Kerala approves new policy to sell government data to private companies for a fee

Thiruvananthapuram: The Kerala Cabinet has approved the Data Policy 2026, which aims to make government-held information available to private companies and startups on a commercial basis. The policy is intended to support information technology development, industrial growth and economic activity while improving the use of public data.

Under the proposed framework, selected datasets held by government departments may be shared with eligible companies after being assessed for commercial value, security risks and suitability for disclosure. Fees will be charged for access, with different rates potentially applying to startups and larger companies.

How will the government decide which data can be sold?

An empowered Data Governance Committee, chaired by the Chief Secretary, will oversee the process. The committee will determine which information can be shared with private companies and decide the applicable charges.

The policy distinguishes between data that can be commercially useful and information that must remain protected. Personal information and highly confidential data that could affect national security will be excluded from sharing.

Identifying details will also be removed from datasets before they are provided to companies. The stated objective is to allow businesses to use government information without exposing the identities of individuals.

Different fees for startups and large companies

Companies will be charged according to their data requirements, with separate rates envisaged for startups and larger businesses. The policy does not specify in the supplied announcement the exact fee structure or the datasets that will initially be made available.

The government intends to use the revenue generated through data access to fund IT development and improve public services.

Companies seeking access will have to enter into agreements with the government. They will also be required to undertake that the information will not be resold to third parties.

New monitoring and data security mechanisms

The policy proposes a monitoring system and a dispute resolution cell to address disagreements and security breaches related to data use.

Each government department will also have a Data Management Cell and a Chief Data Officer. These arrangements are intended to strengthen oversight of departmental information and ensure that data is managed and shared appropriately.

The policy also proposes a State Data Exchange Platform under the Kerala IT Mission. Instead of departments maintaining isolated data systems, the platform would facilitate secure information-sharing between government departments.

Link with the Digital Personal Data Protection Act

According to the announcement, Kerala's Data Policy 2026 is aligned with the Central Government's Digital Personal Data Protection Act. The state policy seeks to establish a framework for using government-held information while maintaining safeguards for personal and sensitive data.

However, removing identifying details does not automatically eliminate every privacy risk. The effectiveness of the safeguards will depend on how datasets are prepared, who can access them, what uses are permitted and how compliance is monitored.

Analysis and explainer: What does the policy mean?

1. Government data becomes an economic resource

The policy creates a framework for treating selected government datasets as resources that may support business development. Depending on the information released, companies could potentially use it for research, planning, product development and commercial services. The actual opportunities will depend on which datasets are approved for access.

2. Privacy and commercial use will need to be balanced

Removing personal identifiers is an important safeguard, but combining different datasets can sometimes make individuals identifiable again. Clear rules on anonymisation, access controls, permitted uses and penalties for misuse will therefore be important to the policy's implementation.

3. Different pricing could affect smaller businesses

Separate rates for startups and large companies could help smaller businesses access government information. The impact will depend on the final fee schedule, eligibility criteria and whether the datasets are useful and accessible enough to support new products and services.

4. Centralised data-sharing could improve administration

The proposed State Data Exchange Platform could reduce duplication and make it easier for departments to exchange information. Its success will depend on the quality of departmental records, technical interoperability and clear accountability for errors or unauthorised access.

5. Important implementation details remain to be seen

The announcement does not provide a complete list of datasets eligible for commercial access, the proposed rates, the precise technical safeguards or the enforcement measures for breaches of data-sharing agreements. These details will be important in assessing how the policy works in practice.