Palakkad Smart City Project Tender Process Successfully Concluded

Key Takeaways

The construction contract for Palakkad Smart City has been awarded to Dilip Buildcon Limited and PSP Projects Limited.
This marks Kerala as the first state to complete infrastructure development for the twelve industrial corridor-smart city projects approved last year.
The total estimated cost of the Palakkad Smart City project is ₹3,600 crore, with ₹1,316.13 crore allocated for initial construction.

Palakkad Smart City Project Progress

The tender proceedings for the infrastructure development of the Palakkad Smart City, which is part of the Kochi-Bengaluru Industrial Corridor, are complete. The construction contract has been awarded to a joint venture of Dilip Buildcon Limited and PSP Projects Limited. This achievement makes Kerala the first state to finalize the infrastructure development for the twelve industrial corridor-smart city projects sanctioned across India last year, according to a release from the Chief Minister’s office.

The awarded construction contract is valued at ₹1,316.13 crore, including GST, with work expected to commence shortly. The overall estimated cost of the Palakkad Smart City project is ₹3,600 crore, reflecting a significant investment in regional development.

Two years ago, the state government allocated ₹1,489 crore through the Kerala Infrastructure Investment Fund Board for land acquisition. To date, 1,450 acres of land has been secured for the project. The transfer of land currently held by KINFRA to the corridor development corporation is being carried out in phases. In December of the previous year, 110 acres were transferred, followed by another 220 acres in March.

In addition, the Union government has contributed ₹313.5 crore in two phases to support the project. Plans to extend the Chennai-Bangalore Industrial Corridor to Kochi were initiated in August 2019, and by September 2020, Kerala commenced procedures for implementation, which involves equal participation from both state and Union governments.

The development activities for the Palakkad Smart City are led by the Kerala Industrial Corridor Development Corporation Limited (KICDC). This organization is a special purpose vehicle created by KINFRA in conjunction with the National Industrial Corridor Development and Implementation Trust (NICDIT). As one of the most significant industrial initiatives in the region, the completion of this project aims to enhance the economic landscape of both Palakkad and Kerala as a whole.

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