Amendments to Kerala Industrial Land Allotment Regulations

KINFRA Integrated Industrial Park at Ottappalam, Palakkad.

The Industries Department has approved amendments to the Uniform Industrial Lands/Buildings (Allotment and Disposal) Regulations for KINFRA & KSIDC, 2024, which allow for optimum utilization of industrial land, flexibility in permitted industrial activities, facilitation of sub-leasing and creation of common infrastructure facilities in industrial parks and industrial estates.

Consolidated Regulations were made in 2024 to regulate the allotment and disposal of land or buildings owned by the land allotment agencies Kerala Industrial Infrastructure Development Corporation (KINFRA) and Kerala State Industrial Development Corporation Limited (KSIDC).

A high-level committee chaired by the Union Cabinet Secretary reviewed the land allocation policies of various states and recommended that the states devise measures to optimize land use in existing and upcoming industrial clusters. Changes to the regulations were made based on these recommendations.

Although the current land allocation policy allows subletting of built-up premises in specified cases, such as warehouse facilities in logistics and warehousing activities, there is no general provision for subletting beyond such specified cases. In order to facilitate the optimum use of industrial property while protecting the industrial purpose for which the land is allocated and to prevent industrial land or buildings from being primarily used as real estate or rental property, subletting will now be permitted under certain conditions. The maximum period of any sublease will be 10 years. Renewal of the sublease will require new prior written approval from the allocation agency.

Conditions

In the case of subletting of land or buildings, the original assignee should have continuously carried on an approved industrial activity for a minimum of three years before becoming eligible to apply for a subletting permit. The original allottee who owns a minimum of two acres of allotment land shall be permitted to lease a portion of allotment land where the principal industrial unit continues its approved activity and the proposed sublease is intended to accommodate component manufacturers, ancillary units, vendors or other units forming part of an integrated manufacturing cluster.

A sublease should not be used as a means of ending the main business only for the purpose of obtaining rental income or converting the allocated premises into commercial real estate or rental property, but to ensure the optimal use of the industrial land and encourage further investment.

The land allocation agency will adopt public-private partnership (PPP) models for the design, financing, construction, operation and maintenance of common infrastructure facilities in the industrial park, including sewage treatment plants, fire hydrants and fire protection systems, internal roads, water supply, street lighting and worker welfare facilities.

Published – 18 Sep 2026 19:25 IST