Kerala Chief Minister VD Satheesan
| Photo Credit: PTI
Promising decisive steps from the Kerala government to stimulate economic activity, Chief Minister V.D. Satheesan has told a conference of real estate developers that the government was thinking of new models beyond public-private partnerships (PPP) to make them a part of the State’s growth story.
He was speaking after inaugurating the State conference of the Confederation of Real Estate Developers’ Associations of India (CREDAI) in Thiruvananthapuram on Friday.
“We are thinking of new economic models to rejuvenate the economy. For instance, when a new investor comes up with the idea for a major project, the government, the investor and a builder can enter into a tri-party agreement for the construction of buildings for the project. This would enable builders to secure bank loans easily. The government is taking such a novel developmental approach beyond PPP,” he said.
Mr. Satheesan also reiterated that the government did not intend to increase taxes to fund developmental activity.
“We did not implement any new taxes after coming to power, despite being saddled with such a huge debt burden. There are ways to fill the treasury without increasing taxes. When the petroleum cess was imposed in Kerala, I had opposed it saying it would lead to reduction in fuel consumption and a consequent reduction in taxes. The year after the cess was implemented, the fuel consumption fell by 1.5 crore litre. The cess thus caused huge losses to Kerala. The sale of electric vehicles went up after we had reduced the tax on such vehicles in the recent (revised) Budget. The reduction in taxes will end up as a gain for the State,” he said.
The Chief Minister also promised to simplify procedures and reduce delays in decision-making, while hinting at amendments to various laws. “While holding on to the concept of sustainable development, the government will simplify procedures. The Kerala Coastal Zone Management Authority (KCZMA) has not met in the past few months or taken any decisions. It will have to be reconstituted immediately. Delays cause huge losses to the exchequer,” he said.
Mr. Satheesan said builders, traders and businesspeople are the State’s friends, not enemies. “Each activity of yours brings tax revenue to the government. Only when someone evades tax do they become the enemy of the government. The genuine taxpayers are the government’s friends. The government’s approach is to lend a hand of support to whichever industry is facing a crisis to help them bypass that situation because when a genuine taxpayer ceases activities, the State will suffer,” he said.
Published – July 03, 2026 02:43 pm IST
