The award, carrying a cash prize of Rs 1.50 lakh, statuette, and a citation, was announced by Culture affairs Minister, K C Joseph, at a press meet here this evening.
The award is instituted after medieval poet Thunchath Ezhuthachan, revered as the father of Malayalam literature.
A towering literary figure, Sanu has authored a highly appreciated biography of saint-reformer Sree Narayana Guru and done extensive studies on works of poet Changampuzha Krishna Pillai and Vaikom Muhammad Basheer.
He was chosen for the honour in recognition of his outstanding contribution to Malayalam literature, the minister said.
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Sanu is also a former journalist and social activist who has authored over 36 books. He is a permanent member of International body for Human Rights.
The previous winners of the prestigious award include, O V Vijayan, Kamala Das, O N V Kurup, Akkitham Achuthan Namboodiripad, Sugathakumari, M Leelavathy, M T Vasudevan Nair and Attoor Ravi Varma.