Final Marina DFR With Passenger Terminal

(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
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
2 2012 Deloitte Touche Tohmatsu India Private Limited

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 Spas ..................................... 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 governments 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:
Number of tourists per day (Peak season (Oct-Mar)
Demand per type of boat
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
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 The objective of Ayurvedic therapy is to restore this balance in

Health spa 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, It has been observed that there is a huge demand for water based
Banana boat rides facilities among the tourist who arrive in Kerala, which is about 40
Speed boat rides % 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 Number of tourists per day (Peak season (Oct-Mar))
Tourists) 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
Number of tourists per day (during November-April)

Waterside Activities
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 Water Ayurvedic Theme Water Combined
pool Park Health Spa Park Sports Entity
(including (including
restaurant) restaurant)
Internal Rate 14.01% 67.61% 26.11% 25.81% 125.76% 21.64%
of Return
(IRR) in %

Net Present 93.91 490.17 340.57 286.68 64.35 1,366.34

Value (NPV)
in Rs. Million
Capital 592.58 46.87 69.77 94.73 3.40 819.42
Investment
(in Rs.
Million)
Profitability 1.16 11.46 5.88 4.03 19.91 2.67
Index2
Payback 12 2 8 6 1 8
period in
years
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:
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
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:
Year 2012 2013 2015 2016 2020 2025 2028 2029 2033 2036 2038 2039
Water 4 1 0 1 1 1 0 2 1 1 1 1
Scooter
Speed Boat 1 0 1 0 0 0 1 0 0 1 0 0
Banana 1 1 0 1 0 0 0 1 0 0 1 0
Boat
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
2

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 ( 302 460 707 1,097 1,726 2,756
Foreign + Domestic)
Total number of vessels calling at Alappuzha daily 2 4 5 7 10 15
during peak season
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 Total
onwards)
Capex for Breakwater / 353.99 6.14 360.13
trestle
Capex for Passenger 53.10 81.93 135.03
Terminal
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 Breakwater funding borne

the private developer by Government of Kerala
Internal Rate of Return 16.12 26.63
(IRR) in %
Net Present Value (NPV) 199.07 411.75
in Rs. Million
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.
Type of port Nos. Port Administered by During the times (till the
Major 1 Kochi Ministry of Shipping, 1970's) when bulk and
GoI break bulk cargo used to
Intermediate 3 Neendakara Directorate of Ports, be handled manually, most
Alappuzha Government of Kerala of these non-major and
Kozhikode Intermediate Ports were
active. Later on, due to the
Non-major 14 Vizhinjam Directorate of Ports,
increased containerization
Valiyathura Government of Kerala
and propensity to reduce
Thankasserry
turnaround time of vessels
Kayamkulam calling at ports,
Manakkodam mechanization of cargo
Munambam handling activities became
Ponnani vital. Besides, ports need
Beypore to be operational during
Vadakara all weathers. However,
Thalasserry most of these non-major &
Manjeswaram intermediate ports were
Neeleswaram seasonal and lacked the
Kannur modern infrastructure to
Azzhikal handle medium and large
sized vessels.
Kasaragode
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 Keralas 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 States 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).

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:
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.
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 .

.
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 Indias 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
Indias 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 economys 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
Keralas economic performance is driven by the secondary and tertiary sectors. The states 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.

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 Keralas 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 Keralas 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 States 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 Earnings (Rs. Cr) % variation

from Tourism
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 districts
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 ports 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. Gujarats 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.
Keralas 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 regions 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.

Strengths
Weaknesses
- Existing tourist attractions
- Ready tourism market - Potential labor issues
- Government plans
Opportunities
- Ready tourism market Threats
- Multiple tourist attractions - Competitive threat
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.

Most of the Kerala roads are narrow and Alappuzha suffers from the same problem. In terms
of road connectivity to the port, Kottayams road access to Ernakulum is better than
Alappuzha.
3.2.3 Opportunities
Alappuzhas 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 anothers 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 Description DTTIPL comments

Model Option
(BMO)
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: Comments on this model are covered in
A: All weather commercial the DPR on Cargo harbour and passenger
port terminal submitted separately by DTTIPL.
B: Fair weather commercial
port
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 BMO 4 assumes market demand to come
tourism 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 Detailed financial analysis is not available
comments 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 Substitute activity proposed by Rationale

Ramboll DTTIPL
1. Commercial cruise Passenger cruise from Kochi to Higher probability of domestic
Alappuzha 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 Inland Marina system alongside A full fledge sea-side marina
system commercial canals 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 Substitute activity proposed by Rationale

Ramboll DTTIPL
Yachting / Sailing / Speed boats & banana boat Yachts, catamarans and sailing boats
Catamarans rides 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 Wind surfing, water skiing and
Water skiing Not proposed to be retained parasailing may require higher user
Parasailing 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.
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 Higher capital costs
1. Lesser number of species 1. Higher number of species
2. Less volume of water 2. More volume of water
3. Less space requirements 3. More space requirements
4. Less or no requirements for 4. Large requirement for costly
costly acrylic glass panels acrylic glass panels
2. Operating Costs ( For Lower Operating costs Higher Operating costs

aquariums world over,
1. Less frequent replenishment 1. Large number of species hence
35% operating profit
of species frequent replenishment
margin)
2. Less volume of water will required
have to be treated and 2. Large volumes of water will
filtered have to be treated and filtered
3. Well trained staff will be 3. Well trained staff will be
required 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 Dolphins can be trained to do Novelty factor can be increased by
repeat audience different acrobatic maneuvers introducing new and more
which will appear visually colourful species
pleasing
5. Financial Suitability Lower capital costs and higher Higher capital costs and lower
with regards to the operating margins will enable this operating margins may not enable
Overall project component to achieve early this component to achieve early
breakeven and gather swift cash breakeven.
flows to cross subsidize other
capital intensive infrastructure.
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.

Widen canal to
create a marina
basin.
Floating pontoon
jetties.
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,

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 Alappuzhas 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, caf/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 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 & Water front Land side

canal boating activities Activities
Drivers 1. Proximity of the 1. Water front 1. Domestic tourists will
backwaters/canals and sea. activities will be be interested in canal
used by locals and boating, waterside
2. Attitude of local people has
domestic tourists. activities and landside
changed drastically. Hence
activities
there should be no 2. Beach at Alleppy is
problems for developing normally full on 2. Clubs, water sports,
infrastructure for marina. weekends, with beachfront restaurant,
Private entrepreneurs are locals and people etc should attract more
ready to invest in tourism. from neighbouring tourists to Alleppy.
towns. Hence
3. Canal boating would bring 3. Alleppy can be the
additional activities
in innovative experience of weekend destination
should help.
boating through the town for people from Cochin
area. But they have to be 3. Students and city, who can drive
cleaned thoroughly and persons in the age down by road (Kochi-
there should not be group of 25-40 Cherthala stretch has
hindrances to the free would be interested good roads)
movement of boats. in waterside
4. Resorts can be a viable
activities
4. Foreign tourists will be business option in
interested in canal boating 4. The tour operators Alleppy and waterside
providing that the canal- can promote the activities can be an
side ambience and views proposed activities additional feature of
are right.. Domestic at Alleppy to the the resort.
tourists will be interested organised tourists if
in canal boating, waterside they are confident
activities and landside of the quality of
activities services offered.
5. Houseboat owners would 5. Marketing in North
be willing to enter the area India will help
of canal boating. They attract domestic
already own shikaras and tourists for
new investments wont be waterside activities.
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

Inland Marina & Water front Land side

canal boating activities Activities
project.
Challenges 1. Some of the bridges have 1. Creation of 1. Any infrastructure
been constructed using the breakwater is development and
box culvert; hence it is not important if services offered should
possible to dredge the activities are to be be affordable to the
canal bottom under these pursued in the sea. locals and domestic
bridges. Maximum size of tourists.
2. Any infrastructure
the boats for canal boating
development and 2. Theme park is difficult
cannot be more that the
services offered as use of sea water will
size of the box culvert.
should be affordable affect the
2. Canal boating would need to the locals and infrastructure. And use
coordination between domestic tourists. of fresh water would
different departments require installation of a
desalination plant,
3. Canals are getting clogged
which would be costly.
due to the presence of
water hyacinth. This did 3. Maintenance of assets
not happen earlier as the on the beach will be
sea water used to flow in difficult due to the
the canals during high tide salinity quotient in the
thereby preventing the atmosphere.
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.
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, Alappuzhas 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 governments 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. Keralas 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. Josephs 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 mannings 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 = mannings 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:
Site
visit
Review of existing Review of marina

Review of relevant
marina facilities in models proposed
technical data
other locations by L&T Ramboll
Evolution of
concept marina at
Alappuzha
Presentation to
stakeholders
Market assessment
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

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 Primary
search search
Tourism Tourist Existing Identify Preparing

Interviews
Data & trends profile facilities stakeholders questionnaire
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 Department of Tourism, Government of Kerala

departments Kerala Tourism Development Corporation
District tourism councils
Tour operators International tour operators in Kochi, Alappuzha, Trivandrum
Domestic tour operators in Kochi, Alappuzha, Trivandrum
Houseboat Backwater tourism operators in Alappuzha
operators Houseboat owners in Alappuzha
Competitive Kochi Marina and passenger terminal

facilities Any other
Potential individual Coir exporters

boat owners Sea food exporters
Industry Alappuzha
associations 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:

Market
segmentation
Foreign Domestic
tourists tourists
Water park & Theme park

Inland marina Water sports
Dolphin pool & Health spa
Tourists travelling Tourists travelling Tourists travelling Tourists travelling

in groups of for reasons other for reasons other for reasons other
2 to 4 than business / than business / than business /
official activities official activities official activities
Tourists travelling
in groups of
5 to 7 Tourists (males & Tourists (males & Tourists interested in
females) in age group females) mainly in local culture
<21 to 55 age group 5 to 55 &
55+ (for Dolphin pool)
Tourists residing in
Tourists possessing Ayurvedic centers
required costumes
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 Represents tourist travelling for non official purpose e.g., for
than business / official activities leisure, adventure, sightseeing etc.,

Tourists (males & females) in age Comprises of domestic & foreign tourists of various age
group <21 to 55 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 For the proposed water park, this comprises of domestic &
age group 5 to 55 & 55+ (for Dolphin foreign tourists in the age group 5 to 55 years. For the
pool) 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 & 7.3 8.4 10.1 9.2
relatives
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

Natures 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 13.4 13.1 7.5
centre
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 Propensity of tourists to travel in groups
estimation
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 1) Tabulate tourist arrival data (for foreign & domestic tourists) in
market demand 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 1. Foreign tourist arrival for 2011 = 39,584
demand
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 Number of tourists for various types of boats
infrastructure (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 185 222 309 443 659 1,012 1,603
boats
Demand for 08-10 seater fibre glass 79 89 108 131 160 195 237
boats
boats
Table 6-11: Demand forecast for number of users for inland marina peak season
Number of tourists per day (Low season (Apr-Jun))

2012 2015 2020 2025 2030 2035 2040
Demand for Non-motorised 4-seater 133 155 202 269 370 525 769
boats
boats
boats
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
Number of boats required (Low season (Apr-Jun))

Demand of type of boats
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 Waterside activities involve agility and strength and therefore
estimation 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.
Method of calculation of 1) Tabulate tourist arrival data (for domestic tourists) in Alappuzha
market demand from 1998 2009 and calculate the CAGR.
(Example given here is for
Note: The CAGR for Domestic tourists has been taken at 4.0%
water scooters. Similar method
based on the period 1998-2008. If we consider domestic tourist
has been followed for other
arrival for 2009, then the CAGR becomes 0.3%, mainly due to the
activities)
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
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- % What % Effective Rationale
Group distribution shall use percentage
(in water
years) scooters
Upto 4.1 75.0 3.1 Certain
21 percentage
would not be
eligible for
driving water
scooters /
banana boat
rides due to
age & height
factor.
22 - 55.4 100.0 55.4 Assumed that
35 this group
would have
almost all
tourists
eligible for
driving water
scooters /
banana boat
rides
36 - 37.9 75.0 28.4 Assumed that
55 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.
Sample calculation of market 1) Projected domestic tourist arrival for 2010 = 169,392
demand
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 1) Number of tourists per day (during November-April) = 78

infrastructure (water scooters)
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
Demand for Banana Boat Rides 103 116 141 172 209 255 310
Table 6-16: Demand forecast for number of users for water side facilities

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 The idea of a Water Park is to get drenched and have unlimited fun.
estimation (Water park) 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- % What %
Effective
Group distributio shall use Rationale
percentage
(yrs) n water park
Upto 4.1 75% 3.1 Certain
21 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 Though land side facilities can operate during the entire year but
all land side activities) 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.
Method of calculation of 1) Tabulate tourist arrival data (for foreign & domestic tourists) in
market demand Alappuzha from 1998 2009 and calculate the CAGR.
(Example given here is for Note: The CAGR for Domestic tourists has been taken at 4.0%
water park. Similar method based on the period 1998-2008. If we consider domestic tourist
has been followed for other arrival for 2009, then the CAGR becomes 0.3%, mainly due to the
land side activities) 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
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)
Sample calculation of 1. Projected domestic tourist arrival for 2010 = 169,392
market demand
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 Number of tourists per day (Peak season (Oct-Mar))
(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 Number of tourists per day (Low season (Apr-Jun))
(Foreign Tourists) 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
(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
(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
(All Tourists) 2012 2015 2020 2025 2030 2035 2040
Table 6-23: Demand forecast for number of users for landside facilities (all tourists) peak season

(All Tourists) 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 Number of tourists per day (Peak season (Oct-Mar))
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
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 Number of tourists per day (during November-April)
Rides 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 Number of tourists per day (during November-April)
Rides 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
Number of tourists per day (Peak season (Oct-Mar))

Demand for Water park
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
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
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 Number of tourists per day (Peak season (Oct-Mar))
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 Number of tourists per day (Peak season (Oct-Mar))

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 23.9C to 30.7C 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 Direction Predominant

Velocity 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.

Maximum % time speed exceed Predominant

Month Velocity Direction 20kmph 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

1.00 47 68 5 20
1.50 22 42 0 8
2.00 8 20 0 0
2.50 4 14 0 0
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

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 Length Breadth Draft Capacity Nos

type
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 Manpower

required initially 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 1 1 1
and repairs
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.

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 m 3

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 doesnt 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 kids 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 kids 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 (2 ft. to 3 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 personnels 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 personnels 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 personnels 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
wouldnt 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. Description Total cost ( in Rs. Million)
No
Capex Capex Capex Total
for for for cost
2010 2011 2012
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


No
for for for cost
2010 2011 2012
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+ 0.06 0.22 - 0.28
cables
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 + 0.05 0.18 - 0.23
l/jackets + l/buoys)


No
for for for cost
2010 2011 2012
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:
Descri Total cost ( in Rs. Million)
ption
2016 2017 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Purcha 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
se of
equip
ments
/ boats
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)
No
for for for cost
2010 2011 2012
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


No
for for for cost
2010 2011 2012
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
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
No
for for for cost
2010 2011 2012
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 pools infrastructure are provided hereunder:

No
for 2010 for 2011 for 2012 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:
No
2017 2022 2027 2032 2037
1 Replacement costs of 10.55 13.47 17.19 21.94 28.00

Specimen (Dolphins)
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 Parks infrastructure are provided hereunder:
No
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


No
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 Spas infrastructure are provided hereunder:
No
for for for cost
2010 2011 2012
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


No
for for for cost
2010 2011 2012
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 Spas
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 Parks
infrastructure are provided hereunder:
A. Facilities specific to Theme Park
No
for for for cost
2010 2011 2012
1 Wax museum & art gallery & admin building
1.1 Building cost 3.07 11.96 - 15.03


No
for for for cost
2010 2011 2012
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:
No
for for for cost
2010 2011 2012
1 Demolition of building 0.43 1.67 2.10


No
for for for cost
2010 2011 2012
2 Security building
2.1 Building cost 0.06 0.22 0.28
3 Food courts stalls and building
3.1 Building cost 0.24 0.95 1.19

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
No
for for for cost
2010 2011 2012
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:

No
2011 2013 2015 2016 2020 2025 2028 2029 2033 2036 2038 2039
1 Rides
1.1 Water Scooter 25 1.22 0.31 - 0.36 0.43 0.55 - 1.35 0.82 0.95 1.05 1.10
HP
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 UOM Tariff taken
persons
catered
Water Water scooters 1 Per person per 15 minutes trip 250

based
Banana Boats 5 Per person per 20 minutes trip 225
Speed Boats 10 Per person per 30 minutes trip 100
Inland Canal boating - 4 4 Domestic - Per person per 1 hour 45
Marina seater trip
Canal boating - 10 10 Domestic - Per person per 2 hour 90
seater trip
Canal boating - 20 20 Domestic - Per person per 2 hour 90
seater trip
Canal boating - 4 4 Foreigner - Per person per 1 hour 225
seater trip
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/

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 Water Ayurved Theme Restaura Inland Water Total

pool Park ic Health Park nt Marina Side /
Spa Water
Sports
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%
GoKs share in equity 24%
Developers 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. Description Facility Operations & Maintenance

No.
1. Dredging Inland Marina 5% of the dredging capital cost (y-
maintenance o-y)
2. Civil works Dolphin pool, Theme Park, 1% of the capital cost of
maintenance cost Water Sports, Inland respective civil works (y-o-y)
Marina
Water Park, Ayurvedic 1.5% of the capital cost of
Health Spa respective civil works (y-o-y)
3. Mechanical Dolphin pool, Ayurvedic 6% of the capital cost of
equipment Health Spa, Water Sports respective equipments (y-o-y)
maintenance 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 Dolphin pool 8% of the respective capital cost
maintenance (y-o-y)
Water Park, Ayurvedic 3% of the respective capital cost
Health Spa (y-o-y)
5. Fire fighting, lighting Dolphin pool, Water Park, 6% of the respective capital cost
& surveillance (y-o-y)
system maintenance
6. Water pumping Dolphin pool 10% of the respective capital cost

equipment (y-o-y)
maintenance
7. Insurance Dolphin pool, Water Park, 0.5 % of Capex (y-o-y)
Ayurvedic Health Spa,
Theme Park, Water Sports,
Inland Marina
8. Selling, general & Dolphin pool 0.5% of initial Capex (y-o-y)
administrative Water Park, Ayurvedic 3% of initial Capex (y-o-y)
expenses Health Spa
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. Description Facility Operations & Maintenance

No.
9. Manpower training All facilities 5% of the manpower cost (y-o-y)
costs
10. Average salary per All facilities Rs. 2,64,000/- ( Rupees Two Lakhs
employee and Sixty Four Thousand only)
11. Electricity cost per All facilities Rs. 3.5 per KWh
unit
12. Diesel consumption 25 HP Water Scooters 6 litres / hour
40 HP Speed Boats 8 litres / hour
13. Diesel cost All facilities Rs. 45 per litre
14. Annual increase in All facilities 5%
rate of expenses
Table 11-7: Operation and maintenance assumptions
11.2.4 Operations related assumptions for various Marina facilities
Sr. Description Facilities covered Assumption

No.
1. Number of months for which facility Dolphin pool, Water Park, 9 months / 270 days
will remain operational Ayurvedic Health Spa, Theme Park,
Inland Marina
Water Sports 6 months / 180 days
2. No. of operational hours per day All 12 hours

3. No. of 4 seater non-motorized Inland Marina 27
boats
4. No. of 10 seater boats Inland Marina 4
5. No. of 20 seater boats Inland Marina 2
6. Apportionment of common Theme Park, Inland Marina Theme Park - 80%
facilities costs ( capex and opex) Inland Marina -20%
between Theme Park and Inland
Marina
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 18. Rs. 10 lakhs per year for the year 2013 and
Overheads escalation of 5% per year thereafter
5. Water Supply 19. Rs. 1.05 lakhs per year for the year 2013 and
escalation of 5% per year thereafter
6. STP 20. Rs. 0.71 lakhs per year for the year 2013 and
escalation of 5% per year thereafter
7. Manpower - Average cost 21. Rs.180,000 per year for the year 2013 and
per person escalation of 5% per year thereafter
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 Income Tax WDV
SLM Rate %
Rate %
Land & Land Development - 0%
Buildings 3.33% 10%
Marine Structures 2.50% 10%
Machinery and equipments 4.75% 15%
Utility (Water, electricity, commn & 4.75% 15%
firefighting)
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 Water Ayurvedic Theme Inland Water Total

(including Park Health Spa Park Marina Sports revenue /
restaurant) (including Revenue
restaurant) 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 Water Ayurvedic Theme Inland Water Total of Operating

pool Park Health Spa Park Marina Sports Operatin Profit of
(including (incl. g Profit Combined
restaurant) restaurant) 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 Water Ayurvedic Theme Inland Water Combined

pool Park Health Spa Park Marina Sports Entity
Internal Rate 14.01% 67.61% 26.11% 25.81% 13.77% 125.76% 21.64%
of Return (IRR)
in %
Net Present 93.91 490.17 340.57 286.68 12.76 64.35 1,366.34
Value (NPV) in
Rs. Million
Capital 592.58 46.87 69.77 94.73 48.68 3.40 819.42
Investment (in
Rs. Million)
Profitability 1.16 11.46 5.88 4.03 1.26 19.91 2.67
Index9
Payback period 12 2 8 6 17 1 8
in years
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.
9

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 The passenger terminal will cater to both the domestic and foreign tourists,
segments 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 1) Tabulate tourist arrival data (for domestic and foreign tourists) in Kochi from 1998
calculation of 2009 and calculate the CAGR.
market demand 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 1) Projected domestic tourist arrivals for 2012 = 2,284,209 and foreign tourist
of market demand 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 1) Total number of tourists per day = 236
of infrastructure 2) Total number of vessels calling at Alappuzha daily during peak season = 1
(number of berths) 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 Number of tourists per day (foreign + domestic)

Demand 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
Passenger Terminal Total number of 100pax vessels per day
Demand 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
Passenger Terminal Total number of 250pax vessels per day
Demand 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
Foreign + Domestic)
during peak season
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

Parameter Phase 1 Phase 2 ( 2025 onwards)
Basic Consulting Contingenc Total Basic Consulting Contingency Total
cost charges y charges (Phase -1) cost charges charges (Phase -
2)
Marine structures -
Break Water 260.15 31.22 26.01 317.38 - - - -


Basic Consulting Contingenc Total Basic Consulting Contingency Total
cost charges y charges (Phase -1) cost charges charges (Phase -
2)
Approach Trestle 25.07 3.01 2.51 30.59 - - - -
Utilities - - -
Water Supply 2.07 0.25 0.06 2.38 1.39 0.17 0.04 1.59
Piping
Sewage Treatment 3.16 0.38 0.09 3.64 0.08 0.01 0.00 0.09
Plant & Piping
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 / 24.69
clearance
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 Consulting Contingency Total Basic Consulting Contingency Total
cost charges charges (Ph -1) cost charges charges (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, 8.76 0.66 0.88 10.29 13.14 0.99 1.31 15.44
gangway and Ancillary
equipments
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 7.20 0.54 0.22 7.96 11.28 0.85 0.34 12.46
building cost
Plumbing & Sanitation 0.36 0.03 0.01 0.40 0.56 0.04 0.02 0.62
Fire fighting for 0.36 0.02 0.01 0.39 0.56 0.03 0.02 0.61
building
Electrification 1.08 0.05 0.03 1.17 1.69 0.08 0.05 1.83
including lighting, air
conditioning
Walkway from jetty to - - - - - -
terminal


Basic Consulting Contingency Total Basic Consulting Contingency Total
cost charges charges (Ph -1) cost charges charges (Ph -2)
Other equipments - -
Buses - - - - - -
Admin equipment 0.72 0.04 0.76 1.13 0.06 1.18
(Furniture, IT)
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 0.30 0.02 0.32 0.30 0.02 0.32
Entrance to terminal
Security Check Metal 0.30 0.02 0.32 0.30 0.02 0.32
Arcs
Personal Metal 0.01 0.00 0.01 0.02 0.00 0.02
detectors
Baggage scanners 2.32 0.12 2.44 4.64 0.23 4.88
Surveillance System - - - - - -
Smoke Detectors 0.06 0.00 0.07 - - -
(alarm systems)
Utilities - -
Transformer + Control 0.56 0.03 0.59 0.56 0.03 0.58
panel + HT/LT gears+
cables
Lighting and cable cost 20.00 1.00 21.00 30.00 1.50 31.50
Total Capex for 48.69 2.92 1.50 53.10 75.20 4.50 2.22 81.93
Passenger Terminal
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 0.29
& topographic studies
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
Parameter Phase 1 Phase 2 ( 2025 Total
onwards)
Capex for Breakwater / 353.99 6.14 360.13
trestle
Capex for Passenger 53.10 81.93 135.03
Terminal
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 Port dues Rs. per GRT 122.50

charges Pilotage charges Rs. per GRT 183.76
Berth hire charges Rs. per GRT per hour or 1.23
part thereof
Passenger Terminal usage fees Rs per foreign passenger 147.00

related Rs per domestic passenger 49.00
charges
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 Total number of daily passenger
during fair season ships calls
2015 302 2
2020 460 4

Year Number of tourists per day Total number of daily passenger

during fair season 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%
GoKs share in equity 24%
Developers 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. Description Operations & Maintenance
No.
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 1.5% of the capital cost of all the equipments
machineries, equipment and other (y-o-y)
fixed assets
4. Selling, general & administrative 5% of total revenue
expenses
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. Description Passenger terminal related
No. assumptions
1. Number of months for which ferry terminal 7 months
will remain operational
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 Phase -2 ( till 2040) 2,756
onwards 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:
Company Accounts Income Tax
Item SLM 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 Breakwater funding borne
the private developer by Government of Kerala
Internal Rate of Return 16.12 26.63
(IRR) in %
Net Present Value (NPV) 199.07 411.75
in Rs. Million
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
glass boats 79 89 108 131 160 195 237
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.
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
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

2. Market demand estimates for the proposed facilities are as given below:
Demand for number of users for land side facilities
Demand for each facility (All Number of tourists per day (Peak season (Oct-Mar))
Tourists) 2012 2015 2020 2025 2030 2035 2040
Demand for number of users for water side facilities

2012 2015 2020 2025 2030 2035 2040
Demand for Banana Boat Rides 103 116 141 172 209 255 310
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:
Year 2012 2013 2015 2016 2020 2025 2028 2029 2033 2036 2038 2039
Water 4 1 0 1 1 1 0 2 1 1 1 1
Scooter
Speed Boat 1 0 1 0 0 0 1 0 0 1 0 0
Banana 1 1 0 1 0 0 0 1 0 0 1 0
Boat
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 Water Ayurvedic Theme Water Combined
pool Park Health Spa Park Sports Entity
Internal 14.01% 67.61% 26.11% 25.81% 125.76% 21.64%
Rate of
Return
(IRR) in %
Net 93.91 490.17 340.57 286.68 64.35 1,366.34

Present
Value
(NPV) in
Rs. Million
Capital 592.58 46.87 69.77 94.73 3.40 819.42
Investment
(in Rs.
Million)
Profitabilit 1.16 11.46 5.88 4.03 19.91 2.67
y Index12
Payback 12 2 8 6 1 8
period in
years
Average 0.57 16.50 3.48 3.84 46.10 2.46
DSCR
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
Foreign + Domestic)
during peak season
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

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 mannings 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 = mannings 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 piers 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 m
2 Splash zone 200-500 m
3 Immersion zone 100-200 m
Loss of steel per annum in m 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 didnt 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 Trivandrum
Limited
5. Kerala Tourism Infrastructure and Investment Trivandrum
Company Ltd,
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 (Contd)


Profit & Loss account (Contd)

Cash-flow statement

Cash-flow statement (Contd)


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 ( Contd)


Profit & Loss account ( Contd)


Cash-flow statement

Cash-flow statement (Contd)


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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Final Marina DFR With Passenger Terminal

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Final Marina DFR With Passenger Terminal

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(Private & Confidential)

Review and Update of Detailed Project Report for

The Directorate of Ports, Government of Kerala

Deloitte Touche Tohmatsu India Pvt. Ltd.

GoI Government of India

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

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

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Figure 2-1: Location of Alappuzha............................................................................................ 19

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Year Inland Marina

Internal Rate of Return (IRR) in % 13.77%

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Ayurvedic The objective of Ayurvedic therapy is to restore this balance in

Number of tourists per day (during November-April)

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Net Present 93.91 490.17 340.57 286.68 64.35 1,366.34

Year 2012 2017 2022 2027 2030

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

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

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

Table 1-11: Projected Gross Revenues

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

Description Passenger terminal

Description Breakwater funding borne by Breakwater funding borne

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Alappuzha is one among the seven port locations

The DoP engaged Deloitte Touche Tohmatsu

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The broad level scope of work is spelt out below:

2.2 Structure of the Report

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Chapter Topics Covered

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Chapter Topics Covered

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3 Overview of business landscape

3.1 PESTLE analysis

Each element of PESTLE analysis is presented on following pages.

Figure 3-1: Framework for PESTLE analysis

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Significance of Keralas tourism economy

Economic indicators of Tourism in Kerala

Foreign exchange earnings Earnings (Rs. Cr) % variation

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

New Tourism Policy Initiatives

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3.1.5 Legal and regulatory

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3.2 SWOT analysis of Alappuzha for developing tourism based

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