He was 84 and is survived by wife, a son and daughter.
Kurup, who was ailing for some time, was admitted to a private hospital here two days ago and was on ventilator support.
He breathed his last at 4.49 PM, hospital sources said.
In addition to his valuable contributions to Malayalam literature, he is one of the leading lyricists in Malayalam film, drama and album industry.
He was part of many dramas by Kerala People's Arts Club (KPAC), which has made a major mark in the revolutionary movements of Kerala.
Kurup also contributed to progressive movements in the state through his theatre songs and writings. He has penned over 900 songs in over 200 films, besides numerous songs for plays and albums.
A recipient of several awards, the nation honoured him with Jnanpith in 2007 and also conferred on him the Padma Vibhushan in 2011.
Ottaplakkal Nambiyadikkal Velu Kurup, popularly known
asONV, had made his presence felt in the state's cultural, social, educational and political fields for the last six decades.
Kurup, a Left sympathiser, who made his leanings known through his writings, had also tried his luck in politics by unsuccessfully contesting as LDF supported independent candidate from Thiruvananthapuram Parliamentary seat in 1989.
He also took up various environmental issues, including the Silent Valley agitation. His poem, 'Bhumikkoru Charamageetham' (a Requiem for Dying Earth) in which he mourns for near dying Mother Earth, had won him accolades.
His famous theatre songs include 'Ponnarivalambiliye', 'Ambiliammava', 'Bali Kudeerangale', 'Pambukalkku Malamilla'.
ONV's partnerships with Salil Chowdhury and M B Sreenivasan were very popular in the Malayalam film industry.
His hit songs were with well known music directors, including G Devarajan, V Dakshinamoorthy, M S Baburaj, Raveendran, M K Arjunan, K Raghavan, Shyam, Johnson, Mohan Sithara, M G Radhakrishnan, S P Venkatesh, Ouseppachan and Vidhyadharan.
In the literary front, he won Kerala Sahitya Akademi Award in 1971 for 'Agnisalabhangal', Kendra Sahitaya Akademi Award in 1975 for 'Aksharam' besides Ezhutachan Puraskaram, Soviet Land Nehru Puraskaram, Vayalar Ramavarama Puraskaram, Mahakavi Ulloor Puraskaram, Asan Puraskaram and Odakkuzhal Award.
Chief Minister Oommen Chandy, his cabinet colleagues, were among those who condoled ONV's death.
"Keralites have lost a poet who immensely loved nature and people. He brought glory to the state by winning several prestigious awards, including Jnanpith. His demise is a great loss to the state's cultural and literary fields of the state," he said in a condolence message.
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