KOCHI: Kerala has identified land pooling as a key strategy to overcome its physical infrastructure shortcomings and attract investments. Additionally, by leveraging existing assets, such as land held by government departments, agencies and local self-governments, the state aims to create contiguous land parcels for potential projects.
The move addresses a major hurdle that has deterred investors in the past: exorbitant land prices and non-availability of suitable land. The budget acknowledges that these issues have crippled Kerala’s ability to attract investments and boost domestic production.
The government aims to transform Vizhinjam into a major export-import (Exim) port, drawing inspiration from global hubs such as Singapore, Rotterdam and Dubai. To achieve this, the government has introduced policies in key sectors, including land, with some nearing finalisation.
Industries Minister P Rajeeve revealed that government departments, societies and local bodies have come together to identify land suitable for industrial use, creating a land bank in the process.
“Taking over land in Kerala is a notoriously laborious process. To overcome this hurdle, the government proposes an innovative solution: land pooling. By pooling land, property owners become stakeholders and receive a proportional share of the developed land,” he said, adding that this approach is already being piloted at Kochi Infopark and the proposed industrial corridor.
Policy analyst Resmi Bhaskaran said the budget proposal to optimise state-owned land holdings and infrastructure, along with the creation of an special purpose vehicle (SPV) for land pooling, is a commendable initiative.
She said the SPV presents an attractive opportunity for the migrant population. “They can retain their assets and maintain their roots while monetising their properties through a trustworthy mechanism. If implemented effectively, this could be a win-win situation for property owners, including those with closed houses, plantations and agricultural lands across the state,” Resmi told TNIE.
COOL POOL
Leveraging land available with govt departments, agencies and LSGs to usher in investments
Land allocation through Kinfra and KSIDC to create a more industry friendly environment
Land parcels along the corridor to be identified and developed through public, private and SPV modes
A new SPV to be established to facilitate land development and attract investors. An amount of Rs 1,000 crore will be allocated through KIIFB for direct land purchases
