Kerala government invites tenders for a ₹1,100 crore infrastructure development project under the Palakkad Smart City initiative, part of the Kochi-Bengaluru Industrial Corridor, covering 1,400 acres of land with a four-year completion timeline.
The Kerala government has initiated a significant step in its industrial development by inviting tenders for a ₹1,100 crore infrastructure project under the Palakkad Smart City initiative. This project, integral to the Kochi-Bengaluru Industrial Corridor, aims to transform Palakkad into a major industrial hub The Kerala Industrial.
Project Overview
The tender, announced by the Kerala Industrial Infrastructure Development Corporation (KINFRA), focuses on developing infrastructure in the Puthussery Central and Anambra regions of the Integrated Manufacturing Cluster (IMC) in Palakkad. The project encompasses 1,400 acres of land already acquired.
Scope of Work
The Engineering, Procurement, and Construction (EPC) contract includes comprehensive development activities such as comprising 110 acres of land and ₹104.5 crore from the central government. A second tranche, including ₹209 crore from the Centre and 220 acres of land by KINFRA, was transferred in March 2025.
- Establishment of fire-fighting and water reuse systems Development of water supply and power distribution networks Construction of sewage treatment and effluent treatment plants
These infrastructure components are designed to support a diverse range industries, including pharmaceuticals, textiles, food processing, high-tech manufacturing, and fabricated metal of goods.
Financial and Administrative Details
The project is managed by the Kerala Industrial Corridor Development Corporation Ltd (KICDC), a special purpose vehicle formed jointly by the National Industrial Corridor Development and Implementation Trust (NICDIT) and the Government of Kerala. The state government has already invested ₹1,489 crore through the Kerala.
Infrastructure Investment Fund Board (KIIFB) for land acquisition. The central government has committed ₹1,789.92 crore for infrastructure development, with funds to be disbursed in phases as the state hands over the acquired land to the SPV In December 2024, the first tranche of equity was transferred to the SPV.
Strategic Significance
The Palakkad Smart City project is poised to significantly enhance Kerala’s industrial landscape. Strategically located along National Highway 544, the site offers excellent connectivity to major cities like Coimbatore and Thrissur, making it an attractive destination for investors. The development is expected to generate.
and is slated for completion within four years. substantial employment opportunities and boost economic growth in the region in the Kerala Government Invites ₹1,100 Cr Tender for Palakkad Smart City Infrastructure Development Construction of internal roads and bridges Installation of drainage and sewerage systems
The master plan and Detailed Project Report (DPR) for the project have been completed, and the implementation will be coordinated by KICDC. The tender for the EPC contract marks a significant milestone in the realization of the Palakkad Smart City, reflecting the government’s commitment to fostering industrial development.
The Kerala government has initiated the tendering process for a ₹1,100 crore Engineering, Procurement, and Construction (EPC) contract as part of the Palakkad Industrial Smart City project. This development is a significant component of the Kochi-Bengaluru Industrial Corridor, aiming to bolster Kerala’s industrial landscape.
The project spans 1,710 acres in the Pudussery-Kannambra region of Palakkad district. It is designed to attract investments totaling ₹8,729 crore and is expected to generate employment for approximately 51,000 individuals. The industrial city will focus on sectors such as medicinal chemicals, botanical products, high-tech.
Strategically located near the Kochi-Salem National Highway, the Palakkad Industrial Smart City is poised to become a pivotal hub for industrial growth in the region. The project’s emphasis on diverse industrial sectors and substantial employment opportunities underscores its potential to significantly contribute to Kerala’s.
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