Kerala government issues ultimatum to TECOM

THIRUVANANTHAPURAM: Irked over works not progressing on the multi-crore SmartCity IT Project in Kochi, CPI-M led LDF government in Kerala today decided to issue an ultimatum to the Dubai based promoters, Tecom Investments.

A cabinet meeting chaired by Chief Minister V S Achuthanandan resolved to send a notice to Tecom to reply within 15 days whether they were interested in continuing the project slated to attract more than Rs 1,500 crore investments in the initial phase itself.

Achuthanandan told reporters that government would inform Tecom authorities its stand.

Tug of war between the state government and its joint venture promoter over the IT Park, considered to be one of the state's dream schemes to promote IT ventures, began over the question of "free hold land" out of 256 acres acquired and given to the promoters.

Government maintained that it was ready to treat 30 acres as in the agreement as 'free hold' but without any right for sale, which was not acceptable to Tecom.

A number of discussions between the state government officials and Tecom to find a solution failed with both sticking to their stand and the scheme did not take off. The foundation stone for the project was laid two years ago.