Kerala eyes Central funds for three industrial parks in Kannur, Ernakulam districts

Kerala plans to develop three industrial parks spanning 1,280 acres in Ernakulam and Kannur districts, seeking Central funding under the Bharat Audyogik Vikas Yojana (BHAVYA), the Centre’s scheme to develop 100 industrial parks across the country.

The state’s proposal follows the model of the Palakkad Industrial Smart City, being developed as part of the Kochi-Bengaluru Industrial Corridor, with funding and implementation shared between the Centre and the state.

The first proposal, covering 476 acres at Mattannur in Kannur district, has already been submitted. The state is likely to submit a second proposal this month for another 446 acres at Mattannur. The third proposal is for 358 acres at Ayyampuzha in Angamaly, where the state had earlier decided to acquire land for a GIFT City project.

Kerala is keen to secure a place among the first 50 industrial parks expected to be announced under BHAVYA in April next year.

The Palakkad Industrial Smart City is one of 12 industrial smart cities being developed across the country with Central assistance. The project is being implemented jointly by Kinfra, under the state government, and the National Industrial Corridor Development and Implementation Trust (NICDIT), under the Centre.

A special purpose vehicle (SPV), the Kerala Industrial Corridor Development Corporation Ltd, with equal equity participation from the state and the Centre, coordinates the Palakkad project.

The state has spent ₹1,489 crore to acquire 1,450 acres through KINFRA and transfer the land for the project. The Centre will invest an equivalent amount in developing the site, with revenue to be shared equally between the two parties.

BHAVYA follows a similar funding model, with states bearing the cost of land acquisition and the Centre providing funds for developing the industrial parks. Under the scheme, the Centre will provide ₹1 crore per acre for infrastructure development.

The SPV established for the Palakkad Smart City project can also implement the proposed industrial parks. Once Central approval is secured, the land must be transferred to the SPV within three months.

Push for 100 industrial parks
The Bharat Audyogik Vikas Yojana envisages developing 100 industrial parks, each spread across 100 to 1,000 acres, in partnership with state governments, public sector undertakings and private entities.

The Centre has earmarked ₹33,660 crore for the scheme over six financial years, from 2026-27 to 2031-32. The initiative aims to expand industrial infrastructure and support investment by creating developed industrial sites across the country.