Kerala Government Set to Take Full Control of SmartCity Kochi

22 Jan 2025 CW Team

After appointing a committee to finalise the terms for Tecom Investments' exit from the joint venture, the Kerala government is poised to take full control of the SmartCity Kochi project. This move will grant the government authority over the 246-acre IT park located at Kakkanad.

Tecom, a subsidiary of Dubai Holding, had a majority 84% stake in SmartCity Kochi, with the state government owning 16%. The expert committee, which includes Kerala State IT Mission director Sandip Kumar, Infopark CEO Susanth Kurunthil, and Overseas Keralites Investment and Holding MD Baju George, has met once so far, according to sources.

Minister for Industries P Rajeeve commented, “The goal is for the state government to assume full control of the project. However, it may take around seven to eight months to clarify the final terms.”

He further stated that the Chief Minister had confirmed the 246-acre park would be managed in the same manner as Infopark, under state control, and that no private entity would take over the project. Rajeeve also highlighted that Tecom’s exit should be negotiated on mutually agreeable terms to avoid prolonged international arbitration.

Regarding the land at SmartCity Kochi, Rajeeve indicated that it would be utilised for the Infopark Phase III expansion. The Greater Cochin Development Authority (GCDA) has been tasked with coordinating this effort.

The issue surrounding SmartCity Kochi came to the forefront after Tecom notified the government of its inability to continue the project. The government's move to appoint an independent evaluator to determine compensation for Tecom had sparked widespread criticism.

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