<p>Thiruvananthapuram: A decision of the Kerala government to revoke the agreement with Dubai-based TECOM Investment FZ-LLC for the much hyped SmartCity Kochi IT township project by paying compensation to the latter has triggered a row.</p><p>The Pinarayi Vijayan-led state cabinet on Wednesday decided to appoint an independent evaluator to fix the compensation to be paid to TECOM.</p>.'Controversial' SmartCity project takes off today.<p>However, this has raised many eyebrows as the agreement with the Dubai based firm inked in 2007 has provisions for state government to recover compensations from TECOM in case it fails to create either 90,000 jobs or construct 8.8 million square feet built up space in ten years.</p><p>IT expert Joseph C Mathew, who had served as IT advisor to former Chief Minister V S Achuthanandan, told DH that as per clause 7.2.2 of the agreement signed in 2007 between Kerala government and TECOM, the state government could claim compensation from TECOM. </p><p>Hence it is surprising to see that the government is planning to give compensation to TECOM, he said.</p><p>The main opposition party -- Congress whos is the major partner in the United Democratic Front (UDF) alleged that the CPI(M) government's intention was to go for a real estate deal and ensure that those close to them get the 248 acres land of the project in Kochi.</p><p>"The government's decision to terminate the agreement with TECOM by paying compensation to TECOM even as they failed to deliver the assurances mentioned in the agreement is mysterious. The state government is obliged to tell the people why the project failed. Any attempts to handover the land to vested interest persons close to the CPI(M) would be strongly resisted," leader of opposition and senior Congress leader V D Satheesan said.</p><p>TECOM's decision to scale down investments outside UAE is learnt to be the reason why the project failed.</p><p>State industries minister P Rajeev said that the state government was considering it as a fresh opportunity as around 100 companies were awaiting for space in Kochi for investments. The state government is not abandoning the SmartCity Kochi project, but only giving a fresh lease of life to it, he said.</p><p>The initial discussion for the project was initiated by the Congress government led by Oommen Chandy during 2004-2006. CPI(M), which was the then opposition, had alleged that it was a real estate deal. </p><p>But the CPI(M) government led by V S Achuthanandan took forward the project by including additional compensation clauses in government's favour and the final agreement was inked in 2007. The first phase of the project was commissioned by the Oommen Chandy government in 2016.</p><p>TECOM, which is promoted by Dubai Holding, has 84 per cent stakes of the project while the state government holds 16 per cent stakes.</p>
<p>Thiruvananthapuram: A decision of the Kerala government to revoke the agreement with Dubai-based TECOM Investment FZ-LLC for the much hyped SmartCity Kochi IT township project by paying compensation to the latter has triggered a row.</p><p>The Pinarayi Vijayan-led state cabinet on Wednesday decided to appoint an independent evaluator to fix the compensation to be paid to TECOM.</p>.'Controversial' SmartCity project takes off today.<p>However, this has raised many eyebrows as the agreement with the Dubai based firm inked in 2007 has provisions for state government to recover compensations from TECOM in case it fails to create either 90,000 jobs or construct 8.8 million square feet built up space in ten years.</p><p>IT expert Joseph C Mathew, who had served as IT advisor to former Chief Minister V S Achuthanandan, told DH that as per clause 7.2.2 of the agreement signed in 2007 between Kerala government and TECOM, the state government could claim compensation from TECOM. </p><p>Hence it is surprising to see that the government is planning to give compensation to TECOM, he said.</p><p>The main opposition party -- Congress whos is the major partner in the United Democratic Front (UDF) alleged that the CPI(M) government's intention was to go for a real estate deal and ensure that those close to them get the 248 acres land of the project in Kochi.</p><p>"The government's decision to terminate the agreement with TECOM by paying compensation to TECOM even as they failed to deliver the assurances mentioned in the agreement is mysterious. The state government is obliged to tell the people why the project failed. Any attempts to handover the land to vested interest persons close to the CPI(M) would be strongly resisted," leader of opposition and senior Congress leader V D Satheesan said.</p><p>TECOM's decision to scale down investments outside UAE is learnt to be the reason why the project failed.</p><p>State industries minister P Rajeev said that the state government was considering it as a fresh opportunity as around 100 companies were awaiting for space in Kochi for investments. The state government is not abandoning the SmartCity Kochi project, but only giving a fresh lease of life to it, he said.</p><p>The initial discussion for the project was initiated by the Congress government led by Oommen Chandy during 2004-2006. CPI(M), which was the then opposition, had alleged that it was a real estate deal. </p><p>But the CPI(M) government led by V S Achuthanandan took forward the project by including additional compensation clauses in government's favour and the final agreement was inked in 2007. The first phase of the project was commissioned by the Oommen Chandy government in 2016.</p><p>TECOM, which is promoted by Dubai Holding, has 84 per cent stakes of the project while the state government holds 16 per cent stakes.</p>