Final report of Kerala urban policy panel submitted to Vijayan (2025)

A climate-risk insurance mechanism and a green fee on urban development projects to fund disaster mitigation and emergency response systems in the state, developing Thrissur-Cochin as FinTech hub and Thiruvananthapuram-Kollam as the knowledge corridor, are some of the key recommendations made by the Kerala urban policy commission (KUPC) in its report submitted to chief minister Pinarayi Vijayan on Sunday.

KUPC, which is the first state level urban commission in India, submitted its final recommendations containing evidence-based reports from 10 policy pillars. Kerala is now the only Indian state to have an urban policy.

With the rate of urbanisation in Kerala higher than the national average, KUPC was constituted in December 2023 to frame an urban policy. KUPC estimates that over 80% people of Kerala will be urban by 2050. The Kerala Urban Policy will provide a framework and a prototype for other States in India and at the same time, also a model for countries in the global South, a statement by the state government said.

Kerala’s local self-government minister MB Rajesh told reporters in Thiruvananthapuram that the cabinet will decide on implementing the reforms recommended by the commission with the state already accepting two of the commission’s recommendations submitted in December 2024 as part of their interim report, during a press conference held to mark the event.

Six directly elected Metropolitan Planning Committees (MPCs) will be formed around the municipal corporations of Kochi, Thiruvananthapuram, Kozhikode, Kollam, Thrissur, and Kannur which will steer the process of urban development in and around these areas and launch municipal bonds for cities such as Thiruvananthapuram, Kochi and Kozhikode and pooled bonds for smaller urban centres. Among the sweeping changes recommended by the committee were a climate-risk insurance mechanism and a targeted green fee on urban development projects to fund disaster mitigation and emergency response systems.

Commission’s chairperson M Satish Kumar said: “The report will provide a framework and a prototype for other states in India and at the same time, also a model for countries in the global South. The commonalities and lessons learnt will help to reflect on the diversity of experience in designing, formulating, implementing and finally monitoring effective Kerala urban policies.”

Another member KT Ravindran said the policy will guide throughout the urban-rural continuum respecting the state’s unique developmental pattern. “Unlike the present model of 2D planning, urban planning has to incorporate design at core especially keeping in mind the changing climate reality,” he said.

Among many other recommendations, the commission called for a Thrissur- Cochin should be developed as FinTech Hub of Kerala; Palakkad and Kasaragod should be developed as Industrial Smart Cities; Thiruvananthapuram-Kollam Knowledge Corridor to be developed to foster research and innovation; Kannur to be also promoted as a Fashion City; Kannur-Kasaragod and Thrissur-Ernakulam should be leveraged as Edu Health Hubs; and Kozhikode to be branded as the “City of Literature,” drawing on its rich literary heritage.

The stakeholders consulted including the mayor’s councils, chairpersons of standing committees in all urban local governments, all higher order municipal officials, various NGOs, resident’s welfare associations, advocacy groups, unions, unorganised workers, gig workers, among others.

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