Kerala Urban Policy 2025

Kerala, known for its unique geography and high human development index, is facing rapid urbanisation combined with growing climate risks. In response, the state formed the Kerala Urban Policy Commission (KUPC) in December 2023.

The commission delivered a comprehensive 25-year urban roadmap in March 2025, marking a significant step in urban policy in India. This roadmap aims to transform Kerala’s urban centres into climate-aware, community-driven ecosystems, setting a new benchmark in Kerala governance. The Kerala Urban Policy demonstrates a pioneering approach to sustainable urban planning in India.

Context: Urban Growth and Climate Challenges

Kerala’s urban population is expected to exceed 80% by 2050, resulting in considerable urban growth in Kerala. Traditional centralised urban models have struggled to address the state’s unique landscape and culture. At the same time, climate threats such as floods, landslides, and coastal erosion are intensifying.

The Kerala Urban Policy for climate change adaptation was designed to tackle these challenges through a systemic, place-based approach rather than reactive fixes.

Commission’s Approach and Methodology

The KUPC conducted 33 detailed studies covering land use, water systems, finance, and social dynamics. It also held 53 district-level dialogues with stakeholders, including mayors, NGOs, local workers, and residents. This inclusive approach ensured community participation in Kerala’s urban policy-making, blending census data, satellite imagery, and local narratives.

The resulting Kerala Urban Policy roadmap is a 2,359-page document integrating scientific evidence with lived experience, making the recommendations practical and actionable.

Key Recommendations of Kerala Urban Policy

The commission outlined 10 thematic pillars, focusing on sustainability, climate resilience, and governance reforms. Major recommendations include:

1. Climate and risk-aware zoning based on hazard mapping for floods, landslides, and coastal threats. This is a key step in climate-resilient urban planning in Kerala.

2. Establishment of a digital data observatory at the Kerala Institute of Local Administration for real-time urban intelligence.

3. Introduction of green fees on eco-sensitive projects to fund resilience measures and parametric climate insurance for disasters.

4. Implementation of municipal bonds for large cities and pooled bonds for smaller towns to enhance Kerala's urban finance reforms through municipal bonds.

5. Governance reforms, including elected city cabinets and specialist municipal cadres, are to improve administrative efficiency.

6. Promotion of place-based economic revival, leveraging regional strengths like FinTech, knowledge corridors, and smart-industrial zones.

7. Revival of commons, wetlands, waterways, and heritage zones, along with city health councils to support vulnerable groups.

Other recommendations also include tackling Kerala's infrastructure challenges and improving Kerala's housing and land use policy for sustainable development. The Kerala Urban Policy is designed to ensure long-term resilience and community empowerment.

Unique Features of Kerala Urban Policy

What makes the Kerala Urban Policy distinctive is its integration of local knowledge with scientific data. Community participation in Kerala’s urban policy-making ensures that fisherfolk, youth activists, and vendors contribute to municipal dashboards and hazard maps.

This co-produced urban intelligence system enables responsive governance, embedding climate resilience in Kerala across sectors rather than treating it as an add-on. Additionally, fiscal autonomy through green levies and municipal bonds allows cities to fund their own sustainable initiatives. The Kerala Urban Policy also strengthens the role of local governance in Kerala’s urban planning, making city-level decision-making more effective.

Broader Significance

The Kerala Urban Policy demonstrates how sustainable cities in Kerala can be designed with proactive governance. By empowering local bodies financially and administratively, the policy sets a new model for urban policy in India.

Kerala’s approach to flood and landslide risk in cities is now integrated into long-term planning, showing the state’s leadership in Kerala Urban Policy for climate change adaptation.

Final Thoughts

Kerala is experiencing rapid urbanisation alongside increasing climate risks such as floods, landslides, and coastal erosion. To address these challenges, the state formed the Kerala Urban Policy Commission (KUPC) in 2023, which released a 25-year urban roadmap in 2025. The Kerala Urban Policy focuses on creating climate-resilient, community-driven cities that balance scientific data with local knowledge.

The commission conducted extensive studies on land use, water systems, finance, and social dynamics, while engaging local communities to ensure inclusive governance. Key recommendations include climate-aware zoning, municipal bonds for urban finance, green fees on eco-sensitive projects, and revival of commons and wetlands.

The Kerala Urban Policy also introduces digital tools for real-time urban monitoring and strengthens the role of local governance in city planning. By integrating climate resilience into every sector, it sets a benchmark for sustainable cities in Kerala.