Kerala government announces major changes to rules on land clearance for industrial use

Thiruvananthapuram: The Kerala government on Saturday announced major amendments to the Land Allocation Regulations governing allotment of industrial land by the Industries Department. The amendments to the regulations governing allotment of industrial land by the Kerala Industrial Infrastructure Development Corporation (KINFRA) and the Kerala State Industrial Development Corporation (KSIDC) are aimed at creating a more industry-friendly environment, fostering investment and growth in the sector, Industries Minister P Rajeeve said. KINFRA and KSIDC have been instrumental in developing industrial infrastructure in Kerala for over 30 years, by setting up industrial parks and allocating land to potential entrepreneurs on long-term lease agreements, he said at a press conference.

However, recognising the need to modernise these policies in line with best practices prevailing across India, the Kerala government has undertaken a comprehensive review and revision of the LDR, he said.

“The state government is confident that these revised regulations will provide a significant boost to the industrial development of the state, attracting large-scale investments and fostering a conducive business environment,” the minister said.

In accordance with the new amendments, the lease term has been increased from 30 to 60 years in all areas, an official statement said.

However, for investments of Rs 100 crore and above, land will be allotted for a period not exceeding 90 years, he said. For logistics activities and sub-leasing of warehouses, the original allottees can sub-lease the built-up space they have constructed to another operator, provided the sub-lease period does not exceed the initial lease period, he said.

A new staggered payment system has also been announced for all investors, the statement also said.