Kerala has awarded the infrastructure development contract for the ₹3,600-crore Palakkad Smart City (Integrated Manufacturing Cluster) under the Kochi-Bengaluru industrial corridor to a joint venture of Dilip Buildcon Limited (DBL) and PSP Projects Limited. This makes Kerala the first state in the country to finalise such a contract among the 12 industrial corridor–smart city projects sanctioned last year.

The state government spent Rs 1,489 crore through the Kerala Infrastructure Investment Fund Board (KIIFB) for land acquisition. 1,450 acres of land have been acquired so far.

At present the land is under the possession of the KINFRA and it will be handed to the Corridor Development Corporation in phases. 110 acres were handed in December and 220 acres in March. Subsequently, the Union government transferred Rs 313.5 crore.

The decision to extend the Chennai-Bangalore industrial corridor to Kochi, ie, Kochi-Bengaluru industrial corridor, was taken in August 2019. The state and central governments have equal participation in the project. Kerala began steps to realise the project in September 2020.

The state government completed 85% of land acquisition by July 2022. It took 14 months for the state to acquire 1,152 acres. Last June, State Industries Minister P Rajeeve had apprised Union Minister of Commerce and Industry Piyush Goyal about the steps taken by the state.

The Kerala Industrial Corridor Development Corporation, an SPV, is coordinating the works. The KINFRA under the state government and National Industrial Corridor Development and Implementation Trust have equal stake in the SPV.

The infrastructure development works for the project include construction of roads, drainages, bridges, water supply network, fire safety measures, water recycling, sewerage lines, power distribution, industrial wastewater collection system and wastewater treatment plant.