Smart City Kochi, the foundation stone for which was laid in 2007, is still in doldrums as Tecom Dubai has demanded freehold of around 12 acre of land in the site with the right to sell. The Kerala government has turned down this demand and has now issued an ultimatum to the company to start construction work on the project. Clarifying the stand of the company, Farid Abdulrahman, chief executive officer of Smart City Kochi, in an interview with George Joseph said the framework agreement of the Rs 1,200-crore mega IT infrastructure project was clear on how to start the construction work and the roles and responsibilities of both the parties concerned. Edited excerpts:
Is the latest letter considered a letter of notification to your establishment?
Whether it’s a letter or notification, what baffles us is considering the size, stature and importance of the project to the state - does it take more than 2 years to take a decision?
Is Tecom still insisting on additional conditions like the freehold status? Why are you adding this condition now?
Freehold is a contractual obligation, not a favour done to us. Moreover, the freehold is asked for Smart City Kochi, an Indian company registered under the Indian Companies Act. We are not asking for anything, which is not in the framework agreement. The framework agreement is available on the website of Kerala IT Mission for anyone to verify the facts.
How soon will you be able to start the construction work?
As mentioned, the framework agreement clearly defines about how and when to start the work. We are quite optimistic that we will be able to complete this project as planned. We have fulfilled all the time-bound contractual obligations mentioned in the framework agreement. We are not only prepared to develop the project on time but also to face any other contingencies arising due to any unlikely scenario.
Are there still any pending issues?
Yes, there are issues pending related to the land, special economic zone status, registration and stamp duty exemption.
At what stage is the discussion?
We are only discussing the compliance of the agreement as we have nothing else to discuss or demand for.
How can the issues be resolved?
There are no issues pending from our side. Since the issues pending are from the Kerala government, we expect them to get resolved once they act positively.
Do you feel any political angle is involved in the whole thing?
We are in Kerala with a business proposition, which we believe will immensely benefit the people of the state and will help position Kerala and Kochi as a preferred IT investment destination.
Has led to any cash crunch with your establishment that is leading to delays?
Dubai has turned out to be a financial powerhouse in the recent decades because of its vision and planning and a lot of companies here have attained globally formidable stature in this process. It is completely irrational and unreasonable to link different entities and draw conclusions.
