KOCHI: The government has extended to May 31 the deadline to submit Expressions of Interest (EoIs) for its ambitious plan to set up four IT corridors and 20 satellite IT hubs. The earlier deadline was February 2.
The Kerala State Information Technology Infrastructure Ltd (KSITIL) extended the deadline after just five firms showed interest in the project. Sources said the key criteria requiring companies to purchase land for building the IT infrastructure seemingly acted as the dampener.
The KSITIL floated the EoI in January, inviting investors, developers and tech firms to invest and develop IT infrastructure. Being the land bank for IT/ITeS development in the state, KSITIL was designated the special purpose vehicle (SPV) for the project.
Accordingly, KSITIL identified 76 land parcels totalling 5,000 acres for the four proposed IT corridors: Technopark Phase III to Kollam (corridor 1), Cherthala to Ernakulam (corridor 2), Ernakulam to Koratty (corridor 3) and Kozhikode to Kannur (corridor 4). The proposed corridors run parallel to the NH 66 which is being widened to four lanes.
Sources said the firms’ lack of interest in the project seemingly stems from the government’s stipulation that investors buy land and build infrastructure, a deviation from the normal practice of the government buying land and making it available to investors.
“The cost of land along the NH is steep. Buying a parcel of land measuring 15 to 25 acres will set an investor back by Rs150 crore to Rs200 crore. They will then have to spend extra on constructing buildings,” explained a source.
The good news is that the five firms that submitted EoIs meet all prerequisites, but the government has to take the final call on their eligibility. “Such a project takes years to complete and hence, the investor needs to possess a very good track record of meeting deadlines,” said the source.
On why the usual method was not followed, the source said land acquisition takes time as several rules and regulations have to be followed. “However, land owners prefer sale to lease. They might even consider having a share in the project,” the source said.
Should the response remain unenthusiastic, the government might consider the next method that involves providing basic facilities. It is speculated the state government opted to make purchasing land a criteria for companies owing to the state’s financial crisis.