Kerala Budget 2026-27: VD Satheesan announces ₹100 crore Film City in Kochi

Thiruvananthapuram: Kerala will establish a state-of-the-art Film City in Kochi at an estimated cost of ₹100 crore, Chief Minister and Finance Minister VD Satheesan announced on Friday while presenting the state Budget for 2026-27.

The project, to be developed in honour of JC Daniel, widely regarded as the pioneer of Malayalam cinema, forms part of a broader package of investments aimed at strengthening Kerala’s cultural, creative and research sectors. 

Unveiling his first Budget in the Assembly, Satheesan acknowledged the severe financial pressures confronting the state, citing lower own-tax revenues compared with several other states and a reduced share of central allocations. Despite a total debt burden of ₹5.07 lakh crore, he said the government remained committed to building what he described as a “New-Age Kerala” through targeted investments in development and welfare.

Film City to honour JC Daniel

A key announcement in the Budget was the launch of the ‘Chithranagaram’ project, under which a modern Film City will be developed in Kochi. The government has allocated ₹100 crore for the initiative, which is expected to enhance infrastructure for the Malayalam film industry and support the growth of the state's entertainment sector.

The project will commemorate JC Daniel, whose contributions laid the foundation for Malayalam cinema.

Cultural projects receive major boost

The Budget also outlined several initiatives designed to strengthen Kerala’s cultural landscape.

A Cultural Park dedicated to renowned Malayalam writer MT Vasudevan Nair will be established in Kozhikode with an allocation of ₹50 crore. The facility is intended to serve as a creative hub, providing opportunities for children and emerging artists to showcase and develop their talents.

In another major cultural initiative, the government announced plans to set up a modern Music Academy in Thrissur in memory of legendary music composer Johnson Master.

Focus on research and innovation

Alongside investments in arts and culture, the government has earmarked substantial funds for research and scientific development.

Drawing inspiration from the Research Park model of IIT Madras, Kerala will establish its own Research Park to foster innovation, industry collaboration and technological advancement. The project has been allocated ₹60 crore in the Budget.

The government has also set aside ₹100 crore for the proposed Kerala Health and Life Science City, which is expected to support advancements in healthcare, biotechnology and scientific research.

Development amid financial constraints

Presenting the Budget, Satheesan said the government was framing its development agenda against a backdrop of significant fiscal challenges. While acknowledging the state's financial constraints, he maintained that strategic investments in culture, research and public welfare would help drive long-term growth and strengthen Kerala’s position as a knowledge and creative economy.

(With agency inputs)