Tamil Nadu is rapidly advancing with its industrial developments near the Vizhinjam International Seaport, while Kerala continues to face delays in land acquisition for the same purpose.
According to a TOI report, the Tamil Nadu government has approved the establishment of four new SIPCOT industrial parks in Tirunelveli district, which is just across the border and strategically close to the Vizhinjam Port.
The Tamil Nadu government has already issued an order to acquire over 2,260 acres of land for two parks in Nanguneri. A third park is planned for Moolakaraipatti, and phase 2 of the existing SIPCOT park in Gangaikondan is set to launch soon. These parks are being developed to take full advantage of Vizhinjam port’s potential.
Social media platforms in Tamil Nadu have been abuzz with posts celebrating these developments. Locals are promoting the region as the prime beneficiary of Vizhinjam's transhipment traffic, especially since Tamil Nadu missed the chance to develop its own port at Enayam or Colachel. The close proximity of these parks to the port is being touted as a significant advantage for attracting investments.
In stark contrast, Kerala has been slow to acquire land for industrial projects near Vizhinjam. The state has only identified around 100 acres through Kinfra, and land negotiations in other areas of Thiruvananthapuram are still underway. Despite expressions of interest from several investors, including Dubai-based Sharaf Group, which proposed an investment of ₹5,000 crore for an inland container terminal, Kerala has struggled to provide clear land options.
A senior Kerala government official, reportedly speaking on condition of anonymity, acknowledged that Tamil Nadu's availability of large land parcels and competitive lease rates—ranging from ₹70 lakh to ₹1 crore for 99 years—are drawing investors away. The official warned that if Kerala does not accelerate its land acquisition process, investments could shift to Tamil Nadu, undermining Thiruvananthapuram’s industrial prospects.
APM Mohammed Hanish, principal secretary of the industries department, shared Kerala’s vision of a port-based development corridor stretching from Palakkad to Vizhinjam. However, the official also admitted that land acquisition in Thiruvananthapuram is a significant bottleneck. Kinfra is actively looking for more land, but it remains uncertain whether the state can secure land fast enough to compete with Tamil Nadu’s rapid progress.
At the recent Invest Kerala summit, multiple investors expressed interest in setting up near Vizhinjam, but the lack of clear, available land has led to hesitation. As the competition heats up, Kerala faces the risk of losing out on a significant opportunity for industrial growth if it cannot address its land acquisition challenges soon.
