The Hindu : Kerala News : Kerala to set up company for IT infrastructure

Online edition of India's National Newspaper
Wednesday, Dec 12, 2007
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Kerala

Kerala

Kerala to set up company for IT infrastructure

Contract with Malaysian company for KSTP to be renewed
Panel to hold discussion with ISRO on land issue

THIRUVANANTHAPURAM: The Kerala Cabinet on Tuesday decided to set up a company for infrastructure development in the Information Technology sector.

The State government will have a 51 per cent stake in the company, IT Infrastructure Kerala Limited.

Chief Minister V.S. Achuthanandan told the media after a Cabinet meeting that Rs.50 crore would be allocated in the next year’s budget for the company.

The Chief Minister said several infrastructure companies were evincing interest in setting up IT business in the State. The new company would help to provide land and other facilities to entrepreneurs interested in setting up shop in Kerala and free them from the hold of land mafia. Mr. Achuthanandan said the contract with Malaysian company Pati BEL under the Kerala State Transport Project would be renewed towards completion of the project. The company had earlier made huge compensation claims, as the work could not be completed in time because of delay in land acquisition.

The project was now being renewed allowing cost escalation of 72.5 per cent against 80 per cent demanded by the company. The limit for arbitration claims had been brought down from Rs.96 crore to Rs.35 crore. The works would include development of the roads connecting Kazhakuttam to the M.C. Road, the Kottarakara-Chengannur stretch of the M.C. Road and Alappuzha-Changanassery road. The total length of the roads would be 127 km.

The Chief Minister said a committee consisting of Revenue Minister K.P. Rajendran, Law Minister M. Vijayakumar and Chief Secretary P.J. Thomas would hold discussions with the Indian Space Research Organisation for providing land for establishment of the campus of the Indian Institute of Space Science and Technology.

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