SmartCity Kochi project cost jumps up by Dh372m

The cost of SmartCity project in Kerala, India, has jumped up by Dh372 million (Rs5 billion) to Dh1.6 billion (Rs20 billion) as compared to previous projections of Dh1.2 billion (Rs15 billion), said a senior company official.

The SmartCity Kochi project is jointly promoted by Dubai’s Tecom and the Kerala Government. 

According to Tecom sources, Dh1.2 billion was to be spent initially on building infrastructure which has now been revised to Dh1.6 billion. The project which was given a ten year deadline has now been cut to five and half years. A virtual extension of the Dubai Internet City, the Kochi Smart City Project, similar to the Malta Smart City Projects, are part of expanding the smart city concept.

Dr. Baju George, Managing Director of SmartCity Kochi, said the project will have a built-up area of 8.8 million sq. ft. with about 20-25 buildings.

The Kerala Government has 16 per cent stake in the project. Tecom’s Dubai Internet City will focus on marketing while SmartCity will allow multinational and international IT technology companies to establish their software development facilities.

The project conceived in 2005 went through various ups and downs, till the final ground-breaking ceremony was held on Saturday in the presence of Kerala State Chief Minister Oommen Chandy. Launching the work of a pavilion at the project site at Edachira near Kochi, the Chief Minister said that the first phase of the Smart City project will be operational within two years and the work of the pavilion will be completed within 14 weeks. Work on the first phase of the project will start soon after the completion of the pavilion and it is expected to be complete within 20 months.

The project is expected to create about 25,000 direct jobs in its first three to four years and a total of 90,000 jobs when it is completed. The initial feedback from potential IT firms, which were approached through Dubai Internet City, who wanted to set up their facilities in SmartCity Kochi, is very positive, he added.

Though the project was initiated way back in 2004, it got entangled in various legal and political issues and had to undergo many changes in the framework agreement. At one time when the project was all set to be called off, the Kerala Govt. appointed prominent NRI businessman Yusuffali MA as mediator to resolve the issue with Dubai based Tecom. It was his initiative which ultimately saw the project going ahead with both parties agreeing to work towards a speedy completion.
 

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