The Union Finance Ministry has given the green light for a special assistance package of Rs 360 crore to Kerala under the Compliance Reduction & Deregulation (Phase-I) of the Special Assistance to States for Capital Investment (SASCI) scheme. This move endorses Kerala’s strategic efforts to reduce regulatory burdens and enhance its investment environment. The allocated amount will be disbursed in a single installment, recognizing Kerala’s governance model focused on facilitating business operations and boosting capital formation.
The Kerala State Industrial Development Corporation (KSIDC) spearheaded the program at the state level, acting as the central agency for the nine-month Compliance Reduction and Deregulation initiative. The initiative concentrated on simplifying processes to enable businesses, especially MSMEs, to efficiently utilize resources like land, labor, and infrastructure without being hindered by complex compliance rules.
Under the leadership of the state Chief Secretary, the reform drive emphasized business growth, regulatory efficiency, and enhancing Kerala’s competitiveness. Nationally, Dr. Manoj Govil, Secretary of Coordination in the Cabinet Secretariat, oversaw the program’s progress for Kerala as a Task Force Member. A.P.M. Mohammed Hanish, the state’s Additional Chief Secretary for Industries and Commerce, played a pivotal role in monitoring the program’s advancements and ensuring inter-departmental cooperation in line with the Cabinet Secretariat’s directives.
The sanctioned financial aid will bolster 13 capital investment projects managed by key state entities such as the Kerala Road Fund Board, Kerala Water Authority, Roads and Bridges Development Corporation of Kerala, and Kochi Metro Rail Limited. These projects are anticipated to enhance infrastructure readiness and attractiveness for investments in the state.
Kerala’s reform initiatives encompassed easing building regulations, streamlining master plan procedures, establishing industrial land reserves, and simplifying building and occupancy permits. The Compliance Reduction and Deregulation Program targeted five key areas: land, labor, construction, utilities, and permissions, divided into 23 sub-areas across 11 departments. Officials highlighted that the methodical rationalization of regulations has minimized compliance expenses, accelerated approval processes, and increased transparency, signaling Kerala’s shift towards performance-based governance and a more investor-friendly industrial landscape.
