Vijayan Administration to Terminate Kochi Smart City Initiative, Congress Accuses of Fraud

Kochi, Dec 5 (NationPress) In a striking move, the cabinet under Chief Minister Pinarayi Vijayan has opted to terminate the Kochi Smart City initiative, prompting the Congress party to assert that a substantial fraud has occurred.

Senior Congress member Ramesh Chennithala voiced that this shutdown is indicative of a major scam, adding, 'Current reports suggest that the Kerala government may face compensation payments to Smart City Dubai.'

On Wednesday, the Vijayan cabinet made the decision to cease the Smart City project, establishing a committee to devise a separation agreement with Smart City Dubai.

In defense of the decision, P. Rajeeve, the State Industries Minister, stated on Thursday that the Kerala government's choice to pivot elsewhere will not adversely affect the state’s development initiatives.

“The Infopark campus is currently at full capacity, with numerous IT companies eagerly awaiting space. Therefore, once the separation agreement is finalized, we will introduce a new program aimed at attracting IT firms to the initiative,” Rajeeve explained.

Chennithala countered, saying, 'This is an enormous scam... have we ever witnessed compensation being awarded to a company that failed to perform its duties, despite being in office for nearly nine years?'

“Vijayan, who also holds the title of IT minister, owes the public an explanation. It’s particularly concerning that Baju George, who was part of the Smart City Dubai agreement, is now on the committee handling the compensation. This is a significant scam, and we will soon unveil further details,” Chennithala asserted.

The curtains have officially fallen on what was once touted as one of Kerala’s flagship IT projects—the Kochi Smart City initiative, a collaboration between Smart City Dubai and the Kerala government. Nevertheless, State Industries Minister P. Rajeeve affirmed that they will continue pursuing the concept, given the substantial demand for space.

Initially, the Kochi Smart City project was envisioned to encompass 8.8 million square feet of built-up area across a 246-acre expanse in Kochi, with 70 percent allocated for IT and IT-enabled services, projected to create 90,000 job opportunities.

From its inception, this project faced challenges when it was proposed by the Oommen Chandy administration in 2004, with strong opposition from the CPI(M), led by then-Leader of Opposition V.S. Achuthanandan.

Just prior to the 2006 Assembly elections, the Kerala High Court granted clearance to the Chandy administration to proceed with the project, but fearing backlash, Chandy chose to delay it.

However, in 2006, Achuthanandan, who succeeded Chandy, signed the agreement with Smart City Dubai.

Yet again, the project stalled due to the global recession, and after Chandy returned to power in 2011, progress resumed. At the tail end of his tenure in 2016, one building of the initial phase was inaugurated; however, no further advancements occurred when Pinarayi Vijayan assumed the role of Chief Minister in 2016.