Thiruvananthapuram | The Keralam Legislative Assembly on Thursday passed a bill aimed at simplifying and accelerating statutory approvals for investment projects in the southern state, even as the opposition boycotted the proceedings raising concerns that the legislation will pose a threat to wetlands and paddy fields in the state.
Leader of Opposition in the state assembly Pinarayi Vijayan termed the Simplified and Accelerated Regulatory Approvals and Licensing (SARAL) Keralam Bill, 2026 as "draconian" and reminiscent of the emergency era, as it did not contain any provisions to go in appeal.
Defending the Bill, Chief Minister V D Satheesan said that it will send a message to the world that Keralam is investment-friendly.
State Industries Minister P K Kunhalikutty, who piloted the Bill, said that there was no need for any concerns and that no prevailing laws have been bypassed.
He also said that the legislation includes strict protections, District Collectors have the power to prevent illegal land reclamation, and that not a single cent of land would be wrongfully lost.
The minister also termed the boycott by the opposition as a "drama", claiming that under the Left rule, deemed approvals were given to start industries anywhere, including agricultural land.
On the other hand, Independent MLA G Sudhakaran, who had won with UDF support, too raised environmental concerns in connection with the Bill and suggested amendments to ensure the safety of agricultural lands.
Vijayan, while opposing the Bill, also claimed that it hands over extensive authority to bureaucratic committees, encroaching upon the power of local bodies and thereby posing a threat to local self-governance.
He also alleged that the Bill aims to hand over the protected wetlands and paddy fields in the state to big corporates.
Vijayan also claimed that the legislation was a "political drama" enacted by the ruling UDF to take credit for the progress made in the industrial sector of the state during the last 10 years of LDF rule.
He contended that it was during the LDF rule that Keralam went from 28 to number 1 in the ease of doing business.
He also said that under the LDF rule, approvals took a very short time, while under the Bill it will take 75 days.
Aggrieved over the ruling front not accepting the amendments suggested by the opposition to protect the wetlands and paddy fields, the opposition LDF boycotted the remaining procedures in the House and did not take part in the passing of the Bill.
The SARAL Keralam Bill -- a major industrial reform -- was passed in the House after incorporating several amendments moved by legislators.
Over 1,800 amendments were moved by legislators, but only a few of them were incorporated in the Bill.
Defending the Bill, Satheesan said that it was investment-friendly as it is based on the principle of 'One State, One Approval, One Document' and will establish a single statutory mechanism for final approval of eligible investment projects.
He said that the 75-day approval process was the maximum limit and ensures that files do not remain pending for years altogether, as was seen in the past.
The 75 days include 10 days for preliminary scrutiny, 30 days for technical scrutiny, 15 days for appraisal and consolidation, and 20 days for the final decision, with an Integrated Enterprise Clearance Certificate being issued immediately after approval, he said.
He further said that a key feature of the legislation was that it fixes clear responsibility and accountability on departmental officers involved in appraisal and approval.
At the same time, departments will retain their technical scrutiny and inspection responsibilities, he said.
The CM further said that the Bill will not dilute safeguards relating to safety, environmental protection, employee welfare or public health.
"No development work that harms the environment or the life and livelihood of people will be permitted," he asserted.
Satheesan also said that there will be no deemed approval, as was there under the LDF rule.
He also said that the UDF administration did not want to take credit for what the LDF did in the industrial sector in the last 10 years, as many public sector enterprises became defunct or were shut down in the state.
