KOCHI: The state government will review issues associated with SmartCity Kochi. Industries Minister P K Kunhalikutty, gave the latest update on the project on the sidelines of the curtain-raiser event for the COKPIT 2027 aviation GCC summit on Monday.
The minister said a committee will review the issues associated with SmartCity Kochi. “Once the review is done, the government will initiate steps to resolve the issue. Later, a panel comprising the chief minister, ministers and officials will hold meetings with the UAE government to iron out a solution. It is a high priority,” he added. SmartCity Kochi has been mired in controversies since its proposal stage, when Oommen Chandy, during his first term in 2004-06, proposed the idea. TECOM owned an 84% stake and the government owned the remaining 16% in SmartCity Kochi. At the time, the V S Achuthanandan-led opposition strongly criticised the project, pointing out the Dubai firm’s demand for 12% freehold land.
After remaining in limbo, towards the fag end of 2024, TECOM Investments, a subsidiary of Dubai Holding LLC, decided to withdraw from SmartCity. As per earlier reports, the 2008-09 financial crisis in Dubai forced TECOM and its parent company to hold back. As investments dried up, its Kochi project was affected.
After TECOM announced its decision to exit SmartCity Kochi in December 2024, the LDF government engaged in active talks to amicably buy back TECOM’s 84% stake through an independent valuation process without paying compensation.
However, in between, discussions encountered minor friction over KSEB’s demand to return the land it had surrendered, and below-market lease agreements.
Things moved very slowly, with the government treading carefully.
