TECOM, Kerala to sign pact on May 13

Thiruvananthapuram, May 12 (UNI) After three years of political wrangle, the Rs 1500 crore Smart City project, envisaged to make Kerala an IT hub, is becoming a reality, with the Kerala government and the Dubai Technology and Media Free zone Authority (TECOM) signing an agreement tomorrow.

Kerala Chief Secretary Lizzie Jacob and Director-General of Dubai Holding Ahmad Bin Bayat, which controls TECOM would ink the pact tomorrow in the presence of Chief Minister V S Achuthanandan.

The agreement is considered as the biggest achievement of the CPI(M)-led Left Democratic Front (LDF) government, which is completing its first year in office.

The Congress-led United Democratic Front (UDF) regime could not clinch the deal for the Smart City project, which came up during its regime, as the Assembly election was announced before the pact was finalised.

The LDF, which was in the Opposition then, had opposed the project saying that the UDF was trying to sell the state's interests to a Dubai-based company.

Mr Achuthanandan, who was then the Opposition leader, wanted transparency and a better deal for the government in the agreement.

Talks on the project started in 2004 after the DIC proposed creation of an exclusive zone for knowledge-based industries in Kochi when Defence Minister A K Antony was the Chief Minister of the state.

A Memorandum of Understanding was signed in 2005 when Mr Oommen Chandy became the Chief Minister. The UDF government was close to signing an agreement in early 2006 but it was challenged in the Kerala High Court and the Congress lost the Assembly elections.

The LDF government successfully re-negotiated and an agreement was almost reached in September 2006. However, it hit the roadblocks again as some officials negotiating for the state tightened their stand and raised fresh demands.

The talks resumed in February 2007 and the officials from both sides deliberated on many issues.

Under the new agreement, 246 acre of land would be given to TECOM on lease for 99 years for Rs 104 crore to set up the project.

The government would have 16 per cent share and after five years, it would be increased to 26 per cent. The Chairmanship would be with the government and it would also have a board member.

When the share reaches 26 per cent, the government would have three members in the board of directors.

UNI