Tweet
More than four years after laying the foundation stone, the SmartCity Kochi project, a joint venture between the government of Kerala and Dubai-based Tecom, took a decisive turn for the better on Wednesday.
The project, with an initial investment of $350 million, is expected to generate about 90,000 jobs in the next 10 years.
The lease deed for 246 acres, where the project is coming up, for 99 years was signed on Wednesday. The land was also registered in favour of the SmartCity Kochi Infrastructure Private Limited with the government giving stamp and registration duty exemptions.
After signing the lease deed, Registration Minister S. Sarma, who is also the chairman of SmartCity Kochi, and Tecom CEO Abdullatif Almulla said construction would begin as soon as the Special Economic Zone notification was received for 131 acres, which had already been cleared by the Board of Approval of the Union Commerce Ministry.
Things, however, were looking far from rosy before the meeting between Chief Minister V.S. Achuthanandan and member of Dubai's Supreme Fiscal Committee Ahmed Humaid Al Tayer on February 2.
Stumbling block
The project had hit a stumbling block in March 2008 over the promoter's demand for freehold over 12 per cent of the project land. While the State government insisted that land with the freehold right will be inside the SEZ and hence cannot be sold, Tecom claimed that freehold by default meant right to sell. Both sides stuck to their positions till the government appointed M.A. Yousuf Ali, board member of the Abu Dhabi Chamber of Commerce and Industries, as a mediator to find a way out.
Mr. Ali, with the help of his team, was able to create a consensus between the parties within three weeks resulting in the February 2-meeting. Eventually, the government had its way and Tecom agreed on freehold without selling rights.
The project, with an initial investment of $350 million, is expected to generate about 90,000 jobs in the next 10 years.
The lease deed for 246 acres, where the project is coming up, for 99 years was signed on Wednesday. The land was also registered in favour of the SmartCity Kochi Infrastructure Private Limited with the government giving stamp and registration duty exemptions.
After signing the lease deed, Registration Minister S. Sarma, who is also the chairman of SmartCity Kochi, and Tecom CEO Abdullatif Almulla said construction would begin as soon as the Special Economic Zone notification was received for 131 acres, which had already been cleared by the Board of Approval of the Union Commerce Ministry.
Things, however, were looking far from rosy before the meeting between Chief Minister V.S. Achuthanandan and member of Dubai's Supreme Fiscal Committee Ahmed Humaid Al Tayer on February 2.
Stumbling block
The project had hit a stumbling block in March 2008 over the promoter's demand for freehold over 12 per cent of the project land. While the State government insisted that land with the freehold right will be inside the SEZ and hence cannot be sold, Tecom claimed that freehold by default meant right to sell. Both sides stuck to their positions till the government appointed M.A. Yousuf Ali, board member of the Abu Dhabi Chamber of Commerce and Industries, as a mediator to find a way out.
Mr. Ali, with the help of his team, was able to create a consensus between the parties within three weeks resulting in the February 2-meeting. Eventually, the government had its way and Tecom agreed on freehold without selling rights.