Kerala Budget aims to attract private investment but makes no mention of PSU projects
With steps to address issues surrounding scarcity of land by major reforms in existing land laws, the Revised Budget presented by Kerala Chief Minister V.D
With steps to address issues surrounding scarcity of land by major reforms in existing land laws, the Revised Budget presented by Kerala Chief Minister V.D. Satheesan on Friday puts forward promises aimed at attracting more private investments to Kerala. Under Land Reforms 2.0, the procedure for converting land for commercial enterprises will be expedited. The Budget also hints at diverting the vast tracts of land held by government departments and public sector undertakings (PSUs) for commercial purposes. For large-scale projects, a Land Pooling Framework will be introduced. Government agencies such as Kerala Industrial Infrastructure Development Corporation (KINFRA) and Infrastructure Kerala Limited (INKEL) will be empowered to handle land acquisition processes and subsequent activities.
Notably, the Budget does not make any mention of projects specific for revitalising the public sector units in the State. The total allocation for the industrial sector is ₹1,115.48 crore, while the total allocation for the Industries and Minerals sector is ₹1,558.08 crore. One of the major promises in the Budget in the industries sector is the setting up of a Special Investment Zone that guarantees investors access to world-class infrastructure, a dedicated and meticulously planned economic zone, highly streamlined clearance procedures and a governance model promising unparalleled project speed. The zone is aimed at attracting massive anchor investors in manufacturing, logistics technology and renewable energy.
The Budget document says that these zones will have “a distinct legislative and institutional framework” that transcends conventional, individual industrial parks. Some of the projects, including the Kerala branding (now packaged as Brand Keralam) as well as the project for Micro, Small, and Medium Enterprises (MSMEs), are similar to the existing ones launched by the previous Left Democratic Front (LDF) government. Under Brand Keralam, the State’s indigenous products will be presented to the world with superior quality standards and premium branding. With an aim to tap into the strengths of particular industrial regions, the Budget proposes a Global Furniture Hub for Kochi-Aluva-Perumbavoor belt and a Global Gold Hub for the Kochi-Thrissur belt.
Perumbavoor is recognized as one of the largest plywood manufacturing centers in India. The State government’s dream is to transform the Kochi-Aluva-Perumbavoor belt into a premier furniture manufacturing hub. An amount of ₹10 crore is allocated for this project. Steps will be taken to collaborate with leading international brands and make Kerala a part of their supply chain.
The BriefWire