Palakkuzhy Mini Hydro Electric Project is the 2 nd Hydro Electric Project taken up by Palakkad District Panchayat. The Project is situated in Kizhakkanchery Panchayat 10 Kilometers away from Vadakkancherry.

The 1 MW (2 x 500 KW), 3.78 MU (Million Units) Palakkuzhy Mini Hydro Electric Project is allotted for execution to District Panchayat Palakkad by Government of Kerala vide No. G.O (.MS) No.5/2011/PD dated 14.02.2011 Power (B) Department. The works involved are mainly construction of a diversion weir 80m long, Low Pressure Pipe (LPP) 200m long, a single inclined Penstock pipe 525m long branching into two 5m long feeder pipes a power house with 2×500 KW installed capacity and a short tail race channel. The tail race water is diverted to the same stream after generation.

TheĀ  generated energy will be sold to KSEB as per a PPA that will be arrived after discussion through Kerala State Electricity Regulatory Commission (KSERC). The power is intended to be transmitted to nearby Substation, Vadakkancherry. The Detailed Project Report (DPR) was prepared by KSEB in 1992 having total project Cost of 1.92 Crores. The project report and the estimate have been revised by Palakkad Small Hydro Company Ltd. Now the approximate total outlay of the Project is Rs.13.00 Crores as per the DSR 2015 including interest during Construction.

A Negotiable Purchase committee headed by District Collector Palakkad has been constituted by Govt. of Kerala on 8/03/2011 by Local Self Government Department for purchasing the required land. The weir, the water submerging area, the Low pressure pipe, and a short length of penstock falls in the Kizhakkanchery Village No. 1 and the balance length of penstock, Power house and approach road falls in Kizhakkanchery Village No. 2 The required land for the project except a length of penstock pipe about 300 meter belongs to private land owners. The 300 meter length land with a width of 10 meters for laying penstock pipe comes in Kizhakkanchery village in R.S.358 of Block No. 39 of vested Forest item No.37/4 .The area comes under the Nenmara Forest Division.

Application in required form has been forwarded for the transfer of Forest land to the DFO, Nenmara. DFO, Nenmara has forwarded the same to CF, Olavakkod. The Online registration for forest land is being carried out. The project can be commissioned within two years as and when the land and fund are realized. The District, Block and Grama Panchayats deposited amount as shares in Palakkad Small Hydro Company Limited. Application for including the project under State Sponsored Scheme has been submitted to Government of Kerala for financial assistance.