Details of new lease agreement for Kochi SmartCity signed on 23 Feb 2011


In this article, I will explain the details of the new lease agreement for Kochi SmartCity, signed on 23 Feb 2011.

Kochi SmartCity: New lease agreement After about 5 years of discussions and uncertainties, Government of Kerala and Tecom Investments reached on an agreement to proceed with the Kochi SmartCity project.

A new lease agreement was signed on 23 Feb 2011 after the Director Board meeting of Kochi SmartCity Infrastructure Pvt Ltd. The new lease agreement was signed by Kerala IT Secretary Mr. Suresh Kumar and Tecom Investments CEO Abdullatif AlMulla, in the presence of Kochi Smartcity chairman minister S. Sharma.

Land for SmartCity


There are 246 acres of land allotted for the SmartCity project. The lease agreement is signed as 2 separate properties:

Lease agreement 1

  • Land area: 131.41 acres

  • Property is in Kakkanad village

  • Document number: 486


  • Lease agreement 2

  • Land area: 114.59 acres (100.65 acre in Puthencruz village, 13.94 acres in kakkanadu village)

  • Document Number: 486

  • Free hold rights in 12% of this property, after completion of the master plan


  • 133 acres of land already recieved SEZ status. However, during the survey it was found that there is only 131.41 acres of land in that property, which is now changed in the new lease agreement.

    Highlights of lease agreement

  • Kerala IT Secretary Sureshkumar will go to Delhi today itself along with Tecom representatives Mithun Beeru and Adv Muhammde Tariq to speed up efforts to get SEZ status for the rest of the land.

  • Master plan will be prepared within 30 days

  • Lease amount will be Rs 1 per acre

  • Lease term is 99 years. However, it can be extended if both parties agree

  • If there is a failure to pay the lease amount, there will be 12% penalty.

  • Atleast 70% of the land should be used for IT related purposes.

  • 8,88,207 sq ft should be used for building construction

  • Land can be sub leased to other companies

  • All important decisions must be done with the approval of the government representatives in the director board.

  • Construction would begin as soon as the Special Economic Zone notification was received for 131.41 acres, which had already been cleared by the Board of Approval of the Union Commerce Ministry.

  • Kerala government is responsible to get SEZ approval for the land.

  • Givernment approval should be obtained to use the land for any non IT purposes

  • Agreement will be void if the lease agreement terms or framework agreement terms are violated.

  • If the construction is not completed within the fixed timeframe, Government may give 6 months notice. If the construction is not completed within the notice period, Government can take over the SmartCity shares.


  • SmartCity CEO Mr. Fareed Abdul Rahman was not present in the board meeting due to difference of opinion with chief minister Mr. V. S. Achuthanthan.


    Attachments

  • Second lease agreement - Kochi Smartcity (2655-16643-Governor-SmartCity-Second-Lease-De.pdf)
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    Comments

    Author: jose05 Jul 2012 Member Level: Bronze   Points : 2

    In IT field time is money .We Keralite lost a wonderful opportunity as usual to commission the smart city by 2007/2008 .that was the right time when world economy and IT industry was booming. Our Kochi -kerala might had at least 100000 it direct jobs by this time . Times have changed It industry also in the troubled times .Gone is gone past is past
    Let us give full support to smart city to become a reality . All Politian or every citizen should patiently support for the efforts of TEcom
    Don’t criticize if any minor problems or lapses >we must give up our crab mentality
    Jjoy

    Author: john smith11 Jul 2012 Member Level: Bronze   Points : 2

    Kerala is GOD's OWN COUNTRY..yes IT has played a remarkable role out in SMART CITY..As and when smart city came IT had showed there motivation towards this project to be successful industry.

    Business has grown day by day in Kerala. Lots of people are relocating to Kerala who are staying in abroad countries. These people had setup there industry in smart city.

    Really I have to say one thing is "SMART CITY HAS TOUCHED HIGHEST SENSES IN KERALA"

    I would also appreciate if there are vacancies for NON-IT people out in COCHIN - SMART CITY



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