Good news from Kerala! The eagerly anticipated tender process for the Palakkad Smart City’s infrastructure, designed as an Integrated Manufacturing Cluster and the inaugural hub of the Kochi-Bengaluru Industrial Corridor, has officially concluded. A joint venture between Dilip Buildcon Limited and PSP Projects Limited secured the coveted construction contract. This achievement makes Kerala the very first state in India to finalize infrastructure development procedures for any of the twelve industrial corridor-smart city projects approved nationwide last year, according to a recent announcement from the Chief Minister’s office.
This significant contract is valued at an impressive ₹1,316.13 crore, inclusive of GST, and construction is set to commence shortly. The Palakkad Smart City initiative, with an overarching budget of ₹3,600 crore, has already seen substantial investment in land acquisition. Two years prior, the State government allocated ₹1,489 crore through the Kerala Infrastructure Investment Fund Board (KIIFB) for this purpose, successfully securing a total of 1,450 acres.
The land parcels currently managed by KINFRA are being progressively handed over to the dedicated corridor development corporation. Last December, 110 acres were transferred in the initial phase, followed by another 220 acres in March. Furthermore, the Union government has contributed ₹313.5 crore across two installments. The vision for this project began in August 2019, when a decision was made to extend the existing Chennai-Bangalore Industrial Corridor to Kochi, thus creating the Kochi-Bangalore Industrial Corridor. Kerala officially initiated its implementation efforts for this equally state and union government-backed project in September 2020.
Overseeing all development activities for the Palakkad Smart City is the Kerala Industrial Corridor Development Corporation Limited (KICDC). This specialized entity was established as a joint venture between KINFRA and the National Industrial Corridor Development and Implementation Trust (NICDIT), ensuring streamlined coordination and progress.