Palakkad Smart City To Be Built In Single Phase, Says KICDC

17 Oct 2025 CW Team

KICDC has begun preliminary preparations to advance the project into its implementation stage, with the first coordination meeting involving representatives from the contracting consortium Dilip Buildcon–PSP Projects and the National Industrial Corridor Development and Implementation Trust (NICDIT) scheduled for next week.

According to Industries Principal Secretary A.P.M. Mohammed Hanish, construction works are expected to commence by the end of this month or early next month.

The Central Government will release project funds in instalments, while the state government will transfer an equivalent share of land acquired by KINFRA once the central share is confirmed.

So far, the Centre has disbursed Rs 3.135 billion in two instalments, and the state has handed over 330 acres of land, with a third tranche expected shortly, confirmed KINFRA Managing Director Santosh Koshy Thomas.

Officials stated that Kerala is ahead of schedule compared to other states implementing similar Industrial Smart City projects, with tendering for infrastructure work already completed.

KICDC aims to complete the infrastructure within 42 months, after which land allotment to industries will begin. While land transfer will take place in phases depending on fund availability, the entire infrastructure development will be executed in one go on the land already acquired.

The state government earlier invested Rs 14.89 billion through the Kerala Infrastructure Investment Fund Board (KIIFB) to acquire 1,450 acres of land, completing most of the process in just 14 months.

The Palakkad Industrial Smart City is being developed through a special purpose vehicle (SPV) jointly formed by KINFRA and NICDIT, with equal equity participation from both the state and central governments.

The Kerala Industrial Corridor Development Corporation (KICDC) has announced that infrastructure development for the Palakkad Industrial Smart City — a flagship project under the Kochi–Bengaluru Industrial Corridor — will be executed in a single phase, according to a report by PTI. KICDC has begun preliminary preparations to advance the project into its implementation stage, with the first coordination meeting involving representatives from the contracting consortium Dilip Buildcon–PSP Projects and the National Industrial Corridor Development and Implementation Trust (NICDIT) scheduled for next week. According to Industries Principal Secretary A.P.M. Mohammed Hanish, construction works are expected to commence by the end of this month or early next month. The Central Government will release project funds in instalments, while the state government will transfer an equivalent share of land acquired by KINFRA once the central share is confirmed. So far, the Centre has disbursed Rs 3.135 billion in two instalments, and the state has handed over 330 acres of land, with a third tranche expected shortly, confirmed KINFRA Managing Director Santosh Koshy Thomas. Officials stated that Kerala is ahead of schedule compared to other states implementing similar Industrial Smart City projects, with tendering for infrastructure work already completed. KICDC aims to complete the infrastructure within 42 months, after which land allotment to industries will begin. While land transfer will take place in phases depending on fund availability, the entire infrastructure development will be executed in one go on the land already acquired. The state government earlier invested Rs 14.89 billion through the Kerala Infrastructure Investment Fund Board (KIIFB) to acquire 1,450 acres of land, completing most of the process in just 14 months. The Palakkad Industrial Smart City is being developed through a special purpose vehicle (SPV) jointly formed by KINFRA and NICDIT, with equal equity participation from both the state and central governments.

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