The academy is to come up in 2.5 acres and two places near here have been identified for the purpose.
"I love Kerala. I love your dedication, commitment. There is cent per cent literacy...Here', Khan told reporters here when asked why he chose Kerala for the academy.
"Many young musicians are struggling for gurus. The students should practice under the supervision of the gurus as it was more healthy. My purpose is not only to teach sarod, but music in general," he said, adding, he would like to see a Keralite play sarod.
Khan along with his two sons -- Amaan and Ayaan visited both sites.
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"For a musician our bank balance is only love and blessings of people who love music," said Khan.
The musician would be performing at the Fine arts hall here in connection with the inauguration of the weekly cultural programme organised by the Sangeet Natak Academy and the District Administration.
Union Minister K V Thomas said he was happy that the Khan had agreed to start an academy here.