| Industry | Information Technology Business Park |
|---|---|
| Genre | Infrastructure Service Provider |
| Headquarters | Kochi, India |
| Owner(s) | 16% Government of Kerala, 84% TECOM Investments |
| Website | http://www.smartcity.ae |
SmartCity Kochi is a planned IT township to be constructed in Kochi, Kerala in India[1][2]. Smart City (Kochi) Infrastructure Pvt. Ltd. is a joint venture company formed to develop the Kochi Smart City project. Government of Kerala (16% share), TECOM Investments (84% share), a subsidiary of Dubai Holding are the main investors of the company [3]. This project envisions minimum 8.8 million sq. ft. of built up space out of which at least 6.21 million sq. ft. will be specifically for IT/ITeS/allied services[1]. The project is expected to create over 90,000 direct jobs[4][1].
SmartCity seeks to build a large network of knowledge-based industry townships across the world. SmartCity Malta, the agreement for which was signed with the Maltese government in April 2007, and SmartCity, Kochi are the first two projects of SmartCity's global network.
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After the breakthrough on the disputes in February 2011, the project has gained momentum and is in the construction stages now. Construction of SmartCity was launched by the Chief Minister Mr. Oommen Chandy on October 8, 2011 in a glittering event held at site. SmartCity pavilion will be completed in January 2012 and construction of first building also is expected to commence in January 2012.[5]
Ministry of Commerce have granted a single SEZ status for entire 246 acres of land on Dec 2011. There were few issues in getting a single SEZ status as the land is separated by a waterbody. Approval for the project as a single SEZ was important to avail the benefits of a multi-purpose SEZ. [6]
According to the agreement signed by the Government of Kerala and Tecom investments, the project expects an investment of 2000 Crore. The project would be spread over 246 acres (99.6 ha). On completion, SmartCity Kochi would be one of the largest IT parks in the country. The project is expected to have minimum 8,800,000 sq ft (820,000 m2) of built up space with a minimum of 6,200,000 sq ft (580,000 m2) set aside for IT/ITES/allied services. It was to be the first SmartCity project in India and second in the world by the Tecom Investments group.[7]
The initial term of lease is 99 years, however, it can be extended for a further period of 99 years. According to the frame work agreement, at least 70% of build up area of first 8.8 Million sq.ft should be used for IT/ITeS related purposes. Concept master plan of the project will be prepared by December 2011 by the newly appointed Master Planner, Cannon Design. Government of India notified 131.41 acres as a SEZ in March 2011 and agreed in September 2011 to approve entire area as a single SEZ. Government also notified SmartCity as an Industrial Township.
The project was originally initiated by Kunhalikkutty, the Kerala IT Minister in A K Antony's Government in 2004. Later when Oommen Chandy was the Chief minister, the government invited the Dubai Internet City officials for a feasibility study and later the Memorandum of Understanding (MoU) was signed in year 2005. Due to protest from opposition parties who alleged that the agreement is not in the best interests of the state and due to upcoming state assembly election, the government could not go ahead with the project.
After V. S. Achuthanandan took over as the chief minister, he invited the Dubai Internet City team for another round of discussions. He proposed new suggestions and altered the earlier MoU signed by the Oommen Chandy government. On 13 May 2007, the officials of the Government of Kerala and TECOM Investments signed the updated framework agreement [8][9]. Then for the next four years, the project was in a standstill mode due to few unresolved differences between state government and TECOM. The main hurdle was TECOM's demand for selling rights on the 12% free-hold land. Government was ready to give the 12% free-hold land only inside the SEZ, which made it impossible for TECOM to sell that portion to a third party under the SEZ policy by the Government of India.
These issues were resolved on February 2, 2011, in a meeting between Chief Minister V. S. Achuthanandan and His Excellency Ahamed Humaid Al Tayer, member of the Supreme Fiscal Committee for Dubai World Group and Dubai Holding Group, UAE. This breakthrough was arrived as a result of the mediation by the Vice Chairman of Norka-Roots and a renowned businessman from the state Mr M. A. Yousuf Ali[10].