Date:26/04/2007 URL: http://www.thehindu.com/2007/04/26/stories/2007042616240100.htm

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Smart city accord before April 30

Special Correspondent

Chief Minister V.S. Achuthanandan authorised to finalise the deal

V.S. Achuthanandan

THIRUVANANTHAPURAM: The Cabinet on Wednesday approved the general terms of the agreement to be signed between Dubai Technology and Media Free Zone Authority and the State Government for the establishment of the proposed Smart City project in Kochi.

Chief Minister V.S. Achuthanandan told presspersons after a Cabinet meeting that he invited the authority to sign an agreement before April 30. The Government would initially get 16 per cent of the share in the company to be formed for the implementation of the project. This would be increased to 26 per cent after five years. The Cabinet authorised the Chief Minister to negotiate and finalise the remaining issues such as the valuation of 10 per cent of the shares to be allocated to the Government after five years and the status of the land to be allotted as free hold.

Mr. Achuthanandan said the authority proposed to create 90,000 jobs in place of the 33,000 jobs proposed to be created when the United Democratic Front (UDF) Government negotiated the agreement. This would be in addition to the jobs at the Infopark, which would remain with the Government along with its ancillary facilities.

He said that 246 acres of land would be given on a 99-year lease to the new company for Rs.104 crore. This was in contrast to the transfer of 236 acres proposed during the UDF rule for a value of Rs.26 crore.

He said that no penalty provisions for the non-fulfilment of the obligations regarding jobs were being incorporated in the agreement. The authority would not have any monopoly in IT investments in Ernakulam district or outside. A representative of the Government would be the chairman of the new company. In addition to the chairman, the Government would nominate a director.

The number of Government directors would go up to three when its equity is increased to 26 per cent. The Chief Minister said the issues relating to acquisition of land for the project had been settled.