Thiruvananthapuram: The Union Finance Ministry has approved special assistance of Rs 360 crore to Kerala under the Compliance Reduction & Deregulation (Phase-I) component of the Special Assistance to States for Capital Investment (SASCI) scheme, endorsing the state’s structured push to ease regulatory burdens and improve its investment climate.
The amount will be released in a single instalment, marking a significant recognition of Kerala’s reform-led governance model aimed at enhancing ease of doing business and accelerating capital formation.
The programme was coordinated at the state level by the Kerala State Industrial Development Corporation (KSIDC), which served as the nodal agency for the nine-month Compliance Reduction and Deregulation initiative.
The reform exercise focused on simplifying procedures and enabling enterprises, particularly MSMEs, to more efficiently deploy land, labour, plant and machinery, and infrastructure without being encumbered by complex compliance requirements.
The reform process was steered under the leadership of the state Chief Secretary with an emphasis on enterprise growth, regulatory efficiency, and improving the state’s competitiveness.
At the national level, Secretary, Coordination, in the Cabinet Secretariat, Dr Manoj Govil, functioned as Task Force Member overseeing the programme’s progress for Kerala, while the state’s Additional Chief Secretary, Industries and Commerce, A.P.M. Mohammed Hanish, played a key role in periodic assessments and inter-departmental coordination aligned with the Cabinet Secretariat.
The sanctioned assistance will support 13 capital investment projects implemented by major state agencies, including the Kerala Road Fund Board, Kerala Water Authority, Roads and Bridges Development Corporation of Kerala, and Kochi Metro Rail Limited.
These projects are expected to strengthen infrastructure readiness and enhance the state’s investment appeal.
Kerala’s reform measures included relaxations in building rules, streamlined master plan protocols, creation of industrial land banks, and simplified building and occupancy approvals.
The Compliance Reduction and Deregulation Programme spans five priority areas: land, labour, building and construction, utilities, and permissions, structured into 23 sub-areas across 11 departments.
Officials said the systematic rationalisation of regulations has reduced compliance costs, improved approval timelines, and enhanced transparency, reinforcing Kerala’s transition towards performance-linked governance and a more investor-friendly industrial ecosystem.
(IANS)
