Kerala Government Faces Allegations of Scam Over Kochi Smart City Project Closure

The Kerala government, led by Chief Minister Pinarayi Vijayan, has come under fire following its decision to wind up the Kochi Smart City project. The move has sparked accusations of corruption from the opposition, particularly the Congress party, which claims the closure is part of a larger scam.

Congress veteran Ramesh Chennithala voiced his concerns on Thursday, stating, “This winding up is a big scam. What is now heard is that the Kerala government will have to pay compensation to Smart City Dubai.” Chennithala’s allegations have added fuel to the controversy surrounding the ambitious project, which has faced hurdles since its inception.

On Wednesday, the Kerala cabinet decided to terminate the Kochi Smart City project and formed a committee to finalize the separation agreement with Smart City Dubai, its collaborative partner. The decision was defended by State Industries Minister P. Rajeeve, who assured that it would not hinder Kerala’s development goals.

Rajeeve explained, “The Infopark campus is now filled up, and there are hundreds of IT companies now waiting for space. Hence, once the separation agreement is done, we will come out with a fresh programme to bring IT firms into the project.”

Despite this justification, Chennithala remained critical, accusing the government of rewarding failure. “This is a big scam. Have you ever heard about compensation being given to a company which failed to do its job, despite being in office for the past nearly nine years?” he asked.

He further criticized the inclusion of Baju George, a former Smart City Dubai official, in the committee tasked with negotiating the compensation. “Vijayan, who is also the IT minister, has to give an explanation. What’s even more strange is that Baju George, who was part of Smart City Dubai when the agreement was inked then, is also now on the committee to work out the compensation. This is a major scam, and very soon, we will come out with more details,” Chennithala said.

The closure marks the end of what was once considered a flagship IT initiative for Kerala. The Kochi Smart City project, a joint venture between Smart City Dubai and the Kerala government, was envisioned to transform the state’s IT landscape. The project aimed to create 8.8 million square feet of built-up space on 246 acres in Kochi, with 70 percent dedicated to IT and IT-enabled services, and employment opportunities for 90,000 professionals.

However, the project’s journey was fraught with challenges from the outset. Initially conceptualized in 2004 during the tenure of the Oommen Chandy-led Congress government, the proposal faced strong opposition from the Communist Party of India (Marxist). The then Leader of Opposition, V.S. Achuthanandan, vehemently opposed the project.

In 2006, just before the Assembly elections, the Kerala High Court granted approval to proceed with the project. Despite this legal backing, Chandy opted not to move forward, wary of potential political fallout. When the CPI(M) came to power later that year, Achuthanandan signed the agreement with Smart City Dubai, signaling a renewed push for the project.

However, the global recession in 2008 dealt a severe blow to the initiative, leading to delays and a lack of progress. When Chandy returned as Chief Minister in 2011, efforts were revived, culminating in the inauguration of one building in the project’s first phase in 2016.

Despite these developments, the project stagnated under the Vijayan administration, which took charge in 2016. Critics argue that the lack of progress during Vijayan’s tenure reflects poorly on his leadership, particularly as he also serves as the state’s IT minister.

While the government maintains that the decision to wind up the project is in the state’s best interest, the controversy shows no signs of abating. The opposition’s allegations, combined with the project’s checkered history, have cast a shadow over what was once heralded as a transformative endeavor for Kerala’s IT sector.

With the focus now shifting to the newly planned initiatives to replace the Kochi Smart City project, the government faces the dual challenge of addressing the allegations and ensuring that its future plans are executed effectively. As the separation agreement with Smart City Dubai takes shape, the coming weeks will likely bring further scrutiny and debates over the project’s legacy and its impact on Kerala’s development trajectory.