KOCHI: The development of IT infrastructure in Kerala has got a shot in the arm with both state and private sector lugging it in unison to new heights. Recently, in a social media post, Industries Minister P Rajeeve highlighted the mega IT project taking shape on the 246-acre Smart City (SCK) campus in Kochi.
Lulu Group is building the tallest IT industry complex here. When operational, it will accommodate about 30,000 IT professionals.
“Once the towers become functional, all the multinational companies that have been wanting to come to Kerala will get to avail all the necessary facilities to set up their branches under one roof,” the minister writes.
Citing the recent pace with which the state is galloping towards the fourth industrial revolution, Rajeeve further adds, “In two years, Kerala is expected to become the IT hub of the country.”
Lulu’s 29-storey twin tower, set up with an estimated cost of `1,200 crore, will be ready to be leased out in the third quarter of 2024.
Things began perking up at SCK after a brief lull once the Prestige Group got approval for the non-SEZ status for its Cyber Green project.
The commerce ministry’s board of approval (BoA) was via the recently inserted 11B clause of SEZ (special economic zone) rules. Under this clause, there can be non-processing areas for IT/ITeS SEZ. It permits the co-existence of SEZ units and non-SEZ IT/ITeS businesses on the same SEZ premises. Cyber Green I, which occupies 4.61 acres at SCK, has a total built-up area of 8.78 lakh sqft and a leasable area of 5.4 lakh sqft across two towers.
Speaking to TNIE, sources with the Lulu IT Infrabuild Private Limited say, “Hopefully, the space in the twin tower will become available for leasing by the first week of July. We plan to open the buildings by the first of November.”
As to whether the Lulu towers will also follow the Prestige Group’s suit and apply for the denotification as a special economic zone, the Lulu official says, “Not in the immediate future.”
He highlights some main reasons. “Even though we are classified in the SEZ category, the enquiry for space has been tremendous. As of now, we have got six companies seeking space in our buildings.
Besides, the entire non-SEZ denotification procedure is humungous. We will also have to return all the tax benefits that we received as a SEZ, and maintenance contracts will start to attract GST. So for now, we are not thinking of changing the status,” the official says.
There is a lot of buzz on the government side as well. Recently, the Kerala State IT Infrastructure Ltd invited expressions of interest (EOI) from reputed investors, developers and technology firms to invest and develop IT Infrastructure in the proposed IT corridors under a PPP model.
During the 2022-23 budget speech, Finance Minister K N Balagopal announced the setting up of a new IT park in Kannur, the establishment of four IT corridors and 20 satellite IT hubs through funding support from the Kerala Infrastructure Investment Fund Board. An amount of `1,000 crore had been earmarked for this purpose in the budget.
The proposed four IT corridors will be coming up parallel to the NH 66 which is being developed as a four-lane highway. As per the EOI document, these four corridors will begin from the existing IT centres in the state.
“The proposed corridors are Technopark Phase-III to Kollam, Cherthala to Ernakulam, Ernakulam to Koratty and Kozhikode to Kannur,” says sources with KSITIL.
Satellite IT parks
Corridor 1
Technopark Phase III to Kollam
Total area 200 acre
Corridor 2
Cherthala to Ernakulam
Total area 230 acre
Corridor 3
Ernakulam to Koratty
Total area 568 acre
Corridor 4
Kozhikode to Kannur
Total area 701 acre