'Nothing special for Kerala in Budget; it is not clear whether the intention is to take the minerals available to us to other places'

NEW DELHI: Kerala has expressed strong disappointment over the Union Budget for the 2026–27 financial year presented by Finance Minister Nirmala Sitharaman. The state was not included in the seven high-speed railway corridors announced in the Budget. While major South Indian cities such as Bengaluru, Chennai, and Hyderabad were included, cities in Kerala were left out.

The Budget also did not announce projects such as AIIMS or Metro rail for Kerala. No special financial package was announced for the state. There were also no specific allocations or new initiatives for the development of the Vizhinjam port. Union Minister Suresh Gopi had earlier stated several times that an AIIMS would be set up in Kerala, but the Budget did not include any such announcement.

Kerala Industries Minister P. Rajeev criticised the Centre for ignoring the state. He said the neglect of Kerala is continuing. Rajeev stated that the Kerala government had earlier expressed full support for including the state in the high-speed rail corridor and even suggested appointing E. Sreedharan as its special officer. However, not only was Kerala excluded from the project, but the Centre also failed to acknowledge Kerala as one of the first states to propose such a plan. He termed this as clear discrimination.

"When the Centre asked the state to identify land for an AIIMS, we identified land at Kinalur and handed it over to the Health Department. Despite this, Kerala was not granted an AIIMS. The state’s demand for its rightful share of tax revenue was also not accepted. Kerala has been included only in the mineral corridor. This is a project that Kerala had announced earlier. It is not clear whether the intention is to take the minerals available to us to other places. It also needs to be examined whether minerals under the state’s control will be taken. At first glance, this reflects a serious neglect of Kerala,” said P. Rajeev.

The major announcement concerning Kerala in the Budget was the declaration of a special corridor for rare earth mining (mineral sand mining) in Kerala, Andhra Pradesh, Odisha and Tamil Nadu. The project aims to expand mining and processing activities. The Budget also announced the setting up of special centres for turtle conservation in Kerala and Karnataka.

Although Kerala was not specifically mentioned, the Budget included schemes to increase coconut production. Plans were also announced to develop premium cashew and cocoa products by 2030. Around 1.5 lakh caregivers will be trained under yoga and wellness schemes. Kerala may also benefit from initiatives related to Ayurveda and medical tourism, though the state did not receive any special mention or exclusive allocation in these areas.