Thiruvananthapuram: In a significant setback for Kerala's industrialisation plans, the Central government has yet to give final approval to the Kochi-Bengaluru industrial corridor, announced earlier. Meanwhile, the latest Union Budget presented on Tuesday proposed a new industrial corridor from Bengaluru to Hyderabad.
Despite Kerala completing all necessary procedures to acquire land for the corridor project, the Centre remains silent on granting final approval.

The project is jointly undertaken by the National Industrial Corridor Development Corporation (NICDC) under the Union Ministry of Commerce and Industry, along with the state government. This corridor was envisioned as part of the Chennai-Bengaluru corridor. The new Bengaluru-Hyderabad industrial corridor will benefit Kerala only if a similar corridor connects Kochi.

The Kerala Infrastructure Investment Fund Board (KIIFB) has informed the state government that it can release Rs 840 crore for acquiring land belonging to Global Industrial Finance and Trade City (GIFT City) at Angamaly, situated along the proposed industrial corridor's path, on short notice.

However, there has been no response to the letter sent by Kerala's Chief Minister to the Prime Minister seeking the Union Cabinet's clearance for an Integrated Manufacturing Cluster (IMC) in Palakkad.

The GIFT City project was finalized based on a report of a consultancy appointed by the central government and multiple discussions. With the Centre’s permission still pending, the consultancy has been inactive for the last 18 months.

In Palakkad, the state government has already acquired 1,273 of the 1,710 acres required for the industrial corridor, spending Rs 1,344 crore. The delay in the centre's positive response has left the state in a lurch due to the huge amount spent on the project and interest paid for the borrowed money.