The centre will be brought under the Union Ministry of Earth Sciences, thus considerably augmenting Ministry's research programmes in the field of earth system sciences, an official statement after the Union Cabinet approved the proposal.
The development comes after the Kerala Government came up with a proposal for taking over of the institute by the Central Government.
The Ministry had then constituted an expert committee to examine the request.
The centre will carry out multi-disciplinary research in frontier areas of solid earth science and provide services on a nationwide scale by applying this knowledge for sustainable development of natural resources and management of natural hazards.
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The proposed thrust areas of research will be crustal evolution and geodynamics, sedimentology and depositional processes, coastal dynamics and cloud microphysics.
The total estimated budget requirements of centre will be Rs 128.67 crore for the remaining period of the 12th Five Year Plan.
Research activities of the centre will cover the whole country with particular focus on south India, the statement said.