Kochi Corporation bets on ₹1,500-cr makeover to tap Centre’s Urban Challenge Fund

Kochi: Kochi Corporation has drawn up an ambitious infrastructure wishlist worth over ₹1,500 crore, spanning mobility hubs, civic infrastructure, cultural institutions, rehabilitation facilities and waste management projects, as it seeks to secure funding under the Union government’s Urban Challenge Fund (UCF).

The Kochi Municipal Corporation council on Tuesday approved a concept note outlining 30 key projects under its broader ‘Kochi@2050’ development blueprint. The proposal will now be forwarded to the state government, following which Detailed Project Reports (DPRs) will be prepared for projects cleared by the government for submission to the Centre.

The UCF, operational from 2026 to 2031, seeks to encourage urban local bodies to adopt market-oriented financing models. Under the scheme, the Centre will provide a grant covering 25% of the project cost, while at least 50% of the funding must be mobilised through municipal bonds, commercial bank borrowings and public-private partnerships (PPPs).

The proposed projects include several major infrastructure investments. The Kaloor Integrated Mobility Hub is estimated to cost ₹150–200 crore, while the Vypeen Integrated Mobility Hub is pegged at ₹75–100 crore. Modernisation of city bus terminals is expected to require another ₹50–75 crore.

Among the other major proposals are the Kochi Civic Tower at Kacherippady (₹175 crore) and a Kochi 3D Digital Twin and Urban Intelligence Platform (₹35 crore), aimed at strengthening technology-driven urban planning and management.

The cultural and welfare projects include a ₹70-crore transformation of the Palluruthy Relief Settlement into an integrated rehabilitation, care and livelihood campus. The proposal also includes an institution in the name of veteran singer K J Yesudas at the historic Kokers theatre site in Fort Kochi.

The plan is to transform the Kokers site into a major cultural destination at ₹80 crore, celebrating music, cinema, performing arts and the legacy of Yesudas.

In the waste management and sanitation sector, the corporation has proposed a circular resource recovery and construction waste processing facility at Brahmapuram for ₹32 crore and a modernised abattoir in West Kochi at an estimated cost of ₹20 crore.

Mayor V K Minimol said Kochi was poised to become the first local administrative body in the State to submit project proposals under the UCF. Of the ₹5,000 crore earmarked for Keralam under the scheme, funds will be disbursed on a first-come, first-served basis.

“Revenue-generating projects have been prioritised as per the UCF guidelines. The concept note will be updated based on feasible projects proposed by councillors and the identification of more land. Municipal bonds and green bonds will be prioritised as funding sources apart from the UCF,” the Mayor said.

However, the emphasis on revenue-generating projects drew reservations from the opposition benches. LDF parliamentary party leader V A Sreejith cautioned against an excessive focus on commercially viable ventures, arguing that inclusive development required equal attention to basic livelihoods and public welfare.

He also questioned the selection of cultural projects, pointing out that while an institution in the name of K J Yesudas had been proposed, prominent cultural figures such as literary scholar M K Sanoo and renowned ghazal artist Umbayi had been left out. Responding to the criticism, Minimol clarified that the proposal would be restructured as a broader cultural centre.

BJP councillor Priya Prasanth raised concerns over the possible diversion of land currently earmarked for municipal welfare schemes to revenue-generating projects. She specifically questioned the inclusion of commercial components in the proposed redevelopment of the Palluruthy Relief Settlement.

Welfare Standing Committee chairperson Antony Painuthara, however, assured the council that the rehabilitation project would be implemented without disturbing the peace or daily lives of the settlement's residents. He maintained that the revenue generated by the proposed facilities would help ensure the institution’s long-term financial viability.

The concept note will now undergo scrutiny at the state level, with only the projects cleared by the government proceeding to the DPR stage for submission to the Centre. For Kochi, the immediate challenge is to translate its long-term urban vision into financially viable projects while addressing concerns over the balance between commercial returns and public welfare.