Centre Approves Rs 300.2 Crore for Palakkad Industrial Smart City Project

The Central government has approved Rs 300.2 crore as the third installment for the Palakkad Industrial Smart City project, a key component of the Kochi-Bengaluru Industrial Corridor. The approval marks a significant step toward accelerating Kerala’s industrial infrastructure development and enhancing connectivity between major southern economic hubs.

The fresh tranche has been allocated to the Kerala Industrial Corridor Development Corporation (KICDC), the nodal agency responsible for implementing the project. KICDC is a joint venture between the Kerala Industrial Infrastructure Development Corporation (KINFRA) and the National Industrial Corridor Development and Implementation Trust (NICDIT) under the Department for Promotion of Industry and Internal Trade (DPIIT).

Alongside the central allocation, the Kerala government has transferred 316 acres of land to KICDC for the project. With this addition, the state’s total land contribution has reached 646 acres, demonstrating its commitment to advancing large-scale industrial infrastructure within the region. The cumulative financial support from the Centre now stands at Rs 613.7 crore, highlighting the project’s growing strategic importance within the southern industrial corridor.

A recent high-level review meeting held in Kochi brought together key officials from KICDC, NICDIT, and project contractors to assess progress and streamline the pace of development. The discussions focused on infrastructure readiness, land acquisition, and utilities planning, with emphasis on early completion timelines to attract manufacturing and logistics investments.

The Palakkad Industrial Smart City is envisioned as a next-generation hub for industries, integrating modern infrastructure, sustainable design, and smart urban planning. It aims to create new employment opportunities, support MSMEs, and strengthen Kerala’s position as a competitive destination for industrial investments.

Once completed, the project is expected to boost industrial activity across the Kochi-Bengaluru corridor, catalyzing growth in logistics, real estate, and export-driven sectors.