The cabinet has decided to appoint a committee to fix the compensation to be paid to the company.

The cabinet has decided to appoint a committee to fix the compensation to be paid to the company.

The cabinet has decided to appoint a committee to fix the compensation to be paid to the company.

Kochi: The Kerala government has decided to reclaim the 246-acre land allotted to Tecom Investments for the Kochi Smart City project. The decision was made during a cabinet meeting held on Wednesday.

The Dubai-based company and the state government are expected to mutually formulate a policy to cancel the agreement. The cabinet also resolved to appoint a committee to determine the compensation to be paid to the company.

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In 2011, Tecom had signed an agreement promising to generate 90,000 job opportunities in Kochi. However, the company fell short of achieving even one-third of this target. Subsequently, Tecom expressed its willingness to withdraw from the agreement.

Under the original terms, the project was expected to involve an investment of ₹2,000 crore, creating one of the largest IT parks in India. The plan included a minimum built-up space of 8.8 million sq. ft., with at least 6.2 million sq. ft. dedicated to IT/ITES and allied services. The land for the project had been allotted near Infopark in Kakkanad.

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The government had envisioned establishing India’s first Smart City with this ambitious project.