TECOM Investments, a subsidiary of Dubai Holding LLC, is exiting SmartCity Kochi, once touted as a major initiative to put the south Indian state of Kerala on the global IT map.
TECOM, which holds 84 per cent stake in the 246-acre IT park project in Kakkanad in the central Kerala district of Ernakulam, will make a complete withdrawal from the project.
The state government holds the remaining 16 per cent stake in the project.
Contours of the withdrawal, including the compensation to be given to TECOM, will be decided by a state government-appointed committee headed by the chief secretary, Kerala Industries Minister P Rajeeve said.
The minister said the Kerala Government has decided to reclaim the 246-acre land allotted to the Dubai-based TECOM Investments Group for the development of the SmartCity Kochi IT project.
He said the state’s Cabinet has also decided to work out a mutually acceptable proposal between the government and the promoters based on the recommendations submitted by the Chief Secretary.
An independent evaluator will be appointed to arrive at the compensation to be provided to the company for exiting from the project.
TECOM had signed an agreement in 2011 promising to generate 90,000 job opportunities in Kochi.
The Kerala government reportedly initiated the exit plan after concluding that the promoters failed to revive the IT park that was expected to generate around 90,000 job openings.
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