Kerala Budget aims to attract private investment but does not mention PSU projects

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With steps to address land scarcity issues through major reforms to existing land laws, the revised budget presented by Kerala Chief Minister VD Satheesan on Friday made promises aimed at attracting more private investment to Kerala. Under Land Reforms 2.0, the process of land conversion for commercial enterprises will be accelerated.

The budget also suggests diversion of large tracts of land held by government departments and public sector undertakings (PSUs) for commercial purposes. Land Pooling Framework will be introduced for large scale projects. Government agencies like Kerala Industrial Infrastructure Development Corporation (KINFRA) and Infrastructure Kerala Limited (INKEL) will be empowered to manage land acquisition processes and follow-up activities. Notably, the budget does not mention projects specific to the revitalization of public sector units in the state.

Dream projects figure high in Kerala’s revised budget; Satheesan announces Land Reforms 2.0, increase in rubber MSP

The total allocation for the industrial sector is ₹ 1,115.48 crore, while the total allocation for the industrial and mineral sector is ₹ 1,558.08 crore.

One of the main promises in the budget in the industrial sector is the establishment of a special investment zone that will guarantee investors access to world-class infrastructure, a dedicated and carefully planned economic zone, highly efficient approval procedures and a management model promising unrivaled project speed. The zone is aimed at attracting massive anchor investors in manufacturing, logistics technologies and renewable energy sources. The budget document says these zones will have a “different legislative and institutional framework” that goes beyond conventional individual industrial parks.

Kerala Budget: ‘Land Reforms 2.0’ to review land laws and amend statutes

Some of the projects, including branding Kerala (now packaged as Brand Keralam) as well as the Micro, Small and Medium Enterprises (MSME) project, are similar to existing projects launched by the previous Left Democratic Front (LDF) government. Under the Keralam brand, the homegrown products of the state will be presented to the world with superior quality standards and premium branding.

To tap into the strengths of specific industrial regions, the budget proposes a Global Furniture Hub for the 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 earmarked for this project. Steps will be taken to collaborate with leading international brands and make Kerala a part of their supply chain.

Published – 19 Jun 2026 13:35 IST