AMRUT 2.0: Centre sanctions ₹60 crore for Kerala urban development
Synopsis
The Centre has cleared ₹60 crore under AMRUT 2.0 for Kerala's urban infrastructure in 2026-27 — covering six municipal corporations and three fast-growing municipalities. With the state contributing ₹40 crore and the Centre ₹20 crore, the focus is on water, sewerage, green spaces, and sustainable mobility in cities that have long outpaced their civic systems.
Key Takeaways
The Union Ministry of Housing and Urban Affairs sanctioned ₹60 crore under AMRUT 2.0 for Kerala for the 2026-27 financial year.
The Centre's share is ₹20 crore ( 33.33% ); the state must contribute ₹40 crore ( 66.67% ).
Coverage includes Kerala's six Municipal Corporations and three municipalities — Kottayam , Alappuzha , and Palakkad .
Funds will be used for drinking water , sewerage , green spaces , and sustainable urban mobility projects.
BJP leader Kummanam Rajasekharan welcomed the sanction, urging agencies to ensure efficient and transparent utilisation.
The Union Ministry of Housing and Urban Affairs has sanctioned ₹60 crore for the implementation of the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) 2.0 in Kerala for the 2026-27 financial year, under the scheme's 'Mother Sanction' mechanism. The allocation is set to fund urban infrastructure upgrades across the state's major cities, covering drinking water, sewerage, green spaces, and sustainable mobility.
Funding Breakdown
Of the total ₹60 crore sanctioned, the Centre will contribute ₹20 crore (33.33%) while the Kerala state government is required to provide the remaining ₹40 crore (66.67%), consistent with the existing cost-sharing formula under the AMRUT 2.0 framework.
Cities and Areas Covered
The AMRUT 2.0 programme in Kerala extends to the state's six Municipal Corporations as well as three major municipalities with populations exceeding one lakh — Kottayam, Alappuzha, and Palakkad. Together, these urban centres represent a significant share of Kerala's city-dwelling population.
What the Funds Will Be Used For
The sanctioned amount is earmarked for strengthening drinking water supply systems, expanding sewerage and wastewater management infrastructure, developing green public spaces, and promoting sustainable urban mobility. These are aligned with AMRUT 2.0's national mandate of creating water-secure and environmentally resilient cities.
Political Response and Implementation Expectations
Bharatiya Janata Party (BJP) National Executive Committee member Kummanam Rajasekharan welcomed the sanction on Thursday, 23 July, calling it a demonstration of the Prime Minister Narendra Modi-led Centre's commitment to Kerala's development without political bias. Rajasekharan urged urban local bodies and implementing agencies to deploy the funds efficiently, transparently, and within stipulated timelines. This comes amid ongoing debates about Centre-state fiscal relations, with Kerala having previously flagged concerns about delays in federal fund releases. The AMRUT 2.0 sanction, if executed on schedule, could provide a fillip to urban infrastructure in a state that has consistently ranked high on human development but faces ageing civic systems in several cities.
Point of View
With its stricter Mother Sanction mechanism, translates into completed infrastructure rather than sanctioned allocations will be the actual test of this commitment.
NationPress
23 Jul 2026
Frequently Asked Questions
What is AMRUT 2.0 and what does it aim to do?
AMRUT 2.0 (Atal Mission for Rejuvenation and Urban Transformation 2.0) is a central government scheme focused on making cities water-secure and improving urban infrastructure. It targets drinking water supply, sewerage, green spaces, and sustainable mobility across urban local bodies in India.
How much has the Centre sanctioned for Kerala under AMRUT 2.0?
The Centre has sanctioned ₹60 crore for Kerala under AMRUT 2.0 for the 2026-27 financial year. Of this, the Central share is ₹20 crore (33.33%) and the state's contribution is ₹40 crore (66.67%).
Which cities in Kerala are covered under AMRUT 2.0?
The programme covers Kerala's six Municipal Corporations and three major municipalities — Kottayam, Alappuzha, and Palakkad — each with populations exceeding one lakh.
What will the sanctioned funds be used for in Kerala?
The funds are earmarked for strengthening drinking water supply systems, expanding sewerage and wastewater management infrastructure, developing green public spaces, and promoting sustainable urban mobility across covered cities.
Who welcomed the AMRUT 2.0 sanction for Kerala?
BJP National Executive Committee member Kummanam Rajasekharan welcomed the sanction on 23 July, describing it as evidence of the Modi-led Centre's commitment to Kerala's development irrespective of political considerations. He also called on implementing agencies to ensure timely and transparent use of the funds.
