Tecom to pump in more funds for Smartcity Kochi

Tecom, the promoters of the SmartCity Kochi project, is in the process of pumping in more funds to take the project forward.

While Emirates NBD, a leading banking group in UAE, will be main financier, support finance is being sought from the Industrial Development Bank of India (IDBI) Bank.

IDBI Bank had consulted one of the director board members of SmartCity Kochi to evaluate the feasibility of the project. The bank is said to have received a positive feedback.
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SmartCity Kochi lease deed to be signed tomorrow

Two lease deeds to cover entire 246 acres of project area
: Surviving a difficult period marked by speculations over the fate of the project, the proposed SmartCity Kochi project will get off the blocks this Wednesday.

Two separate lease deeds covering the entire 246 acres — one for 131 acres and another for the rest of the 115-odd acres — will be signed on Wednesday. K. Suresh Kumar, IT Principal Secretary, and Abdullatif Almulla, CEO of Tecom Investments Group, the parent company of the promoters of the project, will be the signatories.

Both the parties had agreed on the lease deeds, which the Cabinet had also cleared. Ahead of signing the fresh lease deed, the one that expired will be cancelled.

The land will also be registered in the name of SmartCity Kochi Infrastructure Pvt Ltd, the special purpose vehicle formed for the execution of the project. The government will provide registration and stamp duty exemptions as agreed at a meeting held earlier this month. The board meeting and lease deed signing was originally scheduled to be held last Wednesday. But it had to be postponed at the last minute after Mr. Almulla's son met with an accident and had to undergo an emergency surgery.
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Tecom delegates postpone visit to Kerala

TECOM delegates who were scheduled to reach Kerala today, to sign the lease agreement on the Smart City project at Kochi have postponed their visit. The visit was postponed due to the inconvenience of Tecom CEO Abdu Latif Al Mulla.

Tecom authorities informed that the date of their next visit will be informed later. The meeting is being held to discuss the outcome of talks held between the state Government and Tecom and will take measures to start the construction work at the earliest.

TECOM key to success of Smart City Kochi project

Dubai has become part of Kerala's growth story with the International Container Transhipment Terminal (ICTT) going on stream and the Smart City project getting ready for take off. Dubai has already been indirectly contributing to the development of the state by providing jobs to 350,000 people. The remittances they send have been playing a big role in sustaining the state's economy.

But economists feel that the direct investment of Rs16 billion by DP World in the ICTT at Cochin port and an estimated investment of Rs20 billion by TECOM in the Smart City at Kakkanad may help the state to catch the industrialisation bus it has missed. The ICTT inaugurated by Prime Minister Dr Manmohan Singh on Friday has already attracted investment worth billions in several sectors. The investment in support infrastructure like rail and road links, warehousing, container freight stations alone is worth more than Rs26 billion.

The Cochin Port Trust's project to link ICTT with the state's main trading centres of Aleppey, Kottayam, Quilon and Kannur through inland waterways is also expected to attract substantial investment in barging. The CPT has already set up Ro-Ro terminals at Bolgatty and Willingdon Islands.

The port-based special economic zone being developed at Vallarpadam as part of the ICTT is also expected to bring in investment worth Rs75 billion. The other port-related projects in various stages of implementation are the Rs30 billion LNG Terminal at Puthuvypeen, Rs7.5 billion each single buoy mooring project of Cochin Refineries Limited (CRL) and the Cochin-Kannur-Bangalore gas pipeline of Gas Authority of India Limited (GAIL) and Rs3 billion cruise terminal.
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A Team from Tecom to visit Kerala soon for expedite the construction work of Smart City Kochi

In an effort to expedite the construction work of Smart City Kochi, a team led by the CEO of Tecom Investments group Abdullatif Al Mulla will arrive in the state soon.
The director board of Smart City Kochi will meet within a few days to discuss the outcome of talks held between the state government and Tecom.

The director board will also approve various decisions related to the Smart City.
Fresh lease agreements will have to be signed between the state government and Tecom. As only 136 acres of the 246 acres have got the special economic zone status (SEZ), two separate agreements will have to be signed to lease out the two plots of 136 acres and 100 acres, respectively.

It is a prerequisite to start the construction work.

The Tecom authorities, in a press release issued in Dubai, said they would soon take steps to complete the master plan of the project.

"We are extremely happy that the project is moving forward. As mentioned in the past, the project is bigger than any issues surrounding it and the recent decisions were taken in the larger interest of the project and various stakeholders associated with it. The recent development is a reflection of our vision for Smart City Kochi and the commitment to the people of Kerala," Abdullatif Al Mulla said in the press release.
He said the immediate priority of Tecom is to sign the lease agreement for the designated land and secure the SEZ status.
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Tecom welcomes progress in SmartCity Kochi project

Tecom Investments, the promoters of SmartCity, has welcomed the progress made in the SmartCity Kochi project in resolving the deadlock which had derailed the project for over three years. The SmartCity Board Members will soon be visiting Kerala to take forward the initiative.

In a statement, Abdullatif AlMulla Group CEO, Tecom Investments said, “We are extremely happy that the project is moving forward. As mentioned in the past, the project is bigger than any issues surrounding it and the recent decisions were taken in the larger interest of the project and various stakeholders associated with it. The recent development is a reflection of our vision for SmartCity Kochi and commitment to the people of Kerala.”

“Our immediate priority is to sign the lease agreement to secure the designated land for the project which will lead to the mission critical SEZ notification of the land. We are in the process of finalising the documentation for land registration as well as putting a process in place for the master plan work to commence”, added AlMulla. He was among the UAE delegation led by Ahmad Humaid Al Tayer, Member Supreme Council for Dubai World Group & Dubai Holding Group that met the Chief Minister on February 02, 2011.
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Arbitration will be our last resort: Smart City Dubai

The deadlock between the Kerala government and Smart City Dubai continued over the fate of the proposed Rs.1,500 crore Smart City Kochi project, with the latter making it clear that arbitration would be their last resort.

As expected, the 23rd board meeting of Smart City Kochi held here Friday, ended in 20 minutes only with no decision taken on the contentious issue of giving 12 percent free hold rights to Smart City Dubai - the builders of the project.

In the post-meeting press conference, the two parties continued to stick to their respective stands.

"What matters to us is to maintain good relations and hence we expect that a solution will come out. The question of going legal or to an arbitrator is our last resort," said Smart City Dubai and Smart City Kochi CEO Fareed Abdulrahman.

He also clarified that UAE-based businessman M.A. Yousuf Ali, who held talks with them, is not a mediator but only a government representative.

However, Smart City Kochi chairman and State Fisheries Minister S. Sarma said: "The talks between Ali and Smart City Dubai is progressing well. But the government, under no cost, will deviate from the policy decision that no land in the project can be sold. We expect that in two weeks time, we will get a reply from them."

It was more than three years back that the foundation stone for the project was laid and since then no progress has been made over the issue of granting 12 percent free hold rights to the builders outside of the 246 acres of the proposed project site.

Kochi Smart City: Decision on next Cabinet, says Sarma

State Fisheries Minister and Smart City Chairman S Sarma today said that the talks held between MA Yousaf Ali and Tecom authorities, in connection with the Smart City project will be briefed to Chief Minister VS Achuthanandan.

The Cabinet will discuss the chances of the project after the discussion with CM, Sarma said. Ali held two rounds of talks with the authorities of TECOM.
Earlier, Tecom CEO Fareed Abdul Rahman stated that they were interested to implement the project as per the existing agreement and said they have informed their stand to Ali.

Meantime, Yousaf Ali said that he will hold talks with the Chief Minister on Saturday.

Kerala Government received a reply from TECOM

The government today received a reply from TECOM, the promoters of the SmartCity project. Tecom’s letter stated that they are keen in implementing the proposed project. Tecom has stated this in a press release handed over to the media.

TECOM has invited government delegates along with Chief Minister VS Achuthanandan for further talks if they are interested in the project. They invited the chief minister for holding talks in Dubai. Tecom further added that they were keen to solve the difference in opinion for the much awaited Smart city project in Kochi.

TECOM, the promoters of the project, has been asking for 12% freehold land right whereby they will even be able to sell the land. TECOM had announced that jobs would be offered to 90,000 persons, when the project is ready. But, so far not even a single person has obtained any job. They are delaying the project by raising unnecessary things.

As of now, Smart City project is clouded by uncertainties. If it fails, then it could bring about a big loss, both in money-wise and employment-wise and the sole responsibility will be the politics in Kerala.

Smart City Kochi project should go on with Dubai Government, demands Congress

The Congress’s Kerala unit Thursday demanded that the proposed Rs.1,500-crore Smart City Kochi mega IT project should go ahead with the participation of the Dubai government.

Addressing reporters here, Leader of Opposition Oommen Chandy said this project has to go ahead with the Dubai government because it is an international venture.

“If the state government does anything without them, then it is not going to be a Smart City. This project has been hanging fire for a few years now, and knowing the importance of this mega project, we had offered our full support to see that this project becomes a reality,” he said.

Chandy’s reaction came after the V.S. Achuthanandan-led Left Front government Tuesday announced that very soon it will decide on the fate of the project and would not hesitate to go ahead with the project without Smart City Dubai.

The first round of talks between the Kerala government and TECOM, the venture of the Dubai government which had set up Smart City Dubai, took place between 2004-06 when Chandy was the chief minister, and it was near the end of his tenure that the proposal for Smart City Kochi was inked.

But following stiff opposition from the then leader of opposition V.S.Achuthanandan, who contended that Smart City Dubai had no experience in IT and was merely a real estate company, Chandy did not go ahead with the project - even after the Kerala High Court gave him the green signal.

But Achuthanandan, after becoming the chief minister in 2006, inked the proposal again with Smart City Dubai in 2007, just ahead of the first anniversary of his government.

Three years later and after 22 director board meetings of Smart City Kochi, the Kerala government has been adamant that under no circumstances can the freehold property, which Smart City Dubai will be getting for the project, be sold.

Smart City Dubai is sticking to the agreement which accords to it 12 percent freehold rights.

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.

Tecom sent a letter responding to Government of Kerala's letter

Tecom sent a letter responding to Government of Kerala's letter Regarding Smartcity Kochi

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Update!

SmartCity, the Dubai-based promoters of the proposed knowledge hub project in the city, has replied to the letter the State government had sent earlier this month. A post on the company's twitter account stated that “SmartCity [has] sent a letter responding to Government of Kerala's letter.” The letter had reportedly asked the promoters to reply within 15 days. SmartCity authorities, however, had asked for time. Fisheries Minister S. Sarma, who is also the Chairman of SmartCity Kochi, could not be contacted for information on the content of the letter.

Smart City Kochi: Tecom asked more time for sending a reply

Dubai-based promoters TECOM (Dubai Commerce Technology and Media Free Zone Authority) on Saturday asked the Kerala government for granting sufficient time for sending a reply to the letter by State Government in Smart City project issue. Tecom has also written a letter to the government in this regard.

Earlier report

Smart City CEO Fareed Abdul Rehman has made it clear that a reply in connection with the much-expected Smart city project would be handed over to the State government within 30th of this month.

Elucidating the company’s stance, the CEO said that they would give reply after only consulting with experts regarding the same. It would have the reply for all the suspicions put forward by the government.

If a positive response was not obtained from the government, further decision on the same would be taken later, he added. Adding a note, he said that the company had already spend more than Rs. 100 Crores for the project.

The State cabinet on September 02 decided to serve a notice to TECOM in connection with the Smart City project. In the notice, the government will inform their unwillingness to accede to the demand of TECOM wanting 12 % freehold land. If a reply is not received within 10 days, the government will consider that TECOM has withdrawn from the project.

Smartcity Kochi:Tecom to attend director board meet

A meeting of the board of directors of the proposed SmartCity Kochi project will be held at Ramada Resorts on September 20.

The meeting is scheduled to meet the statutory requirements under the Companies Act, which call for convening a director board meeting once every three months. The last director board meeting was held on June 28.

The meeting is unlikely to invoke much enthusiasm on either side as most of the previous meetings failed to produce any tangible outcome to lift the project from the depths into which it had fallen over many contentious issues including that of the right of freehold over 12 per cent land to SmartCity, the Dubai-based promoters of the project.

In fact, it is learned that, the fate of the meeting was uncertain initially as neither parties were sure about the participation of the other. There had been no significant development on the project for the last two years since the disagreement between the promoters and the government cropped up.

Govt to serve notice to TECOM:Smart City Kochi

The State cabinet on Thursday decided to serve a notice to TECOM in connection with the Smart City project.

In the notice, the government will inform their unwillingness to accede to the demand of TECOM wanting 12 % freehold land. If a reply is not received within 10 days, the government will consider that TECOM has withdrawn from the project.

Kerala CM: Talks will go on with Tecom for SmartCity Kochi project

Kerala Chief Minister V S Achuthanandan today said the government has not terminated negotiations with Dubai-based Tecom for developing SmartCity IT park at Kochi and it will consider alternative partnership only as the last resort.

His statement, made in the state Assembly, came close on the heels of Tecom officials' announcement during SmartCity board meeting at Kochi yesterday that the company would not shy away from a legal battle if the government went to court for arbitration.
Replying to questions on the long-dragging project, Achuthanandan said negotiations with Tecom were still on and the question of going for an alternative partner would arise only as a last option.

However, he added that there was no question of yielding to the Dubai company's demands such as "free-hold" right for part of the land since they were outside the original agreement.

Since the LDF Government came to power, projects worth Rs 10,000 crore have been initiated out of which Rs 2000 crore was direct government investment, he said.

In the last four years, the IT sector boom in Kerala has been three times higher than the national average. The state maintained the growth trend even during the global recession, he added.

Smart City Dubai said it has no plans to pull out from the Samrt City Kochi project.

A board of directors meeting of the proposed Rs.1,500 crore Smart City Kochi concluded here Monday without taking any decision on the fate of the IT project.
At the same time, the developer Smart City Dubai said it has no plans to pull out from the project.

Speaking to reporters here after the meeting, Smart City Dubai chief executive Fareed Abdul Rehman said: “Some more discussions have to take place because certain issues have to be resolved. We are not asking for anything new but just want those things that have been already written in the agreement and we have not asked anything new.”

He also invited the Chief Secretary of the state to visit their office in Dubai and to see what they are doing there.

Smart City Dubai is sticking to the agreement where it has been mentioned that they would get 12 per cent freehold rights (around 30 acres from the 246 acres). The Kerala government is adamant that it will not allow any real estate dealing and it is on this that the project is hanging fire.

Interestingly, State Fisheries Minister and Smart City Kochi Chairman S. Sarma did not attend the meeting.

And for the first time there were protests at the venue of the meeting. Members of the youth organisation of the ruling Left Democratic Front and the Revolutionary Socialist Party shouted slogans asking the state government to impelement the project.

Kochi Smartcity: Tecom answered to Kerala Govt.

Tecom, the promoters of Smartcity Kochi project, has asked the govt to stick to the framework agreement and the freehold rights. They also reiterated that the company is keen to go ahead with the project, the agreement for which was signed on May 13, 2007 with the Kerala govt. The letter was in reply to the state government's letter. The State Government had earlier asked Tecom whether it had any intention to go ahead with the project in Kochi.

Tecom vacates their Smart City Kochi Project office

The Tecom Monday vacated the office space at Vazhakkala here.

Tecom CEO Fareed Abdul Rahman in person handed over the deed to the village office here. The deed had to be registered since Tecom is a foreign company.

Smart City director board meet Today
The board of directors of Smart City is scheduled to meet here Monday evening.

The meeting assumes significance in the wake of government deadline to Smart City authorities regarding the project. There are indications that Tecom officials might hold unofficial talks with the state government.

It is six years since the Smart City entered the minds of Keralites as a dream project, but the wrangling by the state government and the Tecom over freehold rights ensured that the project did not take off.

Smart City Dubai had last week day said it had not asked for anything outside the framework agreement signed with the Kerala government.

"Freehold is a contractual obligation, not a favour done to us. Moreover, the freehold is asked for Smart City Kochi, an Indian company registered under the Indian companies act. We are not asking for anything which is not in the framework agreement," a statement from Smart City said.

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Update
Next Smartcity Kochi Directors Meeting decided on June 28, 2010.

SmartCity Kochi: Kerala Govt. ready for talks with Dubai promoters

The Kerala government said on Wednesday it is ready to talk with Dubai-based promoters over the Rs 1,500-crore (Rs 15-billion) Kochi SmartCity IT project, which has been delayed by over a year due to land acquisition problems.

The government has informed the Dubai-based Tecom authorities about the steps taken so far in this regard and that it was prepared to hold talks with the firm, chief minister V S Achuthanandan told reporters in Thiruvananthapuram.

The state government has maintained that Tecom was raising demands which were not in accordance with the agreement.

However, Tecom has said it will not wait beyond December 2010 and would be forced to rethink on the project.

Achuthanandan said the date for discussions with Tecom would be later decided. 'December is not a deadline, but it is a point past which we have to rethink about the future of the project', Smart city CEO Fareed Abdulrahaman had said.

Dispute over the 39 acres 'freehold land' out of 249 acres allotted for the project has delayed the project for which foundation stone was laid a year ago.

SmartCity insists that freehold land was a contractual right but government says it cannot give away land with selling rights to the promoters to make real estate gains.

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