Wednesday, February 2, 2011

Kerala Cabinet approves SmartCity pact

Realising a dream project of Kerala, the state Government Wednesday signed an agreement with its Dubai-based promoters on setting up the SmartCity IT project at a 246-acre in Kochi.
The long-pending dispute between the two sides over the land ownership issues concering the project were settled at the talks between Chief Minister V S Achuthanandan and and Ahmed Homaid al Tajir, member of the Supreme Committee for Dubai World Group and Public Holding Group here Wednesday.
As per the agreement, on completion of the master plan, 12 per cent of the total land would be converted from leasehold to freehold rights within the Special Economic Zone. The Government would also exempt the land from registration fee and stamp duty.
The agreement was later approved by the state cabinet, paving the way for the work on the project to start without further delay, Achuthanandan told reporters. He also lauded the services of leading NRI entrepreneur M A Yusafali in bringing the two sides to the negotiating table and working out an mutually acceptable solution.
The SmartCity was envisaged in 2004 by then Congress-led UDF ministry as a major joint venture project which could generate thousands of direct jobs.
The foundation-stone for the project was laid in 2007 by the present LDF Government, but its work ran into problems over the Dubai-based partner TECOM's demand for freehold right over at least 12 per cent of the 246 acres of land acquired for the project.
Having settled the disputes resolved, state government and TECOM would jointly work to get the SEZ approval from the Centre at the earliest. TECOM would develop the entire 246 acres as an IT/ITES sector specific SEZ.

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