Centre Approves Palakkad Industrial Smart City as Part of ₹28,602 Crore National Initiative

The Decision

The Union Cabinet Committee on Economic Affairs granted clearance for the Palakkad industrial city as part of a grand necklace of industrial smart cities comprising 12 new projects under the National Industrial Corridor Development programme with an estimated investment of ₹28,602 crore. The Palakkad industrial city will come up on 1,710 acres.

Kerala decided to develop Palakkad and Kochi as nodes within the broader Kochi-Bengaluru industrial corridor, which extends the Chennai-Bengaluru corridor to Kochi via Coimbatore, aiming to accelerate the growth of the manufacturing sectors of the southern region.

State Readiness

Industries Minister P. Rajeeve said the State government had acquired the land required for the project in record time, noting the Union Cabinet approval came in the wake of the State completing preliminary works spending ₹1,790 crore. The project received permission from the National Industrial Corridor Development and Implementation Trust Board in December 2022 and environmental clearance from the Ministry of Environment, Forests and Climate Change in February 2024.

With the Kerala government already acquiring the 1,710 acre land required for the project at Pudussery-Kannambra regions of Palakkad and obtaining environmental clearance, future activities are expected to commence without much delay.

Investment and Employment

Kerala Chief Minister Pinarayi Vijayan has said that the industrial city project is a crucial component of the Kochi-Bengaluru hi-tech industrial corridor. The industrial city is expected to bring to Kerala investments to the tune of ₹10,000 crore.

The project is expected to generate 51,000 jobs in the district. Availability of talented workforce is a key advantage for Kerala.

Sector Focus and Implementation

State Industries Minister P Rajeev said that they will look to attract projects in a range of sectors like food processing, pharmaceuticals, defence, aerospace, electronics and solid waste management to the smart industrial city, with priority given to environment friendly investments and time bounded clearance to investors through the single-window clearance systems.

The special purpose vehicle for the project is Kerala Industrial Corridor Development Corporation in which the State and the Central governments have 50% stake each. Once the master plan and the detailed project report are ready, the tender process will begin.

Strategic Location

Located 20 km from Palakkad City, 150 km from Cochin, and 50 km from Coimbatore, this strategic site offers exceptional connectivity for industrial growth. The site is located adjacent to National Highway 544 (Salem–Kochi Road), ensuring seamless movement of goods and people across regional and interstate corridors, with Palakkad Junction as a central hub for freight and passenger transport.