MANGALURU: The state cabinet on Friday unveiled a development package worth over Rs 16,000 crore for coastal Karnataka, approving an ambitious mix of tourism, infrastructure, higher education, healthcare, fisheries, road connectivity and urban development projects at its first-ever meeting held in Mangaluru.
Chairing the meeting, Chief Minister D K Shivakumar announced a series of decisions aimed at positioning the coast as a major tourism and blue economy hub while strengthening civic infrastructure and public services across Dakshina Kannada, Udupi and Uttara Kannada districts.
Tourism emerged as the centrepiece of the cabinet decisions with the approval of the Coastal-Malnad Karnataka Tourism Policy-2026. The policy envisages the creation of nine tourism circuits and treats tourism projects as infrastructure projects, enabling investors to avail longer loan repayment periods and other incentives. Shivakumar said amendments to Coastal Regulation Zone (CRZ) norms would be pursued to facilitate tourism-friendly development along the coast.
The cabinet approved the upgradation of the College of Fisheries, Mangaluru, into a Fisheries and Blue Economy University, increasing student intake from 60 to 200. An allocation of Rs 11.5 crore has been sanctioned and a special officer will be appointed to oversee the transition. The Electronics, IT and BT Department has also been directed to prepare a blueprint for establishing a Karnataka Institute of Marine Biotechnology and Blue Economy in Udupi district.
Among major infrastructure initiatives, the cabinet accorded in-principle approval for a 343-km Coastal Ferry System connecting 12 coastal centres and cleared the development of a Rs 6,925-crore multipurpose harbour and shipyard at Monkey Port in Uttara Kannada under the PPP model.
Approval was also given to expand Karwar Airport, subject to the Indian Navy’s clearance, enabling civilian flight operations.
Healthcare received a significant push with in-principle approval for Kidwai Cancer Institute and Jayadeva Institute of Cardiovascular Sciences units in Mangaluru, 200 additional beds at Wenlock Hospital, Rs 425 crore for Puttur Medical College infrastructure and approval for the Mangaluru Eye Project on five acres at Kadri.
The cabinet also sanctioned Rs 400 crore for roads and infrastructure in Mangaluru city besides approving tourism projects at Gurupura River, Kodikal, Thannirbhavi, Trasi, Malpe and other coastal destinations. Several drinking water, bridge, fisheries, sports and urban infrastructure projects were also cleared.
KEY APPROVALS
343-km Coastal Ferry System connecting 12 centres
Rs 400 cr for Mangaluru city roads and infrastructure
Rs 20 cr for country boat shelter at Ullal-Kotepura
Rs 425 cr for building, hostel and quarters at Puttur Medical College
Rs 307.71 cr for development of 7 islands in Karwar, Bhatkal and Ankola taluks of Uttara Kannada district as eco-friendly tourist destinations under PPP model, DBFOT basis
Rs 279.03 cr for development of Ayaba, Dariya and Malpe islands in Udupi district as Eco-Tourism destinations under PPP model on DBFOT basis at a cost of
-Development of Gurupura River in Mangalore under PPP model on DBFOT basis at an estimated cost of Rs 125.43 cr
Rs 167.11 cr for KUIDFC for pending works of water supply in Kundapur, Udupi, Puttur.
-Development tourism and hospitality infrastructure in the area around the Lighthouse area of Mangaluru under the PPP model on DBFOT basis at a cost of Rs 60.34 cr
Rs 94 cr for water supply in Vitla town
Rs 30 crore for Special Maritime Zone and Special Processing Zone under Karnataka Mariculture Policy
Rs 238 cr for tourism development in Kodikal, Thannirbhavi, Trasi