TECOM's withdrawal: Compensation dispute puts Kerala government in a fix over KSEB land recovery

Kochi: The Kerala government faces challenges in reclaiming 100 acres of land given by the Kerala State Electricity Board (KSEB) for the SmartCity project. With IT companies expressing interest in the land, the government is under pressure to resolve the matter, potentially by compensating KSEB. However, the Board has indicated that it is unlikely to return the land unless the compensation amount is revisited.

What are the complexities?

Following the separation of Kerala government and TECOM, KSEB is attempting to regain control of the land. However, if the land is excluded from the SmartCity project, it will revert to being revenue land, requiring state cabinet approval for the transfer back to the Board.

The government had acquired 246 acres for the SmartCity project, including 100.65 acres from KSEB, 10 acres from KINFRA, and 136 acres from other sources. In the 1990s, KSEB had purchased 197 acres in Brahmapuram for a diesel power plant at a cost of Rs 10.04 crore, of which 100 acres were later allocated for the SmartCity project. In 2008, the Ernakulam District Collector valued the transferred land at Rs 7.57 crore. However, KSEB disputed this valuation, citing records from the Puthencruz Sub-Registrar’s office, which showed the land in Brahmapuram was valued at Rs 52,000 for a cent of land in 2006, suggesting a much higher market value.

KSEB' demand

Despite repeatedly requesting higher compensation in 2017 and 2018, the Board eventually agreed in 2021, before the Public Accounts Committee, that Rs 7.57 crore would suffice. However, this amount has not been paid till date.

With IT companies expressing interest in the land, the government is under pressure to resolve the matter, potentially by compensating KSEB. However, the Board has indicated that it is unlikely to return the land unless the compensation issue is revisited.