SmartCity targets global investors for key projects

The South Indian state of Kerala is encouraging UAE investors to set up special economic zones and technology parks.

The state is talking to several leading UAE investors including the SS Lootah Group, non-resident Indian groups and Emaar MGF.

SmartCity Kochi, a joint venture between the Government of Kerala and Dubai's Tecom, is an Rs17 billion (Dh1.28bn) project to develop 8.8 million sq ft of built-up space. Other UAE investors are keen to participate in IT projects in Kerala, a senior government official told Emirates Business.

Dr Ajay Kumar, Secretary, Information Technology, Government of Kerala said: "We are currently negotiating with leading business groups from the UAE like SS Lootah and NRI bodies for joint IT projects in the state. We are offering several key projects with special economic status to UAE investors including a 450-acre technology project in Thiruvananthapuram, the state capital.

He said Emaar MGF, the Indian subsidiary of UAE-based Emaar, is also negotiating for an IT special economic zone in Kerala.

Dr Ajay said the Kerala Government was also considering a plan to encourage small and medium-sized NRI groups from the Gulf region to set up IT parks in rural and semi-urban centres throughout the state.

"The UAE-based SS Lootah Group is keen to have a major presence in Kerala's IT sector and we are not feeling depressed about the current slowdown in the US and European markets, the main source of business for IT outsourcing firms," he added.

Projects includes a 25-acre site in Kollam with special economic zone status. Investors would have to use 70 per cent of the area for industrial operations and 30 per cent for commercial developments such as convention centres, recreational facilities and socio-economic infrastructure.

The expected investment for one project is Rs300 crores. In Cherthala, six five-acre units are available and the investment sought is Rs50 crores per project. In the same city there are plans for a technocity – an integrated IT township – covering 60 acres. An 80-acre technocity project in the same city needs hotels, convention centres and recreational facilities worth Rs800 crores.

N Radhakrishnan Nair, CEO of Technopark Thiruvananthapuram, said the centre was undergoing major expansion involving the addition of a further 92-acre section and a 450-acre technocity. He said the Taj Group has commissioned a business class hotel inside the Technopark.

Source