The Kerala government has signed an MoU with Dubai-based TECOM (Technology, Electronic Commerce and Media Free Zone), promoters of the Dubai Internet City (DIC), to set up Smart City on the outskirts of Kochi.

The Smart City project, aimed at attracting information technology (IT) and business process outsourcing (BPO) companies to Kerala, will come up on 300 acres.

The present MoU between the Government and TECOM provides a broad framework for arriving at a final agreement that is likely to be signed in the next six weeks. The state government will give 100 acres of land for the Smart City in lieu for the 33,000 jobs created by the project in 10 years.

The existing facility of Infopark, a state-owned infrastructure facility for IT companies spread in 62.5 acres, is also being given to DIC for a consideration of Rs.109 crore. DIC will also pay Rs.36 crore for another 136 acres that the state government will acquire and hand over for the project.

The project had run into controversies as the opposition alleged that the land was valued far below the prevailing market rates. They also questioned why Infopark is being handed over to DIC to set up the Smart City.

It is expected that Smart City will entail an investment of Rs.1,500 crore and give a boost to Kerala's prospects as an emerging destination for IT and BPO companies.

Also See:

Kerala's Smart City Project: MoU before 15 Sep (25-Aug-05)