PALAKKAD: The land acquisition in Palakkad district for the Kochi-Bengaluru Industrial Corridor (KBIC) project, which is an extension of the Chennai-Bengaluru Industrial Corridor, is nearing completion. In Ernakulam district, notification has been issued for land acquisition in Ayyampuzha.
According to state government sources, 1,240 acres have been acquired in Palakkad district for which a compensation of Rs 1,333 crore has been disbursed. The project requires a total acquisition of 2,060 acres, from Kannambra and Pudussery Central and West villages in Palakkad district and Ayyampuzha village in Ernakulam district.
The ministry of environment and forests has completed the public hearing, and the environmental impact assessment report has been submitted to the Kerala State Pollution Control Board, said Kinfra managing director Santosh Koshy Thomas. Kinfra is the nodal agency for the project.
“The process of drafting the engineering, procurement and construction contract in consultation with NICDIT is in an advanced stage,” he said. The KBIC project will be implemented through a special purpose vehicle, namely the Kerala Industrial Corridor Development Corporation (KICDC) formed between the National Industrial Corridor Development and Implementation Trust (NICDIT) and Kinfra. The state government and NICDIT, which comes under the ministry of commerce and industry, hold an equal share of equity in the special purpose vehicle (SPV), said the Kinfra managing director.
“The land will be transferred to SPV free from all encumbrances as the Kerala government share. The Centre will bring a matching contribution equivalent to the land transferred to the SPV. After getting possession of 80% of the land required, approval for matching funds will be initiated with the Union government based on the financial component of the design basis report,” Thomas said.
On December 14, 2022, the NICDIT Board had approved the estimated cost of the project amounting to Rs 3,815 crore for the development of the Palakkad node. The Board also approved an investment of Rs 1,789.92 crore as the NICDIT contribution. The project was presented to the Expert Appraisal Committee (EAC) of the ministry of environment and forests and climate change on December 16, 2022, and the terms of reference were issued.
While administrative sanction has been accorded for the acquisition of 1,860 acres in Palakkad district alone, it is estimated that, finally, only 1,700 acres will be acquired after excluding residential areas. Thomas said 85% of the land required in Palakkad district has been acquired.
“We have in our possession 1,240.42 acres. With regard to Ernakulam district, we have issued the 11 (1) notification to acquire 358 acres in Ayyampuzha and we have been allotted funds towards the disbursal of compensation,” he said.
The land identified in Ayyampuzha will be developed as the Kochi GIFT (Global Industrial Finance and Trade) City, he said. An investment of Rs 3,000 crore is expected through the Kochi GIFT City, which is expected to see the creation of around 10,000 direct jobs.