Kochi-Bangalore Industrial Corridor Gathers Steam: Palakkad Node Gets Green
The Government of India's ambitious plan to develop world-class industrial hubs under the National Industrial Corridor Programme has reached a major milestone in Kerala. The Kochi-Bangalore Industrial Corridor (KBIC), envisioned as an extension of the Chennai-Bangalore Industrial Corridor, is now taking shape with significant progress in the Palakkad node—one of two major nodes planned under the project.
The KBIC is being implemented under the aegis of the National Industrial Corridor Development and Implementation Trust (NICDIT) and aims to transform the industrial landscape of southern India. It will position India as a competitive global manufacturing and investment destination, on par with international industrial giants.
KICDC Takes the Helm
The Kerala Industrial Corridor Development Corporation Limited (KICDC)—a 50:50 joint venture between NICDIT (representing the Centre) and KINFRA (representing the State)—was incorporated on April 21, 2021, to execute the KBIC project.
The formal State Support and Shareholder Agreements were inked on October 22, 2020.
Palakkad Node: Key Industrial Hub in the Making
The Palakkad node, formally called the Integrated Manufacturing Cluster (IMC) Palakkad, will span 1,710 acres across three land parcels: Pudussery Central (1,137 acres), Pudussery West (240 acres), and Kannambra (313 acres). Strategically located along National Highway 544, the site lies 35 km west of Coimbatore (Tamil Nadu) and 83 km east of Thrissur (Kerala).
The IMC is set to host a diverse range of industries, including pharmaceuticals, medicinal chemicals, botanical products, textiles and apparels, food and beverages, non-metallic mineral products, rubber and plastic goods, high-tech manufacturing, and fabricated metal machinery.
Approvals and Funding in Place
Land acquisition has made significant headway, with approximately 1,400 acres already acquired—1,100 acres in Pudussery Central and 299 acres in Kannambra.
Notifications under Section 11(1) have been issued for the remaining 240 acres in Pudussery West and the required access road. The Government of Kerala, through the Kerala Infrastructure Investment Fund Board (KIIFB), has released ₹1,489 crore to date for land acquisition.
Environmental clearances have also been secured: IMC Pudussery Central and West received clearance on February 15, 2024, while Kannambra was green-lit on February 13, 2025.
Major Central Push for Funding
In a key development, the NICDIT board gave its approval to the IMC Palakkad project on December 14, 2022, with a sanctioned outlay of ₹3,815 crore. The Centre committed ₹1,789.92 crore as equity contribution. This was followed by Union Cabinet clearance on August 28, 2024, for a total of ₹3,806 crore—including ₹1,789.92 crore for land and ₹2,026 crore for development.
Site visits by top officials—including the Minister for Industries, Law and Coir on September 24, 2024, and the NICDC CEO on October 4, 2024—have further underlined the government's intent.
Equity Tranches and Master Plan Unfold
In December 2024, the first tranche of equity—comprising 110 acres of land (GoK) and ₹104.5 crore (GoI)—was transferred to the SPV. This was followed by a second tranche in March 2025, consisting of ₹209 crore (GoI) and 220 acres of land (KINFRA) as state equity.
The masterplan and Detailed Project Report (DPR) have been prepared by consultants appointed by NICDC. The Request for Qualification-cum-Request for Proposal (RFQ-cum-RFP) for appointing a Programme Manager for New Cities (PMNC) has been floated and is expected to be awarded this week.
An Engineering, Procurement and Construction (EPC) contract tender will follow by May 2025. The entire Palakkad node project is targeted for completion within four years.
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