Thiruvananthapuram: Talks between the Kerala government and Dubai Internet City (DIC) Saturday for the proposed Smart City project in Kochi appear to have failed with Chief Minister V S Achuthanandan insisting that no land or infrastructure would be given free to the Dubai company for the IT project.
The Rs 15 billion ($322 million) project was seen as a dream project of the previous United Democratic Front (UDF) government.
During the talks, Achuthanandan stressed on his objections to the deal - that neither the existing Infopark campus at Kochi would be handed over to DIC nor would any land in the state given to the Dubai Company free of cost.
Achuthanandan was firm on his stance. "Handing over Infopark is ruled out and now that they have raised certain issues, we would like to discuss it and in two weeks time we would get back to them."
Leaving the ball to the company's court, the chief minister said that the options before his government are either to have a joint venture with DIC or be a facilitator.
"They can either buy land at market price and build the infrastructure and hand it over to IT firms. This would mean that they can be one of the many companies who would invest in our state. Several giant companies have come forward with such proposals," Achuthanandan said.
The chief minister's change of stance was a surprise as Friday's talks between the two sides raised some hopes.
The officials of the DIC, who have been negotiating with the state government - for the last two years initially with Ommen Chandy government and then with the LDF - tried to put up a brave face.
"We are in business, some we win, some we loose," DIC team leader Deepak Padmanabhan told reporters here after a meeting with Achuthanandan.
However, he did not seem to have given up all hopes of doing business in the state.
"The Smart City project discussed previously was one business model and now we are thinking of other business models. We have to hear from the Kerala government now," Padmanabhan said.
"We also have to discuss the state's suggestions with our officials and then a decision would be made," he said.
The DIC officials said they would be returning without any further discussions with the state government for the time being.
"We are aware of ideologies of various governments and now we would discuss what transpired in the talks here and then a final decision would be made," added Padmanabhan.
Ever since Achuthanandan took over in May, the future of the project, visualised by Chandy, was considered to be bleak.
The former chief minister wanted it as a joint venture between DIC and the Kerala government and agreed to hand over Infopark at the cost of Rs 1.09 billion ($22.83 million), selling 136 acres to DIC at the rate of Rs 2.64 million ($602,189) per acre and handing over another 100 acres on a 99-year lease free of cost.
Despite the Kerala High Court asking the former chief minister Chandy to go ahead with the deal in April, the project could not take off because of the vehement opposition from Achuthanandan.
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