The Left Democratic Front Government had dashed off, on September 1, 2010, a letter to Tecom, asking it to start work on the much-delayed project by September 15. If the company failed to do so, the Government would consider that it has withdrawn from the project, the letter said.

Tecom sought time till September 30 to reply. But for reasons best known to itself, the company has not cared to respond since then. The deafening silence on Tecom's part has touched off intense speculation on the future of the Smart City project. Tecom's attitude shows that the Dubai-based company is in no mood to yield to the 'pressure tactics' of the Kerala Government.

Experts are of the view that the Tecom is sitting tight secure in the knowledge that the company is on a strong legal wicket and the Kerala Government cannot simply dump it for another firm for implementing the much-hyped project, which was expected to put Kerala firmly on the information technology map.

As for the LDF Government, indications are that it too is not in favour of precipitating matters by acting tough and taking harsh steps like replacing Tecom with another firm. For one thing, such a step would mean a prolonged legal battle which would not serve the Government's purpose: of getting work started on the Smart City project before its present term ends in May 2011. Any drastic action on the Government's part would also reinforce the Opposition's oft-repeated charge that the Achuthanandan Government is opposed to development and investor-hostile.

Therefore, for all practical purposes, the cat and mouse game may continue with neither side wanting a confrontation at this point of time. Electoral considerations preclude any drastic Government step that could prove costly with State Assembly elections only seven months away.

The bone of contention has been Tecom's insistence on having freehold on 12 per cent of the 236 acres of land earmarked for the project with right for sale. The Tecom says the original Framework Agreement it had signed with the LDF Government contains a clause allowing it to do so.

The Kerala Government contends that since the land comes under Special Economic Zone (SEZ), freehold with right for sale cannot be given as the Indian laws do not permit that.

There is also talk of a mediator stepping in to end the deadlock on the issue. It may be mentioned that the there is a clause in the Agreement that in case of any dispute, it could be referred to an arbitrator.

One thing is clear. Unless one of the parties blinks, there is no way the Smart City project can get off the ground. The real losers will be the youth of Kerala as implementation of the project would have offered them 90,000 jobs. (IPA)