 "First SmartCity Kochi building will be ready in 18-24 months: Baju George")
SmartCity Kochi, the dream IT infrastructure project of Kerala, is scheduled to be completed in five-and-a-half years. Once completed, it would generate direct employment for about 100,000 people, and three times more indirect employment. Tecom, the Dubai-based partner in the project, is now on an all-out effort to implement the project in a time-bound manner to compensate the time lag happened due to various reasons. In an interview with George Joseph, its managing director Baju George says decks have been cleared to begin the construction in August. Edited excerpts.
When will the first building be operational ?
SmartCity and the Kerala government started the construction of the first building within Phase-I of the project on July 1 with pre-construction activities. Environment clearance was obtained on July 6 and piling work will commence soon after obtaining the building permit, which is expected in 15 days. It is our commitment to complete the first building within 18-24 months after the commencement of construction. This building will fall under the IT cluster and will consist of a built-up area of about 650,000 sft. The expected investment for the first building and allied infrastructure within Phase-I is Rs 160-170 crore.
Tecom is not much confident, hence the delay in finalising the master plan...
How do you plan to fund the project?
The total authorised capital for SmartCity SPV is Rs 680 crore. Of this, Rs 195 crore has been paid up. As the project progresses, both shareholders will inject further investment for development of the upcoming phases. The project will also have internal accruals and other sources.
Has the free-hold land issue been resolved?
Recently, we received environmental clearance and also have approval for the single SEZ status. The chief minister of Kerala, industries minister, minister in-charge of host district and principal secretary for IT participate in SmartCity board meetings showing unfailing support of the government for the project. Both partners are fully committed to adhere to the provisions of Frame Work Agreement as far as free hold or any other aspect is concerned and there is no ambiguity.
When will the first building be operational ?
SmartCity and the Kerala government started the construction of the first building within Phase-I of the project on July 1 with pre-construction activities. Environment clearance was obtained on July 6 and piling work will commence soon after obtaining the building permit, which is expected in 15 days. It is our commitment to complete the first building within 18-24 months after the commencement of construction. This building will fall under the IT cluster and will consist of a built-up area of about 650,000 sft. The expected investment for the first building and allied infrastructure within Phase-I is Rs 160-170 crore.
Tecom is not much confident, hence the delay in finalising the master plan...
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The concept master plan was finalised in January 2013. It was reviewed in two master plan workshops at Dubai and Kochi and suggestions received from stakeholders are being incorporated. In fact, the master plan pertaining to the plot intended for Phase-I has already been upgraded with these suggestions. The delays were purely due to technical reasons. As the Indian IT market is getting expanded from $100 billion to $300 billion in the next seven years, the opportunity for Kerala is unlimited.
How do you plan to fund the project?
The total authorised capital for SmartCity SPV is Rs 680 crore. Of this, Rs 195 crore has been paid up. As the project progresses, both shareholders will inject further investment for development of the upcoming phases. The project will also have internal accruals and other sources.
Has the free-hold land issue been resolved?
Recently, we received environmental clearance and also have approval for the single SEZ status. The chief minister of Kerala, industries minister, minister in-charge of host district and principal secretary for IT participate in SmartCity board meetings showing unfailing support of the government for the project. Both partners are fully committed to adhere to the provisions of Frame Work Agreement as far as free hold or any other aspect is concerned and there is no ambiguity.