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Development of basic facilities at Hawa and Lighthouse beaches, renovation of the Silent Valley Sunbath Park and more will happen in the first phase.
At present, there are 900 buses that are unserviceable. Of the 1,622 buses that are to be scrapped, 1,000 are ordinary services.
The Chief Minister also picked out figures from budget documents to show that Kerala's debt position was getting better and that its revenues were on an upswing.
On Friday, Kerala's Finance Minister KN Balagopal will present his third budget.
The Economic Review was tabled in the Kerala Legislative Assembly on Thursday prior to the presentation of the State Budget.
The Left Government failed miserably in realization of taxes in the last five years and caused the exchequer a loss of Rs 70,000 crore, states the white paper.
This is because the Central Government has considered the KIIFB loans as part of borrowings availed by the State Government and capped the loan ceiling of the state accordingly.
Last fiscal, the state's own revenue had increased by Rs 17,000 crore.
But Kerala's Finance Minister keeps lamenting about the 24k crore that the Centre has supposedly held back.
A decision in this regard was taken in a cabinet meeting the other day following apprehensions that the financial crunch would soon result in the state struggling, even, to find resources to meet day-to-day expenses.