Kerala Government has sanctioned ₹9 crore (US$0.94 million) to Kerala Rubber Ltd (KRL) for developing an integrated rubber-based industrial complex at Velloor, Kottayam, Kerala, India. 

The project involves the development of an integrated rubber industrial complex at Velloor, Kottayam, with an estimated investment of ₹335.05 crore (US$35 million). Administrative approval has been granted to KRL to develop the facility as a hub for natural rubber-based and allied industries. The initiative aims to encourage value-added rubber manufacturing, attract private-sector investment, and expand markets for natural rubber produced locally. 

The project is planned to be developed in multiple phases through a combination of government funding and private-sector participation. Of the total estimated investment, ₹204.54 crore will be allocated to the engineering, procurement and construction (EPC) contract, while ₹130.51 crore is expected to be spent under the continuing scheme during 2026-27. The complex is targeted for completion in 2027-28. Designed as a cluster for natural rubber-based and allied industries, the facility will offer industrial space along with common infrastructure to support manufacturing units. 

The complex will emphasise the production of value-added and non-tyre rubber products, offering enterprises the necessary facilities to set up manufacturing units and develop innovative products. The initiative is also aimed at strengthening downstream rubber processing in Kerala, a major natural rubber-producing state in India. By expanding local manufacturing and processing capacity, the project is expected to enable the state to capture greater value from its rubber industry rather than relying largely on the sale of raw rubber. 

The proposed common infrastructure facilities are expected to lower the initial infrastructure and setup costs for companies seeking to enter or expand in the rubber products industry. The public-private partnership model will combine government-backed infrastructure development with private investment in manufacturing and related activities, supporting the growth of the rubber-based industrial ecosystem.