The Kerala Industrial Corridor Development Corporation (KICDC) has announced that the Palakkad Industrial Smart City, a major component of the Kochi–Bengaluru Industrial Corridor, will be developed in a single phase.

Work is set to begin by the end of October 2025. A coordination meeting involving the contracting consortium Dilip Buildcon–PSP Projects and NICDIT will be held next week. The Centre has already released Rs 313.5 crore, while the Kerala government has transferred 330 acres of land. KICDC aims to complete infrastructure development within 42 months. Land allotment to companies will follow, based on the availability of Central funds.

Despite phased land transfers, all infrastructure development will take place on the already acquired land. The project is being implemented by a special purpose vehicle, KICDC, formed by KINFRA and NICDIT with equal equity. Kerala leads among the 12 Industrial Smart Cities across India in terms of procedural progress, with all tendering completed and major land acquisition done via KIIFB funding.