The Kerala government is set to revise its existing norms for negotiated land purchases to accelerate land acquisition for developing a port-led industrial ecosystem around Vizhinjam International Seaport. The proposed changes aim to offer more attractive compensation to willing landowners and expedite the acquisition of around 500 acres identified for industrial parks, logistics facilities and other port-related infrastructure.
The Industries Department is working with the Revenue Department to revise the existing provisions, with a government order expected to pave the way for acquisitions under the revised framework. The government intends to make negotiated purchases more attractive to landowners, encourage voluntary sales and minimise delays in the acquisition process.
A P M Mohammed Hanish, Additional Chief Secretary of the Industries Department, said that the government was working towards making the existing provisions more favourable to landowners to speed up the process. He said the government would begin acquiring the identified land as soon as the order was issued, with the aim of completing the proceedings at the earliest.
The initiative comes as Kerala seeks to leverage Vizhinjam’s expanding maritime trade to establish a network of industries and logistics facilities supporting cargo movement and related economic activity. The proposed infrastructure includes container freight stations (CFS), warehouses, logistics parks, processing units and manufacturing facilities.
Around 500 Acres Identified
Approximately 500 acres have been identified in Neyyattinkara and Kattakada taluks for the development initiative, with the Kerala Industrial Infrastructure Development Corporation (Kinfra) overseeing the identification of suitable land parcels. The sites are being assessed based on factors such as road and rail connectivity, proximity to Vizhinjam port and the requirements of prospective industries.
The land parcels could accommodate different categories of port-linked infrastructure depending on their location and connectivity. Areas with suitable railway access could support freight-oriented facilities, while other sites could be developed into warehouses, logistics parks and industrial units. Kinfra is expected to play a key role in developing the acquired land into industrial infrastructure.
Negotiated Purchases to Replace Land Pooling Approach
The government had earlier explored land pooling to promote planned development along the proposed outer area growth corridor. However, implementing the model in Kerala has proved challenging because of high population density, fragmented landholdings and the need to coordinate with numerous individual landowners.
The government is now seeking to accelerate the programme through negotiated purchases, under which land is acquired from willing sellers at mutually agreed compensation. The proposed revision is intended to make this mechanism more effective for assembling large land parcels required for port-led industrialisation.
The move is significant as Kerala seeks to create a dedicated industrial and logistics ecosystem around Vizhinjam, enabling manufacturers, exporters and logistics operators to benefit from the port’s maritime connectivity.
₹1,000 Crore Budget Allocation
The 2026–27 state budget allocated ₹1,000 crore to Kinfra for land acquisition linked to port-led industrial development. The corporation has been identifying suitable land parcels, while discussions with landowners and valuation-related work have formed part of the preparatory process.
The proposed revision of revenue norms is expected to provide fresh momentum to the initiative. Once the government order is issued, the state intends to proceed with acquiring the identified land and move towards establishing the industrial and logistics infrastructure needed to strengthen Vizhinjam’s role as a major maritime gateway and a catalyst for regional economic growth.