The Hindu Business Line : No smart consensus

AS the United Democratic Front (UDF) Government in the State enters the last of its five-year term in office, it faces a barrage of accusations and allegations regarding its development and industrialisation agenda. The most strident and virulent of these have been directed at the Smart City project, proposed to be built near Kochi in collaboration with the Dubai Internet City (DIC).

The project, which envisages an investment of Rs 1,500 crore in the first phase, is supposed to generate 33,300 direct jobs over a period of 10 years - or so claims the Chief Minister, Mr Oommen Chandy. The State Government will hand over 62.27 hectares of the State-owned Infopark at Kakkanad in Kochi, along with the buildings inside the area, to DIC for a consideration of Rs 109 crore. From this amount will come the Government's equity component in the project.

The Government also plans to acquire another 136 hectares of land, which it will sell to DIC for Rs 36 crore. Additionally, another100 hectares will be handed over to DIC free of charge, apparently in accordance with the Government's IT policy, which promises 30 cents of free land to companies for every 100 jobs generated.

All these fanciful figures have sent the Opposition parties into a tizzy and charges of corruption and allegations of gross under-valuation of land have surfaced. They also question the credentials of DIC and wondered why there had been no direct government-to-government understanding on the project.

While much of the criticism can be brushed off as political axe-grinding, it is necessary for the Chief Minister to be as transparent as possible on this deal, especially since it is being heralded as the harbinger of Kerala's industrial rejuvenation. The crying need of the hour is a political consensus on economic development, without which no private sector enterprise will want to set foot in the state in future.

The negative trend of succeeding governments going back on the promises made by the earlier government is likely to make the State an industrial graveyard, rather than a throbbing centre of private enterprise. Undoubtedly, the industrial and economic development witnessed in neighbouring States could not have been sustained without a political consensus on economic development.

Despite the charges of corruption levelled by the Opposition, the Chief Minister asserted that the priority of the Government is to attract investments and create employment opportunities for the youth of the State and that the government was determined to go ahead with the project.

About the DIC, General Sheik Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Defence Minister of the United Arab Emirates, was quoted in this paper some years ago: "The mission of the Dubai Internet City is to create an infrastructure, environment and attitude that will enable New Economy companies to operate locally, regionally and globally out of Dubai, with significant advantages. The `attitude' component in our mission is an important element. It means approaching our customers and business constituents with a view to solving their problems."

Perhaps a similar attitude amongst the political parties of Kerala will bring about the much-needed consensus that still eludes Kerala's development agenda. Without that, it will be practically impossible to compete with quality infrastructure like the Jebel Ali Port, the Jebel Ali Free Trade Zone, Port Rashid, and the Dubai International Airport, all in shouting distance of DIC.

The writer can be contacted at kgkumar@gmail.com

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