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Jammu & Kashmir, Chhattisgarh and Gujarat are the other teams in Group A.
Balan, who is an Asian Football Confederation A Licence holder, coached Kerala to glory in the 2018 edition.
Arjuna Award winner former Indian captain I M Vijayan is the brand ambassador of the league.
In the second leg of the semifinal, Wayanad United managed a 1-0 win, but lost 1-3 on aggregate.
The I-League side will go into Thursday's second leg with a 1-0 lead.
Kerala United won 3-0 in the first leg of the semifinal at Kalpetta on Monday.
Karnataka played out a 2-2 draw with hosts Odisha to join Punjab in the semifinals from Group A.
Nijo Gilbert scored the lone goal of the match by converting a penalty in the 16th minute.
Kerala, who trailed 1-4 at half-time, hit back in the second period of play to earn a point.
Abhishek Powar netted the all-important goal in the 20th minute.