Karnataka Cabinet’s ₹16,000 Crore Coastal Bonanza: Mangaluru, Udupi & Uttara Kannada Get Major Projects

The State Cabinet of Karnataka has announced a development package worth over ₹16,000 crore for coastal Karnataka on a vast list of projects ranging from tourism, infrastructure, healthcare, higher education, fisheries, road connectivity, drinking water and urban development, and more. The decision was made after the first state cabinet meeting in Mangaluru on Friday, September 18.

Karnataka Cabinet Approves ₹16,000 Crore Coastal Development Package | Photo Credit: https://x.com/DKShivakumar
Karnataka Cabinet Approves ₹16,000 Crore Coastal Development Package | Photo Credit: https://x.com/DKShivakumar

The meeting was chaired by Chief Minister D.K. Shivakumar and focused heavily on the development of Dakshina Kannada, Udupi and Uttara Kannada districts. The government said the decisions were taken to improve civic infrastructure and services as well as to develop the coastal belt as a major tourism and blue economy hub. The larger Cabinet meeting approved projects and proposals of around ₹32,611 crore, with a large portion going to the coastal region.

Tourism has emerged as one of the key focuses of the package. The Cabinet approved Coastal-Malnad Karnataka Tourism Policy-2026, which proposes the establishment of nine tourism circuits. Tourism projects will be categorised as infrastructure projects in the policy, which could help investors to make longer repayments on their loans and obtain other benefits. The government also has said it will amend Coastal Regulation Zone laws to promote tourism along the coastline.

The Cabinet has also approved the transformation of the College of Fisheries in Mangaluru into Fisheries and Blue Economy University. Student intake will increase from 60 to 200, and ₹11.5 crore will be allocated for this. A special officer will be appointed for this. In addition, the Electronics, Information Technology and Biotechnology Department has been asked to develop a plan for the establishment of Karnataka Institute of Marine Biotechnology and Blue Economy in Udupi district.

Major infrastructure projects are also included in the decisions. In principle, with an in-principle approval for a 343-kilometre coastal ferry system connecting 12 coastal centres, the Cabinet also approved a proposal for a multipurpose harbour and shipbuilding facility at Monkey Port in Uttara Kannada under the public-private partnership model with an estimated investment of ₹6,925 crore. The expansion of Karwar Airport and the introduction of civilian flight operations have also received approval, subject to clearance from the Indian Navy.

Healthcare infrastructure also received a lot of attention. The government gave approval for the establishment of Kidwai Memorial Institute of Oncology and Jayadeva Institute of Cardiovascular Sciences in Mangaluru in principle. The Cabinet also approved 200 additional beds at Wenlock Hospital and ₹425 crore for infrastructure, hostel and residential facilities at Puttur Medical College. A five-acre project for a Mangaluru Eye Hospital at Kadri has also been approved.

Mangaluru city will receive ₹400 crore for road and infrastructure development, including works to repair damaged roads and improve urban connectivity. The Cabinet also approved ₹20 crore for a boat shelter at Ullal-Kotepura and ₹125.43 crore for the development of the Gurupura River under a PPP model. The government has separately granted in-principle approval to examine the technical and financial feasibility of a Mangaluru Water Metro project covering the Gurupura and Nethravathi rivers.

Several eco-tourism activities have been completed. Around ₹307.71 crore has been proposed for developing seven islands in Karwar, Bhatkal and Ankola taluks as eco-friendly tourist destinations. Another ₹279.03 crore has been earmarked for developing Ayaba, Dariya and Malpe islands in Udupi district as eco-tourism destinations. Mangaluru Lighthouse tourism and hospitality infrastructure has also been approved at an estimated cost of ₹60.34 crore.

The Cabinet has also approved ₹167.11 crore for pending drinking-water projects in Kundapur, Udupi and Puttur, while ₹94 crore has been allocated for drinking-water supply in Vitla town. Additional initiatives cover fisheries, sports, bridges, urban infrastructure and coastal tourism destinations like Kodikal, Thannirbhavi, Trasi and Malpe.

Key Approvals at a Glance

  • ₹16,000+ crore coastal development package
  • 343-km coastal ferry system connecting 12 centres
  • ₹400 crore for Mangaluru roads and infrastructure
  • ₹425 crore for Puttur Medical College infrastructure
  • ₹6,925 crore multipurpose harbour and shipyard at Monkey Port
  • ₹307.71 crore for eco-tourism development of seven Uttara Kannada islands
  • ₹279.03 crore for eco-tourism projects in Udupi islands
  • ₹125.43 crore for Gurupura River development
  • ₹167.11 crore for pending drinking-water projects
  • ₹60.34 crore for tourism and hospitality infrastructure near Mangaluru Lighthouse
  • ₹94 crore for drinking-water supply in Vitla

Cabinet decisions are part of a broader development agenda in many sectors of coastal Karnataka. Tourism, maritime infrastructure, health, education, fisheries and urban development will form the basis of many major projects in the region over the coming years.