Image Credits - Foyr
In a significant move to boost industrial investment, Kerala’s Minister for Industries, P. Rajeev, announced new relaxations on lease agreements for industrial areas. Speaking at a press conference, Rajeev outlined the revised policies aimed at making the state a more attractive destination for large-scale investments.
Under the new guidelines, the Kerala Industrial Infrastructure Development Corporation (KINFRA) and the Kerala State Industrial Development Corporation (KSIDC) will offer extended lease terms based on the scale of investment. Specifically, for investments exceeding ₹100 crore, the lease will be granted for up to 90 years. Conversely, for investments below ₹100 crore, the lease term will be up to 60 years.
Rajeev highlighted a key feature of the revised policy for leases associated with investments above ₹100 crore, investors will be required to pay only 10% of the lease amount in the first year. This move is designed to ease the initial financial burden on investors and encourage larger investments in the state.
The new lease policy is part of Kerala’s broader strategy to enhance its industrial infrastructure and attract substantial investments. By offering long-term leases and favourable payment terms, the state aims to position itself as a competitive player in the industrial sector, fostering economic growth and job creation.
The policy change is expected to be welcomed by prospective investors and industrialists who have previously faced challenges with high initial costs and shorter lease periods. Kerala’s government remains committed to creating a conducive environment for business growth and industrial development.