Announcing the Centre’s decision on Sunday, Union Minister of State for Fisheries and Animal Husbandry, George Kurian, stated that the Rs 1.77 billion development project received approval based on a Detailed Project Report (DPR) submitted by the state government. The funding arrangement is set at a 60:40 ratio, with Rs 1.06 billion allocated under the Pradhan Mantri Matsya Sampada Yojana (PMMSY) and the remaining Rs 708 million to be contributed by the state.

Kurian explained that the harbour expansion will allow docking for up to 415 mechanised fishing boats, enabling the import of 38,142 metric tonnes of fish per year. The project is expected to benefit around 10,000 people directly, with an equal number indirectly. Infrastructure improvements worth Rs 1.64 billion will include modernisation of internal roads, establishment of new drainage systems, parking areas, and the renovation of loading areas. The remaining funds will support coastal protection and the implementation of a smart green port project, with the state government overseeing the harbour development.

Additionally, Kurian reported that the Centre has instructed the state government to implement safety measures to prevent further accidents at Muthalapozhi. The Centre also selected six fishing villages in Kerala for its Climate Resilient Village programme and plans to modernise five ports within the state.