The Central Government has released the third instalment of Rs 3.2 billion for the Palakkad Industrial Smart City Project, a flagship node of the Kochi–Bengaluru Industrial Corridor.

The latest allocation has been made to the Kerala Industrial Corridor Development Corporation (KICDC), while the State Government has transferred an additional 316 acres of land for the project. With this, the total central assistance has reached Rs 6.13 billion, and the State has cumulatively handed over 646 acres, together accounting for nearly 45 per cent of the total project cost and land requirement.

The KICDC, a Special Purpose Vehicle (SPV) jointly formed by the Kerala Industrial Infrastructure Development Corporation (KINFRA) and the National Industrial Corridor Development and Implementation Trust (NICDIT), is implementing the project with equal equity participation from both partners.

A high-level review meeting held recently in Kochi resolved to expedite groundwork and fast-track implementation. 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 from the Dilip Buildcon–PSP Projects Joint Venture, which has been awarded the infrastructure development contract. The Project Management Consultant team also participated in the discussions.

Officials confirmed that the project agreement will be signed within the month, with preliminary construction work set to begin immediately thereafter.

Kerala has emerged as the first state in India among the 12 proposed Industrial Smart Cities to complete the tendering process for infrastructure development. Earlier, 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 latest fund release follows Industries Minister P Rajeev’s detailed presentation to Union Minister for Commerce and Industry Piyush Goyal in June 2024, highlighting the State’s progress in corridor-related activities.

The Palakkad Industrial Smart City Project is expected to serve as a major industrial and logistics hub, driving economic growth and employment opportunities in the region while strengthening Kerala’s position in India’s industrial corridor network.

News source: Swarajya