After inauguration of Vizhinjam port, Kerala govt now seeks to speed up industrialisation

By Admin

03 May, 2025

With the long-anticipated commissioning of the Vizhinjam International Seaport, Kerala has taken a bold step toward transforming its economic landscape. The state government, through its industries department, is now accelerating port-led industrialisation as part of its ambitious Outer Area Growth Corridor (OAGC) initiative in Thiruvananthapuram.

Special Investment Region Bill to Reshape Land Policy

Central to this transformative agenda is the introduction of the Special Investment Region (SIR) Bill, a legislative proposal designed to overhaul traditional land acquisition methods. Instead of the often-contentious acquisition process, the bill proposes a land pooling mechanism that’s more aligned with investor expectations. This shift is aimed at creating an investor-friendly environment while ensuring equitable land development.

Currently, the bill is being reviewed by the local self-government (LSG) and revenue departments. Their recommendations will be incorporated into the final draft, which is expected to be tabled in the upcoming legislative assembly session. “The state govt is very serious about port-led industrialisation, which is why the process is moving quickly,” noted APM Mohammed Hanish, Principal Secretary of the Industries Department.

A Wave of Investments Near Vizhinjam

The Vizhinjam port is already generating significant investor interest. The Dubai-based Sharaf Group has shown a keen interest in establishing an inland container terminal near the port. Logistics companies are also actively exploring opportunities to set up container freight stations, logistics parks, and warehouses.

To support this growing interest, the Kerala Industrial Infrastructure Development Corporation (Kinfra) is identifying and acquiring land in the area. It is currently facilitating around 100 acres for the Sharaf Group’s proposed terminal and scouting over 250 acres for an expansive industrial park nearby.

OAGC and the Outer Ring Road: A Vision for Regional Growth

To ensure holistic development, the Capital Region Development Programme-II (CRDP) is collaborating with the industries department to implement the OAGC. The corridor aligns with the proposed 78-kilometre Outer Ring Road (ORR) stretching from Vizhinjam to Navaikulam. This strategic corridor will pass through eight proposed economic clusters — Vizhinjam, Kovalam, Kattakada, Nedumangad, Vembayam, Mangalapuram, Kilimanoor, and Kallambalam.

Each of these clusters will initially be managed by a Special Purpose Vehicle (SPV) formed by the government. These SPVs will eventually engage with private co-developers to bring large-scale projects to life, marking a strong public-private partnership model.

A New Era of Industrial Growth in Kerala

The commissioning of Vizhinjam port marks not just the beginning of a major maritime hub, but the dawn of a new economic chapter for Kerala. With forward-thinking policies like the SIR Bill and strategic infrastructure initiatives such as the OAGC and ORR, the state is poised to become a major destination for industrial investment in South India.