The Kerala government will subscribe to a 9 per cent equity stake in the Smart City project being promoted by Dubai Internet City (DIC) in Kochi.

A decision to this effect was taken on 4 May 2005 by the State Cabinet while approving the project, which envisages an investment of Rs 1,500 crore in the first phase.

The project has been designed to generate 33,300 direct jobs over a period of 10 years. The draft memorandum of understanding (MoU) on the project was being vetted by the Finance and Law departments and would be signed shortly.

The Kerala government will hand over 62.27 ha of Infopark in Kochi, along with the buildings, to DIC for a consideration of Rs.109 crore. The equity of the Government in the project will be met out of this amount.

The Government will also had over another136 ha of land to DIC at a price of Rs 36 crore. In addition, yet another100 ha of land will be handed over to the promoters free of charge as per the Government's IT policy, which promises 30 cents of free land to companies for every 100 jobs generated.

However, companies setting up businesses in the Smart City will not be eligible for any other concessions listed in the IT policy.