Kerala Cabinet Approves Rs 48.2 Cr Aid, Pay Hikes & Key Policy Changes
Kerala Cabinet Approves Financial Aid, Pay Hikes, Policy Changes

In a significant move aimed at providing widespread relief and implementing administrative reforms, the Kerala state cabinet, meeting in Thiruvananthapuram on Wednesday, approved a comprehensive package of financial assistance measures and policy decisions. The approvals span support for victims of crime and disasters, aid for fishermen, salary revisions, and amendments to key land and procurement rules.

Major Financial Assistance Sanctioned from CMDRF

The cabinet gave its nod for disbursing aid from the Chief Minister's Distress Relief Fund (CMDRF) to several beneficiaries across the state. A compensation of Rs 3 lakh will be provided to Akhila, the younger daughter of Sudhakaran, who was murdered at Pothundi in Nenmara, Palakkad. For families affected by workplace tragedies, the dependants of three Tamil Nadu natives—Jayaram, Michael, and Sundarapandiyan—who died while cleaning a waste tank at Kattappana village in Idukki, will receive Rs 5 lakh each.

Furthermore, Rs 58.45 lakh has been sanctioned to the Pathanamthitta District Collector for distribution among 143 people whose houses were fully or partially damaged in natural disasters reported since January 2023.

Support for Fishermen and Farmers

Addressing livelihood losses due to weather conditions, the cabinet approved compensation for fishermen affected by the fishing ban. The aid will cover 14 working days lost between May 18 and May 31, 2025. A substantial amount of Rs 48.2 crore is earmarked for distribution to 1,72,160 fishermen and their dependent families.

Under the Ujjivana loan scheme, the cabinet sanctioned Rs 21.9 lakh to concerned district collectors. This fund is for disbursing margin money to 20 farmers and entrepreneurs who took loans from the South Indian Bank's Thrissur branch.

Administrative Reforms and Policy Amendments

The cabinet also took several decisions to strengthen administration and revise policies. To enhance operational supervision in the police force, it decided to upgrade 20 reserve sub-inspector posts and create 20 new reserve inspector posts for Armed Reserve Camps.

In a boost for coastal security personnel, the cabinet approved a salary hike for staff in coastal police stations. The posts benefiting include Serang, Boat Driver, Lasker, Boat Commander, Assistant Boat Commander, and Special Marine Home Guard.

Key policy amendments were also cleared. The cabinet approved an amendment to grant retrospective effect from October 20, 2025, to the order revising the procurement price of paddy through Supplyco to Rs 30 per kilogram. This date marks the start of the first season of 2025-26, instead of the initially proposed November 1, 2025.

An important amendment was made to the norms for assigning land held by institutions without adequate documents. For land held after Independence and before August 1, 1971, the regularisation charge has been reduced. It now requires payment of 15% of the fair value, down from the earlier provision of 25% for land held after Independence and before the formation of Kerala.

Additionally, the cabinet clarified through an amendment to the 1964 Land Assignment Rules that ownership rights over valuable trees like teak, rosewood, sandalwood, and ebony standing on assigned land will remain with the government.

Other Notable Decisions

The meeting saw several other approvals. Administrative sanction was granted for the Mavilayi Heritage Village project and the beautification of the AKG Memorial at Mavilayi in Peralassery, Kannur. The project will be implemented by the Local Self-Government Department with KIIFB assistance, with a joint revenue model to ensure no extra financial burden on the Peralassery grama panchayat.

To facilitate institutional financing, the cabinet approved an additional government guarantee of Rs 400 crore for five years for the Kerala State Backward Classes Development Corporation. This will help it avail loans from the National Safai Karmachari Finance and Development Corporation. A separate guarantee of Rs 8 crore for eight years was approved for the Kerala State Film Development Corporation to support the rollout of an e-ticketing system in all cinemas statewide.

Finally, the cabinet approved the extension of 1,012 temporary posts in the Department of Economics and Statistics from April 1, 2025, to June 30, 2026.