The SmartCity Kochi IT project, which was once hailed as a revolutionary step in Kerala’s technology sector, has again landed in controversy after the state cabinet approved the exit plan of Dubai-based TECOM Investments Group.
Industries Minister P Rajeev, explaining the decision, cited the lack of progress in the project. “It has been a long time since nothing happened with this project. Space has almost run out in other IT parks in the region, such as Infopark in Kochi and Technopark in Trivandrum, and we are getting several inquiries from companies around the world to set up operations in Kerala. We will use this land for that,” he said.
The minister also confirmed that the committee commissioned by the government will decide on the details of TECOM’s withdrawal, including the compensation that will be given to the company.
However, this move has drawn a lot of criticism. Opposition leader VD Satheeshan questioned the reason for compensating TECOM, which he termed as a “non-performing” company. He highlighted the project’s initial promises and subsequent failures. “During the UDF government, we had completed construction of 6.2 lakh square feet, and this project was intended to provide jobs to more than 90,000 youths. Unfortunately, they provided jobs to only less than 10,000 people. The government must explain why it will stop this project. Who doesn’t play? Is it the government or TECOM? If TECOM is not doing well, why has the government decided to give compensation?” Satheeshan asked.
The SmartCity Kochi project has a controversial history. The first memorandum of understanding (MoU) was signed in 2005 during Congress leader Oommen Chandy’s tenure as Chief Minister. However, the project has faced strong opposition over the terms of the land lease, delaying its progress.
In 2011, the Left Democratic Front (LDF) government led by VS Achuthanandan revived the work, confirming the conditions that seemed to favor the regime. Despite these efforts, the program failed to deliver the expected results. The first phase of the project was opened in February 2016 by Oommen Chandy, but the expected 90,000 jobs did not materialize.
The cabinet’s decision to allow TECOM’s exit has sparked debates about accountability, with questions as to whether the government or TECOM is to blame for poor performance.
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