Politics may see Kerala gift IT project to AP

Smart City could make smart exit

Will Kerala lose the mega IT project - Smart City "" due to the tug-of -war between UDF and LDF? This is a crucial question haunting the IT development initiatives of Kerala now.

The stalemate in the discussion between chief minister and the opposition leaders last week has got immense significance for the future of the project, and Dubai Internet City (DIC) is keenly watching the developments.

Meanwhile, Andhra Pradesh is in the process of making a breakthrough in shifting the project from Kerala. As per the MoU between Kerala government and DIC, Info Park at Kakkanad near Kochi will be handed over to them. Info Park includes about 65 acres of land and two buildings where DIC plans to commence operations.

The government will have a 9 per cent equity in the venture and value of the land and buildings will be converted into its stake. Kerala government will take the initiative to takeover around 200 acres of additional land for further development of smart city.

The opposition parties opposed the handing over of Info Park as a note issued by the government said that it had spent Rs 81 crore on the development of the park. They argued that the government should get land for Smart City project other than Info Park.

They also opposed another clause in the MoU which does not allow any other IT parks in Ernakulam district. Opposition leaders said that this is against the interests of the state and handing over of Info Park can only be considered a real estate deal which involves corruption.

But DIC sources insisted that the project should be implemented as per the MoU and that it is in no a mood to surrender to the demands of the opposition parties. Chief minister categorically stated in the meeting that the government will not withdraw from the MoU.

IT policy of the state clearly states that the government will give subsidy to the tune of Rs 20,000 for each job generated by IT companies. DIC has promised to generate 33,000 jobs through the Smart City project.

Chief minister said that Info Park will handed over to DIC as the subsidy for the employment generation. He also said that government was willing to increase its stake if necessary. But opposition leaders argued for a new clause that the government should have the right to take back the land if employment is not generated as promised by DIC.

Chief minister said that the dialogue between government and the opposition would continue for a consensus over the project.

But both UDF and LDF are trying to gain political mileage from issue which will ultimately sabotage IT development of the state.