Kerala to amend law for faster land acquisition to support Vizhinjam Port expansion

THIRUVANANTHAPURAM: The Kerala government is planning to amend existing laws to speed up land acquisition for the large-scale development linked to Vizhinjam International Seaport. At present, completing the land acquisition process, including issuing the required notifications, takes at least 15 months. The Revenue Department aims to complete the process within six months under the proposed changes. The move comes amid concerns that Kerala could lose out on the full economic benefits of the Vizhinjam port if land is not made available quickly for logistics parks, industrial parks and container yards.

Under the proposed amendment, a fixed percentage of plantation land could be allowed for agricultural and food processing units while retaining its plantation status. The changes will also provide for the creation of a land bank by combining unused government and public sector land with private land. The land bank is expected to support the development of logistics parks and industrial projects. A single-window system will also be introduced for land acquisition and for leasing land to investors.

Port-based industries may require longer lease periods, and provisions for this will also be included in the amendment. The government plans to directly acquire land and lease it to major investors.

Land acquisition will be carried out under the leadership of KINFRA and INKEL. Around 230 acres will be acquired immediately and handed over for central government institutions, at an estimated cost of Rs 810 crore. The proposed amendment will also include provisions to convert assigned land and plantation land for industrial purposes.

Land parcels identified

Several land parcels have already been identified for projects linked to the port's development.

• 5 acres at the Balaramapuram Spinning Mill: Proposed for a Container Freight Station.
• 5 acres belonging to Kerala Automobiles: Proposed for an empty container yard.
• 14 acres of the Powerloom Cooperative Society at Uchakkada: Proposed for an integrated logistics hub.
• 5 acres belonging to Travancore Titanium: To be leased to the Container Corporation for a multimodal logistics hub.
• 125 acres at Kattakkada: To be acquired as part of a larger plan to acquire a total of 600 acres in the area.

Soaring land prices

Land prices have emerged as a major challenge for setting up infrastructure around the Vizhinjam port. A logistics park or warehouse requires at least five acres of land, while industrial parks need between 50 and 100 acres. When private investors try to acquire land directly, prices can go up to Rs 15 lakh per cent, with middlemen also active in the market. The Chamber of Commerce has also created a land bank of more than 1,000 acres to make land available for investors.