Smart City project: Prospects brighten

The prospects of the proposed Rs 1,500 crore Smart City IT project to be set up in Kochi brightened with the five-and-a-half-hour discussions here on Wednesday between the State Government and Dubai-based Tecom (Technology and Media Free Zone Authority), the promoters of the project, ending in a happy note.

Chief Secretary Lizzie Jacob told newsmen after the discussions that the two sides had agreed on many conditions and a final agreement could be expected in two weeks' time. Tecom chief executive officer Abdul Lateef Al Mulla also said that the discussions were very good and that he expected that an agreement would be signed.

The two sides agreed on several points, especially on the questions of the Kerala Government's stake in the project, the non-transfer of Infopark and the presence of other IT companies in the Kochi area.

Abdul Lateef Al Mulla said the two sides agreed on the Government stake of 16 per cent in the project. The Government had demanded a 26 per cent stake. However, the 16 per cent stake could go up in phases as the project progresses.

As per the agreement at the discussions, Tecom has agreed to the Government position that Infopark need not be transferred. The other point on which agreement has been made is that Tecom will not object to the presence of other IT companies in Kochi.

Observers see the agreement on these three points as a great victory of the LDF Government headed by VS Achuthanandan as the former UDF regime headed by Oommen Chandy had agreed to the Tecom conditions on these points.

As per the earlier pact between Tecom and the former UDF Government, the State to get a mere nine per cent stake, the Infopark had to be transferred to the Dubai company and that no IT companies could come up in the Kochi area.

The Chief Secretary said that only some points more had to be discussed now, and a pact on these also could be reached in another round of discussions for which no date had been set. "I hope this can happen in two weeks," Lizzie Jacob said.

Abdul Lateef AL Mulla said that one of the points to be cleared now was the land price. However, he did not want to tell newsmen what was the price offered by his company and what the Government demanded.

The last point on which agreement has to be reached is on the number of job opportunities to be created at the proposed IT facility. It is said that the Dubai-based company is ready to agree on the number of job opportunities to be created in 10 years, but a decision is yet to be reached on the Government's insistence that 70 per cent of these employments should be available during the LDF's tenure.

Hours before the discussions, Chief Minister Achuthanandan claimed that the upcoming Smart City agreements would be far different from the ones reached at by the former UDF regime.
Prior to the afternoon discussions, the Chief Minister and top officials of the Dubai-based company had held talks on the project coming up at Kochi.