Palakkad Industrial Smart City to be Developed in Single Phase; Work Set to Begin This Month

The Kerala Industrial Corridor Development Corporation (KICDC) has announced that the Palakkad Industrial Smart City, a key component of the Kochi Bengaluru Industrial Corridor, will be developed in a single phase. The much-awaited project aims to transform Palakkad into a major industrial and investment hub in Kerala, attracting large-scale industries and creating employment opportunities across the region.

According to officials, construction work is scheduled to commence by the end of October 2025. The initial coordination meeting between the contracting consortium Dilip Buildcon and PSP Projects and the National Industrial Corridor Development and Implementation Trust (NICDIT) will take place next week to finalize implementation plans and timelines.

The Central Government has released ₹313.5 crore towards the project, while the Kerala Government has handed over 330 acres of land to KICDC for development. The project will be implemented by a special purpose vehicle (SPV) formed jointly by KINFRA and NICDIT, each holding equal equity.

The corporation aims to complete the entire infrastructure development within 42 months, covering industrial plots, roads, utilities, and logistics facilities. Once the infrastructure phase is completed, land allotment to companies will begin based on the availability of central funds and project readiness. Despite the phased land transfers, all major infrastructure development will be carried out on the land already acquired.

Officials noted that Kerala leads among the 12 proposed Industrial Smart Cities across India in procedural progress. Tendering and major land acquisition processes have been completed, supported by the Kerala Infrastructure Investment Fund Board (KIIFB).

The Palakkad Industrial Smart City is expected to significantly boost the state’s industrial ecosystem, promoting sustainable manufacturing and modern logistics infrastructure. Strategically located along the Kochi Bengaluru Corridor, the project is also expected to enhance regional connectivity and attract both domestic and international investors to Kerala.

With a focus on integrated planning and efficient execution, the Palakkad Industrial Smart City represents a major leap forward in Kerala’s industrial development vision.