The decision follows the Centre's refusal to reduce the Out Turn Ratio (OTR) for paddy procurement from 68 per cent to 64.5 per cent. The OTR determines the quantity of rice obtained from a quintal of paddy. Mill owners had earlier declined to procure paddy on time, citing their inability to achieve the Centre-fixed 68 per cent OTR during processing. In 2018, the State government had issued an order undertaking to bear the financial liability arising from any reduction in OTR until the Centre revised it. As the revision did not materialise, the Cabinet has now approved compensation to Supplyco.

In another major decision, the Cabinet cleared a ₹1,016.24 crore loan for the second phase of the Kochi Metro project. Kochi Metro Rail Limited (KMRL) has been authorised to secure the loan from the Asian Infrastructure Investment Bank (AIIB) for the stretch from Jawaharlal Nehru Stadium to Infopark via Kakkanad. KMRL has also been permitted to enter into the loan and project agreements with the AIIB.

Kuttanad Package restructured

The Cabinet approved restructuring of the Kuttanad Development Coordination Council as part of implementing the second phase of the Kuttanad Package. A Central Project Processing Unit for Kuttanad Regional Development (CPPU-KRD) will be constituted under the State Planning Board.

The Chief Secretary will serve as Convenor of the Council, with representation from key sectors including agriculture, water resources, fisheries and animal husbandry. Implementation and Technical Committees will be formed at the district level in Alappuzha, Kottayam and Pathanamthitta, functioning as sub-committees of the District Planning Committees.

Projects up to ₹5 crore may receive district-level administrative sanction in accordance with CPPU-KRD guidelines. A dedicated Kuttanad Cell will also be formed under the Planning and Economic Affairs Department as the state-level secretariat.

₹741 crore expansion plan for Kerala Paper Products Limited

The Cabinet approved a ₹741 crore expansion project for Kerala Paper Products Limited (KPPL), the state-owned company formed after the takeover of the closed Hindustan Newsprint Limited unit at Velloor in 2019.

The project aims to enhance production capacity and diversify products. The State will contribute ₹175 crore as equity, KSIDC will invest ₹25 crore, and ₹541 crore will be raised through a bank consortium. Upon completion within 24 months, KPPL is projected to achieve an annual turnover of ₹1,500 crore. The expansion also envisions the creation of a 'paper cluster' to meet rising domestic demand for writing, printing and speciality paper products.

New Women's Policy 2026 approved

The Cabinet approved the State Women's Policy 2026, revising the 2009 policy to reflect contemporary needs. The new framework prioritises women's safety, employment rights, legal protections, and the concerns of tribal and coastal communities, with the broader objective of building a gender-just Kerala.

Draft Senior Citizens' Policy cleared

The draft State Policy for Senior Citizens 2026 was also approved, aiming to ensure dignity, welfare and active participation of elderly citizens, supported by both government and society.

Hill area development empowered committee

An empowered committee for hill area development will be constituted, chaired by the Chief Minister. Among its objectives is implementing a 'zero-casualty' policy to address human-wildlife conflict using modern technology and habitat restoration measures. Insurance coverage will be introduced for farmers facing crop losses due to wildlife attacks.

Ports to be developed under PPP model

The Kerala Maritime Board has been permitted to develop Kollam and Beypore ports under the Public-Private Partnership (PPP) model, subject to feasibility studies and detailed project reports.

Special courts and relief assistance

The Cabinet approved the establishment of special courts in Thiruvananthapuram and Ernakulam for NDPS cases, with four new posts created.

Financial assistance was sanctioned from the Chief Minister's Distress Relief Fund for families affected by fatal accidents and landslides.

Additional approvals

• Stamp duty concessions for select charitable and public institutions.
• A ₹50 crore additional government guarantee for the Kerala State Handicapped Welfare Corporation.
• Land transfers for public institutions and development projects.
• Approval of multiple infrastructure tenders across districts, including seawall construction, flood mitigation works, road upgrades and water supply schemes.