Kochi Smart City to turn real; Tecom gets freehold land inside SEZ

The CPM-led Left Democratic Front Wednesday reached an understanding with Tecom, the promoters of Smart City project which has been hanging fire for the past several years over the freehold land clause.

The LDF government and Chief Minister V.S. Schuthanandan who was staunchly opposed to providing freehold land have now reached an agreement to allow freehold rights in 12 per cent of the land earmarked for the project inside the Special Economic Zone.

The original framework agreement inked by Infoparks and Tecom Investment FZ-LLC and Smart City (Kochi) Infrastructure Private Limited had a clause which stated that the promoters are entitled for freehold land.

Clause 5.4 under Article 5 states: "Upon completion of master plan that determines different plots amongother things, SPV will identify plots to be converted to freehold and such plots will be converted to free hold by GoK forthwith without any further consideration or charges. Cumulative area of the plots converted to freehold will not exceed 12 % of the total land area at any point of time."

But there was lack of clarity whether the freehold land would be inside the area marked as SEZ or outside.

The government argument is that promoters will not be able to sell the freehold land which falls inside the Special Economic Zone.

The framework agreement was for declaring the entire area consisting of 246 acres of the project as Special Economic Zone (SEZ). But the Central Board of Approval for Special Economic Zone (SEZ) accorded SEZ status to an area of 136 acres of the 236 acre earmarked for the Smart City project.The reason being that the remaining area is separated by a water body and needs a separate application.

The agreement became possible after NRK businessman M.A. Yusuf Ali met officials of the Dubai Supreme Fiscal Committee, Tecom and convinced them of the government.

Via