Secure Your Business for 90 Years at 10% of the Cost
Kerala is making a bold and transformative stride in its industrial landscape, addressing long-standing demands of industrialists with a visionary approach. The state’s new Unified Land Lease Policy for KINFRA & KSIDC parks marks a significant shift, prioritizing large-scale investments that promise substantial economic growth and employment opportunities.
For investments above ₹100 crore, Kerala is ensuring that high-impact projects receive the space they need to flourish by allotting up to 25% of total land in industrial parks or a minimum of 10 acres. The state’s commitment to creating a conducive business environment is evident in the streamlined payment terms for land allotment. Allottees are required to pay 10% of the total lease premium as EMD within 90 days of the Letter of Intimation, with the option of a 24-month moratorium. The remaining 90% is payable in nine equal yearly installments at competitive interest rates. Kerala is also implementing stringent compliance measures, including penalties for payment delays and the potential cancellation of allotments, underlining the seriousness of this initiative. This policy mandates that investors bring in at least ₹100 crore within three years, aligning employment generation with their capital infusion. Moreover, for mega projects with investments of ₹300 crore or more, a high-power committee is set to consider additional incentives, reinforcing Kerala’s commitment to fostering major industrial endeavors.
For investments between ₹50 crore and ₹100 crore, Kerala continues to lead the way with an investor-friendly process. These investors must inject their capital within three years, ensuring that their projects contribute effectively to the state’s economy. The fair and flexible payment terms require 20% of the lease premium upfront, with the balance payable over five years. Consistency across different industrial parks further ensures a level playing field for all investors, reflecting the state’s dedication to building a robust industrial ecosystem.
In addition to these progressive measures, Kerala is setting a new standard by offering land on a leasehold basis tailored to the scale of investment. Land will be allotted for up to 90 years for investments above ₹100 crore, and up to 60 years for investments below ₹100 crore. This approach guarantees long-term stability for investors while maintaining the flexibility to meet the state’s developmental needs. In exceptional cases, land may be sold outright to government bodies for common amenities, further supporting infrastructure growth.
This initiative reflects Kerala’s unwavering commitment to creating a business-friendly environment where investors are supported at every step. The state’s comprehensive and investor-centric policies are set to propel Kerala to new heights, making it a beacon of industrial excellence in India and a preferred destination for industrial growth and innovation.