Kerala Completes Tender for Palakkad Smart City EPC Contract; Work to Begin Soon

Kerala has completed tendering for an engineering, procurement and construction (EPC) contract for the Palakkad Smart City project, marking a big step in the state’s smart-city rollout tied to the Kochi-Bengaluru industrial corridor.

The contract, reportedly awarded to a joint venture of Dilip Buildcon Ltd and PSP Projects Ltd, covers infrastructure works valued at around ₹1,316.13 crore (including GST) and is part of a larger programme estimated at over ₹3,600 crore. Construction is expected to begin by late 2025.

Palakkad’s project, advanced with state investment through the Kerala Infrastructure Investment Fund Board (KIIFB), is notable for large land acquisitions and phased releases of parcels for development. The Smart City plan includes urban infrastructure upgrades, connectivity improvements, and dedicated industrial-logistics planning designed to leverage the region’s location on the Kochi-Bengaluru corridor. Officials have indicated prior land purchases and central releases have already mobilised significant preparatory works.

For local stakeholders, the EPC award accelerates on-ground delivery and signals a move from planning to construction. Municipal planners will need to coordinate traffic management, environmental safeguards, and stakeholder outreach during construction phases, while industries and developers can begin firming up investments tied to improved city logistics. The project also highlights state-level innovation in using KIIFB financing to de-risk early investments.