SmartCity Kochi Crucial Board Meeting on March 29

A crucial Board meeting of the SmartCity Kochi project will be held on March 29, 2010 in Kochi. The meeting of the SmartCity Board will have representatives from Tecom, the promoters of the SmartCity Kochi project and the Kerala Government.

Fareed Abdulrahman, CEO of SmartCity, is also expected to attend the Board Meeting. The meeting is being held in Kochi at the instance of Tecom though the Government wanted to have it in Trivandrum.

This Board meeting comes in the backdrop of the Kerala Government having informed Tecom, its decision to decline their demand for 12% freehold rights for part of the land acquired for the project. The Government had recently made its position clear in a letter to Tecom and had also said that it cannot wait indefinitely for the project to begin. The grant of 12 % freehold rights to SmartCity has been the contentious issue between the State Government and Tecom. The last Board meeting on December 23, 2009 in Kochi had turned out to be inconclusive with differences of opinion continuing between the two partners.

Meanwhile in another development, Fareed Abdulrahman, CEO, SmartCity has announced that their SmartCity Malta will open in the third quarter of 2010. SmartCity Malta is a similar project being developed by SmartCity in partnership with the Government of Malta with a minimum investment outlay of US $ 300 million. SmartCity is a joint venture between TECOM Investments and Sama Dubai.

No freehold rights for Tecom: CM
The Kerala Government has informed Tecom, the Dubai-based promoters of the SmartCity Kochi project that it is declining their demand for 12% freehold rights for part of the land acquired for the project. The Government had made its position clear in a letter to Tecom authorities and have also said that it cannot wait indefinitely for the project to begin.

Chief Minister Shri V S Achuthanandan, while briefing the media after the Cabinet meeting yesterday said, "They are indefinitely delaying the project, making fresh demands outside the framework of the original agreement. Their demand for freehold on part of the land, which will give them sales rights, is not acceptable to the government". The company's financial position appeared to be shaky and that could be the reason for making new demands, he also added.

Via