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Kerala has finalized the tender for infrastructure development at the Palakkad Smart City, part of the Kochi-Bengaluru Industrial Corridor. The INR 1,316.13 crore (approximately USD 158 million) contract was awarded to a joint venture of Dilip Buildcon Limited and PSP Projects Limited. The project, covering 1,450 acres, includes roads, bridges, drainage, water supply, power distribution, sewage treatment, and industrial effluent systems. Kerala has already invested INR 1,489 crore (around USD 180 million) through KIIFB for land acquisition. This development marks a significant milestone in the state's industrial growth and smart city initiatives.
Kerala has completed the tender process for the infrastructure development of the Palakkad Smart City, the first node in the Kochi-Bengaluru Industrial Corridor. The construction contract was awarded to a joint venture between Dilip Buildcon Limited and PSP Projects Limited. This makes Kerala the first state to complete tender procedures among the 12 industrial corridor smart city projects sanctioned last year. Advertisement
The contract, valued at INR 1,316.13 crore (USD 158 million, including GST), was finalized after a national competitive bidding process that saw participation from four companies. The EPC (Engineering, Procurement, and Construction) contract was originally invited at INR 1,324 crore and is scheduled to be completed within 42 months from signing.
Dilip Buildcon Limited, headquartered in Bhopal, is known for constructing major infrastructure projects such as airports, metro rails, highways, and tunnels across India. PSP Projects Limited, based in Ahmedabad, has extensive experience executing both government and private sector projects nationwide.
The Palakkad Smart City project has an estimated total investment of INR 3,600 crore (USD 430 million) and is a crucial step in Kerala's industrial growth. The state had already invested INR 1,489 crore (USD 180 million) through the Kerala Infrastructure Investment Fund Board (KIIFB) to acquire 1,450 acres of land. These lands are being transferred in phases to the Kerala Industrial Corridor Development Corporation (KICDC), with 110 acres transferred last December and 220 acres earlier this year. The central government also released INR 313.5 crore (USD 37.5 million) in two phases to support the project.
The smart city site is strategically located approximately 20 km from Palakkad city, 150 km from Cochin, and 50 km from Coimbatore, providing excellent connectivity for industrial activities. The EPC contract covers design, construction, and maintenance of key infrastructure such as roads, bridges, drainage networks, water supply systems, firefighting infrastructure, water recycling facilities, sewerage lines, power distribution systems, sewage treatment plants, and industrial effluent treatment systems.
The project is coordinated by KICDC, a special purpose vehicle promoted jointly by KINFRA under the Kerala government and the National Industrial Corridor Development and Implementation Trust (NICDIT) under the Government of India. Kerala began implementing the project in September 2020, with equal partnership from the state and central governments, and had completed 85% of land acquisition by July 2022.
Source PTI
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