In its reply to the Kerala Government’s ultimatum to start work on the project by September 15 or face the consequences, Tecom has insisted on being given freehold rights on 12 per cent of the 246-acre plot earmarked for the project.

The State Cabinet, which met to discuss the situation arising out of Tecom’s adamant stand, has authorized Chief Minister V S Achuthanandan to take the final decision on the prestigious project.

The Cabinet was of the view that the Government should not yield to the pressure tactics of Tecom and explore other options to implement the smart city project.

According to Minister S Sharma, who is the chairman of the Smart City Project, the Government cannot give freehold rights to Tecom as it is against the agreement reached with the latter.

Tecom, however, claims that the framework agreement does include a clause which allows it to have freehold right on 12 per cent of the land.

Granting freehold rights to Tecom would enable the firm to sell land which is detrimental to the interests of the State, the Minister opined.

Also, the land set apart for the project comes under Special Economic Zone (SEZ). The laws of the land do not permit grant of freehold right on land which comes under SEZ, according to Government sources.

Replacing Tecom as the promoters of the project could lead to a protracted legal battle. Such a denouement will not serve the Government’s purpose of starting work on the project during its present tenure which ends in May 2011.

Meanwhile, the Congress-led opposition placed a wreath on the foundation stone of the project at Edachira near Kakkanad, Kochi, on November 16, 2010 in protest against the LDF government’s failure to get the project going.

The foundation stone of the project had been laid by Chief Minister V S Achuthanandan on November 16, 2007. When implemented, the project is expected to generate 90,000 jobs.(IPA)