The Kerala government is actively crafting new legislation aimed at implementing the Special Investment Region (SIR) Act, with the objective of facilitating the establishment of economic clusters and industrial zones in the state through a method called land pooling. The proposed bill, which is presently undergoing review within the law department, is slated to be presented in the upcoming legislative assembly session next year, according to sources close to the government. This legislative initiative will introduce a comprehensive three-tier framework for the creation, operation, and management of Special Investment Regions (SIRs).
Land pooling, as an approach, entails the voluntary acquisition of land. In contrast to the conventional method of land acquisition, land pooling allows landowners to surrender their undeveloped plots to the government while still retaining ownership of the land. Additionally, they stand to benefit by receiving a fair share of the returns or revenue generated by any industrial or commercial activities established on the pooled land. This approach is already in practice in several Indian states like Gujarat and Maharashtra, as well as in countries such as China.
The impetus for enacting this legislation is driven by a report submitted by the Capital Region Development Project – II (CRDP), which serves as a consultant for the Outer Area Growth Corridor (OAGC) project in Thiruvananthapuram. Once this law comes into effect, the OAGC project will become the first initiative in the state to be executed using the land pooling method.
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