Vizhinjam will grow if plantation land is available: Industrial development acceleration challenged by lack of land

THIRUVANANTHAPURAM: Acquisition of plantation land for industrial and infrastructure projects related to Vizhinjam port can speed up development. There are interested entrepreneurs, but the challenge is the lack of land. Industrial clusters, logistics parks and export-oriented industries can be established if plantation land can be utilised.

There are 5.25 lakh acres of plantation land in the state of Kerala without the records of big investors. The government had earlier received a recommendation from the secretary-level committee to acquire it and use it for various purposes. Processing hubs, godowns, large storage, cold-cool chains, container repairing yards, etc. can also be set up through this. This will create more employment opportunities. Local people will also get jobs. Land is very expensive in the port and urban areas. Although KINFRA, the port company and the chamber of commerce have tried, they have not been able to find land on a large scale.

The government has announced that it will acquire 10,000 acres of land within a 50-km radius of the port and hand it over to private entrepreneurs and set up a special development zone there. Land is needed for the Vizhinjam-Kollam-Punalur Development Triangle Project as well. KINFRA has so far been able to find only 300 acres. Priority projects are logistics, health tourism, green industry, food processing, and agro-processing.

Amendment will be required

According to the Land Reforms Act, plantation land cannot be used for other purposes. Amendment to the law will be required to use it for industrial purposes.

Lease for 90 years

The lease period for industrialists in Vizhinjam is 90 years. Large investors only need to pay 10% of the lease amount in the first year. There is a two-year moratorium.

Non-large investors will be allotted land for 60 years and for 90 years if the investment is above Rs 100 crore. Minimum land area to be allotted is 10 acres.

Expected investment: 3 lakh crore

''The industrial and commercial growth associated with Vizhinjam is huge. The development of Vizhinjam is strong enough to spread to the entire state of Kerala

-KN Balagopal, Finance Minister