Kerala woos global investors to set up shop in eco-sensitive areas

It's an invitation to grab land, allege activists and opposition members

Published on:

11 Sep 2012, 8:44 am

A global investors meet in Kochi this week has kicked up raging controversy. 'Emerging Kerala 2012' invites potential investors to explore business opportunities in the state and will showcase 232 projects in 26 sectors. Representatives from 52 countries are expected to attend the meet, scheduled between September 12 and 14. Political leaders, civil society groups and activists are irked because many of these projects, details of which are available on the 'Emerging Kerala' website, will adversely impact the environment.

It is the tourism projects which have provoked the maximum ire. Most of them are in eco-sensitive forest areas or on their fringes (see box). The leader of opposition in the state Assembly, V S Achuthanandan, even called for the cancellation of the meet.

“Most of the participants of 'Emerging Kerala' will be those who have the sole interest of getting quick returns on their investments,” says R V G Menon, environmental activist. “In the present scenario, real estate business is the money spinner and all these tourism projects are disguised real estate deals.” When his attention is drawn to the statement by Chief Minister Oommen Chandy that land would be given to investors only on lease and that ownership will remain with the state, Menon’s response is: “it is technically correct, the government is not selling the land. But giving land for 99 years lease is as good as selling it. Perhaps it is a win-win situation for the beneficiaries as they don’t have to shell out huge amounts for the land, but at the same time enjoy all the advantages of owned land.”

Leaseholder or land owner?

There have been several instances in Kerala when leased forestland has not been surrendered to the state on expiry of the lease and parts of the leased land has been sold off and mortgaged, with the leaseholder virtually exercising all powers of a full-fledged land owner. What's more, the restraints on leases totally vanish if if the leased land is revenue land.

What complicates the issue further is the running feud between the forest, revenue and tourism departments over various tracts of land which are offered for the projects. The 25 acre (10.12 hectare) land in Nelliampathy on which a health resort is envisaged, is claimed by the tourism department to be its own, whereas the forest department claims to have documents which proves it to be forestland. Environmental activist Harish Vasudevan points out another facility for the future investor which borders on fraud. The land at Nelliampathy has a minimum market value of Rs 100 crore. The investment on the project is only Rs 25 crore. The investor can procure at least double the amount by mortgaging the land.

Controversy dogs projects

The projects to be showcased at the investors' meet includes an eco-resort at Ilaveezhapoonchira, a rare valley of meadows and green pastures in Kottayam district with very few trees in it. The name, Ilaveezhapoonchira, means a place where leaves do not fall. The proposal is to convert this virgin valley into an eco-resort with 40 rooms. There will also be camping facilities and cable cars. It is a Rs 100 crore project.

Another tourism project is proposed in the Vagamon hill station in Idukki district. “Vagamon hill station is comprised of a beautiful series of hillocks, valleys and cascading waterfalls that make it the ideal getaway for tourists,” says the emerging Kerala website. It will have cottages (numbering 40), golf course, caravan camping, gliding, hot air balloons and other attractions; again a Rs 100-crore project.

Then there is a small island in Dharmadom in Kannur district, “with its coconut palms, green bushes and migratory birds”, where people can stay in cottages and yachts—another Rs 100-crore project. Karapuzha dam in Wayanad district is an irrigation project and its picturesque surroundings is seen as ideal for three star resort with 100 to 150 rooms, convention centre for 500 persons, auditorium/theatre/banquet hall, business centre, parking and helipad. Estimated cost of project: Rs 150 crore.

The “cloud caressed Nelliampathy hill ranges” will have a health resort and spa, forest lodge and hot air balloons.

Some infrastructure proposals to be showcased include the Thiruvananthapuram-Mangalore High Speed Rail Corridor and the Thiruvananthapuram monorail project. The rail corridor was opposed by the public and even the feasibility study for it has not been done. Another controversial project proposes to convert the Chandrasekharan Nair stadium at Thiruvananthapuram, the hub of sporting activity in the state capital, into an exhibition centre.

INKEL hand

Skewed priority

Kochi