LDF government allows private players to develop estates in their own land

THIRUVANANTHAPURAM: Extreme public scepticism about land acquisition for development purposes, most of the time bordering on violent aggression, seems to have prompted the state government to come up with a “hands off” alternative. Upending the acquisition process, the LDF government has asked private entities themselves to develop industrial estates in their own lands, converting owners into their own acquisition agents. But there is a catch: if the private party fails to develop the estate as per the agreed conditions, the management of the estate will be taken over by the KINFRA.

“It is the government approval that investors trust and therefore it becomes the obligation of the state to protect the interests of investors,” said Industries principal secretary Paul Antony, elaborating on the KINFRA takeover clause. So when the developer permit is granted, certain conditions are imposed. The developer has to put up infrastructure and utilities – power, street lighting, roads, water supply, sewage and effluent treatment plants, communication networks - within a specific time period. Any default will, after a due process of hearing, will result in the KINFRA takeover.

Entities owning and possessing 50 acres and more can apply for the Private Industrial Estate Developer permit. These entities could be companies, cooperatives, charitable societies or registered partnerships. Consortium of micro small and medium enterprises (MSME) units, too, can apply. The principal secretary said that the land should be free of all encumbrances; it should not be within an ecologically sensitive area (ESA) or a coastal regulation zone. Also, it should not fall within the purview of the Kerala Conservation of Paddy Land and Wetland Act, 2008. Here are the other factors that matter for the grant of permit: suitability of the land, easy access, water availability, financial and technical capability of the applicant to implement the proposed development within two years of approval.

The land in the private industrial estates will be allotted only to industrial units. "Warehouses, other logistics services, vehicle servicing and repair depots will also be accommodated," Mr Antony said. "But vehicle showrooms, shopping malls or any other outlets selling to or servicing retail customers will not be allotted space in private industrial estate," he added. It is no secret that government industrial lands, meant for industrial purposes, have now been colonised by big retailers like vehicle showrooms. ‘Red category’ industries - pesticides, petrochemicals, thermal power plants, cement, tanneries – will not be allowed.