The way for implementation of the Smart City project in Kerala’s port city of Cochin has been cleared with the federal government granting special economic zone status (SEZ) to the mega IT facility.
The board of approvals (BoA) for the SEZs, which met in New Delhi yesterday, has granted the SEZ status to 136 out of 246 acres of land acquired for the project, said State IT secretary Ajay Kumar. The remaining area was not considered along with 136 acres as it is separated by a river.
The BoA has sought a separate application for SEZ status for 100 acres of land acquired from the Kerala Stat Electricity Board. Ajay Kumar said the application would be submitted before the next meeting of the board next month.
The last BoA meeting deferred a decision on the SEZ status following a complaint filed by one Kuruvilla, alleging that the land for the project was acquired without ensuring proper rehabilitation of the displaced. The board rejected the complaint after considering the explanation furnished by the state government.
The project promoted by the Dubai-based TECOM in joint partnership with the Kerala government, envisages creating 8.8 million sq ft of built-up space and supporting infrastructure for IT and IT-enabled service companies.
The SEZ status brings a slew of benefits to the developers. They include 10-year tax holiday, Exemption from duties on all imports for project development, 10 per cent FDI for all manufacturing activities, speedy approvals, clearances and customs procedures and dispute resolution etc.
There will be no foreign ownership restrictions in developing zone infrastructure and no restrictions on repatriation. The developers also get freedom to develop township with residential areas, markets, play grounds, clubs and recreation centers without any restrictions on foreign ownership.
Smart City project director Baju George told reporters at New Delhi after the BoA meeting that the master plan for the project would be submitted next month. “We are hopeful that we would be able to begin the work on the infrastructure project by September”, he added.
The Smartcity has already shortllisted four national and international companies for preparing a detailed master plan. The foundation stone for the project was laid by Chief Minister V S Achuthanandan last November.
The project modelled on Dubai Internet City, Dubai Media City and Dubai Knowledge Village has an employment generation potential of over 90,000 jobs over 10 years.
