THIRUVANANTHAPURAM: While Kerala continues to lag in acquiring land for entrepreneurs, including for logistics parks, Tamil Nadu is moving swiftly to capitalise on the opportunities offered by the Vizhinjam Port.
The state has already acquired thousands of acres of land across nearby districts to set up more than a dozen industrial parks. It is also offering land to investors on a 99-year lease at a rate of Rs 30 lakh per acre, targeting those looking to invest around Vizhinjam.
Tamil Nadu has prepared logistic parts with facilities such as four-lane roads, rail connectivity, electricity and waste management systems. In contrast, entrepreneurs in Kerala are still waiting for land. More than 50 investors have approached the port company expressing interest in investing, requiring around 600 acres of land.
Major companies such as Container Corporation of India, Indian Oil Corporation and Central Warehousing Corporation need over 100 acres each, but only about 20 acres have been identified so far. Although the government has given in-principle approval to acquire 230 acres at a cost of Rs 810 crore, the process is expected to take at least six months. Even investors who made commitments during last year's Vizhinjam Conclave are yet to receive land.
Logistic facilities need to be prepared immediately
- To ensure Kerala benefits from the port and creates thousands of jobs, basic infrastructure must be developed. Logistics, container, and industrial parks need to be set up urgently.
- A minimum of five acres is required for logistics parks and warehouses, while industrial parks need between 50 and 100 acres. Currently, if entrepreneurs try to acquire land directly, prices can go up to Rs 15 lakh per cent, making it expensive.
- Industrial development could create direct employment for around 10,000 people, with indirect jobs expected to be ten times higher.
Tamil Nadu sets up industrial parks
Tamil Nadu is rapidly developing industrial parks in districts such as Kanyakumari, Tenkasi, Madurai, Tirunelveli, and Thoothukudi. Some of these parks have already started operations. At Nanguneri, located about 150 km from Vizhinjam Port, around 2,260 acres have been acquired for four industrial parks. Another 1,060 acres have been acquired at Moolakaraipatti for an industrial park, while land acquisition for an additional 2,000 acres at two other locations is in the final stages. Land acquisition is easier in Tamil Nadu due to greater availability and lower prices.
"Tamil Nadu has acquired tens of thousands of acres close to Vizhinjam. All of these lands are just 100-150 kms away from Vizhinjam. The VinFast car project, which was expected to export through Vizhinjam, shifted to Thoothukudi due to delays in land acquisition in Kerala. The Chamber of Commerce has identified 1,600 acres."
- SN Raghuchandran Nair
President, Chamber of Commerce