In a major shake-up for Kerala’s maritime sector, the state government has dissolved the Kerala Maritime Board (KMB) after a report alleged a series of financial and administrative lapses.
The move, announced by Dr Ratan Kelkar, Secretary, Department of Fisheries and Ports, in a gazette notification dated July 6, has now sparked questions about the future of Kerala’s blue economy.
Tasked with handling various aspects of the state’s blue economy, such as fisheries, minor ports, and maritime education (except major ports), the KMB came into effect under the Kerala Maritime Board Act, 2017. The July 6 notification disbanded the KMB in line with Sections 90(1) and 90(2) of this Act, noting that the board had failed to discharge its responsibilities effectively.
Specifically, it pointed out that the KMB had failed to submit its Annual Administration Reports for the financial years 2022-23, 2023-24, and 2024-25, which prevented the state government from presenting them in the Legislative Assembly in line with Section 88(2) of the Act.
It also cited a report from the Comptroller and Auditor General (CAG) that had audited the state’s finances for FY2023, which flagged issues with port revenue, expenditure outside budgetary provisions, and utilisation of the allocated state budget.
"(These) reflect severe financial indiscipline and the Board's failure to safeguard the interests of the Government," the gazette notification read.
Former ports minister V.N. Vasavan, however, criticised the dissolution of the KMB, calling it a move to completely hand over Vizhinjam to the private sector.
He further added that the KMB leadership had been engaged with a number of important projects, and that the present board had no obligation to implement the findings of the CAG report.
The move comes just weeks after the V.D. Satheesan government announced its plans for Mission Samudram, which aims to develop Kerala into a "port state" by linking roads, railways, waterways, industrial zones and greenfield cities into a unified maritime economy.
A key part of this policy is a renewed focus on Kerala’s 17 non-major ports, as a part of which the state government plans to expedite the development of four of these 17 ports—Azhikkal, Kollam, Beypore, and Kodungallur.
A comprehensive maritime policy was to be developed for the remaining non-major ports, alongside private stakeholders.
Notably, the state government also cited a June 10 letter from the KMB, which had urged it to declare as many as 13 of Kerala’s non-major ports as “non-functional” under the Indian Ports Act, 2025, because they lacked infrastructure and operations.
The KMB had also failed to comply with the Kerala government’s instructions regarding the compilation of the State Maritime and Water Transport Plan 2047, as a result of which its 12-member board, led by Chairman N.S. Pillai, has been dissolved.
The decision to dissolve the KMB is being seen as a firm intent of the state government to modernise its whole maritime sector by cracking down on governance issues and financial lapses in public sector bodies.
In another gazette notification, the Kerala government appointed Dr Kelkar as the administrator of the KMB.
He will take charge immediately "until the period ending 31st March 2027 or until the Board is reconstituted, whichever is earlier", the notification read.
With no further word yet on whether the state maritime authority will be replaced by direct oversight from the state government or if a special task force will be formed under Dr Kelkar until a more permanent solution is found, it is yet to be seen how this move will impact Mission Samudram, going forward.
With inputs from Nirmal Jovial
