The Kerala government has launched the first phase of infrastructure development for the proposed Palakkad Smart City, an integral component of the Kochi-Bengaluru Industrial Corridor. With an estimated investment of ₹1,100 crore, the initiative will transform over 1,400 acres in the Puthussery Central and Kannambra regions into a modern Integrated Manufacturing Cluster.
Announcing the development, Kerala Industries Minister P. Rajeeve stated that tenders have already been invited for multiple infrastructure components, with the execution slated for completion within four years. The scope of work includes the development of internal roads, drainage systems, bridges, water supply and firefighting systems, wastewater recycling units, a sewage treatment plant, and a power distribution network.
Additionally, bids will soon be invited for the construction of the Integrated Command and Control Centre, landscaping, and other key urban infrastructure. These activities are part of a broader Engineering, Procurement, and Construction (EPC) contract, encompassing design, construction, and maintenance phases.
The master plan and Detailed Project Report (DPR) for the Smart City have been completed. The implementation of the project will be managed 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 entities hold an equal equity stake in KICDC.
The project is also backed by the Kerala Infrastructure Investment Fund Board (KIIFB), through which the state has invested ₹1,489 crore for land acquisition. The Central government is expected to contribute ₹1,789.92 crore in infrastructure development, with funding to be released in phases corresponding to land handovers.
Significant progress has already been made. In December 2024, the first tranche of equity—comprising 110 acres of land and ₹104.5 crore—was transferred to the SPV by the state and central governments. In March 2025, the second tranche was disbursed, including 220 additional acres of land by KINFRA and ₹209 crore from the Centre.
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The Kerala Industrial Infrastructure Development Corporation (KINFRA), which is facilitating land transfers and implementation, confirmed that tender invitations have been floated for infrastructure works in the designated project areas. The goal is to position Palakkad as a vital industrial and logistics hub within the Kochi-Bengaluru Corridor, enhancing Kerala’s role in national economic development.
Once operational, the Palakkad Smart City is expected to catalyse industrial growth, generate employment, and improve regional connectivity, firmly anchoring Kerala in India’s growing network of smart industrial zones.
