The Kerala Assembly passed the SARAL Keralam Bill, 2026, on Thursday to speed up industrial licences. The Opposition LDF boycotted the session, fearing environmental damage. Independent MLA G. Sudhakaran warned, "The dangerous after-effects of this Bill will be visible during this government's tenure itself." The government said it helps businesses.

The Bill has the stated aim of ensuring timely issuance of licences and permits for industrial ventures. Independent MLA Sudhakaran, backed by the UDF, says Bill could lead to large-scale destruction of paddy fields, wetlands and forestland. Pinarayi says Bill is trying to create a parallel system to the existing single window system. Industries Minister says it is only meant to speed up the process to give clearances

The Kerala Assembly on Thursday passed the SARAL (Simplified & Accelerated Regulatory Approvals and Licensing) Keralam Bill, 2026, with a stated aim of ensuring timely issuance of necessary licences and permits for industrial ventures. The Opposition Left Democratic Front boycotted the passing of the Bill, citing the possibility of overriding existing laws to protect the environment, the snatching of licensing and permit powers of local bodies, and the possible creation of a parallel system to the existing single window mechanism as per the Kerala Industrial Single Window Clearance Boards and Industrial Township Area Development (Amendment) Bill that was passed in the Assembly in 2025.

During the four-hour-long discussion, opposition to the Bill came from unexpected quarters. CPI(M) dissident-turned-Independent MLA G. Sudhakaran who is backed by the ruling United Democratic Front (UDF), repeatedly raised objections to the Bill, saying that it could lead to large-scale destruction of paddy fields, wetlands and forestland.

'Dangerous impact'

"The Bill does not have any precautionary measures to protect paddy fields or wetlands. The State's paddy field spread has reduced from 24 lakh acres a few years ago to 5 lakh acres now. This will further drop if the Bill is passed. The precautions have to be spelt out in the Bill. It is not enough that the Industries Minister orally mentions that these will be protected. I don't think the Cabinet, including Chief Minister V.D. Satheesan, have applied their mind to study this Bill. The dangerous after-effects of this Bill will be visible during this government's tenure itself. Although the Bill is named 'Saral', it is a 'Karaalam' (deadly) Bill," said Mr. Sudhakaran.

Industries Minister P.K. Kunhalikutty said that none of the existing laws to protect the environment will be bypassed through the Bill. "All precautions are part of the Bill. It is only meant to speed up the process to give clearances. When someone like Mr. Sudhakaran says such things, it will only aid in the building of a narrative. There is no need to make such statements when something good is happening for the State," said Mr. Kunhalikutty.

Although Mr. Sudhakaran said that he was not insisting on putting his amendments to vote, CPI MLA K. Rajan demanded one, after which the amendments were rejected. Supporting Mr. Sudhakaran's stand, Leader of the Opposition Pinarayi Vijayan said that serious concerns against the Bill have been raised from the ruling front itself.

'A political drama'

"The UDF government is indulging in a political drama to lay claim to the achievements of the LDF government in attracting investments in the past ten years. Keralam improved its position in the Union Commerce Ministry's ease of doing business rankings from 28 to 1 in 2024. It is trying to create a parallel system to the existing single window system without repealing the existing Acts. The Bill rests all authority on committees led by officials, making local bodies and local-level committees, which ensure protection of paddy and wetland, meaningless," said Mr.Vijayan.

Mr. Satheesan said that it is a revolutionary Bill that would send a message to the world that Keralam has a favourable climate for investment. Directing a jab at Mr. Sudhakaran, he said that the same person had earlier in the day moved a calling attention motion on the possibility of setting up AIIMS at a paddy field in Alappuzha district. "Currently, an investment of over ₹1,000 crore can be held up if an official at a panchayat wants to. We have witnessed suicides of investors. When we were in the Opposition, we ensured that the State's investment climate would not be affected by not organising a bandh or harthal. This Bill will ensure timely clearances while ensuring all the existing laws are followed," he said.