Due to the objection raised by the Kerala University in running the medical college in this state collecting capitation fee from the students, the T.D.M.C. management ran into financial problems and the Kerala Government came forward for their help and took over the management of the institution from 17th October 1967 for a period of five years initially, under an agreement executed between the T.D.Medical College Trust and the Government. The number of seats for the M.B.B.S course in T.D. Medical College, Alappuzha was 50 to begin with. It was raised to 100 in 1967. But as per the recommendation of the Indian Medical Council, the number was again reduced to 80 in 1973. It was again raised to 100 as per the recommendation of the Indian Medical Council in 1979.Now the number of seats has raised to 150 from the academic year 2007-08 onwards. Post Graduate Course in Medicine and Surgery (2 seats each) were started in the year 1982-83 and Paramedical Course for MLT was started in the year 1985-86 with 15 seats. Diploma Course in Pharmacy was also started with 35 seats and later it increased to 40 seats. But now intake in MBBS 175 seat.