Has the Centre Approved Rs 300 Crore for the Palakkad Industrial Smart City Project?
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Synopsis
The Central government has approved an additional Rs 300.2 crore for the Palakkad Industrial Smart City Project, marking a significant milestone in the development of the Kochi-Bengaluru Industrial Corridor. This funding is expected to accelerate infrastructure advancements and set a precedent for other states in India.
Key Takeaways
- The Centre sanctioned Rs 300.2 crore for the project.
- KICDC is overseeing the implementation.
- Kerala has transferred 646 acres of land to the project.
- This project is a part of the Kochi-Bengaluru Industrial Corridor.
- Kerala is the first state to complete the tendering process.
Thiruvananthapuram, Oct 24 (NationPress) The Central government has granted the third tranche of Rs 300.2 crore for the Palakkad Industrial Smart City Project, a vital element of the Kochi-Bengaluru Industrial Corridor.
The funds are designated for the Kerala Industrial Corridor Development Corporation Ltd. (KICDC), following the State government's transfer of an extra 316 acres of land to the corporation.
To date, the Centre has disbursed a cumulative total of Rs 613.7 crore in three disbursements, while Kerala has contributed 646 acres of land, representing nearly 45 percent of the entire project cost and land requirements.
The KICDC is a Special Purpose Vehicle (SPV) established jointly by Kerala’s KINFRA and the National Industrial Corridor Development and Implementation Trust (NICDIT), both holding equal equity stakes, to manage and execute the project.
A high-level review meeting was recently conducted in Kochi to expedite infrastructure advancements.
This meeting featured A.P.M. Mohammed Hanish, Principal Secretary of the Department of Industries, Government of Kerala; Rajit Saini, MD & CEO of NICDIT; and Santosh Koshi Thomas, MD of KICDC. Additionally, representatives from the Dilip Buildcon–PSP Projects joint venture, which was awarded the infrastructure development contract, and the Project Management Consultant team were present.
The meeting agreed to finalize the project agreement within this month and commence groundwork immediately, with a collective commitment to complete the infrastructure ahead of schedule.
Kerala has set a precedent as the first state among the twelve proposed Industrial Smart Cities in India to finish the tendering process for infrastructure development.
Two years ago, the state invested Rs 1,489 crore through the Kerala Infrastructure Investment Fund Board (KIIFB) to acquire 1,450 acres of land for this initiative.
The latest funding release from the Centre follows a briefing by Kerala Industries Minister P. Rajeev to Union Commerce and Industry Minister Piyush Goyal in June 2024.
As the project advances, the remaining central assistance and land transfers are anticipated to be completed in phases.
Point of View
The government's investment in the Palakkad Industrial Smart City Project not only reflects its commitment to regional development but also emphasizes the importance of infrastructure in driving economic growth. As the project unfolds, it symbolizes a proactive approach to industrialization in India, aligning with national aspirations.
NationPress
24/10/2025
Frequently Asked Questions
What is the Palakkad Industrial Smart City Project?
The Palakkad Industrial Smart City Project is a significant initiative under the Kochi-Bengaluru Industrial Corridor aimed at enhancing industrial development in the region.
How much funding has been sanctioned for the project?
The Central government has sanctioned a total of Rs 300.2 crore as the third installment for the project.
What is the role of KICDC in this project?
The Kerala Industrial Corridor Development Corporation Ltd. (KICDC) is responsible for implementing and coordinating the project.
How much land has been acquired for the project?
A total of 646 acres of land has been transferred to KICDC for the project.
What is the significance of this funding for Kerala?
This funding is crucial for accelerating infrastructure development in Kerala and signifies the government's commitment to industrial growth.
