DUBAI: Fresh doubts have been raised about the proposed Smart City deal between the Dubai Internet and Media Free Zone Authority (TECOM) and the Kerala Government.

Sources in TECOM told The Hindu on Monday that the Dubai-based developers of the project would insist on 100 per cent ownership of land. This decision, taken during a TECOM board meeting on Sunday, has already been conveyed to the Kerala Government. TECOM has given one month's time for the State Government to respond to its decision. The sources said a detailed statement on TECOM's position on this project was expected on Tuesday.

During earlier negotiations, which had spanned more than two years, the two sides had discussed the possibility of the State Government leasing out the land to TECOM for 25 years.

Contentious issue

P. Venugopal adds from Thiruvananthapuram:

It will be up to the CPI(M) State unit and the Left Democratic Front (LDF) to take a final decision on the only contentious issue that lies in the path of the Smart City project in Kochi at the moment.

The Kerala Government wants the project when fully complete to generate around 90,000 jobs.

The contentious issue is whether the joint sector company to be floated by TECOM and the State Government for this project can be given full rights over the Smart City land after the expiry of a lease period of 25 years.

The company's stand is that it has agreed to all the other conditions proposed by the V.S. Achuthanandan Government. TECOM will also pay Rs.104 crore for 246 acres, the amount being the market value of the land. The amount, however, is being considered as the lease value of the land for a period of 25 years. TECOM wants the joint sector company it will float with the Government to have title rights over the property once the lease period is over.

Party policy

This is an issue concerning party policy for the CPI(M), especially since the Smart City is envisaged as a special economic zone project.

The CPI(M)'s Central leadership is understood to have told the party's State unit to take an appropriate decision on TECOM's request.

The signals are that the other LDF constituents will stand by a positive decision on the Dubai company's request, not only because of the investment that will flow into the State generating thousands of high-paying jobs, but also due to the political message Smart City will send to the people of the State.

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