Kerala Plans Land Law Reforms and State Land Bank to Accelerate Industrial Growth

Kerala has unveiled an ambitious plan to reform its land management framework as part of a broader strategy to accelerate industrial growth, attract investments, and strengthen infrastructure development. The proposal was announced in the revised Kerala Budget 2026-27, with the state government identifying land availability as one of the biggest challenges limiting large-scale industrial expansion.

Presenting the budget, Chief Minister V.D. Satheesan stated that land scarcity, difficulties in mobilising land resources, and legal uncertainties continue to act as major obstacles for investors seeking to establish projects in Kerala. While the state has witnessed increasing investor interest across sectors, large parcels of land required for industrial and infrastructure projects often remain inaccessible due to regulatory hurdles and fragmented ownership structures.

To address these challenges, the government plans to introduce a comprehensive land management policy supported by new legislation. A key component of the initiative is the creation of a state-level land bank that will consolidate surplus and underutilised land parcels owned by government departments and public sector undertakings. The move is expected to improve land availability for industrial projects while ensuring transparent allocation processes.

The proposed reforms also include a review of existing land laws under a programme termed “Land Reforms 2.0.” Outdated regulations will be amended to align with current economic and industrial requirements. The government has also announced plans to simplify and expedite land conversion approvals for commercial and industrial projects, reducing delays that often impact project execution timelines.

In addition, Kerala intends to introduce a land-pooling framework for large-scale developments. The model will allow multiple landowners to participate in development projects while benefiting from future value appreciation and infrastructure creation.

Government agencies such as KINFRA and INKEL will play a larger role in facilitating land acquisition, project development, and infrastructure planning. Industry observers believe these measures could significantly improve Kerala’s ease of doing business ranking and create a stronger foundation for manufacturing, logistics, industrial parks, and infrastructure investments.

The reforms are expected to support Kerala’s long-term vision of becoming a more competitive destination for domestic and international investments while creating employment opportunities and boosting economic growth.