recommended that the government shall provide equity in the form of land and fund the development cost of breakwater

2. The project requires, both soft and hard support from various state government departments such as tourism, finance, district administration etc., with the Department of Ports taking the lead role. This support includes economic contribution as mentioned above as well as speedy approvals, provision of fiscal and non fiscal incentives, provision of data / information, logistics support, assistance for technical studies etc.,

3. While the infrastructure arrangements do not require additional reclamation and do not interfere in the existing fishing activity, still the GoK should reach out to the relevant interest groups to sensitise them about the benefits of the project and eliminate possible objections / hindrances to the project at the beginning stage itself.

4. In order to minimise the impact of the bypass road being constructed, one of the recommendations made is for creation of an under pass over the section of the port road running parallel to the beach This is an important requirement as the commercial traffic can tend to disturb the leisure activities on the beach and alongside the canal. The GoK, / DoP



should therefore ensure that appropriate coordination is done in the matter with respective departments and needful is done.

13.2.4 Marketing of the project

1. Being a tourism centric project, it needs a strong marketing push through close coordination with tourism intermediaries mainly travel agents in key urban centres, especially Kochi.

2. During the market study one of the insights the Project team obtained was in several cases, tourists go as per the recommendations and itinerary designed by their tour operators. Hence these tour planners become quite influential in terms of promoting certain destinations. In this regard, cooperation should be sought from them as well as from Department of tourism / Kerala tourism Development Corporation to design attractive packages and develop promotional material which could be advertised at strategic locations (airports, hotels, travel offices etc.,) and other point of promotions.

3. Additionally, the project should be advertised sufficiently in the media and orientation workshops should be held to make all stakeholders including important domestic and national tour operators / holiday planners aware of the project.



Annexure 1: Clarifications to Technical Committee Queries on draft

DPR

1. Clarification to Query 1

Comment / Query:

The water level in the canal and the lake is lower than that of Sea level. The canal is not connected to sea at present. The possibility of connecting the canal to the sea by some means to regulate to growth of plants in the canal without affecting the agriculture to be studied.

Clarification

A straightforward connection of the sea to the canal is possible but:

(i) In case of errors of management or in case of equipment failure it might result in large or

uncontrollable volumes of sea water entering the canal and backwaters.

(ii) For the most efficient control of the hyacinth using the least volume of sea water, pipelines

to distribute the salt water along the length of the canals is desirable, whereas a direct

connection from the sea implies all the water entering at the end of the canal. Installing

pipelines can be cheaper option than installing lock gate and a culvert.

(iii) It is proposed that the sump be built on the beach to take in the sea water and increase the

concentration to 150 g/l and thereby pump it into the canal at a single point in the canal. A

schematic representation of the system is given below. The sea water intake in the sea can

be avoided if the yield into the sump due to seepage from surrounding soil is sufficient

enough.

(iv) This system can also be used to flush the canals periodically to improve circulation, and

thereby, improve the quality of water.

Fig 12: Sea water intake system for the canals


Comment / Query:

The canal may dredged and maintained to 3 m depth

Clarification

The newly built bridges are all of the box culvert type which restricts navigation draft to 1.2 meters, so it is not possible to maintain 3 meters depth below these bridges without replacing them. If the



other areas of the channel are dredged to a depth of 3 meters, the area in between the culverts will act as sinks for nutrients and may become breeding grounds for bacteria and other microorganisms leading to sludge formation. The flushing of canal will be greatly reduced. This situation is conducive to hyacinth formation.

Keeping the above in view it can be safely surmised that the canal area between the box culvert type

bridges should be maintained at a depth of 1.2 meters.


Comment / Query:

Waste disposal plan inside the canal to be developed

Clarifications

All the sewage generated in town of Alappuzha is directed into the canals. To maintain the overall cleanliness, a sewage collection system is required to prevent the entry of the sewage into the canal. The calculation for the drain sizes and the layout of the drains are given below.

i. Layout of the drains

It is suggested that the drains should be laid along both the sides of the canal and connected to main collecting pipe, and subsequently led to a sewage treatment plant (STP). The treated water can either be left into sea or can again be reintroduced into the canal. These issues along with the exact quantum of sewage and type of sewage treatment plant should be assessed at a later stage through a more detailed study.

Layout of the drains



ii. Drain Size Calculation

a) Calculation of Discharge

The total discharge (Q = 1.5Qr + Qs) was found to be 13.53 m3/s

b) Run-off Discharge

The run-off discharge is calculated using the formulae given below

Run-off, Qr=kiCA

Where,

Qr = Discharge in m3/s

K = 0.00278

I = rainfall in mm/hr (27.173 mm/day for Alappuzha town)

A = Catchment area in ha (7000 ha for Alappuzha town)

C = Runoff coefficient (taken 0.3 considering topography of Alappuzha)

The calculated run off discharge was found to be 6.61 m3/s

c) Sewage Discharge

The peak hour sewage discharge can be computed using the following equation

Sewage discharge, Qs=3.P.D

Where,

Qs = Discharge in m3/s

P = Forecasted population

D = per capita discharge in m3/person/sec (135 liters/person/day)

Population of Alappuzha town for the year 2030 was forecasted from population of 2001 (1, 77,029) with a growth rate of 5.21% (as per census 2001) and was found to be 7, 72,144.

The calculated Peak Sewage discharge was found to be 3.619423 m3/s

d) Design of Drains

The dimensions of drains are arrived using manning’s equation

V = 1/n .R3/2 .S1/2

Where,

V = velocity in m/s

R = the hydraulic mean radius in m (Area/Wetted perimeter)

N = manning’s coefficient (taken 0.011 for concrete lining)



S = slope of the Channel (taken as 1 in 3100)

For the outer drains which are shown red in colour, 40% of the calculated discharge was assumed requiring a width of 2.4m and depth of 2.1m with a slope of 1 in 3,100.

For the inner drains which are shown yellow in colour, 10% of the calculated discharge was assumed requiring a width of 1.4m and depth of 1.5m with a slope of 1.5 in 3,500.


Comment / Query:

Conserving the archaeological value of the old pier and the tourism potential in Alappuzha,

will it not be appropriate to repair the old pier preserving its archaeological beauty and

heritage value and having a restaurant at the end. This may be considered.

Clarification

We have already addressed this aspect in the draft report on the cargo harbor wherein we have advised not to re-use the pier. We maintain the same position. The relevant section form the draft cargo harbor DPR is reproduced below:

Existing pier’s structural assessment

The existing pier is supported on steel piles. The pier is not in use since 1989. The present condition

of the pier is shown in picture below. It can be seen in the figure that the piles are severely corroded

in the splash zone and atmospheric zone. The part of the member which is above water level is said

to be in atmospheric zone.

The part of the structure that is alternately above and below the water line due to tide and waves is

called the splash zone. Immersion zone is the part of the member which is always below water.

Corrosion is maximum in splash zone. The loss of steel in each zone is given below.

S.No Zone Loss of steel per annum

1 Atmospheric zone 80-200 µm

2 Splash zone 200-500 µm

3 Immersion zone 100-200 µm

Loss of steel per annum in µm for various structural zones

Due to corrosion the cross section of the steel member is greatly reduced. This reduction in area

leads to even greater reduction of moment of inertia which reduces the capacity of the member to

resist the loads coming onto it. Assume that the thickness of the steel member used as pile is 8mm.

Assuming that protective coating was last done in 1989 after which the pier is abandoned and that

the pile thickness is lost at the rate of 0.3 mm per annum (from the table above), we can conclude

that in the splash zone



6 mm (20*0.3 mm) steel is lost. So the remaining steel may only be 2mm thick. This calculation

above didn’t consider any pitting corrosion. In pitting the loss of steel is even higher. The

atmospheric zone of the pier (main beam and cross beams of the pier) seems to be afflicted by

pitting corrosion which might have resulted in gaping holes in the members.

Keeping in view of the above observations, it can be concluded that the pier may not be able to

withstand any additional loading on it. It is better to erect an entirely new structure in its place

because its safety will always be question as it very difficult and costly to ascertain the damage to

the members which are below water.



Annexure 2 : Stakeholders contacted for the market assessment study

Government entities

1. Directorate of Ports Trivandrum

2. Alappuzha port office Alappuzha

3. Department of Tourism, Govt. of Kerala Trivandrum

4. Kerala Tourism Development Corporation

Limited

Trivandrum

5. Kerala Tourism Infrastructure and Investment

Company Ltd,

Trivandrum

6. Alappuzha District Tourism Promotion Council Alappuzha

7. Department of Irrigation, Alappuzha office

8. State Water Transport Department Alappuzha

9. District Industries Centre Alappuzha

10. Kochi Port Trust Kochi

11. Bolgatty Palace and Island Resort Kochi

Travel / tour operators

12. Cox & Kings (India) Ltd Kochi

13. Aspinwall & Co. Tours Division, Kochi Kochi

14. SITA (A division of Kuoni Travel (I) P. Ltd) Kochi

15. Cruise Lines India Kochi

16. Creek Cruise Kochi Kochi

17. GAC Shipping (India) Pvt. Ltd. Kochi

18. Intersight Tours & Travels (P) Ltd. Kochi

19. Marvel Tours Kochi

20. Aqua Holidays Alappuzha

Trade Associations

21. Travancore chamber of commerce Alappuzha

22. Kerala Yachting Association Kochi

23. Houseboats owners Association Alappuzha

Houseboat operators

24. Rainbow Cruises Alappuzha

25. Sandra House Boats Alappuzha

26. Pulickattil Tourism Group Alappuzha

Others

Coir exporters



27. N. C. John & Sons (P) Ltd. Alappuzha

28. The Alleppy Company Ltd Alappuzha

Boat manufacturer

29. Samudra Shipyard (P) Ltd Kochi

Water park / adventure sports operator

30. Veega Land / WONDERLA HOLIDAYS PVT LTD. Kochi

31. Drishti Water Adventure sports (H2) complex) Mumbai

Hotels & Resorts

32. Lake Palace Resort Alappuzha

Individuals

33. Mr. S. Vinu Kumar (Ex-Secretary – DTPC) Alappuzha



Annexure 3 - Layout Showing Inland Marina and Theme Park



Annexure 4 - Section showing details of landing facilities for inland

marina



Annexure 5 - Layout of Water Park



Annexure 6 - Layout of dolphin pool



Annexure 7 - Cross section 1 of the dolphin pool



Annexure 8 - Cross section 2 of the dolphin pool



Annexure 9 - Layout of health spa



Annexure 10 – Layout of Passenger Terminal



Annexure 11 – Summary of integrated financial statements for the

facilities of Inland Marina, beach side facilities and water sports (

excluding passenger terminal)

Balance sheet


Cash flow statement


2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Balance Sheet 0 1 2 3 4 5 6 7 8 9 10

Assets

Fixed Assets

Gross Block - 2.40 819.42 819.75 819.75 820.49 822.74 824.66 824.66 825.06 825.92

Accumulated Dep - (0.11) (35.65) (71.20) (106.76) (142.31) (177.91) (204.88) (240.90) (276.92) (312.97)

Net Block - 2.29 783.77 748.56 713.00 678.17 644.83 619.78 583.76 548.13 512.95

CWIP 163.80 808.62 - - - - - - - - -

Fixed Assets - Total 163.80 810.91 783.77 748.56 713.00 678.17 644.83 619.78 583.76 548.13 512.95

Preliminary expenses 4.80 3.60 2.40 1.20 - - - - - - -

Investments - - - - - - 21.63 69.71 161.19 291.07 466.39

Cash and Bank - - 10.25 23.14 22.29 38.15 50.12 53.18 56.43 60.00 64.09

Total Assets 168.60 814.51 796.41 772.90 735.28 716.33 716.59 742.67 801.38 899.20 1,043.42

Liabilities

Equity 67.27 302.85 305.37 305.37 305.37 305.37 305.37 305.37 305.37 305.37 305.37

P&L (1.20) (2.51) (42.08) (66.32) (74.52) (60.56) (23.59) 43.56 148.11 297.06 498.26

Reserves - - - - - - - - - - -

Long-term debt 102.53 514.17 520.05 520.05 489.69 455.84 418.10 376.02 329.09 276.77 218.44

Current Liabilities - - 13.07 13.80 14.74 15.68 16.71 17.73 18.81 20.00 21.36

Unsecured Loans - - - - - - - - - - -

Total liabilities 168.60 814.51 796.41 772.90 735.28 716.33 716.59 742.67 801.38 899.20 1,043.42



2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Balance Sheet 11 12 13 14 15 16 17 18 19 20

Assets

Fixed Assets

Gross Block 826.32 829.63 831.83 833.53 834.51 835.31 839.83 841.41 843.86 844.66

Accumulated Dep (349.05) (375.18) (411.89) (448.69) (485.58) (522.52) (546.77) (584.28) (621.86) (659.56)

Net Block 477.27 454.45 419.95 384.84 348.92 312.79 293.06 257.13 222.00 185.10

CWIP - - - - - - - - - -

Fixed Assets - Total 477.27 454.45 419.95 384.84 348.92 312.79 293.06 257.13 222.00 185.10

Preliminary expenses - - - - - - - - - -

Investments 694.77 934.15 1,243.73 1,722.24 2,295.10 2,978.80 3,780.28 4,744.53 5,884.73 7,236.04

Cash and Bank 68.29 72.87 77.92 83.42 89.56 96.15 103.39 111.66 120.94 130.73

Total Assets 1,240.33 1,461.47 1,741.60 2,190.50 2,733.58 3,387.74 4,176.73 5,113.32 6,227.66 7,551.87

Liabilities

Equity 305.37 305.37 305.37 305.37 305.37 305.37 305.37 305.37 305.37 305.37

P&L 758.80 1,050.95 1,410.26 1,857.32 2,398.36 3,050.33 3,836.90 4,770.73 5,881.99 7,202.93

Reserves - - - - - - - - - -

Long-term debt 153.39 80.87 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Current Liabilities 22.76 24.29 25.97 27.81 29.85 32.05 34.46 37.22 40.31 43.58

Unsecured Loans - - - - - - - - - -

Total liabilities 1,240.33 1,461.47 1,741.60 2,190.50 2,733.58 3,387.74 4,176.73 5,113.32 6,227.66 7,551.87



2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Balance Sheet 21 22 23 24 25 26 27 28 29 30

Assets

Fixed Assets

Gross Block 844.66 849.41 850.25 850.25 850.25 852.86 858.92 860.34 861.46 861.46

Accumulated Dep (697.30) (718.80) (735.79) (752.82) (769.85) (786.88) (783.30) (801.67) (820.10) (837.70)

Net Block 147.36 130.61 114.46 97.44 80.41 65.98 75.62 58.67 41.36 23.76

CWIP - - - - - - - - - -

Fixed Assets - Total 147.36 130.61 114.46 97.44 80.41 65.98 75.62 58.67 41.36 23.76

Preliminary expenses - - - - - - - - - -

Investments 8,833.52 10,686.38 12,875.87 15,438.67 18,431.34 21,928.90 26,005.16 30,793.00 36,390.78 42,935.93

Cash and Bank 139.89 153.47 167.03 181.86 198.42 217.76 238.57 262.48 289.31 318.86

Total Assets 9,120.76 10,970.45 13,157.37 15,717.96 18,710.16 22,212.65 26,319.35 31,114.15 36,721.45 43,278.55

Liabilities

Equity 305.37 305.37 305.37 305.37 305.37 305.37 305.37 305.37 305.37 305.37

P&L 8,768.77 10,613.93 12,796.32 15,351.98 18,338.66 21,834.70 25,934.46 30,721.29 36,319.65 42,866.90

Reserves - - - - - - - - - -

Long-term debt 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Current Liabilities 46.63 51.16 55.68 60.62 66.14 72.59 79.52 87.49 96.44 106.29

Unsecured Loans - - - - - - - - - -

Total liabilities 9,120.76 10,970.45 13,157.37 15,717.96 18,710.16 22,212.65 26,319.35 31,114.15 36,721.45 43,278.55



Profit & Loss Account 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

0 1 2 3 4 5 6 7 8 9 10 11

Revenue 0.00 208.50 233.38 261.53 293.46 329.71 370.92 417.84 471.33 532.38 602.09

Restaurant Revenue 0.00 0.00 14.91 16.47 18.20 20.13 22.29 24.69 27.38 30.39 34.04 38.14

Other Income 0.00 0.00 0.00 0.00 0.00 0.00 1.51 4.88 11.28 20.37 32.65 48.63

Total Income 0.00 0.00 223.41 249.84 279.73 313.59 353.51 400.49 456.50 522.09 599.07 688.86

Less:

Operating costs 0.00 0.00 156.88 165.56 176.90 188.14 200.49 212.72 225.73 240.01 256.35 273.18

Restaurant Expenses 0.00 0.00 5.95 6.57 7.26 8.03 8.89 9.85 10.92 12.12 13.46 14.94

Entertainment Tax 0.00 0.00 3.60 5.40 7.20 8.10 9.90 9.90 9.90 9.90 9.90 10.89

EBIDTA 0.00 0.00 56.98 72.31 88.37 109.32 134.23 168.02 209.96 260.06 319.36 389.86

Depreciation 0.00 0.11 35.54 35.54 35.56 35.56 35.59 36.00 36.02 36.02 36.04 36.08

Financing Cost 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Interest on Long Term Debt 0.00 0.00 59.81 59.81 59.81 56.31 52.42 48.08 43.24 37.85 31.83 25.12

Interest on usecured loan 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Preliminary Expenses w/o 1.20 1.20 1.20 1.20 1.20 0.00 0.00 0.00 0.00 0.00 0.00 0.00

PBT (1.20) (1.31) (39.57) (24.24) (8.20) 17.45 46.22 83.93 130.69 186.19 251.49 328.65

Taxes 0.00 0.00 0.00 0.00 0.00 3.49 9.24 16.79 26.14 37.24 50.30 68.11

PAT / (Loss After Tax) (1.20) (1.31) (39.57) (24.24) (8.20) 13.96 36.97 67.15 104.55 148.95 201.19 260.55

Profit / (loss) b/f 0.00 (1.20) (2.51) (42.08) (66.32) (74.52) (60.56) (23.59) 43.56 148.11 297.06 498.26

Profit Available for

Appropriations (1.20) (2.51) (42.08) (66.32) (74.52) (60.56) (23.59) 43.56 148.11 297.06 498.26 758.80

Transfer to Reserves 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Dividends 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Dividend Distribution tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Profit / (loss) carried to Bal Sheet (1.20) (2.51) (42.08) (66.32) (74.52) (60.56) (23.59) 43.56 148.11 297.06 498.26 758.80



Profit & Loss Account 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031

12 13 14 15 16 17 18 19 20 21

Revenue 681.22 771.07 873.14 989.13 1123.81 1278.57 1456.61 1661.66 1898.07 2165.83

Restaurant Revenue 42.72 47.86 53.61 59.73 66.62 74.38 83.15 93.07 99.72 112.08

Other Income 65.39 87.06 120.56 160.66 208.52 264.62 332.12 411.93 506.52 618.35

Total Income 789.33 905.99 1047.31 1209.51 1398.94 1617.57 1871.87 2166.65 2504.32 2896.26

Less:

Operating costs 291.49 311.67 333.68 358.24 384.61 413.56 446.62 483.75 522.94 559.55

Restaurant Expenses 16.55 18.33 20.27 22.51 25.02 27.84 31.01 34.58 32.78 36.47

Entertainment Tax 10.89 10.89 10.89 10.89 11.98 11.98 11.98 11.98 11.98 13.18

EBIDTA 470.40 565.10 682.46 817.87 977.33 1164.19 1382.26 1636.34 1936.62 2287.06

Depreciation 36.69 36.70 36.81 36.89 36.94 37.72 37.51 37.58 37.70 37.74

Financing Cost 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Interest on Long Term Debt 17.64 9.30 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Interest on usecured loan 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Preliminary Expenses w/o 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

PBT 416.07 519.09 645.65 780.98 940.40 1126.47 1344.76 1598.76 1898.92 2249.33

Taxes 123.93 159.78 198.59 239.95 288.43 339.89 410.93 487.51 577.98 683.49

PAT / (Loss After Tax) 292.14 359.31 447.07 541.04 651.97 786.58 933.83 1111.25 1320.94 1565.84

Profit / (loss) b/f 758.80 1050.95 1410.26 1857.32 2398.36 3050.33 3836.90 4770.73 5881.99 7202.93


Appropriations 1050.95 1410.26 1857.32 2398.36 3050.33 3836.90 4770.73 5881.99 7202.93 8768.77

Transfer to Reserves 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Dividends 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Dividend Distribution tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00



Profit & Loss Account 2032 2033 2034 2035 2036 2037 2038 2039 2040

22 23 24 25 26 27 28 29 30

Revenue 2472.02 2822.24 3222.91 3681.40 4226.62 4858.34 5590.93 6441.19 7428.79

Restaurant Revenue 126.09 142.00 160.09 180.00 202.66 228.48 257.94 291.59 314.22

Other Income 748.05 901.31 1080.71 1290.19 1535.02 1820.36 2155.51 2547.35 3005.52

Total Income 3346.16 3865.55 4463.71 5151.59 5964.30 6907.18 8004.38 9280.14 10748.53

Less:

Operating costs 613.87 668.12 727.42 793.67 871.05 954.27 1049.92 1157.24 1275.43

Restaurant Expenses 40.60 45.23 50.43 56.00 62.25 69.26 77.15 86.03 81.65

Entertainment Tax 13.18 13.18 13.18 13.18 14.49 14.49 14.49 14.49 14.49

EBIDTA 2678.52 3139.03 3672.68 4288.75 5016.51 5869.15 6862.81 8022.37 9376.95

Depreciation 38.69 16.99 17.03 17.03 17.03 18.37 18.37 18.43 17.60

Financing Cost 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Interest on Long Term Debt 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Interest on usecured loan 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Preliminary Expenses w/o 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

PBT 2639.83 3122.04 3655.65 4271.72 4999.48 5850.79 6844.45 8003.94 9359.35

Taxes 794.67 939.65 1100.00 1285.04 1503.44 1751.02 2057.62 2405.58 2812.10

PAT / (Loss After Tax) 1845.16 2182.39 2555.65 2986.68 3496.04 4099.77 4786.83 5598.35 6547.25

Profit / (loss) b/f 8768.77 10613.93 12796.32 15351.98 18338.66 21834.70 25934.46 30721.29 36319.65


Appropriations 10613.93 12796.32 15351.98 18338.66 21834.70 25934.46 30721.29 36319.65 42866.90

Transfer to Reserves 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Dividends 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Dividend Distribution tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Profit / (loss) carried to Bal Sheet 10613.93 12796.32 15351.98 18338.66 21834.70 25934.46 30721.29 36319.65 42866.90



Cash Flow Statement 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

0 1 2 3 4 5 6 7 8 9 10 11

Cash flow from Operations

Profit before taxes (1.20) (1.31) (39.57) (24.24) (8.20) 17.45 46.22 83.93 130.69 186.19 251.49 328.65

Add: Depreciation 0.00 0.11 35.54 35.54 35.56 35.56 35.59 36.00 36.02 36.02 36.04 36.08

Add: Interest Expense - Long Term Debt 0.00 0.00 59.81 59.81 59.81 56.31 52.42 48.08 43.24 37.85 31.83 25.12

Less: Interest Income 0.00 0.00 0.00 0.00 0.00 0.00 (1.51) (4.88) (11.28) (20.37) (32.65) (48.63)

Less: Increase in Current Assets

Add: Increase in Current Liabilities 0.00 0.00 13.07 0.72 0.95 0.94 1.03 1.02 1.08 1.19 1.36 1.40

Less: Taxes paid 0.00 0.00 0.00 0.00 0.00 (3.49) (9.24) (16.79) (26.14) (37.24) (50.30) (68.11)

Add: Preliminary Expenses w/o 1.20 1.20 1.20 1.20 1.20 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Add: Interest Expense - Unsecured loan 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Net Cash from (used in) operations 0.00 0.00 70.05 73.03 89.31 106.77 124.50 147.37 173.62 203.64 237.78 274.52

Cash flow from Investing

Purchase of capital assets / CWIP (163.80) (647.22) (8.40) (0.33) 0.00 (0.73) (2.25) (10.95) 0.00 (0.40) (0.86) (0.40)

Sale of capital assets 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

(Purchase) / redemption of investment 0.00 0.00 0.00 0.00 0.00 0.00 (21.63) (48.08) (91.49) (129.87) (175.32) (228.38)

Interest on investments 0.00 0.00 0.00 0.00 0.00 0.00 1.51 4.88 11.28 20.37 32.65 48.63

Preliminary expenses incurred (6.00) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Net Cash from (used in) Investing (169.80) (647.22) (8.40) (0.33) 0.00 (0.73) (22.37) (54.15) (80.20) (109.90) (143.53) (180.15)

Cash flow from Financing

Proceeds from issue of share capital 67.27 235.57 2.52 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Long term debt taken / (repaid) 102.53 411.65 5.88 0.00 (30.36) (33.85) (37.74) (42.08) (46.92) (52.32) (58.34) (65.05)

Interest on long term debt 0.00 0.00 (59.81) (59.81) (59.81) (56.31) (52.42) (48.08) (43.24) (37.85) (31.83) (25.12)

Unsecured loan taken / (repaid) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Interest on unsecured loan 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Financing Cost 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Net Cash from (used in) Financing 169.80 647.22 (51.41) (59.81) (90.17) (90.17) (90.17) (90.17) (90.17) (90.17) (90.17) (90.17)

Net change in cash - - 10.25 12.89 (0.85) 15.87 11.97 3.06 3.25 3.57 4.08 4.21

Opening Cash - - - 10.25 23.14 22.29 38.15 50.12 53.18 56.43 60.00 64.09

Closing Cash - - 10.25 23.14 22.29 38.15 50.12 53.18 56.43 60.00 64.09 68.29



Cash Flow Statement 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031

12 13 14 15 16 17 18 19 20 21


Profit before taxes 416.07 519.09 645.65 780.98 940.40 1126.47 1344.76 1598.76 1898.92 2249.33

Add: Depreciation 36.69 36.70 36.81 36.89 36.94 37.72 37.51 37.58 37.70 37.74

Add: Interest Expense - Long Term Debt 17.64 9.30 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Less: Interest Income (65.39) (87.06) (120.56) (160.66) (208.52) (264.62) (332.12) (411.93) (506.52) (618.35)


Add: Increase in Current Liabilities 1.53 1.68 1.83 2.05 2.20 2.41 2.75 3.09 3.27 3.05

Less: Taxes paid (123.93) (159.78) (198.59) (239.95) (288.43) (339.89) (410.93) (487.51) (577.98) (683.49)

Add: Preliminary Expenses w/o 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Add: Interest Expense - Unsecured loan 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Net Cash from (used in) operations 282.60 319.93 365.15 419.32 482.58 562.09 641.98 740.00 855.39 988.28


Purchase of capital assets / CWIP (13.87) (2.20) (1.70) (0.98) (0.80) (17.99) (1.58) (2.45) (0.80) 0.00

Sale of capital assets 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

(Purchase) / redemption of investment (239.38) (309.58) (478.51) (572.86) (683.71) (801.48) (964.25) (1,140.20) (1,351.31) (1,597.48)

Interest on investments 65.39 87.06 120.56 160.66 208.52 264.62 332.12 411.93 506.52 618.35

Preliminary expenses incurred 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Net Cash from (used in) Investing (187.86) (224.72) (359.65) (413.18) (475.99) (554.85) (633.71) (730.72) (845.59) (979.13)


Proceeds from issue of share capital 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Long term debt taken / (repaid) (72.53) (80.87) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Interest on long term debt (17.64) (9.30) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00)

Unsecured loan taken / (repaid) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Interest on unsecured loan 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Financing Cost 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Net Cash from (used in) Financing (90.17) (90.17) 0.00 0.00 (0.00) 0.00 (0.00) 0.00 (0.00) (0.00)

Net change in cash 4.58 5.05 5.50 6.14 6.59 7.24 8.26 9.28 9.80 9.15

Opening Cash 68.29 72.87 77.92 83.42 89.56 96.15 103.39 111.66 120.94 130.73

Closing Cash 72.87 77.92 83.42 89.56 96.15 103.39 111.66 120.94 130.73 139.89



Cash Flow Statement 2032 2033 2034 2035 2036 2037 2038 2039 2040

22 23 24 25 26 27 28 29 30


Profit before taxes 2639.83 3122.04 3655.65 4271.72 4999.48 5850.79 6844.45 8003.94 9359.35

Add: Depreciation 38.69 16.99 17.03 17.03 17.03 18.37 18.37 18.43 17.60

Add: Interest Expense - Long Term Debt 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Less: Interest Income (748.05) (901.31) (1080.71) (1290.19) (1535.02) (1820.36) (2155.51) (2547.35) (3005.52)


Add: Increase in Current Liabilities 4.53 4.52 4.94 5.52 6.45 6.94 7.97 8.94 9.85

Less: Taxes paid (794.67) (939.65) (1100.00) (1285.04) (1503.44) (1751.02) (2057.62) (2405.58) (2812.10)

Add: Preliminary Expenses w/o 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Add: Interest Expense - Unsecured loan 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Net Cash from (used in) operations 1140.33 1302.59 1496.92 1719.04 1984.49 2304.71 2657.66 3078.37 3569.19


Purchase of capital assets / CWIP (21.94) (0.84) 0.00 0.00 (2.61) (28.00) (1.42) (1.12) 0.00

Sale of capital assets 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

(Purchase) / redemption of investment (1,852.86) (2,189.50) (2,562.80) (2,992.67) (3,497.56) (4,076.26) (4,787.84) (5,597.78) (6,545.15)

Interest on investments 748.05 901.31 1,080.71 1,290.19 1,535.02 1,820.36 2,155.51 2,547.35 3,005.52

Preliminary expenses incurred 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Net Cash from (used in) Investing (1,126.75) (1,289.03) (1,482.09) (1,702.48) (1,965.15) (2,283.90) (2,633.75) (3,051.54) (3,539.64)


Proceeds from issue of share capital 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Long term debt taken / (repaid) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Interest on long term debt (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00)

Unsecured loan taken / (repaid) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Interest on unsecured loan 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Financing Cost 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Net Cash from (used in) Financing (0.00) 0.00 0.00 (0.00) (0.00) 0.00 0.00 (0.00) 0.00

Net change in cash 13.58 13.56 14.83 16.56 19.35 20.81 23.91 26.83 29.55

Opening Cash 139.89 153.47 167.03 181.86 198.42 217.76 238.57 262.48 289.31

Closing Cash 153.47 167.03 181.86 198.42 217.76 238.57 262.48 289.31 318.86



Feasibility Calculation 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

0 1 2 3 4 5 6 7 8 9 10 11

Capital Investment (163.80) (647.22) (8.40) - - - - - - - - -

Cash from operations - - 70.05 73.03 89.31 106.77 124.50 147.37 173.62 203.64 237.78 274.52

Net Cashflow for the year (163.80) (647.22) 61.65 73.03 89.31 106.77 124.50 147.37 173.62 203.64 237.78 274.52

Cumulative Cashflow (163.80) (811.02) (749.37) (676.33) (587.02) (480.26) (355.75) (208.38) (34.76) 168.88 406.66 681.18

Present Value Factors 1.0000 0.8861 0.7852 0.6958 0.6166 0.5464 0.4842 0.4290 0.3802 0.3369 0.2985 0.2645

Present Value of cashflows (163.80) (573.52) 48.41 50.82 55.07 58.33 60.28 63.23 66.01 68.60 70.98 72.62

Cumulative Present Value (163.80) (737.32) (688.91) (638.09) (583.02) (524.69) (464.41) (401.18) (335.18) (266.57) (195.59) (122.97)

Feasibility Calculation 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031

12 13 14 15 16 17 18 19 20 21

Capital Investment - - - - - - - - - -

Cash from operations 282.60 319.93 365.15 419.32 482.58 562.09 641.98 740.00 855.39 988.28

Net Cashflow for the year 282.60 319.93 365.15 419.32 482.58 562.09 641.98 740.00 855.39 988.28

Cumulative Cashflow 963.78 1,283.71 1,648.87 2,068.18 2,550.77 3,112.86 3,754.83 4,494.83 5,350.22 6,338.50

Present Value Factors 0.2344 0.2077 0.1841 0.1631 0.1445 0.1281 0.1135 0.1006 0.0891 0.0790

Present Value of cashflows 66.25 66.46 67.21 68.39 69.75 71.99 72.86 74.42 76.23 78.05

Cumulative Present Value (56.72) 9.73 76.95 145.34 215.09 287.08 359.94 434.36 510.60 588.64

Feasibility Calculation 2032 2033 2034 2035 2036 2037 2038 2039 2040

22 23 24 25 26 27 28 29 30

Capital Investment - - - - - - - - -

Cash from operations 1,140.33 1,302.59 1,496.92 1,719.04 1,984.49 2,304.71 2,657.66 3,078.37 3,569.19

Net Cashflow for the year 1,140.33 1,302.59 1,496.92 1,719.04 1,984.49 2,304.71 2,657.66 3,078.37 3,569.19

Cumulative Cashflow 7,478.83 8,781.42 10,278.34 11,997.38 13,981.87 16,286.57 18,944.23 22,022.61 25,591.79

Present Value Factors 0.0700 0.0620 0.0549 0.0487 0.0431 0.0382 0.0339 0.0300 0.0266

Present Value of cashflows 79.80 80.77 82.25 83.70 85.63 88.12 90.04 92.42 94.96

Cumulative Present Value 668.44 749.21 831.47 915.17 1,000.80 1,088.92 1,178.96 1,271.38 1,366.34

Annexure 12 – Financial statements of Passenger Terminal

Annexure 12(a) – Financial statements of Passenger Terminal under

the scenario that the breakwater cost is borne by the private player

Balance sheet


Cash flow statement


Scenario 1 – Breakwater related capital cost is borne by the private player

Balance sheet



Scenario 1 - Breakwater related capital cost is borne by the private player

Balance sheet (Cont’d)








Profit & Loss account (Cont’d)




Cash-flow statement




Cash-flow statement (Cont’d)




Feasibility Calculation

Annexure 12(b) – Financial statements of the Passenger Terminal

under the scenario that the breakwater cost is borne by the state

government

Balance sheet


Cash flow statement


Scenario 2 – Breakwater related capital cost is borne by the State Government

Balance sheet




Balance sheet ( Cont’d)








Profit & Loss account ( Cont’d)




Cash-flow statement




Cash-flow statement (Cont’d)




Feasibility Calculation

Annexure 13 – Topography of designated project area for inland

marina area and theme park



Annexure 14 – Numerical model studies

It is to be noted that the numerical model studies also covered the cargo terminal which now, is no longer a part of project based on the decision taken by Government of Kerala



Annexure 15 – Rapid Environmental Impact Assessment Study

It is to be noted that the Rapid Environmental Impact Assessment Study also covered the cargo terminal which now, is no longer a part of project based on the decision taken by Government of Kerala



.

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