Uralungal Labour Contract Co-operative Society's (ULCCS) IT SEZ in Kozhikode in Kerala has received formal approval from the Board of Approvals.

ULCCS has formed a company - UL Cyberpark - which is expected to implement the cyberpark project in three phases at an estimated investment of Rs 600 crore. While a part of the development cost is likely to be borne by ULCCS from its internal resources, the balance is to be raised as a debt.

Phase I of the park to be completed within three years is to cost around Rs 200 crore. In Phase I, as much as 1.4 million sq ft is expected to be ready for occupation by IT companies. The work on this phase is likely to begin after obtaining the environmental clearance from the Union Ministry concerned.

The proposed park is likely to come up on 26 acre. When fully completed, it is expected to feature more than three million sq ft of built-up space. It is to be based on green building concept and the company has already initiated steps to identify an architect for the purpose.

A total of 24 companies had responded to the EoI floated earlier, of which two have been short listed and the final selection is expected soon.