TALE OF THE SMART CITY

So, finally, amidst all kinds of speculation in the media and elsewhere, the Smart City agreement was finally signed between the Achuthanandan led Kerala Government and the Dubai-based TECOM company on Sunday, May 13, 2007. Originally the brainchild of the previous UDF Government, it is ironic that the very LDF, which had trashed the proposed agreement while in the opposition and launched agitations against it, has now signed the agreement-although reportedly with plenty of amendments in the terms. Whatever the truth, there is still an obvious lack of transparency in the whole deal, which the Government would do well to clarify.

Let us trace the Smart City deal right from its origin upto the actual signing of it.

Back in 2004, during the UDF rule, a group of professionals from Dubai Technology and Media Free Zone Authority called on infopark former CEO Girish Babu, seeking the possibility of setting up a Smart City project in Kochi as part of TECOM’s ‘going global’ programme. Chief Minister AK Antony and former IT Minister Kunhalikutty pledged solid support to the proposal and said everything possible would be done so that Kerala could bag the mammoth project.

The CPM, led by former Opposition leader V.S.Achuthanandan, raised allegations against the project. He alleged that the Dubai Internet City (DIC) under TECOM was actually a real estate agency and that the UDF Government was trying to hand over prime land to an international agency with no proven track record in IT Business.

Following a change of guard in the UDF government, Oommen Chandy became Chief Minister. He projected the Smart City project as a golden opportunity for Kerala and kickstarted the negotiations with much vigour. However, the Opposition leader continued his tirade against the government move and the project became a prime point of debate in and outside the state. Lack of clarity and dubious motives were alleged against the project. Allegations of potential compromises by the Govt. over the project were vehemently denied by the UDF. Any demand by the Government for changes in the proposal by TECOM would result in the loss of the prestigious project once and for all, they said.

Despite stiff resistance, Oommen Chandy went ahead with the talks on the project and an MOUwais signed between TECOM and Govt. of Kerala in 2006.

Left parties continued the agitation against the conditions set in the MOU. The decision to hand over the Infopark in Kochi, grant ownership right of 236 acres of land and exclusive rights to TECOM in Ernakulam district were severely criticized. Joseph Mathew, the current IT advisor to Chief Minister Achuthanandan, took the controversy to the Internet, shooting of an open letter to the then CM Oommen Chandy, asserting that the Smart City project would never be in the best interests of the state.

With the elections looming large, Oommen Chandy finally dropped the idea of inking a final agreement with TECOM and made the agreement a public document for debate. He promised to enter into an agreement with TECOM if his coalition was again voted to power.

In keeping with a long established trend-the incumbent factor- the LDF won the Assembly elections and V.S.Achuthanandan became Chief Minister. IT Secretary PH Kurien, who played a key role in the negotiations for Smart City during the UDF tenure, did not even mention the project when he is asked to brief the Chief Minister about the department’s initiatives. Debates continued, but both LDF and the Chief Minister now indicated that they were not against the project, provided the ‘disputed’ clauses in the agreement are amended.

LDF Govt began negotiations with TECOM, with the government imposing strict conditions. All the conditions it fought against while in the opposition should be scrapped, they insisted. TECOM realized the new ground reality- moreover, they were already facing stiff resistance in Malta, where they were planning another Smart City project.

The Chief Minister took over the negotiation process from the team of officials- now both sides resorted to pressure tactics, with the Govt. even asserting that Kerala had nothing to lose even if TECOM backed out of the project. Meanwhile, Dubai based Malayali businessman Yousaf Ali was roped in to negotiate on behalf of the Govt. and TECOM was brought back to the negotiation table. But Yousaf Ali’s motives came under
attack ,leading to the Chief Minister denying ever seeking his assistance.

After a rather pregnant pause, the negotiations again picked up. TECOM reportedly agreed to each and every condition imposed by the LDF government. 9 % stake for the state in the earlier agreement is increased to 26 %. It is also agreed that one more directorship would be given to the government in the joint venture company that would set up the Smart City project. There will be no exclusive rights for TECOM in setting up similar projects anywhere in Kerala. The number of jobs offered in 10 yrs change from 33,000 in the UDF agreement to 90,000 in the current agreement. However, the LDF government scrapped the penalty clause over the number of job opportunities. TECOM also agrees to the government demand to utilize 70% of the land for IT related constructions. In turn, government agrees to give ownership rights over 12 % of the total land.

After three long years, the agreement is signed between Kerala Government and TECOM representatives on May 13, 2007.

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