Kerala Budget 2026-27: A Comprehensive Infrastructure Blueprint for the State
Presenting the sixth budget of the Pinarayi Vijayan-led government in the Legislative Assembly, Finance Minister KN Balagopal highlighted Kerala's remarkable strides in infrastructure development. With an eye on the upcoming Assembly elections, the budget unveiled a series of ambitious projects aimed at boosting the state's economy and enhancing connectivity across regions.
Rare Earth Corridor: Tapping into Coastal Resources
One of the standout announcements is the proposed Rare Earth Corridor, which will connect Vizhinjam port to Chavara and further link to Kochi. The finance minister emphasized that Kerala's coastal line is rich in rare earth elements like thorium and scandium, crucial for space research, defence, energy generation, aviation, electric vehicles, drones, and CT scan equipment production.
A sum of Rs 100 crore has been earmarked to establish a Rare Earth Critical Minerals Mission in collaboration with KMML, KELTRON, and NFTDC. A dedicated centre will be set up adjacent to KMML Chavara, positioning Kerala as the nation's permanent magnet hub. This initiative is expected to attract an investment of ₹42,000 crore and generate around 50,000 job opportunities.
Defence Corridor: Fostering Innovation and Research
Building on the state's existing defence infrastructure, the government plans to establish a Defence Technology Innovation Hub. This hub will interlink various institutions in the defence sector, including Naval Command, Southern Air Command, Naval Academy, DRDO-NPOL, Brahmos Aerospace, VSCC, IIST, and IISER.
An allocation of ₹50 crore has been set aside to develop this into a Defence Research Development corridor, leveraging Kerala's strengths in research and technology.
Regional Rapid Transit System (RRTS): Enhancing High-Speed Travel
To revolutionize intra-state connectivity, the Kerala government announced a new Regional Rapid Transit System (RRTS) project. Modeled on the Delhi-Meerut RRTS Corridor, the Thiruvananthapuram to Kasaragod RRTS will be implemented in four phases:
- Thiruvananthapuram–Thrissur stretch
- Thrissur–Kozhikode
- Kozhikode–Kannur
- Kannur–Kasaragod
The entire corridor will be constructed on elevated pillars, ensuring efficient and high-speed travel across the state.
MC Road Development: Easing Traffic Congestion
The budget also focuses on upgrading the M.C Road, with a project to reconstruct it into a four-lane highway spanning 24 meters from Thiruvananthapuram to Angamali. This initiative will be executed through KIIFB, with the first phase involving the construction of bypasses and junction developments to alleviate traffic blocks.
Key bypasses in Kilimanoor, Nilamel, Chadayamangalam, Ayoor, Pandalam, and Chengannur are part of this phase. The Kottarakkara bypass has already received financial sanction of ₹110.36 crore, and land acquisition is progressing rapidly. A total of ₹5,217 crore has been allocated through KIIFB for the first phase of the MC Road development project.
Cyber Valley: A Hub for Digital Innovation
In a bid to foster digital entrepreneurship, the government plans to develop a Cyber Valley within the 300-acre Kochi InfoPark phase III. This hub will focus on IT, IT-based services, Artificial Intelligence, and other emerging technologies.
With an earmarked budget of ₹30 crore, the Cyber Valley aims to create digital jobs and provide modern urban facilities, operating under a Public-Private Partnership (PPP) model.
Wayanad Tunnel Road: A Long-Awaited Dream
Addressing the aspirations of North Kerala, the government announced the commencement of the Wayanad tunnel road construction. The 8.73 km Anakkampoyil-Kalladi-Meppadi tunnel road, estimated to cost ₹2,134.50 crore, is expected to bring transformative changes to the Wayanad region upon completion.
These infrastructure projects underscore Kerala's commitment to sustainable development, economic growth, and improved connectivity, setting the stage for a brighter future for the state.
