Kerala industries department readies unified land allotment policy

18 Nov 2021 CW Team

The new lease policy will liberalize the conditions of entrepreneurs, allowing them to change the ownership of their enterprise, change their business, and provide an exit policy for the entrepreneurs.

K Ellangovan, a senior secretary, said that the policy is being framed to make it easier for investors who seek land from the government. The draft policy is also expected to get clearance within a month.

The leasing policy will apply to many agencies that are entrusted with industrial development by acquiring, holding and allocating lands for setting up industrial enterprises.

It includes district industries centres under the directorate of industries and commerce, industries development corporation, Kerala state industrial development corporation (KSIDC) and Kerala industrial infrastructure development corporation.

Since different agencies follow different land disposal regulations, an entrepreneur to set up an enterprise is in a dilemma as to which the agency must approach for the allotment of the land.

According to the new policy, changing manufacturing products under the same category for which the land was intended will be allowed without permission from the government.

In the existing policy, if the product is changed, the entrepreneur will have to give the land to the government and wait for a fresh allotment. The allotted land can be mortgaged in a tripartite agreement between the financing agency, the government and the allottee.

There will still be some restrictions, such as the prohibition of excavation or mining in the allotted land to remove the stone, earth or other materials. In the new policy, there are provisions, which the government can resume the plots.

Kerala is taking several measures to increase its business ranking. A higher ranking in the ease of doing business (EoDB) is a key factor for attracting more investors.

The state has launched a series of reforms monitored by the department for promoting industry and internal trade. On 1 March, it had completed the district business reform action plan under EoDB.

Image Source

The Kerala industrial department has prepared a unified land allotment policy for allotting land to various entrepreneurs, in a bid to rationalise criteria offered by various industrial promotion bodies. The new lease policy will liberalize the conditions of entrepreneurs, allowing them to change the ownership of their enterprise, change their business, and provide an exit policy for the entrepreneurs. K Ellangovan, a senior secretary, said that the policy is being framed to make it easier for investors who seek land from the government. The draft policy is also expected to get clearance within a month. The leasing policy will apply to many agencies that are entrusted with industrial development by acquiring, holding and allocating lands for setting up industrial enterprises. It includes district industries centres under the directorate of industries and commerce, industries development corporation, Kerala state industrial development corporation (KSIDC) and Kerala industrial infrastructure development corporation. Since different agencies follow different land disposal regulations, an entrepreneur to set up an enterprise is in a dilemma as to which the agency must approach for the allotment of the land. According to the new policy, changing manufacturing products under the same category for which the land was intended will be allowed without permission from the government. In the existing policy, if the product is changed, the entrepreneur will have to give the land to the government and wait for a fresh allotment. The allotted land can be mortgaged in a tripartite agreement between the financing agency, the government and the allottee. There will still be some restrictions, such as the prohibition of excavation or mining in the allotted land to remove the stone, earth or other materials. In the new policy, there are provisions, which the government can resume the plots. Kerala is taking several measures to increase its business ranking. A higher ranking in the ease of doing business (EoDB) is a key factor for attracting more investors. The state has launched a series of reforms monitored by the department for promoting industry and internal trade. On 1 March, it had completed the district business reform action plan under EoDB. Image Source