The Central Government has released the third instalment of Rs 3 billion for the Palakkad Industrial Smart City Project, a flagship component of the Kochi–Bengaluru Industrial Corridor.

The funds have been allocated to the Kerala Industrial Corridor Development Corporation (KICDC), while the State Government has transferred 316 acres of additional land to the corporation.

With this latest disbursement, the Centre has now released a total of Rs 6.13 billion in three instalments, while the State has handed over 646 acres of land, meeting nearly 45 per cent of the project’s total cost and land requirement.

The project is being executed by KICDC, a Special Purpose Vehicle (SPV) jointly formed with equal equity participation between Kerala Industrial Infrastructure Development Corporation (KINFRA) and the National Industrial Corridor Development and Implementation Trust (NICDIT) under the Central Government.

A high-level review meeting was recently convened in Kochi to accelerate infrastructure development works. The meeting was attended by APM Mohammed Hanish, Principal Secretary (Industries), Rajit Saini, MD & CEO of NICDIT, Santosh Koshi Thomas, MD of KICDC, and representatives of Dilip Buildcon–PSP Joint Venture, which has secured the infrastructure development contract.

The stakeholders decided to finalise the project agreement within this month and commence groundwork immediately thereafter, with an emphasis on completing infrastructure works ahead of schedule.

Kerala has also 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 the Kerala Infrastructure Investment Fund Board (KIIFB), had invested Rs 14.89 billion to acquire 1,450 acre of land for the project.

The Central Government’s latest fund release followed a detailed presentation made by Kerala Industries Minister P Rajeev to Union Minister for Commerce and Industry Piyush Goyal in June 2024, highlighting the State’s steady progress in corridor-related initiatives.

As the project progresses, the Centre will continue to release the remaining funds, while the State will complete the full land transfer to KICDC — paving the way for faster development of the Palakkad Industrial Smart City and boosting Kerala’s industrial infrastructure ambitions.

News source: UNI