Kerala Revised Budget: Infrastructure projects in Kochi receive scant allocation

Tourism industry has reason to cheer as the Revised Budget presented by Chief Minister V.D. Satheesan here on Friday stressed that all the benefits provided to industries will be provided to the tourism sector. The State government has accepted the long-standing demand to declare tourism as an industry, the Chief Minister said.The Budget has announced that necessary legal amendments will be made to make more land available for tourism in the plantation sector. Tourism amenity centres and houseboat terminals built under the mega tourism circuit project in Alappuzha will be renovated and utilised.A waste treatment plant will be built in Alappuzha to treat houseboat waste. The Chief Minister also announced a pilgrimage tourism circuit project linking pilgrimage centres such as Arthunkal Basilica, Ambalappuzha Temple, Kakkazhom Church, Mannarasala, Krishnapuram Palace, Mata Amritanandamayi Math, and Ochira Temple.A project with a master plan will be implemented for the comprehensive development of the Pathiramanal Island Eco-Tourism Centre. Along with this, a ropeway facility will be provided for tourists from Muhamma Jetty to the island. Muziris Tourism Project will be further expanded, making it the most important centre of heritage tourism in India. The project will include live museums, heritage museums and boat trips on traditional waterways. A total of ₹19 crore has been allocated for this project.A new ‘Green Marshals’ project will be launched on a pilot basis in major tourist destinations, including Fort Kochi, Munnar, Kovalam and Alappuzha. As part of the project, women will be trained and deployed as Green Marshals to promote cleanliness, responsible visitor behaviour and environmental awareness.In addition, community-based tourism hubs and cultural tourism hubs will be established that will create employment opportunities while preserving Kerala’s unique traditions, food culture and cultural heritage. The concept of ‘Brand Wayanad’ will be introduced. The government also took steps to promote Ashtamudi tourism through the Budget.Women-led tourism initiatives, homestays and responsible tourism projects will be expanded across the State. The Budget also announced smart tourism applications, including artificial intelligence (AI)-based digital tourism platforms. Minister for Tourism P.C. Vishnunadh said the Budget considered many of the long-standing demands of the tourism sector in the initial phase, including granting industry status. Published - June 20, 2026 12:24 am IST

The Revised Budget for 2026-27 carries a clear and ambitious message: Kerala intends to transition from a welfare-dependent economy to a knowledge-driven, enterprise-led growth model. This direction is particularly significant for entrepreneurs, start-ups, and the MSME community.The Budget proposes to establish 10,000 new Micro, Small and Medium Enterprises across the State, backed by an allocation of ₹100 crore. This is not a token gesture; it is a recognition that MSMEs are the backbone of Kerala’s real economy, the largest employer outside government, and the most accessible pathway to entrepreneurship for first-generation business owners. If implemented effectively, this initiative can create substantial employment opportunities and broaden the State’s entrepreneurial base.The Knowledge Valley vision has the potential to redefine Kerala’s identity. The government plans to develop Kerala into a Knowledge Valley with the objective of making the State a preferred destination for higher education, including through special legislation to attract leading foreign universities and collaborations with premier institutions. For the start-up ecosystem, this is particularly important. Access to world-class research, global faculty, and international student talent within Kerala can create the foundation for deep-tech and knowledge-based enterprises. The ₹100-crore allocation for this initiative reflects a strong commitment to this vision.Invest Kerala CellThe proposed Invest Kerala Cell and Investment Advisory Council are both timely and welcome. For many years, investor interest in Kerala has often been constrained by procedural delays and information gaps. A dedicated, data-driven institutional mechanism to facilitate investments, supported by expert advisory inputs, can significantly strengthen Kerala’s investment ecosystem and enhance its attractiveness to domestic and international investors, including the global Kerala diaspora.The decision to allocate dedicated funding for private space technology start-ups is another noteworthy development. While the ₹5-crore allocation may appear modest, the policy signal is significant. By explicitly identifying space technology as a priority sector, Kerala is positioning itself to leverage its existing strengths, including ISRO’s presence in Thiruvananthapuram, to build a credible and globally competitive space-tech ecosystem.Research ParkThe proposal to establish a Research Park is a long-awaited and potentially transformative initiative. By creating a structured interface between academia, research institutions, and industry, the Research Park can accelerate innovation, commercialisation of research, and the emergence of deep-tech start-ups. Kerala possesses the scientific talent, institutional capabilities, and global networks required to make such a model successful.Land availability has long been one of the most significant constraints to industrial growth and startup infrastructure development in Kerala. The announcement of a comprehensive Land Management Policy, a Land Bank, and reforms under the Land Reforms 2.0 initiative addresses a fundamental structural challenge. Improved access to land and greater regulatory clarity can create a more enabling environment for start-ups, MSMEs, manufacturing units, and large-scale investments.The proposed Global Job Watch Tower is another forward-looking initiative. Kerala produces a highly skilled workforce, but labour market intelligence and demand forecasting have often lagged behind. A system that aligns education, skill development, entrepreneurship, and employment opportunities with evolving market requirements can strengthen both job creation and enterprise development.Infrastructure announcements such as the Global Convention Centre at the Kochi airport and the aviation logistics hub also deserve attention. World-class convention, logistics, and business infrastructure can play an important role in attracting investment, facilitating tr

M.T. Vasudevan Nair | D. Satheesan on Friday allocated ₹50 crore for a cultural park in Kozhikode in memory of late writer M.T. Vasudevan Nair.The initiative is aimed at preserving and promoting Kerala’s cultural and artistic traditions amid concerns over the growing influence of digital culture.The proposed park will be designed as a multidisciplinary cultural space featuring venues for performances of Kathakali, Koodiyattam, Thullal, Theyyam, Oppana, Mappilappattu, Margamkali and other art forms. Facilities for dance, music, short films and documentaries will also be included.The project also envisages a cinema complex, a library, an art gallery, a history museum, a literature and language museum, and a facility dedicated to the voices and works of writers and other cultural figures.Separate spaces for children and senior citizens, along with recreational areas for families, are part of the proposal. The park will also include food courts, bookshops, art supply stores, tourist guest houses and dormitory facilities.“We are happy that this facility is expected to function as a centre for cultural activity, learning and tourism in the region. It will also highlight the city’s cultural identity,” said a former functionary of the State Library Council. A Cultural and Tourism Trust proposed in the Budget is also expected to support its professional management, he added. Published - June 19, 2026 07:23 pm IST

The Kochi Corporation almost drew a blank in the revised State budget, with even priority projects identified for assistance by the United Democratic Front-led governing committee overlooked, save for a meagre allocation of ₹1 crore for the proposed Goshree–Bolghatty Parallel Bridge and for land acquisition and construction of the Goshree–Mamangalam Road.The Corporation had submitted to the government a wish list of priority projects to be favourably considered in the revised Budget. This included subsidy for Indira Canteen, the 190 MLD water treatment plant, construction of the Thammanam water tank, the waste-to-energy plant at Brahmapuram, three major roads—Thammanam–Pulleppady Road, Goshree–Pachalam–Mamangalam Road, and Palluruthy 40-feet Road—two rail overbridges—Atlantis and Mattancherry Halt ROBs—and the Vembanad Lake Rejuvenation Mission.Mayor V.K. Minimol, while attempting to put up a brave face, reasoned that the Goshree–Pachalam–Mamangalam Road, which she said was the only new project in the list, had been allocated funds, while the rest, including the Thammanam–Pulleppady Road and the Atlantis ROB, were mostly ongoing projects. “We remain confident that subsidy for Indira Canteen will eventually be extended assistance, considering it was part of the UDF manifesto in the local body elections. We will take up the matter with the State government. The proposed Mattancherry Halt ROB seems to require clearance from the Navy,” she said, adding that financial constraints may also have played a role in the limited allocations.V.A. Sreejith, the LDF parliamentary party leader in the Corporation, slammed the revised Budget for completely overlooking four critical areas affecting people’s lives—transportation, drinking water shortage, waste management, and the stray dog menace. “The biggest contributing city to the State’s coffers has been completely ignored in the Budget, despite being part of the home district of the Chief Minister. The UDF governing committee’s propaganda that the revised Budget would change the fortunes of the city has proved to be a damp squib. Even their own proposals have been overlooked,” he said.Former Mayor M. Anilkumar observed that the Budget neglected long-overdue projects such as the water treatment plant, a network of roads, canal rejuvenation, Kochi Metro extensions, and a cultural centre proposed on land owned by the Centre for Heritage, Environment and Development at Kacherippady. “The water treatment plant should have been provided allocation to initiate the project. The Thammanam–Pulleppady Road went missing despite all notifications being in place. The canal rejuvenation project should have been allocated funds at least for the first year’s work. Similarly, the Budget is silent on metro extensions to Nedumbassery and West Kochi,” he said.Another former Mayor, K.J. Sohan, rued the Budget’s failure to address fundamental problems facing the city, such as tidal flooding and drinking water shortage. “The political establishment should identify and set the basics right. Climate mitigation technologies are available and should be embraced. Canal dredging by the port authorities should also be prioritised to address tidal flooding,” he said. Published - June 19, 2026 09:55 pm IST

The Budget promises the renovation of houseboat terminals and tourism amenity centres created under the Mega Tourism Circuit Project. | D. Satheesan government, with a raft of proposals spanning tourism, infrastructure, and traditional industries aimed at breathing fresh life into the coastal district’s economy.At the heart of the Budget is an ambitious plan to establish a Southern Economic Corridor linking Thiruvananthapuram, Kollam, and Alappuzha, while positioning the district as the country’s Blue Economy Capital.Tourism, the mainstay of Alappuzha’s economy, has received a major boost. The Budget promises the renovation of houseboat terminals and tourism amenity centres created under the Mega Tourism Circuit Project. It also seeks to tackle the long-standing issue of houseboat waste by setting up a dedicated treatment plant in the district.Pilgrimage Tourism CircuitThe government has also unveiled plans for a Pilgrimage Tourism Circuit connecting iconic destinations such as Arthunkal Basilica, Ambalappuzha Sree Krishna Temple, Kakkazham Mosque, Mannarasala, Krishnapuram Palace, Mata Amritanandamayi Math, and Ochira Temple, seeking to tap into the growing religious tourism sector.Another headline proposal is the comprehensive development of the Pathiramanal island eco-tourism centre under a master plan. Adding a fresh attraction to the backwater tourism landscape, the Budget also proposes a ropeway linking Muhamma Jetty with the island.Coir sectorThe coir sector, synonymous with Alappuzha’s identity, has not been left behind. The Budget has earmarked ₹35 crore as a Price Stabilisation Fund and outlines measures to strengthen exports of coir products to international markets. Besides, ₹107.64 crore has been allocated for various coir sector initiatives.An additional ₹10 crore has been set aside as market development assistance for coir and coir products, while ₹11 crore has been earmarked for schemes promoting the production, marketing, and export of coir products.Congress leaders were quick to point out that several of the announcements mirror proposals recently submitted to the government by Alappuzha MP K.C. Venugopal. In a memorandum to the Chief Minister, the MP had argued that the district had suffered a decade of developmental stagnation and called for focused investments in tourism, healthcare, coir development, and coastal protection.Health care, too, figures prominently in the district’s development roadmap. The Budget revives the long-pending proposal for a medical college at Haripad, a project long championed by Home Minister Ramesh Chennithala. The institution is expected to draw from the ₹100-crore allocation set aside for new initiatives in the health sector. Published - June 19, 2026 06:54 pm IST

An allocation of ₹56 crore has been earmarked under the traditional industries framework to fuel a comprehensive cashew revival package. | Under the State’s newly announced macrodevelopment blueprint, Kollam has been integrated into the Southern Kerala Economic Corridor. This ambitious corridor links the unique geographical and economic strengths of Thiruvananthapuram, Kollam, and Alappuzha into a unified economic zone. Within this regional cluster framework, Kollam is designated to function as the primary nerve centre for mineral processing and rare earths. To operationalise the corridor and its parallel Rare Earth and Critical Minerals Corridor, the government has provided an initial financial backstop of ₹50 crore and ₹100 crore respectively, mapping out necessary infrastructure and policy interventions through an expert agency.Parallel to these industrial initiatives, the Budget places a strong emphasis on reviving Kollam’s traditional industries. An allocation of ₹56 crore has been earmarked under the traditional industries framework to fuel a comprehensive cashew revival package.The district’s animal husbandry and infrastructure sectors too have received direct project-specific outlays. As part of the Kerala Chicken Project, the government has sanctioned the establishment of a state-of-the-art, modern poultry processing plant with a capacity to process 1,000 chickens per hour, alongside a dedicated pet food factory, both situated at Kottukkal in Kollam district.Infrastructure in the district is also set for an upgrade, with ₹5 crore allocated for the initial expenses of construction of a skyway and urban park at Chinnakada. Published - June 19, 2026 05:57 pm IST