Key transport infrastructure projects find no mention in the Kerala budget

Map of Sabari Rail’s proposed route

Although the revised budget envisages an integrated connectivity network to tap Kerala’s emerging growth potential, there is no mention of the proposed high-speed rail project and several other key transport infrastructure initiatives being pushed by the state. Although technocrat E. Sreedharan submitted a detailed interim report prepared by the Delhi Metro Rail Corporation (DMRC) well in advance of the budget, it did not mention the project.

Instead, the state government reiterated its commitment to continue the Thiruvananthapuram and Kozhikode Light Metro projects, which were promised by successive governments over the years. An amount of ₹20 crore has been allocated for Light Metro projects, including feasibility studies for the Kozhikode Light Metro project. On the other hand, it is not clear whether the state has committed to provide its 50% stake in the Sabari Rail project connecting the Sabarimala temple to the national rail network.

Uncertainty about Sabari

The previous government had agreed to bear the state’s share of ₹1,900 crore for the 111 km long Sabari Rail project. It has proposed to meet half the cost of the project through the Kerala Infrastructure Investment Fund Board (KIIFB). However, uncertainty about the future of the project remains as the current government is of the view that the functioning of KIIFB needs to be revamped. To this end, it announced a panel to conduct a detailed study on the impact of KIIFB on state finances.

“We are confused about the funding of the project even though the land acquisition initiated by the previous government is going on,” said Jijo Joseph Panchiani, secretary of the Sabari Rail Action Council. Similarly, no specific funds have been earmarked for the Balaramapuram–Vizhinjam underground rail link project, although the second phase of the Vizhinjam port is expected to be completed by 2028.

Meanwhile, the budget has earmarked ₹100 crore for the ₹8,004.72 crore Balaramapuram-Navaikulam Ring Road project, for which the National Highways Authority of India (NHAI) recently floated tenders. The budget also announced a hydrofoil transport system, capable of high-speed travel with low fuel consumption by moving above the surface of water, to improve coastal and inland water transport, although no specific funding was earmarked for the initiative.

Development of aviation

However, due to the growing demand for international air transport along with huge potential in the export, logistics and tourism sectors, the Budget has announced a number of infrastructure development projects aimed at positioning Kerala as a leading aviation and logistics hub in South India, anchored by four international airports in the state. An amount of ₹200 crore has been earmarked for the preliminary activities of the proposed centre.

Proposals include the establishment of pilot training and flight simulation centers, expansion of maintenance, repair and overhaul (MRO) infrastructure, and the development of a Global Conference Center, Green Hydrogen Hub, and Battery Energy Storage Systems (BESS). According to S. Suhas, IAS, Managing Director, Cochin International Airport Ltd. (CIAL), “The aviation initiatives announced in Budget 2026-27 have the potential to create a strong multiplier effect across the state economy. The proposed investment in the development of general aviation could support the creation of around 5,000 direct and indirect employment opportunities,” he said.

Published – 19 Jun 2026 18:56 IST