The Government of Kerala has officially initiated the first phase of infrastructure development for the highly anticipated Palakkad Smart City, which is part of the Kochi-Bengaluru Industrial Corridor. This ambitious project, with a projected investment of ₹1,100 crore, aims to transform over 1,400 acres in the Puthussery Central and Kannambra regions into a state-of-the-art Integrated Manufacturing Cluster.
A Major Step Towards Industrial Transformation
Announced by Kerala Industries Minister P. Rajeeve, tenders have been floated for various key infrastructure components, including internal roads, drainage systems, water supply and firefighting networks, bridges, wastewater recycling units, sewage treatment plants, and a comprehensive power distribution network. The first phase of execution is expected to be completed within four years.
Integrated Urban Infrastructure in Focus
Upcoming bids will include the construction of an Integrated Command and Control Centre, landscaping, and other vital smart city infrastructure. These developments are part of a broader Engineering, Procurement, and Construction (EPC) model that encompasses not only the design and construction but also the maintenance of the facilities.
Project Governance and Investment Support
The Palakkad Smart City project is being implemented 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 partners hold equal equity in KICDC.
The Kerala Infrastructure Investment Fund Board (KIIFB) has committed ₹1,489 crore toward land acquisition. Meanwhile, the Central government has pledged ₹1,789.92 crore for infrastructure development, to be disbursed in stages aligned with land transfers.
Tranche-Based Progress and Land Allocation
Significant milestones have already been achieved. In December 2024, the first equity tranche—comprising 110 acres of land and ₹104.5 crore—was handed over to the SPV. The second tranche, released in March 2025, included an additional 220 acres from KINFRA and ₹209 crore from the Centre.
KINFRA, the nodal agency for land acquisition and project facilitation, confirmed that tenders for foundational infrastructure have already been floated for the designated development zones.
Strategic Industrial and Economic Impact
Positioned within the Kochi-Bengaluru Industrial Corridor, the Palakkad Smart City aims to become a crucial industrial and logistics hub. Once operational, the city will serve as a catalyst for industrial growth, employment generation, and improved regional connectivity. The initiative underscores Kerala's growing role in India’s smart industrial transformation.
