Kerala Government mulls reducing minimum area limit for private industrial parks

The Kerala government is considering a suggestion from industrialists to reduce the minimum limit for establishing private industrial parks taking into account the problem of land scarcity, especially in the Corporation and municipal areas.

Zoning regulations governing establishment of residential, commercial and industrial enclaves too put a limit on acquiring land in urban areas.

Though the government approved the establishment of private industrial parks on the lines of those operating under government agencies such as the Kerala Industrial Infrastructure Development Corporation (Kinfra) and and the Kerala State Industrial Development Corporation (KSIDC) in the Industrial and Commerce Policy 2017, the proposal has remained on paper because of a lack of clarity on the present limit on the maximum extent of land that can be acquired by a private entity.

The lack of clarity has held up industrial parks projects planned by industrialists in the State, said M. Khalid, president of Kerala State Small Industries Association (KSSIA).

Government order

However, Industries Minister P. Rajeeve said at a meeting with industrialists here on Saturday that the government was actively considering the suggestions to reduce the minimum and maximum land holding limits for floating private parks. Industry department sources said they expected a government order on the issue soon.

The industry is of the opinion that the minimum land holding limit can be 10 acres, while there should be no limit on the maximum area that can be acquired for a private park.

Clarification from the government on the limit on land holding can help entities such as the Pathanamthitta Industrial Promotion Council Pvt. Ltd. to establish what could be the State’s first private industrial park.

Morly Joseph, president of the KSSIA Ernakulam district unit, said those backing the SPV (special purpose vehicle) has identified 25 acres for the project. However, the maximum limit rule has prevented the project from taking off. The SPV was formed in 2021.

Mr. Joseph said establishing industrial parks on a small extent of land would not be feasible considering the cost of infrastructure building. Government entities such as Kinfra has set up industrial parks on a large extent of land, boosting the feasibility of infrastructure building. The Pathanamthitta SPV has been formed under the aegis of the KSSIA Pathanamthitta unit and the Central Travancore Chamber of Commerce.

The industry also feels that the supervision of the proposed private industrial parks should be entrusted with the respective District Industries Centres and not Kinfra.

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Printable version | May 20, 2022 12:19:36 pm |