Thiruvananthapuram: The Kerala government’s decision to compensate TECOM as it withdraws from the Kochi Smart City project has ignited widespread criticism. Despite TECOM’s failure to adhere to the terms of the agreement, the government has chosen to compensate the company, a move that contradicts contractual provisions. According to the agreement, TECOM was obligated to deliver 8.8 million square feet of IT/non-IT infrastructure and create 90,000 jobs within 10 years. However, the project saw minimal progress over 13 years, leading to TECOM’s exit, reportedly under government pressure.
The contract clearly states that compensation is warranted only if the government fails in its responsibilities, such as issuing the SEZ notification, land acquisition, or providing necessary infrastructure. Opposition parties have strongly objected, arguing that TECOM, not the government, is liable for breaching the agreement.
Adding fuel to the controversy is the appointment of TECOM’s former MD, Baju George, to the evaluation committee, which recommended an independent evaluator. Critics view his inclusion as a conflict of interest. Under the terms of the agreement, any breach by TECOM allows the government to reclaim the land and SPV assets while recovering expenses. Conversely, TECOM is entitled to compensation only if the government defaults.
The debate underscores the need for transparency and accountability in public-private partnerships, with many questioning the rationale behind this decision.
