Kochi : While the previous govt moved to facilitate the exit of Dubai-based TECOM Investments from the Rs 1,700-crore SmartCity Kochi joint venture, the current UDF govt has decided to review the stalled project.
It is a big concept, and we will not take a line that results in losing an opportunity that has come to us,” Kunhalikutty told the media on the sidelines of an event to unveil the logo of ‘COKPIT 2027’ summit. Prior to the govt transition, the state had issued a formal legal notice to Tecom under Clause 7.2 of the framework agreement, initiating steps to reclaim 246 acres of land allotted for the project. However, the state govt insisted that the original 2011 framework agreement, which mandates arbitration in Kochi, remained the sole governing document. Under the default clauses of that agreement, the state had planned to buy back Tecom’s 84% shareholding at the original advance lease premium of approximately Rs 91.58 crore. The previous cabinet had intended to retain the land under public control, with plans to integrate the 246-acre site into Infopark for its Phase III expansion rather than transfer it to another private entity.
Industries minister P K Kunhalikutty stated that the administration will thoroughly evaluate the venture to protect the state’s interests without forfeiting valuable investment opportunities. “We will fully review the SmartCity project and adopt a new approach. He added that a final decision would be taken only after he and chief minister V D Satheeshan visit the Gulf in the coming months to hold direct discussions with the officials. The minister’s cautious stance marks a clear shift from the previous LDF administration’s position. The dispute also triggered a jurisdictional clash. Tecom approached the Union govt seeking to resolve the exit under the India-UAE Bilateral Investment Treaty.