The Hindu Business Line : Smart City hangs fire

Left in the lurch
Rather than the postponement of the agreement, what makes the future of Smart City uncertain is the possible outcome of the elections.

Kochi , March 8

Uncertainty is dogging the State's ambitious IT infrastructure project, Smart City, once again as the Election Commission has directed the Government not to sign the final agreement with Dubai Internet City (DIC) before the forthcoming elections.

The EC has asked the State Government to put off the final agreement of Smart City, as it violates the model code of conduct for elections. Assembly elections in the State are being held in April last week and May in three phases.

Rather than the postponement of the agreement, what makes the future of Smart City uncertain is the possible outcome of the elections. The Smart City is envisaged as a self-sufficient facility for IT and BPO companies that DIC will develop at an investment of Rs 1,500 crore.

It is widely believed that the Left Democratic Front (LDF), which has opposed many conditions of the Smart City project, will come to power in the State.

"I think there is a big uncertainty over the Smart City project now. If LDF comes to power, it is highly uncertain," said Mr S.R. Nair, Managing Director of Team Frontline, a Kochi-based IT firm.

He added that it was unlikely that the LDF, if voted to power, would go ahead with the project that it had opposed in the past. "They are not going to eat their words and simply sign the deal."

Although the LDF had not opposed the project in toto, it had expressed reservations against some clauses in the MoU that the State Government had signed with DIC. Handing over Infopark, a State-owned facility, to DIC is one of the main bones of contention.

A State Government official also expressed doubts that the project would go through without any hiccups if LDF wins the elections. "I think they will surely go for some changes in the agreement, some renegotiations."

However, Mr G. Vijaya Raghavan, a leading technocrat in the State, believes that the Smart City will take off regardless of the outcome of the elections.

"You have put in so much of work (for the project); you can't waste it now because of a change in Government. If it is UDF, the project will be signed in a few weeks after the new Government; if it is LDF, it may a take a few months more. But the project will go on."

He also said that even if the new Government goes for a renegotiation of terms and conditions, the DIC would not have any major problems. "Obviously, they know that the elections are coming."

Mr Vijaya Raghavan added: "And if it is not DIC, someone else will definitely come in."

Of late, Kerala has been emerging as a sought-after destination for IT and BPO companies, and there is growing demand for space. Already, a number of private infrastructure developers, such as L&T and the Leela group, are investing in similar facilities in the State.

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