Thiruvananthapuram, Kerala received a huge incentive of $Rs 250 crore under the Special Assistance Scheme to States for Capital Investment 2025-26 for Technocity-Technopark Phase IV project.
A government statement on Friday said the incentive would provide new impetus to the state’s long-term vision for sustainable, technology-driven urban development.
This development represents a significant milestone in Kerala’s urban and technological growth, strengthening Thiruvananthapuram and the state’s position as a leading innovation and knowledge hub in the country.
At the national level, the evaluation committee recommended total incentives of $1,790 crore for selected projects across Group A, B and C states under SSASCI 2025-26, the statement said, adding that the recommendations, approved by the competent authority, have been referred to the Finance Ministry for further action.
According to an office memorandum dated February 24, 2026, issued by the Ministry of Housing and Urban Affairs, the evaluation committee formed under the Challenge Mode recommended incentives for selected Greenfield City projects based on certain themes across the country.
The committee has earmarked the Kerala project $200 Crores for the concept plan and $50 Crore to start the project, taking the total recommended incentive to $250 Crores.
It also said that Kerala has been included among the Group A and B countries selected under the reform-linked incentive component of SSASCI, reflecting its compliance with scheduled urban reforms and readiness for large-scale capital investment projects.
The SSASCI nodal agency for the state is AMRUT Kerala.
The detailed presentation of the project before the evaluation committee was made by Mission Director Suraj Shaji IAS, who outlined Kerala’s institutional readiness, infrastructure framework and sustainable urban planning roadmap for the fourth phase of Technocity-Technopark, the statement added.
“The proposal details expansion of Kerala’s IT ecosystem through Technopark network, integrated urban infrastructure planning, employment generation potential, and theme-based development model with a strong focus on sustainability.”
According to officials, the recommended incentive will accelerate the development of a next-generation technology city by integrating workplace, housing, mobility, and social infrastructure.
“The fourth phase of Technocity-Technopark is expected to strengthen Kerala’s position in the national and global IT and knowledge economy, attract high-value investments, generate significant direct and indirect employment opportunities, and address unplanned urban sprawl through compact, transport-oriented development,” the statement said.
The Kerala Urban Affairs Department has envisioned the project as a model of new urban development in keeping with future urban needs, she said.
She added that the plan includes integrated land use planning, smart water and waste management systems, adoption of renewable energy, effective public transportation connectivity, climate-resistant infrastructure, and digital governance systems, with the aim of ensuring sustainable growth and improving the quality of life.
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