Thiruvananthapuram, Oct 25 (UNI) The Central Government has sanctioned the third instalment of Rs 300.2 crore for the Palakkad Industrial Smart City Project, a major component of the Kochi–Bengaluru Industrial Corridor.
The funds have been allocated to the Kerala Industrial Corridor Development Corporation Ltd. (KICDC), while the State Government has transferred 316 acres of additional land to the corporation.
With this latest release, the Centre has so far disbursed ₹613.7 crore in three instalments, and the State has handed over a total of 646 acres, fulfilling nearly 45 per cent of the total project cost and land requirement.
The project is being implemented by KICDC, a Special Purpose Vehicle jointly formed with equal equity participation by the Kerala Government’s KINFRA and the Central Government’s National Industrial Corridor Development and Implementation Trust (NICDIT).
A high-level review meeting was held recently in Kochi to expedite infrastructure development activities. The meeting, attended by senior officials including Principal Secretary (Industries) A.P.M. Mohammed Hanish, NICDIT MD & CEO Rajit Saini, KICDC MD Santosh Koshi Thomas, and representatives of the Dilip Buildcon–PSP Joint Venture—which has secured the infrastructure development contract—decided to sign the project agreement within this month and start groundwork immediately thereafter. The participants also emphasized completing the infrastructure works ahead of schedule.
Kerala has emerged as the first state in India among the 12 proposed Industrial Smart Cities to complete the tendering process for infrastructure development. Two years ago, the State Government, through KIIFB, had spent ₹1,489 crore to acquire 1,450 acres of land for the project.
The Central Government expedited the release of funds following a detailed presentation by Kerala Industries Minister P. Rajeev to union Minister for Commerce and Industry Piyush Goyal in June 2024 on the State’s progress in corridor-related activities.
As the project advances, the Centre will release the remaining share of funds, while the State will complete the full land transfer to KICDC, paving the way for accelerated development of the Palakkad Industrial Smart City.
