SmartCity: Payment to TECOM is share settlement, not compensation, says CM
The Chief Minister's remarks came in response to allegations from Opposition Leader V D Satheesan, who accused the government of planning to transfer the project's 246 acres of prime land to favoured individuals under the guise of a real estate agenda.
The Chief Minister's remarks came in response to allegations from Opposition Leader V D Satheesan, who accused the government of planning to transfer the project's 246 acres of prime land to favoured individuals under the guise of a real estate agenda.
The Chief Minister's remarks came in response to allegations from Opposition Leader V D Satheesan, who accused the government of planning to transfer the project's 246 acres of prime land to favoured individuals under the guise of a real estate agenda.
Thiruvananthapuram: Chief Minister Pinarayi Vijayan has clarified that the payment to Dubai-based TECOM for exiting the Smart City Project in Kochi is not compensation but the cost of its shares in the venture. Addressing media queries, the Chief Minister emphasised that the settlement is based on the value of TECOM's 84 per cent stake, as determined by an independent evaluator.
The Chief Minister's remarks came in response to allegations from Opposition Leader V D Satheesan, who accused the government of planning to transfer the project's 246 acres of prime land to favoured individuals under the guise of a real estate agenda. Rejecting these claims at a press meet on Monday, Vijayan assured that all future developments would remain entirely under government control.
Explaining the legal framework, the Chief Minister said that under Clause 7.2.2 of the agreement, TECOM is entitled to the repayment of its lease premium of Rs 91.52 crore and expenses incurred on infrastructure. An independent evaluator was appointed to determine the share price, ensuring transparency and adherence to the agreement.
The government's decision to settle TECOM's investment rather than issue a notice under Clause 7.2.1 followed the advice of the Advocate General. This approach aims to avoid arbitration or legal complications while facilitating the withdrawal process.
A Chief Secretary-led committee comprising Finance, Revenue, Law, and IT Secretaries was tasked with studying the Smart City project's issues and future functioning. Based on its recommendations, the cabinet decided to negotiate TECOM's exit terms and draft a withdrawal agreement. The agreement includes provisions for mediation and arbitration to resolve any project-related lapses. However, the government’s focus is on avoiding disputes and reclaiming the land for IT development, the CM added.
The Chief Minister highlighted the pressing need for additional infrastructure in Kochi's IT sector, noting that 99 per cent of Infopark's space is already occupied. The 246-acre Smart City land, located adjacent to Infopark, presents a critical opportunity for expansion and attracting new IT companies. This initiative aligns with the government's commitment to bolstering Kerala's IT capabilities.
The CM attributed TECOM's decision to withdraw to Dubai Holdings’ 2017 policy shift, ceasing operations outside Dubai. He assured that despite TECOM's exit, the Smart City project would remain on course, with no plans for joint ventures with private firms. Instead, the government intends to control future developments fully, focusing on advancing Kerala’s IT sector, reported PTI.
The Chief Minister reiterated the emotional and strategic ties between Kerala and the UAE, emphasising that the Smart City project was a product of extensive collaboration between the two governments. A committee has already begun drafting the withdrawal policy, which will guide subsequent steps.
The cabinet, in a meeting chaired by the Chief Minister, resolved to move forward with the withdrawal agreement based on the Chief Secretary-led panel's recommendations. The government aims to utilise the reclaimed land efficiently for Kerala's IT development, ensuring long-term benefits for the state.