The Land Reforms 2.0 announcement in the Kerala Budget for 2026-27 presented by Chief Minister V.D. Satheesan has opened new political battle lines between the ruling United Democratic Front (UDF) and the Opposition Left Democratic Front (LDF).

Leader of the Opposition Pinarayi Vijayan cast it as an attempt to subvert the historic land reforms initiated by the first Kerala government, which is the cornerstone of the State’s developmental model over the past many decades. “The politics behind the dismantling of land reforms that create obstacles for the land mafia is clear. Land management policies can dilute the State’s land reform legacy to protect the interests of private parties,” Mr. Vijayan said at his press conference after the Budget.

As per the Budget document, land laws that were relevant in the past will be “rigorously reviewed” and “outdated statutes” will be amended. As the document does not specify which all laws are outdated, there remains a lack of clarity regarding the changes that can be expected. The document further says that the procedure for converting land for commercial enterprises will be expedited. The stated reasons for the proposed changes are the acute scarcity of land, limitations in land mobilisation and a lack of legal clarity, which have remained the “most formidable barriers” to Kerala’s industrial infrastructure aspirations.

The Governor’s policy address earlier this month had dropped a hint on the new government’s line of thought. It specifically mentioned that the Kerala Conservation of Paddy Land and Wetland Act, 2008 will be “comprehensively revised” to permanently resolve issues related to land conversion. The government also proposes to establish a commission to review all land-related laws.

The land reforms initiated in 1957 and which became law in the 1960s have been a fundamentally transformative policy in Kerala’s history with the stipulation of strict land ceilings and redistribution of surplus land to the landless. The Paddy and Wetland Act of 2008 imposes restrictions on the conversion or reclamation of agricultural land. The proposed 2.0 version of the land reforms on the other hand are focussed on making available larger parcels of land for industrial development.

CPI(M) Central Committee member and former Finance Minister T.M. Thomas Isaac said the Land Reforms 2.0 in various States across the country aimed at making corporate takeover of poor people’s lands.

“Yes, we need land for development. The LDF government’s policy was to ensure fair price for the land. The UDF government is planning a change in land ceilings to enable corporates to accumulate large parcels of land. The ideal reform needed in Kerala is to ensure the distribution of more surplus land to the SC/ST population,” he said.