Tecom successfully launched Smartcity Malta

Even as the stalemate over Kerala's mega IT infrastructure project SmartCity Kochi gets more complex, Tecom, the enstranged investment partner of the project, has successfully launched a similar project in Malta.

SmartCity Malta (SCM) was inaugurated in Ricasoli by Prime Minister Lawrence Gonzi on Sunday with the chief executive officer of Dubai Holding Ahmad Bin Byat and Tecom Investment Group's CEO Abdullatif Al Mulla also present.

The first phase of SCM will have 12,000 sqm of office space targeted at international, regional and local companies, according to a company release.

Meanwhile, the fate of SmartCity Kochi project hangs in the balance with the state government and Tecom each sticking to their positions.

The state government had issued an ultimatum to Tecom in June with a view to terminate the contract with the Dubai company and ultimately to expel it from the project. The government had prepared the letter after hectic legal consultations in order to avoid loopholes in it.

In a recent reply to the letter, Tecom has said that it has a real interest in commencing the project and has no plans to back out of it. The state fisheries minister and chairman of the joint venture company between the Kerala government and Tecom, S Sharma said that the cabinet would discuss the reply and take an appropriate decision.

From the events so far, it is clear that the government's intention is to end its association with Tecom. The minister said that Tecom had only business interests in the project, and that the Dubai company was deliberately exploiting the interest of the people of Kerala in the project.

The differences between the two partners centre on Tecom's demand for a freehold of 12 per cent of the total 240 acres of the project site with a right to sell. Sharma said this was against the framework agreement between the government and Tecom, and the government could not accept this additional condition.

Since the state is now election mode with local body elections set for October 23 and 25, a decision on the reply sent by Tecom is expected only after the elections. Interestingly, this is a hot issue in the campaigns of both LDF and UDF, particularly in Ernakulam district.