Centre Sanctions Rs 360 cr to Kerala Endorsing State’s Deregulation Initiatives

THIRUVANANTHAPURAM:
Kerala has secured approval from the Union Finance Ministry for special assistance of ₹360 crore under the Compliance Reduction & Deregulation (Phase-I) component of the Special Assistance to States for Capital Investment (SASCI) scheme.

The approval reflects the Government of India’s acknowledgement of Kerala’s systematic approach towards reducing regulatory burdens and strengthening the state’s investment ecosystem through structured compliance reforms.

The amount will be released in a single instalment.

The Kerala State Industrial Development Corporation (KSIDC), being the nodal agency, had coordinated the state-level implementation of the Compliance Reduction and Deregulation Programme for the past 9 months. This marked a major reform initiative that simplified procedures and enabled enterprises, particularly MSMEs, to utilise resources such as land, labour, plant and machinery, and infrastructure without being constrained by complex regulatory processes.

The reform process in the state was steered under the leadership of the Chief Secretary, Government of Kerala, with a focus on enabling enterprise growth, enhancing regulatory efficiency, and strengthening Kerala’s overall economic competitiveness.

For the State of Kerala, Dr. Manoj Govil, (Secretary, Coordination, Cabinet Secretariat, Government of India) as the Task Force Member was responsible for advancing the Compliance Reduction and Deregulation programme. A P M Mohammed Hanish, Additional Chief Secretary (Industries and Commerce), was instrumental in implementing the reforms by way of periodic assessment and review of the progress made by various Departments in association with the Central Cabinet Secretariat.

The special assistance will support 13 capital investment projects, being implemented by key state agencies including the Kerala Road Fund Board (KRFB), Kerala Water Authority (KWA), Roads and Bridges Development Corporation of Kerala (RBDCK), and Kochi Metro Rail Limited (KMRL). These projects are expected to further strengthen the state’s infrastructure and investment readiness.

The sanction acknowledges the progress made by Kerala in undertaking regulatory reforms, including relaxations in building rules, streamlining of master plan protocols, establishment of industrial land banks, and simplified building and occupancy approval processes, which have collectively contributed to improving the state’s regulatory environment for businesses and investors.

The Compliance Reduction and Deregulation Programme focuses on five priority areas— land, labour, building & construction, utilities, and permissions. These areas are further structured into 23 sub-areas spanning 11 departments, with the objective of rationalising regulations, eliminating redundant procedures, and ensuring faster and more transparent approvals for enterprises.

The systematic simplification of regulatory frameworks helps reduce compliance costs, promotes innovation, improves operational efficiency, and creates a more enabling environment for MSMEs and emerging industries. The programme has strengthened Kerala’s attractiveness as an investment destination by providing greater regulatory clarity and predictability.

This milestone underscores Kerala’s consistent transition towards performance-linked governance, coordinated inter-departmental reforms, and investor-friendly regulatory systems, reinforcing the state’s commitment to building a competitive, transparent, and growth-oriented industrial ecosystem.