States » SouthPosted at: Sep 16 2026 8:51PM


Kerala Cabinet approves ‘SARAL Kerala’ to speed up investment approvals

Thiruvananthapuram, Sep 16 (UNI) The Kerala Cabinet on Wednesday approved the ‘SARAL Kerala’ (Simplified and Accelerated Regulatory Approvals and Licenses) scheme aimed at attracting new investments and businesses to the State by making the process of obtaining various licences and approvals faster and simpler, Chief Minister V D Satheesan said.
The scheme will be based on the “One-State-One-Approval-One-Document” (OSAD) concept, under which a Single Statutory Authority will be constituted to provide various approvals through a single mechanism. The Cabinet has also decided to make substantial amendments to 19 existing laws for implementing the scheme.
Under the new system, a district-level body will deal with investments between Rs 25 crore and Rs 50 crore, while investments above Rs 50 crore will be considered by a State-level body. The Kerala State Industrial Development Corporation (KSIDC) will coordinate the mechanism.
The scheme will not take away the powers of individual departments, but will make it mandatory for them to scrutinise proposals and submit their response within a specified period. After departmental scrutiny, an appraisal body will evaluate the proposal and place it before the committee concerned for speedy final approval. An appeal mechanism will also be available to resolve differences or objections raised by departments.
The Chief Minister said the scheme would provide relief to investment proposals that had remained pending for five to seven years. The draft approved by the Cabinet was prepared after detailed consultations with various departments and incorporating their suggestions.
The Cabinet also decided to establish two exclusive National Investigation Agency (NIA) courts in Ernakulam. The State Government had completed the necessary procedures and the decision was taken after considering interventions by the court in the long-pending matter. The entire expenditure for the courts will be borne by the Central Government.
The Cabinet approved creation of 18 posts of Radiographer Grade-II under the Health Department to address the shortage of radiographers in government hospitals and difficulties faced by patients.
On the power crisis, Satheesan said the government was procuring electricity from all available sources and coordinating efforts to increase supply.
Kerala had recently purchased 150 MW from Odisha and another 150 MW from the Nuclear Power Corporation, he said, adding that the State had contacted eight States for additional power.
The government was preparing both short-term and long-term plans to tackle the crisis, which was caused not only by deficient rainfall but also by increased consumption, limitations in domestic generation and high night-time demand.
Kerala is currently producing around 2,500 MW of renewable and solar power, but the absence of adequate storage facilities prevents the power from being used during peak hours. The power is supplied to the Electricity Board during the day, while the Board provides alternative power to consumers during peak hours, he said.
Electricity consumption in September had increased by 925 MW compared with September last year due to several factors. The State had not undertaken adequate planning in anticipation of the increased demand, including long-term power purchases, he said.
Satheesan said a 25-year power purchase agreement under which electricity was available at Rs 4.29 per unit had been cancelled by the previous government without entering into an alternative agreement.
The present government was seriously considering long-term power purchase agreements and was holding negotiations with various agencies, including the Nuclear Power Corporation and NTPC.
A team from Kerala would reach Mumbai to hold discussions with the Nuclear Power Corporation for procuring additional power. The Corporation has 280 MW available, of which 85 per cent is supplied to States and 15 per cent retained for its own use. Kerala had earlier purchased 150 MW at Rs 4.65 per unit, he said.
The Chief Minister rejected reports that the government was purchasing electricity at Rs 30 per unit. He said Kerala had held discussions with Himachal Pradesh for 130 MW during the day and 80 MW at night, but purchasing both would effectively push up the cost to nearly Rs 30 per unit.
Talks had also been held with NTPC, Rajasthan, Karnataka and other States. Tamil Nadu had entered into an agreement to purchase power at Rs 38 per unit, but Kerala had a regulatory ceiling of below Rs 10 per unit and efforts were being made to procure electricity within that limit, he said.
The present power crisis was a short-term issue, but could turn into a long-term crisis if not handled carefully, Satheesan said. Kerala's present requirement of around 5,000 MW could rise to 10,000 MW by 2030, particularly with the arrival of semiconductor and AI-based industries.
The government would announce a new power policy taking future demand projections into account. Renewable power generation could be increased substantially with storage facilities, enabling electricity generated during the day to be stored and used during peak hours.
There was limited scope for further hydel projects and the government would seriously examine pumped-storage projects, which, he said, would not cause major environmental problems.
The government had already received several proposals for investment in renewable energy and was examining them. Private investors would be welcomed in the renewable energy sector, he said.
Satheesan also rejected reports of plans to privatise the Kerala State Electricity Board. The government was instead taking steps to make the Board self-sufficient, he said.
On the police raid at a television channel, Satheesan said he was not aware that the channel's news broadcasting had been disrupted. He said he had learnt about the raid in the morning from the channel itself.
The raid was conducted as part of an SIT investigation and was not part of government policy, he said.
The controversy arose from claims regarding bringing football star Lionel Messi and the Argentina team to Kerala. The Sports Department had submitted a complaint to the government, while the GST Department had conducted an SIT probe and prima facie found tax evasion. The Sports Department's report also contained serious allegations.
An SIT headed by the Additional Director General of Police (Law and Order) and comprising senior police officers was subsequently formed. The SIT registered an FIR and conducted the raid with a warrant, making it a lawful raid, according to the information available to the government, he said.
Responding to Opposition Leader's criticism of the raid, Satheesan referred to police action against media organisations and journalists during the previous government, including raids on Mangalam TV in 2017 and Asianet News in 2023, a police search at the office of online media outlet Marunnadan Malayali, and cases involving journalists of 24 News and Asianet.
On the Enforcement Directorate investigation, Satheesan said the government was examining the matter from a legal perspective and not a political one.
The offences mentioned in the letter sent by the ED to the government were serious and the government would examine them carefully and take a decision at the earliest, he said.
Issues relating to the withdrawal of statements allegedly given by CMRL were matters for the court to examine. The decision on registering a case in the CMRL-Exalogic matter did not rest with the CPI(M) Politburo, he said.
On the Ecologically Sensitive Area (ESA) issue, Satheesan said he had held discussions with the Central expert team and conveyed the State's position.
The Central draft had been prepared covering 131 villages, as proposed by the Oommen V Oommen committee. The previous government had reduced the area to 98 villages covering 8,590 sq km, and Kerala wanted the proposal to be brought back to that level, he said.
The entire Cardamom Hill Reserve (CHR) area should be excluded from ESA classification as it had been included as forest land, while no inhabited area should be included, he said.
The State had also sought relaxation of certain restrictions proposed for industries and other activities. After submitting its suggestions, a State team comprising the Chief Minister, the Environment Minister and others would meet the Central Government and concerned authorities to press for Kerala's demands, he said.
Kerala has more than 29 per cent forest cover, compared with the national average of around 21-22 per cent, and is a green State, Satheesan said, adding that people need not be anxious as the government had conducted a detailed study.
On the issue of extension of PSC rank lists, Satheesan said the government had recommended their extension to the Kerala Public Service Commission, but the PSC had returned the recommendation. The government was examining the matter.
Regarding the police probe into alleged irregularities in a PSC examination, he said nobody had any special privilege to refuse to appear for questioning.
The investigation was being conducted following serious allegations of examination fraud and cheating of candidates. Those summoned for questioning should cooperate with the investigation and provide the required documents, he said.
If anyone refused to cooperate, the police would adopt legal measures, he added.
Responding to a recent controversial
AI-generated video, Satheesan said neither he nor his office had sought removal of the AI-generated video circulating on social media that depicted him dancing.
He said he had publicly stated that he enjoyed the video and had even remarked that he did not know he could dance so well.
Speaking at a law college graduation ceremony, he had referred to possible legal issues arising from emerging technologies such as AI, including possible violations of copyright and intellectual property rights.
The police had informed him that such AI-generated videos could involve legal issues under the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules. A complaint alleging a legal violation had been received by the police, but he had not filed the complaint, the Chief Minister said.
On the transfer of the Director of General Education, Satheesan said Education Minister N Shamsudheen had only pointed out the difficulties caused by frequent transfers of officers.
The State was facing a shortage of IAS officers, with several officers handling more than one department. Officers were also being deputed to Delhi for compulsory training connected with promotions, necessitating administrative rearrangements, he said.
The government wanted officers to get a fixed period to work in their assignments and was therefore avoiding major transfers at the level of secretaries for the time being, as some officers were expected to return after completing training.
At least two years of stability in assignments was desirable and the government was taking steps accordingly, Satheesan said.
UNI DS
Tags: #Kerala Cabinet approves ‘SARAL Kerala’ to speed up investment approvals
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