KICDC Announces Single-Phase Development for Palakkad Industrial Smart City; Works to Start by October 2025

The Announcement

On 9 October 2025, the Kerala Industrial Corridor Development Corporation (KICDC) announced that infrastructure development for the Palakkad Industrial Smart City, a flagship project under the Kochi–Bengaluru Industrial Corridor, will be implemented in a single phase. KICDC has initiated preliminary steps in this regard.

The first coordination meeting involving representatives of the contracting consortium Dilip Buildcon–PSP Projects and the National Industrial Corridor Development and Implementation Trust (NICDIT) is scheduled to be held the week following the announcement.

What This Means: Single-Phase Development Strategy

Although land transfer will be in phases based on central fund availability, infrastructure development is planned to be completed in a single phase on the land already acquired. The Centre will release project funds in stages, with the state government transferring a proportionate share of land acquired by KINFRA once the central share is confirmed.

KICDC plans to complete infrastructure development within 42 months, after which land allotment to companies will begin.

The Contractor and Contract

The construction contract, valued at ₹1,316.13 crore (including GST), was awarded to a joint venture between Dilip Buildcon Limited (DBL) and PSP Projects Limited after a competitive national tender process in which four companies participated.

The EPC contract covers the design, construction, and maintenance of key infrastructure, including roads, bridges, drainage networks, water supply systems, and firefighting infrastructure.

The contract was finalized after national competitive bidding, with the construction contract awarded to the DBL-PSP joint venture.

Land Acquisition and Funding Status

Two years ago, the state government spent ₹1,489 crore through the Kerala Infrastructure Investment Fund Board (KIIFB) for the acquisition of 1,450 acres. By July 2022, 85 per cent of the required land had been acquired, with 1,152 acres acquired in just 14 months.

According to KICDC, the central government will release funds for the project in phases. The central government will invest ₹1,789.92 crore for infrastructure development in the project area.

On 24 October 2025, the Central government sanctioned the third instalment of ₹300.2 crore for the project.

Implementation Timeline and Next Steps

Industries Principal Secretary APM Mohammed Hanish stated that the project's development works are expected to commence by the end of October 2025 or early November 2025.

A high-level review meeting in Kochi in late October 2025 decided to sign the project agreement within that month and begin groundwork immediately, with emphasis on completing the infrastructure ahead of schedule. The meeting was attended by A.P.M. Mohammed Hanish (Principal Secretary, Industries), Rajit Saini (MD & CEO, NICDIT), Santosh Koshi Thomas (MD, KICDC), and representatives from the Dilip Buildcon–PSP Projects joint venture.

Location and Strategic Significance

The Palakkad Node, covering 1,710 acres across three land parcels—Pudussery Central, Pudussery West, and Kannambra—is located 20 km from Palakkad City, 150 km from Cochin, and 50 km from Coimbatore, offering exceptional connectivity for industrial growth.

Palakkad Junction is one of Kerala's largest railway stations under the Southern Railway zone, and Cochin and Coimbatore International Airports provide domestic and international connectivity. The site is within close proximity to Cochin Port (115 km) and Kozhikode Port (124 km).

Why Single-Phase Development Matters

Officials noted that Kerala is ahead of schedule compared to other states implementing similar Industrial Smart City projects, with tendering for infrastructure already completed. This makes Kerala the first state to complete tender procedures among the 12 industrial corridor smart city projects sanctioned last year.

The decision to implement Palakkad Industrial Smart City in a single phase underlines a strong commitment to integrated, streamlined infrastructure delivery.