Karungalpalayam also known as (K.G. Palayam) is a commercial suburb in the city of Erode.It is located on the banks of Cauvery River, 3 kilometres (1.9 mi) to the north-east of Erode Central Bus Terminus and 1 kilometre (0.62 mi) west of Pallipalayam. Kalingarayan Canal runs through Karungalpalayam. The area is a mix of commercial and residential. The economy of this urban area is primarily textile production using power looms.
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