Eucalyptus plantation in Munnar owned by KFDC. | Photo credit: Special arrangement
The state cabinet has approved the renewal of land lease for the Kerala Forest Development Corporation (KFDC) for another 25 years. The contract maintains the same terms as the previous contract for the 7,748,441 hectare timber plantations.
The renewal, according to officials, is based on the opinion of the attorney general that cultivation operations do not fall under the scope of Section 2 of the Forest Protection Act; therefore, no prior approval of the Union Government is required for such activities.
“The trees that will be felled and removed are Eucalyptus and Acacia, which will be gradually replanted with native species. By renewing the lease, KFDC will be able to manage its plantations in accordance with the state’s ecological restoration policy. KFDC also has an approved management plan from the MEF, which legally allows it to carry out felling until 2030 is approved.
An order issued by Additional Chief Secretary Minhaj Alam — a copy of which was accessed by The Hindu — said that KFDC’s previous lease for the cultivation operation area had expired on December 31, 2025. After that, the KFDC managing director sought renewal of the license to ensure smooth functioning of the corporation.
The order said: “The State Government has examined the matter in detail. The Advocate General has submitted a legal opinion in which he has submitted that since KFDC’s tenant plantations follow cultivation methods, prior approval of the Central Government is not required for restoration. Forest conservation activities have been excluded from the definition of ‘non-forest purposes’.” As a result, the state government approved the lease renewal of 7,748.441 hectares to KFDC.
Role of KFDC
KFDC is a state-owned company established in 1976. According to officials, initially 10,618,897 hectares of land from various forest divisions were given to the company for cultivation of forest crops. While 7,748,441 hectares have been restored for the next 25 years, another 2,968 hectares of cash crops are being managed by KFDC through leasing amount payments on an O&M basis.
Officials noted that after the expiry of the previous agreement, the KFDC had temporarily stopped the felling of trees on around 95 hectares of land. The government’s decision to renew the license provides significant relief and allows the company to continue its plantation activities for another quarter of a century.
KFDC is a major tourism and plantation player in Kerala. It manages major tourism projects in Gavi, Suryanelli (Munnar) and Nelliyampathi, besides growing cash crops like tea, coffee and cardamom and forest plantations across the state.
Published – 14 March 2026 21:11 IST
