KIIFB land acquisition in Kannur and Palakkad estimated at 12,727 crore, with administrative costs above 1,900 crore

18 October 2026

Kerala Kaumudi reported on 18 October 2026 that the Kerala Infrastructure Investment Fund Board estimated administrative expenses of more than 1,900 crore for land acquisition in Kannur and Palakkad, where the acquisition itself is valued at 12,727 crore.
Administrative costs were reckoned at up to 15 per cent of land value, while the norm for major projects is 2.5 per cent, rising to 5 per cent for complex railway projects and 1 per cent for other central projects.
5,366 acres have been acquired so far, 4,896 acres in Kannur and 470 acres in Palakkad, at about 2.4 crore an acre, and 2,489 crore was spent on the first 1,000 acres in Kannur.
The 2016-17 Budget had announced 1,000 acres at Panayathamparamba in Pattanur, Kannur, for an industrial zone, and the KIIFB General Body approved the larger acquisition on 25 October 2018.
The acquisition is financed through HUDCO loans routed via KINFRA, and if it takes the full seven years the report puts total expenditure at about 15,000 crore.