The long-delayed redevelopment of Thiruvananthapuram’s historic Chalai market could soon gather momentum, as the Kerala government seeks funding under the Union government’s newly launched Urban Challenge Scheme. Authorities aim to secure one-third of the project’s estimated Rs 2 billion cost through this Central initiative, recently introduced in the Union Budget.

Spearheaded by Smart City Thiruvananthapuram Ltd (SCTL), the redevelopment is planned in four phases. Phase I, which involves upgrading the internal road network, is nearing completion. However, financial constraints have stalled subsequent phases.

“We’ve been exploring funding avenues, and the Centre has responded favourably. Discussions are at an advanced stage, and we are optimistic about receiving support,” said an official. A notable feature of the upgrade will be the installation of umbrella-style covers along the market’s main thoroughfare.

The project was adopted in 2022 as a contingency measure when other redevelopment efforts—such as the Palayam market and Rajaji Nagar upgrades—faced delays. To avoid forfeiting already sanctioned funds, authorities pivoted towards Chalai. However, as the original projects resumed, funding for Chalai became limited, prompting a fresh search for financial backing.

SCTL has already spent around Rs 150 million upgrading internal roads, with the final cost of Phase I expected to reach Rs 300 million. Work on the main arterial stretch is set to begin shortly. Another central component of the project is a proposed multi-level car park on corporation-owned land within the market area.

The state hopes that funding under the Urban Challenge Scheme will ensure steady progress, helping to restore one of the city’s oldest and most vibrant commercial hubs while easing congestion and enhancing infrastructure.