The decision to constitute the group was taken at a special cabinet meeting hours after the issue was raised vociferously by CPI(M)-led LDF opposition in the state Assembly.
Briefing reporters after the cabinet meeting, Chief Minister Oommen Chandy said the five-member Group to be headed by the Health Secretary, would take stock of the present situation and suggest measures after holding talks with district authorities.
The cabinet was of the view that though the situation was under control at present, immediate measures were necessary to check the state of affairs, Chandy said.
The government would formulate its strategy to deal with the problem after getting the report of the CMG at a special cabinet meeting on June 18, he said.
On the garbage disposal front, he said the cabinet has decided to enhance the subsidy given for compost plant in homes from 75 per cent to 90 per cent. For setting up bio-gas plant a subsidy of 75 per cent on the cost would be given.
It was also decided to commission two garbage treatment plants with modern technology, he said, adding, one would be deployed in Thiruvananthapuram with a capacity of 35 tonnes and another at Bramapuram in Kochi with a capacity of 500 tonnes by November next year.
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Earlier, raising the issue in the Assembly, members belonging to the CPI(M)-led LDF staged a walk-out charging the Government with "taking lightly" the health problems posed by the crisis in removal and processing of garbage across the state.
Responding to the opposition's notice seeking an adjournment on the issue, Chandy said the government was aware of the gravity of the issue, but its solution required a political consensus and co-operation of the opposition.
Opposition Leader V S Achuthanandan, however, held that the government was not showing sufficient seriousness on this grave issue which was affecting the health of all people and causing outbreak of various types of viral fevers, including dengue.