The Keralam Cabinet has approved ‘SARAL Keralam – Simplified and Accelerated Regulatory Approvals and Licenses’, a new mechanism aimed at simplifying and accelerating statutory approvals for investment projects in the State.
The initiative is based on the principle of ‘One State, One Approval, One Document’ and will create a single statutory mechanism for final approval of eligible investment projects.
Two-tier approval mechanism
The mechanism will cover investments above ₹25 crore. Projects between ₹25 crore and ₹50 crore will be considered at the district level, while investments above ₹50 crore will come under a State-level body.
The State-level Approval Committee will be chaired by the Chief Secretary, while the District-level Committee will be headed by the District Collector. The Kerala State Industrial Development Corporation (KSIDC) will coordinate the mechanism.
75-day timeline proposed
A maximum processing period of 75 days will be prescribed from submission of a complete application to final approval. The process will include preliminary scrutiny, technical scrutiny, appraisal and consolidation, followed by the final decision.
An Integrated Enterprise Clearance Certificate will be issued after approval. The proposed framework is intended to provide a statutory one-stop mechanism rather than merely serving as a recommendation or facilitation system.
Departments retain technical powers
The implementation will require amendments to 19 existing laws. The proposed changes will transfer final approval authority to the State- and District-level committees while retaining the technical scrutiny and inspection responsibilities of individual departments.
The framework will retain safeguards relating to safety, environmental protection, employee welfare and public health. There will also be an appeal mechanism against rejection decisions, while investments outside the specified categories will continue under existing departmental procedures.
Accountability for delays
The proposed framework also provides for greater accountability among departmental officers involved in appraisal and approval.
The State has proposed amendments to the Kerala State Service Rules to enable disciplinary action in cases involving delays, inaction or failure to discharge prescribed duties.
₹25,700 crore projects face delays
The reform seeks to address delays affecting major investment projects. According to the State, KSIDC is monitoring 73 major projects, of which 47 remain stalled because of statutory approval and clearance delays.
These projects represent investments of more than ₹25,700 crore and have the potential to generate approximately 88,000 employment opportunities. Some proposals have remained pending for five to seven years.
Focus on faster investment clearances
Chief Minister V.D. Satheesan said SARAL Keralam is intended to make investment approval procedures faster and simpler and improve predictability for businesses.
The Cabinet approved the framework after consultations with departments and agencies, with amendments to 19 existing laws planned to facilitate implementation.