The groundwork for Palakkad Smart City, part of the Kochi–Bengaluru Industrial Corridor, has moved a step forward. The tender process for infrastructure development has been wrapped up, and the construction contract has gone to a joint venture between Dilip Buildcon Limited and PSP Projects Limited.
With this, Kerala has become the first state to finish the infrastructure development procedures for the twelve industrial corridor–smart city projects that were cleared across the country last year, according to a press release from the chief minister’s office.
The contract is pegged at ₹1,316.13 crore, inclusive of GST. Work is expected to start soon. But that’s only part of the story—the total project estimate for Palakkad Smart City stands at around ₹3,600 crore.
Earlier, in 2023, the state government had already spent ₹1,489 crore through the Kerala Infrastructure Investment Fund Board (KIIFB) to secure land. A total of 1,450 acres is now in hand.
Land currently held by KINFRA is being shifted in phases to the corridor development corporation. In December 2024, 110 acres were handed over, followed by another 220 acres in March 2025. On the financial side, the Union government has transferred ₹313.5 crore so far, also in two phases.
The Kochi–Bengaluru Industrial Corridor is itself an extension of the Chennai–Bengaluru Industrial Corridor, a decision first taken in August 2019. Kerala formally started procedures for its stretch in September 2020.
Development activities in Palakkad are being steered by the Kerala Industrial Corridor Development Corporation Limited (KICDC), a special purpose vehicle set up by KINFRA and the National Industrial Corridor Development and Implementation Trust (NICDIT).