THIRUVANANTHAPURAM: The Smart City talks have reached the final lap, with the Dubai Internet City (DIC) sending a draft agreement to the Kerala Government on Sunday incorporating almost all the conditions Chief Minister V.S. Achuthanandan had proposed for setting up the project at Kakkanad in Kochi.

Representatives of the DIC are scheduled to come here on Wednesday for the final round of discussions. By then, the Government will have the draft agreement vetted at the official level. The DIC representatives will meet Mr. Achuthanandan before official-level discussions, a top Government official told The Hindu.

According to the official, the DIC is keen to start work on this project involving an investment of more than Rs.1,500 crore as early as possible. During the negotiations over the last six months or so, the company has agreed to invest in IT infrastructure at Kakkanad without any of the big concessions the previous Government had offered it.

It has withdrawn its demand that the Government-run Infopark at Kakkanad should be made part of the Smart City against the payment of Rs.109 crore. The previous Government had offered it exclusive rights over IT infrastructure development in Kochi area, in addition to 100 acres of land free of cost. The LDF Government had said `no' to this as the DIC has now agreed to it.

The offer earlier was to hand over 236 acres of land, in addition to the free 100 acres, by way of outright sale to the DIC for a price of Rs.26 crore. The company has now agreed to a pay Rs.104 crore for 246 acres of land by way of lease premium for a period of 99 years.

Earlier, the DIC had promised the Government nine per cent stakes in the project. It now offers 16 per cent stakes to the Government, with an assurance, to be incorporated in the project agreement, to increase the share to 26 per cent after five years. The DIC had agreed to create 33,300 jobs in 10 years at Smart City during its negotiations with the former Government. Now the assurance is to create 90,000 jobs in 10 years.

Another key change relates to the utilisation of land at Smart City. Earlier, the commitment was to create 20 lakh sq.ft. of built-up space for IT and commercial purposes. Now the DIC assures to stick to a definite development plan to create 88 lakh sq.ft. of built-up space, setting aside at least 70 per cent of the space purely for IT needs.

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