Thiruvananthapuram: Kerala Chief Minister Pinarayi Vijayan has addressed concerns regarding the payment made to TECOM as part of its exit from the Smart City Project in Kochi. He clarified that the amount paid represents the settlement of TECOM’s shares in the project, not compensation. TECOM held an 84% stake in the venture, and its value was determined by an independent evaluator to ensure transparency.
The Chief Minister’s statement comes amid allegations by Opposition Leader V.D. Satheesan, who claimed that the land associated with the project would be used for private real estate purposes. Vijayan strongly refuted these accusations, emphasizing that the government retains full control over future developments on the 246-acre land parcel adjacent to Infopark.
The legal framework under Clause 7.2.2 of the original agreement entitles TECOM to reimbursement for its lease premium of ₹91.52 crore and infrastructure costs. The decision to settle the share value, rather than pursuing legal notice under Clause 7.2.1, was guided by the Advocate General’s advice to avoid potential arbitration or legal disputes.
A high-level committee led by the Chief Secretary and comprising officials from Finance, Revenue, Law, and IT departments studied the issues and proposed terms for TECOM’s withdrawal. The cabinet approved this plan, focusing on reclaiming the land for IT development and enhancing Kerala’s technological capabilities.
Highlighting the urgency of expanding Kochi’s IT infrastructure, Vijayan noted that 99% of Infopark’s capacity is already utilized. The reclaimed Smart City land offers a crucial opportunity for further development, positioning Kerala as a hub for attracting global IT investments. The initiative underscores the government’s dedication to advancing the state’s IT sector and creating new economic opportunities.
