The Hindu : Kerala News : IT boom awaits Kochi

Online edition of India's National Newspaper
Friday, May 06, 2005

Kerala

Kerala

IT boom awaits Kochi

R. Ramabhadran Pillai

Smart City will set the stage for the entry of big players

KOCHI: Kochi city was way behind Bangalore, Hyderabad and Chennai in the Information Technology sector. The scene is changing with the city getting ready for setting up the Smart City, a project of the Dubai Internet City (DIC).

With the Cabinet's clearance on Wednesday, the Government is awaiting the nod from the DIC Board. The Memorandum of Understanding to set up the project may be signed within 10 days, according to Gireesh Babu, CEO of Infopark, Kakkanad.

The project is expected to create 33,300 jobs within 10 years. The total investment is estimated at Rs. 1,500 crores. The Government-owned Infopark, Kakkanad, along with the 62.27 acres of land belonging to it, would be handed over to DIC. The price is reportedly fixed at Rs. 109 crores. The State Government will have 9 per cent equity in the project. Initially, 136 acres of land will be handed over to the DIC for Rs. 36 crores. This apart, 100 acres will be given free of cost. The Smart City would eventually be expanded.

Big players required

S. R. Nair, chief of Team Frontline, an IT company which has entered into a strategic alliance with a U.S.-based software firm, views the development as an opportunity to bring in IT giants to Kochi. "We have Technopark in Thiruvananthapuram, but could not attract big companies," he points out.

Mr. Nair, who had pioneered several initiatives to usher in a culture of entrepreneurship, hopes that the DIC will set the stage for the entry of big global players in IT. "If we are able to bring home the leader, the entire scenario will change," he says.

What about the deal made with the DIC? The service of expert negotiators are sometimes used in international deals. It is not known whether such negotiators were roped in, Mr. Nair observes.

N. Jehangir, managing director of Nest group, says the Smart City project will be a landmark in the city. Bangalore, Hyderabad and Chennai have made strides in IT, because of the infrastructure facilities. "We have only the land to offer," he points out. The perception and mindset of people have to change to make Kerala a technology hub, he notes.

Protest planned

M. Ashish, president of the Ernakulam unit of Yuva Morcha, says that the deal is not transparent. The Yuva Morcha is organising a protest march on May 10 against the deal. Black day will be observed throughout the State on that day. He raises serious concerns over handing over of Infopark into which Rs. 50 crores have been pumped in and the Government property to a private entity at a `throwaway price.'

He alleges that several persons in Kerala have dubious connections with the DIC. He also raises security concerns as Kochi is a strategic location having a Naval base.

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