Kerala Budget 2026-27, Kerala Budget news: With an eye on the upcoming Assembly elections, the Kerala government on Thursday announced several infrastructure projects aimed at improving the state’s economy and connectivity. Presenting the Pinarayi Vijayan-led government’s sixth budget in the Legislative Assembly, Finance Minister KN Balagopal said the state has made remarkable progress in infrastructure and other sectors.
Kerala Budget 2026 key points on infrastructure sector
TL;DR: He added that these are necessary in the areas of energy generation, defence and aviation sector, and production of electric vehicles, drones and CT scan equipments.
In the Kerala Budget 2026, the state government announced several infrastructure projects, including a Rare Earth Corridor, Defence Corridor, Regional Rapid Transit System (RRTS), development of MC Road and Cyber Valley, among others.
- Kerala budget focuses on Rare Earth Corridor
Speaking in the assembly, the finance minister said that Kerala coastal line is abundant with the rare earth elements like thorium, Scandium, etc., which are required in the fields of space research and defence. He added that these are necessary in the areas of energy generation, defence and aviation sector, and production of electric vehicles, drones and CT scan equipments.
The minister also noted that Rs 100 crore is earmarked for establishing a Rare Earth Critical Minerals Mission in partnership with KMML, KELTRON and NFTDC. “A new ‘Rare Earth Corridor’ connecting Vizhinjam port to Chavara, which in turn connects to Kochi is being planned. A centre related to this will be established adjacent to KMML Chavara. By this Kerala is becoming the permanent magnet hub of the nation. Besides this, an investment of ₹42,000 crore and 50,000 job opportunities are expected,” he said.
- Kerala budget 2026 highlights Defence Corridor
Balagopal further said that a number of institutions including research institutions in the defence sector are functioning in the state. He added that the government is planning to establish a Defence Technology Innovation Hub interlinking various institutions in the defence field, including Naval Command, Southern Air Command, Naval Academy, DRDO-NPOL, Brahmos Aerospace, VSCC, IIST, IISER.
“This will be developed as a Defence Research Development corridor. As an amount of ₹50 crore is earmarked for this project,” he announced.
- Kerala government announces Thiruvananthapuram to Kasaragod RRTS project
Kerala government has announced a new Regional Rapid Transit System (RRTS) project in the state to improve high speed travel facility. The Thiruvananthapuram to Kasaragod RRTS corridor is being planned in four phases in the model of Delhi-Meerut RRTS Corridor.
The project will be implemented in phases, starting with the Thiruvananthapuram–Thrissur stretch, followed by Thrissur–Kozhikode, Kozhikode–Kannur and Kannur–Kasaragod. The entire corridor will be built on elevated pillars.
- Kerala Budget 2026 Highlights: MC Road Development
The government also announced that a project for reconstructing M.C road in four lanes at a breadth of 24 meters from Thiruvananthapuram to Angamali, is being undertaken through KIIFB. The first step is to construct bye-passes and develop junctions, with an objective of simplifying the traffic blocks in major junctions, the finance minister said.
“Kottarakkara bypass, which is a part of this has been accorded financial sanction of ₹110.36 crore, and the land 28 be acquisition activities are progressing rapidly. In the first phase, there will construction of by-passes in Kilimanoor, Nilamel, Chadayamangalam, Ayoor, Pandalam and Chengannur and construction of various junctions. Sir, an amount of ₹5,217 crore is set apart through KIIFB for the first phase of M.C road development project,” he said.
The government is also planning to develop a Cyber Valley in the 300 acres of Kochi InfoPark phase III. It will function as a hub of IT, IT based services, Artificial Intelligence and other new technologies.
“The Cyber Valley will be a hub of creating digital entrepreneurship and jobs along with all digital facilities sufficient for the modern urban life. ₹30 Crore is earmarked for this project being planned in PPP model,” the minister said.
The government on Thursday said that the construction of Wayanad tunnel road, which is a long cherished dream of North Kerala has commenced. “Transformative changes will be witnessed in Wayanad upon the completion of the 8.73 km long Anakkampoyil-Kalladi-Meppadi tunnel road. The estimated cost of tunnel road is ₹2134.50 crore,” the minister said.
Curated by Aisha Patel
