Kochi SmartCity project: Not compensation, Tecom will only get equity share, says minister Rajeev

Kochi: Kerala minister for law and industries P Rajeev on Friday said the state has no plans to compensate Tecom Investments Group after the government ended its deal for the Kochi SmartCity project.
Clarifying the government's stand, the minister asserted that Tecom would only be paid their equity share after proper valuation.

After the opposition questioned the government's move to compensate the Dubai-based firm, the minister cleared the air on the SmartCity project.

“Any decision on the project will be taken only by upholding the state's interest. The government can not sell the land acquired for the SmartCity project to any private parties. Either public sector companies, Infopark or Technopark, can take it for lease from the government,” said the minister.

“As per the agreement, Tecom can't seek compensation for cancellation of the project. They can only seek a share of their investment. Their equity share would be verified and confirmed by an independent valuer. Arbitration procedures will be initiated if there is any dispute over the project. But, the land will remain unused until the settlement. Hence, reaching an agreement with the firm is the better option. Tecom holds 84 per cent share in the project. Hence, the government plans to settle their equity share while ending the project. The land will be utilised only for the state's interests,” said the minister.

The minister explained after Opposition leader VD Satheesan asked the government to halt its move to compensate Tecom. He told reporters that Tecom should pay compensation for the breach of contract.

The cabinet meeting, chaired by Chief Minister Pinaryi Vijayan, decided on Wednesday to accept the recommendations submitted by a Chief Secretary-headed panel to resolve the issues over the Smart City project in Kochi. As per the cabinet decision, discussions will be held with Tecom to formulate an exit policy through mutual understanding.

The CMO statement said an independent evaluator would be appointed to calculate the compensation payable to Tecom.

It added that a panel comprising the director of IT Mission, Infopark CEO, and the managing director of Overseas Keralites Investment and Holding Limited would be entrusted with submitting recommendations to the government on this matter.