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Kerala's Industrial Leap: Rs 300 Crore Boost for Palakkad Smart City

The Central government has approved Rs 300.2 crore for the Palakkad Industrial Smart City Project. This funding represents the third instalment in the ongoing development of the Kochi-Bengaluru Industrial Corridor. Kerala has simultaneously transferred 316 additional acres of land to support the project's implementation. The state has become the first among India's 12 proposed Industrial Smart Cities to complete the tendering process for infrastructure development.

Key Points: Centre Sanctions Rs 300 Crore for Palakkad Industrial Smart City

  • Centre releases third instalment of Rs 300.2 crore for industrial development project
  • Kerala transfers additional 316 acres of land to KICDC for implementation
  • Project agreement to be signed this month with immediate groundwork start
  • Total central funding reaches Rs 613.7 crore with 646 acres land transferred
2 min read

Kerala: Centre sanctions Rs 300 crore for Palakkad Industrial Smart City Project

Central government releases Rs 300.2 crore for Palakkad Industrial Smart City, part of Kochi-Bengaluru Industrial Corridor, accelerating Kerala's infrastructure development.

"Kerala has emerged as the first state among the 12 proposed Industrial Smart Cities in India to complete the tendering process for infrastructure development. - Article"

Thiruvananthapuram Oct 24

The Central government has sanctioned the third instalment of Rs 300.2 crore for the Palakkad Industrial Smart City Project, a key component of the Kochi-Bengaluru Industrial Corridor.

The funds have been allocated to the Kerala Industrial Corridor Development Corporation Ltd. (KICDC), even as the State government transferred an additional 316 acres of land to the corporation. With this, the Centre has released a total of Rs 613.7 crore in three instalments, while Kerala has handed over 646 acres of land, accounting for nearly 45 per cent of the total project cost and land requirement.

The KICDC, a Special Purpose Vehicle (SPV) jointly formed by Kerala’s KINFRA and the National Industrial Corridor Development and Implementation Trust (NICDIT) with equal equity participation, is implementing and coordinating the project. A high-level review meeting was recently held in Kochi to fast-track infrastructure development. It was attended by A.P.M. Mohammed Hanish, Principal Secretary, Department of Industries, Government of Kerala; Rajit Saini, MD & CEO, NICDIT; and Santosh Koshi Thomas, MD, KICDC. Representatives from Dilip Buildcon–PSP Projects joint venture — awarded the infrastructure development contract — and the Project Management Consultant team also participated.

The meeting decided to sign the project agreement within this month and begin groundwork immediately, with a collective emphasis on completing the infrastructure ahead of schedule. Kerala has emerged as the first state among the 12 proposed Industrial Smart Cities in India to complete the tendering process for infrastructure development.

Two years ago, the state, through the Kerala Infrastructure Investment Fund Board (KIIFB), spent Rs 1,489 crore to acquire 1,450 acres of land for the project. The Centre’s latest fund release follows Kerala Industries Minister P. Rajeev’s briefing to Union Commerce and Industry Minister Piyush Goyal in June 2024. As the project progresses, the remaining central assistance and land transfer are expected to be completed in phases.

- IANS

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Reader Comments

R
Rajesh Q
Finally some positive news about industrial development in South India. The Kochi-Bengaluru corridor will boost the entire region's economy. Kerala leading the way among 12 smart cities is impressive!
A
Aditya G
While I appreciate the central funding, I hope the state government ensures that local communities benefit and environmental concerns are addressed. Too often these projects displace farmers without proper rehabilitation.
S
Sarah B
As someone who works in infrastructure development, this is exactly what India needs - coordinated efforts between state and central governments. The SPV model with equal equity participation shows good governance practices. 👍
M
Michael C
Good to see Kerala taking the lead in industrial development. The state has excellent human resources and this project will help retain talent that usually migrates to other states for jobs.
N
Nisha Z
Hope they complete the project on time! Infrastructure projects in India often get delayed due to bureaucratic hurdles. The fact that tendering is already complete gives me confidence. 🤞
K
Karthik V
This will transform Palakkad from just a transit town to an industrial hub. The connectivity to both Kochi and Bengaluru makes it strategically perfect for manufacturing and logistics companies.

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