The Hindu Business Line : MoU signed for Kochi Smart City

THE Kerala Government has signed a memorandum of understanding (MoU) with Dubai-based TECOM (Technology, Electronic Commerce and Media Free Zone), promoters of the Dubai Internet City (DIC), to set up a `Smart City' on the outskirts of Kochi.

The Smart City project, aimed at attracting information technology (IT) and business process outsourcing (BPO) companies to Kerala, will come up on 300 acres.

The project has been mired in controversies as the Opposition parties in the State raised many questions about the Smart City and alleged that the Government was rushing into a deal with DIC.

Discussions between the State Government and DIC had been going on for months.

The present MoU between the Government and TECOM provides a broad framework for arriving at a final agreement that is likely to be signed in the next six weeks.

The Chief Secretary, Mr Palat Mohandas, and the Director General of TECOM, Mr Ahmad bin Byat, signed the MoU here on Friday evening, in the presence of the Kerala Chief Minister, Mr Oommen Chandy.

The State Government will give 100 acres of land for the Smart City in lieu for the 33,000 jobs created by the project in 10 years.

The existing facility of Infopark, a state-owned infrastructure facility for IT companies spread in 62.5 acres, is also being given to DIC for a consideration of Rs 109 crore.

The DIC will also pay Rs 36 crore for another 136 acres that will be acquired and handed over by the Government for the project.

The project had run into controversies as the opposition alleged that the land was valued far below the prevailing market rates. They also questioned why Infopark is being handed over to DIC to set up the Smart City.

However, with the signing of MoU, the project is all set to take off.

The Chief Minister, Mr Oommen Chandy, said after signing the MoU that the Government had an open mind on the project and discussions with those opposed to it were on.

It is expected that Smart City will entail an investment of Rs 1,500 crore and give a boost to Kearla's prospects as an emerging destination for IT and BPO companies.

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