₹1,100 Cr Tender Floated by Kerala for Palakkad Smart City Infrastructure.

The Kerala government has invited tenders for a significant infrastructure development project within the Palakkad Smart City initiative, which is a crucial part of the larger Kochi-Bengaluru Industrial Corridor.

The Kerala Industrial Infrastructure Development Corporation (KINFRA) announced on Wednesday that bids have been sought for developing core infrastructure in the Puthussery Central and Kannambra sections of the Palakkad Smart City, designated as an Integrated Manufacturing Cluster.

The first phase of the project, estimated to cost ₹1,100 crore, is targeted for completion within four years. This cost covers development activities on 1,400 acres of land that have already been acquired for the purpose. The tender is for an Engineering, Procurement, and Construction (EPC) contract, meaning the selected firm will be responsible for the design, construction, and subsequent maintenance of the infrastructure, according to the KINFRA release.

The planned infrastructure components are extensive, including internal roads, comprehensive drainage systems, bridges, water supply networks, fire-fighting systems, water reuse systems, sewer lines, reliable power distribution systems, a sewage treatment plant, an industrial effluent collection system, and an effluent treatment plant.

The master plan and Detailed Project Report (DPR) for the project have already been finalised. Implementation will be coordinated by the Kerala Industrial Corridor Development Corporation Ltd. (KICDC), a special purpose vehicle (SPV) formed jointly by the National Industrial Corridor Development and Implementation Trust (NICDIT) and the Government of Kerala with equal equity participation.

Funding for the project involves contributions from both the state and central governments. So far, the state government has spent ₹1,489 crore through the Kerala Infrastructure Investment Fund Board (KIIFB) primarily for land acquisition. The central government is committed to spending ₹1,789.92 crore on infrastructure development within the project area.

The central share of funding is disbursed in phases as the state government transfers the acquired land parcels to the KICDC SPV. As per the release, the first tranche of equity transfer occurred in December 2024, with the state contributing 110 acres of land and the central government providing ₹104.5 crore. A second tranche followed in March 2025, involving a central equity contribution of ₹209 crore and the transfer of 220 acres of land by KINFRA as the state's equity share.