Talking to reporters after a special cabinet meeting here, Chandy said it has been decided to pay all social welfare pensions with pending arrears before Onam festival.
"An amount of Rs 700 crore was required for this", he said, adding, officials have been directed to ensure that the pension amount reach the beneficiaries on time.
In an another major financial commitment, the cabinet sanctioned an amount of Rs 552.27 crore on three different heads for the financially sick Kerala State Road Transport Corporation.
An amount of Rs 52.27 crore has been approved under Plan Fund and Rs 200 crore from Capital Expenditure Fund for purchasing new buses. The government would extend guarantee for the Corporation for taking loan of Rs 300 crores for its functioning, he said.
For market intervention during the Onam festival season, Rs 50 crore has been sanctioned for the Kerala Civil Supplies Corporation.
Chandy said the Chief Secretary has been asked to prepare a report on the state's stand on the changes to be made on the Coastal Regulation Zone Management Act.
The report after the approval of the cabinet would be presented to the seven-member team from Centre that will be visiting the state tomorrow to take a on-the-spot study of the situation following the implementation of the Act, he said.
The state had already expressed its strong resentment on various provisions in the Act which cause great difficulties to people living in the coastal areas especially fishermen community, he said.
"Fishermen community was finding it difficult even to repair their homes due to the provisions in the Act," he said.
The Fisheries, Local Administration, Tourism and Industries departments have already given their suggestions, he added.