Smart City: Tecom awaiting a UDF comeback

Arjun Raghunath
The New Indian Express
27 Dec 2010

THIRUVANATHAPURAM: Even as Chief Minister V S Achuthanandan is optimistic that the deadlock between the State Government and Tecom over the Smart City Kochi project could be resolved shortly, it seems that the latter is awaiting a change of guard in the State.
Sources in the IT sector said that with hardly six months left for the Achuthanandanled LDF Government in power, Tecom might be expecting that the Congressled UDF Government would be back in power in the State after the next Assembly elections. Hence, they may be delaying the project as they expect a more lenient stand from the UDF, said sources. The Smart City project was initiated during the term of the previous Congressled UDF Government. The memorandum of understanding (MoU) for the project was signed in 2005 when the Oommen Chandyled Government was in power. Achuthanandan, who was the then Opposition Leader, had opposed certain clauses in the MoU, especially the handing over of the Infopark to Tecom for the project. The Achuthanandanled Left Government, which later came to power, had scrapped the MoU signed by the Chandy Government and insisted on stringent norms, including 16 percent stake for the State Government and handing over of the 246 acres of land on lease basis.
This being the situation, it is quite natural that Tecom expects a more lenient stand from a UDF Government that may come to power. Hence, they are not taking any initiative to break the present deadlock over the demand for freehold on 12 percent of the land earmarked for the project, which comes to about 30 acres.
Though NRK businessman M K Yusuf Ali, who was recently deputed by the State Government to hold talks with Tecom, had held one round of negotiation with the Tecom to break the deadlock, Tecom was not ready for a climbdown on its demand for freehold.
Top sources in the State Government said that Yusuf Ali would be holding further talks with Tecom and a final picture would be available within a week or two.
The newly appointed IT Secretary K Suresh Kumar, the 'manfriday' of Achuthanandan, may also make an allout effort to resolve the deadlock so as to save the face of Achuthanandan. The Smart City Kochi project was a hot topic in the campaign for the last Assembly elections and it is likely to return in the coming Assembly election as well.