The Revised Kerala Budget for the financial year 2026–27, presented by Chief Minister V.D. Satheesan on Friday, outlines an ambitious vision to transform Kerala into one of India’s leading maritime and logistics hubs by leveraging the immense potential of the Vizhinjam International Seaport.
Terming Kerala as a unified ‘Port City’, the Budget proposes harnessing the integrated strengths of the State’s 600-km coastline, 17 non-major ports, two major ports, and its extensive road, rail, sea, and inland waterway networks.
The plan envisages the development of manufacturing clusters and greenfield cities along these transport corridors, creating a robust ecosystem for trade, industry, and economic growth. In addition, the government aims to position Kerala as a major aviation and logistics gateway by capitalising on the strategic advantage of its four international airports to enhance connectivity, attract investment, and strengthen global commerce.
Mission Samudra
The State will launch Mission Samudra, a flagship initiative aimed at establishing Kerala as a significant force on the global maritime map within the next five years. An allocation of ₹400 crore has been made for Mission Samudra projects, including the Port City initiative. The project will focus on strengthening transport connectivity through land acquisition and construction activities related to the Balaramapuram-Vizhinjam underground railway and the Vizhinjam-Navaikulam Outer Ring Road, among other infrastructure projects.
Manufacturing zones, container-stuffing centres, and dry ports will be established in the vicinity of the Vizhinjam and Kochi ports. Capitalising on the global shipping industry’s transition towards environmentally sustainable fuels, Vizhinjam will be developed as India’s leading port for green bunkering services. A dedicated shipbuilding hub for the construction, repair, and maintenance of mother ships will also be established, the Chief Minister announced in the Budget.
Kerala Maritime Policy
The government will formulate a comprehensive Kerala Maritime Policy to accelerate the development of the State’s four key non-major ports — Vizhinjam-Kovalam, Kollam, Beypore, and Azhikkal. The policy will promote coastal freight transport, port-led industrial development, logistics, and allied shipping activities. It will also leverage the land, buildings, and other assets available across the remaining 13 non-major ports to support maritime tourism, logistics, maritime industries, maritime legal education, and the establishment of a maritime museum through public-private partnerships.
To support these initiatives, a comprehensive water transport network connecting major and minor ports with Kerala’s inland waterways will be developed in a phased manner.
Aviation hub
Kerala will also be developed as South India’s premier aviation and logistics hub, anchored by the State’s four international airports. An allocation of ₹200 crore has been earmarked for preliminary activities related to this initiative. The Aircraft Maintenance, Repair and Overhaul (MRO) sector will be strengthened as part of the plan.
In addition, a Southern Kerala Economic Corridor will be established, integrating the districts of Thiruvananthapuram, Kollam, and Alappuzha into a unified economic zone of national strategic importance. An amount of ₹50 crore has been earmarked for the project.
Published - June 19, 2026 12:09 pm IST