Thiruvananthapuram: If the SilverLine project, the semi-high-speed rail initiative announced by the state government, is successful, the Kochi SmartCity project, meant to uplift the IT industry, may not realise its full potential.

Chief Minister Pinarayi Vijayan has repeatedly asserted that the SilverLine project will become a reality. However, under the currently proposed alignment of the rail project, construction on 25 acres of land within the SmartCity project area will be rendered unfeasible. 

For instance, two companies that were granted permission five years ago to construct buildings in Phase 2 of the Infopark in Kakkanad have been unable to proceed, as their sites fall within the SilverLine alignment.

Construction on 15 acres of land has been halted despite rules mandating that building activities within the Special Economic Zone (SEZ) should begin within three years of receiving approval. 

A similar impasse looms over the SmartCity project, as the SilverLine project includes a 10-meter buffer zone. Until the fate of the semi-high-speed rail project is resolved, the development of the IT industry in these areas will also remain in limbo.

Of the 246 acres leased for the SmartCity project, only 232 acres hold the SEZ status. This includes 132 acres acquired from private owners, which were the first to receive SEZ status. Classified as Category A land, this area mandates the SmartCity company to develop 88 lakh square feet of built-up space, of which 62 lakh square feet will be reserved exclusively for IT.

So far, Tecom has developed 6.5 lakh square feet, with an additional 44 lakh square feet under construction by four co-developers, including the Lulu Group. However, 10 per cent of the land has been earmarked as a green zone, leaving no room for further development in Category A if the SilverLine regulations persist.

The remaining 100 acres, acquired from KSEB and leased to Tecom, are classified as Category B land. This area is designated for township development linked to the IT industry. Unlike Category A land, Category B land does not benefit from tax exemptions. 

According to the SEZ regulations, 40 per cent of Category B land must be preserved as open space, 20 per cent can be utilised for housing, and 10 per cent for commercial purposes. This area must also include facilities such as a school and a hospital. Even if the government prioritises IT development in this zone, only 30 per cent of the land would be available unless allocations for housing and commercial use are reduced.

While Category A is reserved exclusively for IT companies, Category B land, with its potential for housing and commercial projects, permits investments from a broader range of companies. Notably, 12 per cent of this land is designated as freehold property.

This complex situation has led to growing uncertainty about the state government's true intentions even as it proposes to take over the Kochi SmartCity project from Tecom.