KOCHI: The state government’s new order that allows companies to hold more than 15 acres of land has come with riders that will discourage investments in the state, say industry officials. Under the earlier rules, there was a ceiling of 15 acres of land for companies under the Kerala Land Reforms Act, 1963.
The new rules, which came into effect following a government order (GO) dated October 12, allowed firms to hold more than 15 acres. But, companies will have to invest Rs 10 crore for every acre beyond 15 acres and give employment to 20 persons per acre. Simply put, if a company is buying an additional 10 acres, it has to invest Rs 100 crore and generate employment for 200 persons.
“This is impractical and negates the entire idea of the so-called relaxation in rules,” P M Veeramani, president of the Cochin Chamber of Commerce and Industry (CCCI) told TNIE. In a memorandum submitted to the chief minister, the industry body termed the order a “retrograde step”. “With all due respect, we would like to bring to your notice that the recent order by the revenue department is a retrograde step that will mar the government’s good intentions,” the memorandum said.
In Kerala, the prominent industries that require land are tourism, educational institutions, mining and container yards. “For instance, if someone builds a resort, there is no need for such a huge investment in the entire land. Similarly, if a company wants to develop a yard for containers, the investment required is just to build proper road to the area and maintain the yard. We don’t need huge investment,” Veeramani said, adding that only industries like heavy engineering, refineries, etc require such big investments. “In Kerala, we don’t have such industries,” he said.
Ironically, the new GO comes at a time when the industries department is collecting feedback from various stakeholders for the state’s new industrial policy, which is expected to come into effect from April 1, 2023. “We don’t have any issues as far as employment generation is concerned. But we want the government to remove the investment requirement of Rs 10 crore per acre,” Veeramani said.