Tecom to Exit Kochi SmartCity IT Project; Government to Reclaim 246 Acres

The Kerala government has decided to reclaim the 246-acre land allotted to Dubai-based Tecom Investments Group for the Kochi SmartCity IT project, once envisioned as a key initiative to position Kerala on the global IT map.

Following a Cabinet meeting, the government agreed to work on a mutually acceptable proposal with the project promoters, based on recommendations from the Chief Secretary. Tecom, a subsidiary of Dubai Holdings, holds 84% of the shares, while the government owns 16%.

To facilitate Tecom's exit, an independent evaluator will be appointed to determine the compensation due to the company. A committee, comprising the Director of the Kerala IT Mission, the CEO of Infopark Kochi, and Baju George, MD of Overseas Keralites Investment & Holding Ltd, will make recommendations on the evaluator’s appointment.

Tecom had signed an agreement in 2011, committing to create 90,000 jobs in Kochi. However, the government has initiated the exit process after concluding that the promoters failed to revive the IT park, which was expected to generate these job opportunities.

State Industries Minister P. Rajeeve emphasized that the government is not withdrawing from the project. Instead, the land near Infopark will be repurposed for other IT-related developments, given the high demand for land in Kochi, with over 100 IT companies awaiting allocation. The government's goal is to ensure the optimal use of land for future projects.

HBL