Govt may allow freehold rights within SEZ limits

Arjun Raghunath
The New Indian Express
30 Jan 2011

THIRUVANANTHAPURAM: The much-delayed Smart City Kochi project is finally seeing a ray of hope as the State Government is learnt to have reached an understanding with the


Dubai-based promoters of the project to allow freehold rights over 12 percent of the land earmarked for the project.

The land, however, will be inside the Special Economic Zone.

The SEZ rules did not allow selling of the land within the SEZ limits at a later stage and by allowing freehold on land within the SEZ limits, the State Government hopes that it will not be possible for TECOM authorities to sell the land at a later stage. The decade-long efforts to set up the Smart City project has been held up over the demand by the Dubai-based TECOM for freehold of over 12 percent of the land earmarked for the project, outside the SEZ limits.


Allegations

The firm demand by TECOM for freehold of land outside the SEZ limits had also led to allegation that TECOM had a hidden agenda to sell off the land.

Chief Minister V S Achuthanandan had even openly alleged that Tecom was trying to carry out a real estate business under the cover of the Smart City project.


Role of interlocutor

Sources said that as a result of the deliberation by NRK businessman M A Yusuf Ali with the officials of the Dubai Supreme Fiscal Committee, the TECOM has informally agreed for freehold land within the SEZ.


Red carpet welcome on February 2

A formal decision in this regard is likely to be reached at a meeting scheduled to be held between Chief Minister V S Achuthanandan and Supreme Fiscal Committee member of the Dubai Government Ahmad Humaid Al Tayer here on February 2.

The State Government has invited Tayer for the talks and he is being accorded a red-carpet welcome as a State guest.

The background

Around 246 acres of land in Kochi have been earmarked for the Smart City Kochi project.

TECOM has been insisting on freehold on 12 percent of the land, which comes to about 30 acres.

Though the State Government had issued repeated ultimatums to TECOM to proceed with the project, they were still sticking to the demand for freehold over land outside the SEZ limits