Thiruvananthapuram: TECOM (Dubai Holding), the main partner in the Kochi Smart City Project, has decided to withdraw from the initiative after facing pressure from the Kerala state government. The decision comes after the project, launched over 13 years ago, has seen minimal progress, despite promises of crucial development.
The Smart City project, first agreed upon in 2011, aimed to build a state-of-the-art IT township near Kakkanad Info Park. However, Dubai Holdings, the parent company of TECOM, has failed to make weighty investments or create major employment opportunities in the region for almost a decade. The government had multiple discussions with TECOM to address the lack of progress, which eventually led to the companys decision to withdraw.
Also Read
Meanwhile, the Kerala state government and TECOM have reached an agreement where the latter will be compensated for its investments, including building construction. This decision follows TECOM’s broader shift away from projects outside the UAE.
Government action on future of the project
In response to TECOM's withdrawal, the state government is now exploring other investment opportunities for the Smart City project. On Wednesday, Kerala Cabinet approved the recommendation of a committee led by the Chief Secretary to resolve issues related to the stalled project. As part of the resolution, the government plans to appoint an independent evaluator to calculate the compensation due to TECOM and prepare a mutually agreed-upon withdrawal policy.
Smart City Project's progress so far
The Kochi Smart City project had grand ambitions, targeting 88 lakh square feet of construction and the creation of 90,000 jobs over ten years. However, progress has been slow. The first IT tower of the project was inaugurated in 2016, but the project, initially slated for completion by 2020, is still far from finished.
Currently, only 6.5 lakh square feet of the IT tower has been completed, and the project is home to 37 companies, including some in non-IT sectors. Six construction partners are working on-site, and development continues under their leadership.
The Kochi Smart City project is a joint venture with the state government holding a 16 percent equity stake, while Dubai Holdings owns 84 percent.
Published: 05 Dec 2024, 08:10 am IST
Related Topics
Subscribe to our Newsletter
Disclaimer: Kindly avoid objectionable, derogatory, unlawful and lewd comments, while responding to reports. Such comments are punishable under cyber laws. Please keep away from personal attacks. The opinions expressed here are the personal opinions of readers and not that of Mathrubhumi.