The hospital will be set up with Rs.5.6 million assistance from the central government.
In a statement here Thursday, the state fisheries ministry said the hospital would come up under the Kerala University of Fisheries and Ocean Studies. It has been named the Aquatic Animal Health Laboratory.
"This is going to be a great boon for those people who are into aquaculture and the 'hospital' will act as a one-stop place for technical assistance, help and guidance," Babu said.
The hospital will also address pollution-related problems faced by the fisheries sector.
"The central assistance will come by way of two equal instalments and the Kerala Fisheries University will also chip in," Babu said.