Click to play videoKochi: Kerala's ambition to become the country's next IT destination could soon come true.
The state government and Dubai Technology and Media Freezone Authority will sign the deal for setting up the Smart City IT park in Kochi on Sunday.
The LDF government had initially come under fire for setting unrealistic demands in the agreement.
But Chief Minister Achuthanandan was able to bring TECOM round to accept the demands.
“Now with more parties coming and accepting these conditionalites proves that these demands were, in fact, very realistic. It's based on the strengths that we have,” says IT Advisor to the CM
Joseph Mathew.
So how does this agreement translate on ground? For starters, TECOM will not own the 246 acres of the IT park.
The company will be leased out only 12 per cent - which is 30 acres - on freehold.
Secondly, the government will hold the right to start another IT park anywhere in Cochin - something TECOM had opposed at first.
Apart from having the right of appoint a Chairman for Smart City, the government will also get 26 percent of all profits.
“It's a new model of public private partnership for industrial infrastructure,” says IT consulant and expert Vijaya Raghavan.
Agrees CEO of Suntech, K Nanda Kumar, “We have the option of selection our environment and resources here.”
Besides helping Kerala make a leap in IT development, the Smart City project is also expected to generate more jobs.
The deal is also seen as a big achievement for Achuthanandan on the eve of the LDF Ministry's first anniversary.
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