Facilitation of land, which had been holding up the project, had the government nod, Vakkom Purushottaman, Kerala finance minister, holding the Chief Minister's charge told reporters, after a meeting of the Cabinet on Wednesday.
Mr Chandy, convalescing after a fracture and hip surgery during his trip to Davos at the World Economic Forum, is expected back in Kerala Capital on Thursday.
The Kozhikode Dreamcity project, intended to include north Kerala in the state's tourism strides, is planned as a comprehensive infrastructure facility including an amusement theme park and family entertainment centre.
A state government firm TRKL (Tourist Resort Kerala Limited) had been empowered to develop it in equity participation from private tourism players.
The State government has allowed transfer of 13 acres from Kerala Water Authority to TRKL for the Dreamcity project.
"Detailing on the overall size of Dreamcity project will be finalised in next Cabinet meeting in Mr Chandy's presence," Mr Purushottaman said. Land acquisition for the Rs 65.5-crore Meenachil River Valley Project will also be expediated through fasttrack division of th State government, he added.
The Cabinet also gave administrative sanction for Rs 19.42-crore national coir development and research centre in Thiruvananthapuram. The State government will spend Rs 3.95 crore in acquiring land for the national centre, he said.