Kerala seeks to free up more land for industries

Thiruvananthapuram: The Kerala Government is set to free up more land for industrial purposes and is considering appropriate changes in law in this regard. The Department of Industries is trying to help entrepreneurs find more land even as more industrial parks are coming up across the State. It has recommended amendment to the clauses in Section 81 of the Kerala Land Reforms Act to enable adequate land for aspiring entrepreneurs, investors and industrialists.

Five per cent of any land converted after availing relaxation in the Kerala Land Reforms Act can be reserved for industrial use if it remains unused after a stipulated period, states the recommendation of Department of Industries for the proposed amendment.  It has been found that a lot of land remains unused after obtaining relaxation by the concessionaires. 

The historic Kerala Land Reforms Act envisages ceiling on property holdings.

As it has received as many as 30 applications for setting up private industrial parks, the Industries Department hopes that more entrepreneurs can be lured if more land can be made available for industrial purposes.

The current concession

Private entrepreneurs are allowed to hold more than 15 acres for special purposes of public interest, as per the relaxation of the Land Reforms Act. If the particular land is not being utilised, 5% of the same or only 10 acres can be used for ‘other purposes’.

As of now, setting up industries is not listed under the ‘other purposes’. The recommendation is such that the concession is beneficial for industrial enterprises also.

Applications seeking land holdings for any of the four purposes — trade, industries, education or charity — are scrutinized at a Ministerial level and are given approvals.

The land allowed after relaxation on the ceiling for a particular purpose can be used only for the said purpose. If it remains unused for the said purpose within a stipulated time, 5% of it can be used for floriculture, vanilla cultivation, medicinal plants cultivation, tourism, hotels, resorts or any need related to these segments. However, currently, 5% land allowed for other purposes cannot be used for industrial use, other than the land holding which has got a relaxation in the name of setting up industries.