Her nephew performed the last rites and lit the funeral pyre as hundreds of admirers and members of the film fraternity watched.
Earlier, Chief Minister Oommen Chandy, leaders of various political parties, film personalities and fans paid their last respects as her body was brought to her home from Hyderabad this afternoon.
Kalpana (51), who appeared in more than 300 films, died on Monday in Hyderabad following cardiac arrest.
Her sisters and film actresses Urvashi and Kalaranjini were seen inconsolable as her body was brought to her flat at Thripunithura.
Kalpana is survived by a daughter.
She was married to film director Anil Kumar but the couple got divorced in 2012.
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