UDF cites ‘real estate deal’ as firm quits Smart City project
The Congress UDF alleges the LDF government’s exit of Tecom from the Smart City project is driven by a real estate agenda, questioning transparency and motives.
The Congress-led UDF on Thursday alleged that a “real estate agenda” was behind the LDF government’s move to approve the exit of Tecom Investments, a subsidiary of Dubai Holdings LLC, from the Smart City project through a mutual understanding.
The Smart City project is aimed at developing an IT special economic zone at Kakkanad in Kochi.
VD Satheesan, Leader of Opposition in the Kerala assembly, said that the government’s decision to “end” the Smart City project without any discussions with stakeholders was “mysterious”.
“When the government says that compensation will be paid to Tecom, it means there have been lapses on part of the government. Behind the government decision is a move to hand over 248 acres of prime land worth crores of rupees to its own people (those close to the LDF). The aim is a real estate deal,” he said.
He added that the CM must explain to people why the project failed and on what basis the government is paying compensation to Tecom.
Satheesan launched the scathing attack on the government, a day after the cabinet, chaired by chief minister Pinarayi Vijayan, decided to repossess around 246 acres of prime land in Kochi.
The land was earlier leased to Tecom for the Smart City project, after the latter reportedly failed to attract enough investments or make steady progress over the last decade. The decision was based on the recommendations of a chief secretary-led panel, which studied the issues connected to the Smart City project that was envisaged as a joint venture between the state government and the Dubai-based firm, people aware of the matter said.
A statement from the chief minister’s office on Wednesday said that discussions will be held with Tecom to formulate an exit policy through mutual understanding and that an independent evaluator will be appointed to calculate the compensation to be paid to Tecom as part of the withdrawal.
A panel, comprising IT Mission director, Infopark CEO and the managing director of Overseas Keralites Investment and Holding Limited, will be formed to submit the recommendations to the government in this regard, the CMO release added.
The Congress leader underlined that the first phase of the project was inaugurated on February 20, 2016 during the Oommen Chandy government with a 6.5 lakh sqft tower completed in one-and-a-half years. He questioned what the government and its private partner did in the last eight years.
However, industries minister P Rajeev clarified that the government has not abandoned the Smart City project. “The land in Kochi will be fully utilised under the direct supervision of the state government,” he told reporters on Thursday.
He added that Tecom failed to deliver what it had promised in terms of number of jobs and new infrastructure. “The state will hold talks with it to arrive at a formula for its exit from the project,” he said.
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