Ten colleges in the State would be, over the next three years, raised to centres of excellence. The budget for 2012-13 has earmarked Rs.10 crore for this scheme.

The UDF government's scheme of setting up an education hub - to be called ‘academic city' - to bring under one roof courses of universities world-wide has received a budgetary backing of Rs.25 lakh. The ‘knowledge city' proposed to be set up at Thodupuzha - as a centre of higher learning and research of international standards - has been given a seed fund of Rs.25 lakh.

While the proposed ‘technical university' in Thiruvananthapuram has been given Rs. .5 crore, the proposed IIT at Palakkad has been allocated Rs.5 crore.

The Finance Minister set aside Rs.20 crore as a State Award Fund for the universities; money intended to enable varsities to gain recognition from the University Grants Commission as Universities With Potential for Excellence. At present there are 16 universities across India on this list.

A VLSI Chip Design Centre will be set up at the University of Kerala in collaboration with IIT Mumbai. The budget set aside Rs.50 lakh for this.

A research scholarship scheme for meritorious students in government and aided engineering colleges would be set up this year. The ‘walk with a scholar' programme intended to mentor degree students in recognising their aptitude has been allocated Rs.50 lakh.

The budget set aside Rs.1 crore for the ‘integrated institute of science and technology' to be set up at Tirurangadi in Malappuram district. A science city will be set up in Kottayam next year, Rs.50 lakh has been set aside for this. A ‘centre for budget studies' will be set up at CUSAT, Rs.5 lakh has been set aside for this.

The Malayalam University will be given Rs.50 lakh this year and the applied science college to be set up by the IHRD at Haripad, Rs. 1 crore. An ayurveda university will be set up near Kottakkal in Malappuram district. A preliminary allocation of Rs.1 crore has been made for this.

The CAPE will set up an engineering college at Muttathara, Thiruvananthapuram and at Vadakkancheri - Rs. 5 crore has been allocated for this.