Kerala Floats Rs 11 Bn Tender for Palakkad Smart City

19 May 2025 CW Team

The Kerala government has issued a major tender under the Palakkad Smart City project, part of the Kochi–Bengaluru Industrial Corridor, with a projected investment of Rs 11 billion.

The Kerala Industrial Infrastructure Development Corporation (Kinfra) announced on Wednesday that tenders have been invited for infrastructure development at the Puthussery Central and Kannambra areas of the Integrated Manufacturing Cluster in Palakkad.

According to the release, the first phase of the project, with an estimated cost of Rs 11 billion, is slated for completion within four years. The development spans 1,400 acres of land already acquired, and the tender is for an EPC (Engineering, Procurement, and Construction) contract covering design, construction, and maintenance.

Key infrastructure planned includes internal roads, drainage, bridges, water supply networks, fire safety systems, water reuse systems, sewerage lines, power distribution, sewage treatment, industrial effluent collection, and treatment facilities.

The master plan and Detailed Project Report (DPR) for the project have already been completed. Implementation will be overseen by the Kerala Industrial Corridor Development Corporation Ltd (KICDC), a special purpose vehicle (SPV) jointly formed by the National Industrial Corridor Development and Implementation Trust (NICDIT) and the Government of Kerala, both holding equal equity stakes.

So far, the state government has invested approximately Rs 14.89 billion via the Kerala Infrastructure Investment Fund Board (KIIFB) for land acquisition. Meanwhile, the central government will invest Rs 17.89 billion towards infrastructure development in the area.

Funds will be disbursed in tranches as land is handed over to the SPV. In December 2024, the first tranche of equity was released, with 110 acres and Rs 1.045 billion contributed by the state and central governments respectively.

The second tranche followed in March 2025, comprising Rs 2.09 billion in central equity and 220 acres of state land provided by Kinfra.

The initiative aims to transform Palakkad into a key industrial node along the Kochi–Bengaluru corridor, boosting regional manufacturing and economic activity.

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The Kerala government has issued a major tender under the Palakkad Smart City project, part of the Kochi–Bengaluru Industrial Corridor, with a projected investment of Rs 11 billion.The Kerala Industrial Infrastructure Development Corporation (Kinfra) announced on Wednesday that tenders have been invited for infrastructure development at the Puthussery Central and Kannambra areas of the Integrated Manufacturing Cluster in Palakkad.According to the release, the first phase of the project, with an estimated cost of Rs 11 billion, is slated for completion within four years. The development spans 1,400 acres of land already acquired, and the tender is for an EPC (Engineering, Procurement, and Construction) contract covering design, construction, and maintenance.Key infrastructure planned includes internal roads, drainage, bridges, water supply networks, fire safety systems, water reuse systems, sewerage lines, power distribution, sewage treatment, industrial effluent collection, and treatment facilities.The master plan and Detailed Project Report (DPR) for the project have already been completed. Implementation will be overseen by the Kerala Industrial Corridor Development Corporation Ltd (KICDC), a special purpose vehicle (SPV) jointly formed by the National Industrial Corridor Development and Implementation Trust (NICDIT) and the Government of Kerala, both holding equal equity stakes.So far, the state government has invested approximately Rs 14.89 billion via the Kerala Infrastructure Investment Fund Board (KIIFB) for land acquisition. Meanwhile, the central government will invest Rs 17.89 billion towards infrastructure development in the area.Funds will be disbursed in tranches as land is handed over to the SPV. In December 2024, the first tranche of equity was released, with 110 acres and Rs 1.045 billion contributed by the state and central governments respectively.The second tranche followed in March 2025, comprising Rs 2.09 billion in central equity and 220 acres of state land provided by Kinfra.The initiative aims to transform Palakkad into a key industrial node along the Kochi–Bengaluru corridor, boosting regional manufacturing and economic activity.

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