Kerala's Smart City Project: A New Chapter Unfolds

Kerala's Chief Minister Pinarayi Vijayan clarified that the payout to TECOM for exiting the Smart City Project in Kochi is the cost of shares, not compensation. This move aligns with future IT development goals for the state, ensuring government control over subsequent developments.

Kerala Chief Minister Pinarayi Vijayan announced on Monday that payments to Dubai-based TECOM for its departure from the Smart City Project in Kochi are not compensations but expenses for its shares in the venture. The transaction is a legitimate settlement for TECOM's investment, Vijayan clarified, countering Congress-led UDF allegations.

Asserting government control over future project developments, CM Vijayan emphasized that moneys paid to TECOM are not compensation but the value of their 84% stake, as evaluated independently. While countering opposition claims of a real estate agenda, Vijayan reiterated the project's continued focus on IT development.

The committee, overseen by the Chief Secretary, evaluated the withdrawal policy. The plan ensures Kerala's IT sector's strategic expansion, utilizing available land next to Kochi Infopark. The project remains pivotal after TECOM's strategic decision in 2017 to withdraw operations outside Dubai. The cabinet endorses this resolution for a smooth transition.

(With inputs from agencies.)