Kochi Smart City project row: Documents reveal govt lapses; No deadline for project completion in contract
The Kerala state government's handling of the Kochi Smart City project has come under scrutiny following TECOM's exit after over 13 years of minimal progress. New Right to Information (RTI) documents reveal lapses in the government's management of the project, sparking further criticism regarding the compensation provided to TECOM.
FollowThiruvananthapuram: The entry or exit of a major foreign investor is always significant for Kerala, a state struggling with investment. Therefore, when the state cabinet revealed that it had approved the exit of Dubai-based Tecom Investments from its 84 percent stake in the SmartCity Kochi project, a 246-acre IT park where the state government holds the remaining share, it naturally raised concerns about the financial implications of this withdrawal.
TECOM (Dubai Holding), the primary partner in the Kochi Smart City Project, chose to exit the initiative following pressure from the Kerala state government. This decision follows over 13 years of minimal progress on the project, despite initial promises of significant development.
Amidst growing criticism against the government regarding the termination of Tecom from the Smart City project and the compensation provided, more documents revealing the government's lapses have surfaced. Right to Information (RTI) documents obtained by Asianet News highlight several shortcomings in the Smart City contract.
One key revelation from these documents is that the state government has not set a closing date for the project. In response to RTI queries about the completion date of the project, the government's answer indicated that no specific date had been determined. Despite the project agreement being signed in 2007, the closing date remains undecided as of 2022.
The government has never provided proper oversight for the timely completion of the project at any stage. The government argues that the contract stipulates a 10-year period starting from the day it completes the five steps it is responsible for. However, none of this is documented in government records. While the government claims it completed the procedures, including obtaining SEZ (Special Economic Zone) approval on time, there is no evidence of this in the records.
It is clear from the documents that the government itself was responsible for closing the issue with Tecom. The contract does not specify a completion date for the project, and if the matter reaches court, Tecom can argue that there is no breach due to the absence of a closing date. This makes it clear that the government's arguments for legal proceedings are weakened by their own records.
The Kerala state government and TECOM have reached an agreement in which TECOM will be compensated for its investments, including construction costs. This decision follows TECOM's broader shift away from projects outside the UAE.
The project has been mired in controversy from the beginning. Initially proposed during the 2004-06 tenure of Congress Chief Minister Oommen Chandy, it faced objections from the CPI(M), which labeled it a real estate deal. However, when the Left came to power, Chief Minister V S Achuthanandan laid the foundation for the project in 2007.
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