The State Institute of Languages was established to publish university level text books and reference books as part of a national policy on grandha academies and institutes. The Kothari Commission has recommended that medium of instruction should be in the regional language. This was discussed at a meeting attended by the education ministers of the states held in New Delhi in April 1968.The decisions taken at the meeting include to equip the teachers to teach in regional language of the State and evolve a scientific and technical terminology for this purpose. As an offshoot of the meeting, the government had decided to constitute Commission for Scientific and Technical Terminology at the Center and regional institutes/academies in various states. During the Fourth Five Year Plan period an amount of 100 Lakhs was sanctioned for each state for establishing regional institutes/grandha academies. Consequently government of Kerala has established Kerala Basha Institute on 11th of March 1968 under the department of Higher Education. A governing board consisting of six official members and three non official members was constituted in which Shri. E.M.S Namboothirippad, Chief Minister of Kerala, Shri. C.H. Muhammedkoya, Minister for Education, Shri. P. Velayudhan Nair (IAS) Finance Secretary, Shri. K.C. Shankaranarayanan (IAS), Education Secretary, Prof. Samuel Mathai, Vice Chancellor of the University of Kerala, Prof. Joseph Mundasserry, Member , State Planning Board, Shri. N.V. Krishna Warrior, Prof. C.K. Moosad and Vakkom Abdul Khadhar as members of the board. Mr. Thriguna Sen, Minister for Education, Government of India, inaugurated the activities of the institute on 16th of September 1968.