The government has sanctioned Rs 70 crore to the Kerala Industrial Infrastructure Development Corporation (KINFRA) for land acquisition as part of the Kochi-Palakkad Hi-Tech Industrial Corridor project, which is a segment of the larger Kochi-Bangalore Industrial Corridor (KBIC).

The sanctioned funds will be used to repay the loan funded by the Kerala Infrastructure Investment Fund Board (KIIFB). The KBIC will span 2,060 acres across Kerala and include two main nodes: the Industrial Manufacturing Cluster (IMC) in Palakkad and the Global City (formerly Gift City) in Ayyampuzha, Ernakulam. The Global City, to be developed on 350 acres, is currently awaiting Central approval.

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, approved the Palakkad IMC last year under the National Industrial Corridor Development Programme (NICDP). Earlier, Kinfra had requested the release of Rs 200 crore for the 2025–26 financial year for land acquisition purposes. The government had already given comprehensive administrative sanction for the hi-tech corridor project with a total cost estimate of Rs 2,608 crore, covering the amount required for loan repayment to KIIFB. The Rs 70 crore now released is subject to specific conditions outlined in the official order.