The Kerala government is currently undecided on whether to take back 61 acres of idle land in Technopark Phase-III, which was originally allocated to various IT companies. Despite the land being unused for years, none of the companies have commenced operations on these plots, raising concerns about the underutilization of prime real estate in one of Kerala’s key IT hubs.
APM Mohammed Hanish, Principal Secretary for Industries, told TOI that the Industries Department plans to hold a detailed consultation with the IT Department soon to determine how best to utilize this land. “We will discuss with the IT department to ensure that all vacant lands are utilized properly,” Hanish stated, adding that the IT department would make the final decision. The Industries Department, however, plans to intervene to ensure better utilization.
The land was initially allotted to various IT companies under a lease agreement 12 years ago, with the understanding that the companies would build their campuses and start operations. However, due to delays in construction, the plots remain vacant, despite the growing demand for IT space, especially in Technopark Phase-III, which continues to see interest from companies waiting for space. KC Chandrasekharan Nair, co-founder and former CFO of Technopark, emphasized the need for action. He noted that Technopark Phase-I is facing high demand, with many companies waiting for space. “We can’t let this land lie idle for long. Either the companies should begin construction, or Technopark should take back the land and allocate it to others,” he said. Nair highlighted that there is a clause in the land agreement that allows Technopark to reclaim the land if the companies are not progressing with construction. Notably, two companies have already surrendered their land to Technopark due to lack of progress.
The issue stems from changes in policy and delays in permissions. In the past, there was a stipulation that if companies did not begin construction within three years, the land would be reclaimed. However, this policy has not been enforced in recent years, leading to the current situation of unused land. Some companies attributed their inability to start construction to delays in obtaining permits, as the land parcels were classified as wetland or unconverted paddy fields. Government records show that the entire area within Technopark Phase-III is designated as paddy land, which can only be converted with specific permissions and conditions. Technopark’s website indicates that 153 companies are seeking space in Phase-III alone, with some applicants having been waiting since 2016. Despite the high demand for IT space, the ongoing delays in utilizing the idle land continue to hinder growth opportunities for the region’s IT sector. Technopark authorities declined to comment on the matter when contacted. As the state government focuses on the development of Technopark Phase-IV, the future of the unused land in Phase-III remains uncertain.
