The Kerala Infrastructure Investment Fund Board (KIIFB) has approved ₹73.21 crore for the first phase to develop Connolly Canal in Kozhikode under the 'Canal City' project. The funding was greenlit during a KIIFB meeting chaired by Chief Minister Pinarayi Vijayan on February 13. The initial phase targets the section of Connolly Canal from Arayidathupalam to Eranhipalam. Alongside this, KIIFB sanctioned ₹166.55 crore for the development of the Pavangad-Ulliyeri-Kuttiyadi-Chovva road. The first phase includes improving the 17.2 km stretch from Pavangad to Ulliyeri with ₹82.36 crore allocated. Current road widening is underway, with plans for drainage, carriageway, footpath, and a utility corridor. The second phase will cover the stretch from Ulliyeri to Kuttiyadi, for which ₹168 crore has been approved. Land acquisition for this phase will begin soon. Public Works and Tourism Minister P.A. Mohamed Riyas said, "Water transport, goods movement, and tourism would be developed under the ‘Canal City’ project." He added that the road project would tackle travel problems for local residents. This initiative promises to boost infrastructure and connectivity in Kozhikode.