THIRUVANANTHAPURAM: The Kerala government is working on new legislation for enacting the Special Investment Region (SIR) Act to ensure that plots in the state can be used to set up economic clusters or industrial regions via land pooling.
The Bill, currently under the consideration of the law department, will be presented in the assembly next year, sources close to the government said. It will envisage a three-tier setup for establishment, operation and management of SIRs.
Land pooling is the consensual acquisition of land. Unlike the traditional mode of acquisition, land pooling lets owners who surrender their undeveloped plots to the government retain ownership of the land and also get a fair share of returns or revenue from any industries or commercial activity set up on the space. This is already in practice in states like Gujarat and Maharashtra and in countries like China.
The move to enact the law comes based on the report submitted by the Capital Region Development Project – II (CRDP), the consultant for the Outer Area Growth Corridor (OAGC) project in Thiruvananthapuram. Once the law takes effect, the OAGC will become the first project in the state to be executed under land pooling.
A CRDP official said they had submitted a proposal in this regard, and the law department is in the process of making it a legal framework. “We expect the department to introduce the Bill in the assembly soon. Once implemented, the Act will benefit the people as well as the government. The main advantage of land pooling is that the government can save money on land acquisition. Also, landowners are not required to sell their plots. It is a win-win for both parties,” the official said.
Former CRDP convenor T Balakrishnan had put forth the proposal to implement the SIR Act. The retired IAS officer and former special officer of the CRDP had prepared the draft report of the SIR Act in 2019 and submitted it to the government for approval.
“I prepared the draft based on my experience of witnessing the same law implemented in China, Taiwan, and Korea. In India, Gujarat and Maharashtra implemented the SIR Act successfully. However, the Kerala situation is different. So, I prepared the draft report based on the circumstances here. I prepared the report by making provision for land pooling in the Act,” he said.
The ‘situation’ he mentioned include the state’s dense population and land scarcity. Since landowners are assured a fair share via land pooling, the law will provide clear information about the ratio of revenue share. Under land pooling, the investors will give money directly to the land owner, said sources.
Last week, the CRDP held classes on land pooling for members of the Venganoor panchayat. The next step is organising a hearing by inviting all the landowners from each region to raise awareness.