Kerala Budget 2026: 'Land Reforms 2.0' Aims to Unlock Land for Industrial Projects
The Kerala government, led by the United Democratic Front (UDF), has announced 'Land Reforms 2.0' as part of its revised Budget for 2026-27. Chief Minister V.D. Satheesan presented the Budget in the Assembly on Friday, outlining a comprehensive land management policy to address structural challenges in freeing up land for industrial projects.
The Chief Minister noted that acute land scarcity, limitations in mobilising land, and lack of legal clarity have been major barriers to the state's industrial infrastructure goals. Despite investor interest, vast tracts of land held by government departments and public sector undertakings remain unutilised or entangled in bureaucratic processes.
To tackle this, the government will establish a land management framework supported by legislation. This framework will create a land bank utilising surplus and unused land parcels. Procedures for converting land for commercial enterprises will be expedited.
For large-scale projects, a land pooling framework will be introduced. Agencies such as KINFRA and INKEL will be empowered to handle land acquisition and subsequent activities transparently and professionally.
The Budget also allocates ₹76.7 crore for the Revenue Department. A commission will be formed to study the need for creating new districts and taluks. The Kerala State Remote Sensing and Environment Centre (KSREC) will develop a 'Kerala Geo-Spatial Governance Platform' (K-GIS) aligned with international standards to support regional spatial governance. A 'drone lab centre' will collect high-resolution data and digital elevation model (DEM) data for disaster management.
Land titles (pattayam) will be provided to all coastal residents who lack title deeds. Issues hindering title distribution in hilly regions will be resolved within a fixed timeframe. Steps will be taken to expedite the Supreme Court case on the Cardamom Hill Reserve (Idukki district), matters related to the 1964 Rules, and High Court cases on land title distribution to protect farmers' interests.
A Government Order prohibiting construction on cardamom patta land will be legally reviewed, and existing constructions on such land will be regularised unconditionally. The Budget allocates ₹17.5 crore for the Survey Department.
