THIRUVANANTHAPURAM: Kerala has successfully completed the tender process for infrastructure development at Palakkad Smart City, the initial node of the Kochi-Bengaluru Industrial Corridor.
According to a statement from the CMO, the construction contract has been awarded to a joint venture between Dileep Buildcon Limited (DBL) and PSP Projects Limited.
This accomplishment makes Kerala the first state to finalize procedures for infrastructure development among the 12 industrial corridor-smart city projects approved in the country last year.
The contract, valued at Rs 1,316.13 crore (including GST), was awarded after a competitive national tender process, with four companies participating, as per KINFRA (Kerala Industrial Infrastructure Development Corporation).
The initial EPC (Engineering, Procurement, and Construction) bid was set at Rs 1,324 crore, and the project is expected to be completed within 42 months from the signing date.
Bhopal-based Dilip Buildcon is recognized for constructing airports, tunnels, metro rails, bridges, and highways across India, and has also received the Wayanad Tunnel Road project.
Ahmedabad’s PSP Projects is a well-established company involved in infrastructure projects for both government and private sectors nationwide.
The Palakkad Smart City initiative, with a total investment projected at approximately Rs 3,600 crore, represents a significant milestone in Kerala’s industrial development.
Previously, the state government allocated Rs 1,489 crore through the Kerala Infrastructure Investment Fund Board (KIIFB) for land acquisition, securing 1,450 acres for the project.
The acquired land, now under KINFRA’s jurisdiction, is being transferred in phases to the Kerala Industrial Corridor Development Corporation Limited (KICDC).
As of December last year, 110 acres had been transferred, followed by an additional 220 acres in March. The central government subsequently released Rs 313.5 crore in two phases.
The Kochi-Bengaluru Industrial Corridor was envisioned in August 2019 as an extension of the Chennai-Bengaluru Industrial Corridor. Kerala began implementing this project in September 2020, with equal partnership from the central and state governments. By July 2022, Kerala had completed 85% of land acquisition, acquiring 1,152 acres in just 14 months.
Industries Minister P. Rajeev mentioned that he met with Union Minister for Commerce and Industry Piyush Goyal in June last year to secure the final approvals for the project and present the state’s progress.
The Palakkad Smart City initiative is coordinated by the Kerala Industrial Corridor Development Corporation Limited (KICDC), a special purpose vehicle jointly established by KINFRA (under the Government of Kerala) and the National Industrial Corridor Development and Implementation Trust (NICDIT) under the Government of India.
The EPC contract encompasses the design, construction, and maintenance of essential infrastructure, including roads, bridges, drainage networks, water supply systems, firefighting infrastructure, water recycling facilities, sewerage lines, and sewage treatment plants.
