Dubai's Tecom to Exit Kochi Smart City Project

06 Dec 2024 CW Team

The state government has decided to remove the Dubai-based Tecom Company from the Smart City Kochi project, originally envisioned to attract global investment to Kerala. Despite the project's first phase being completed in 2016, five years after it was signed in 2011, the second phase failed to materialize over the following 13 years. This prolonged stagnation and failure to meet its objectives led to the decision to part ways with Tecom.

The Cabinet, during a meeting on Wednesday, approved the recommendation of a committee led by the Chief Secretary to address the crisis. It was decided to finalize the separation policy in mutual agreement with Tecom. Additionally, the Cabinet proposed appointing an independent evaluator to determine the compensation payable to the company.

To oversee this process, the government formed a committee comprising the IT Mission Director, Infopark CEO, and Dr. Baju George, Managing Director of OKIH (Overseas Keralites Investment and Holding). Smart City IT Township, located next to Kakkanad Infopark, was initially launched with promises of creating 90,000 jobs and constructing 88 lakh square feet of building space. However, Tecom’s inability to meet these commitments led to the project's downfall.

The Kerala government owns a 16 per cent stake in the project, while the Dubai Holding Group holds 84 per cent. The Chief Minister serves as the Chairman of the Board of Directors. To date, only one building exists in the Smart City, housing 37 IT and related companies, alongside six construction partners. The project has attracted a total investment of Rs 26.09 billion, of which Rs 19.35 billion was contributed by co-developers directly identified by the government.

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