SmartCity Kochi geared up to sign lease agreement

SmartCity chief executive officer Fareed Abdulrahman has described as a landmark the recent announcement by Fisheries and Registration Minister S. Sarma “about the Government of Kerala’s readiness to sign the fresh lease without any further delay.”

He has said that SmartCity is “all geared up to sign the lease agreement which is the critical step towards registering” the 246 acres (99 hectares) of land in totality and securing the special economic zone (SEZ) status for the project.

A statement issued in Dubai on Sunday said SmartCity would seek an appointment with Chief Minister V.S. Achuthanandan in the coming days to update him about the progress of the project and bestow “clarity” on recent developments. Mr. Abdulrahman would be accompanied by a high-level team from SmartCity.

“ At the outset we would like to thank the Government of Kerala for their reassurance that there will be no further delay in getting SmartCity Kochi under way,” Mr Abdulrahman said.

“We are certain that the Government of Kerala has kept the spirit of the Framework Agreement in the suggestions we have put across for the leases and look forward to being in Kerala soon to sign the leases and step on the accelerator to fulfil the vision of Kochi and its people.”

“Today we stand at a time when the world economy is on the verge of a downturn. Despite this, we are going to witness the rise of SmartCity Kochi, which translates the vision of Kochi into an IT/ITeS destination,” he added.

The project has been “on the discussion board due to various procedural bottlenecks since the Framework Agreement was signed between SmartCity and the Government of Kerala in May 2007,” the statement noted.

“Technical issues pertaining to the unresolved aspects” had held up the signing of the lease agreement. The key issues related to the “adding” of “un-acquired patta land” of 19 cents (0.08 hectare) located at the centre of a land measuring 114 acres (46 hectares), incorporating a clause pertaining to 12 per cent freehold land, and SmartCity’s request for signing the leases for 132 acres (53 hectares) and 114 acres together to secure a total of 246 acres simultaneously.

“The clauses pertaining to the 12 per cent freehold land is not a new topic and it is already in the broader Framework Agreement,” the statement said. “SmartCity has requested the Government of Kerala to incorporate the necessary clauses in the new lease agreement” before it is finalised for registration and signing.

The statement noted that a consensus had been reached on the sharing of cost and relocation of the Kerala State Electricity Board installations and a Public Works Department road. The government had announced that SmartCity would be exempted from payment of stamp duty. At the previous Board of Directors’ meeting, it was decided that once SEZ status was obtained for the 132-acre and 114-acre tracts, SmartCity and the government would jointly try to secure a “single SEZ status” for the project.

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