Dubai Internet City signs MoU with South Indian state

Dubai Internet City (DIC) yesterday signed a Memorandum of Understanding (MoU) with the South Indian state of Kerala to develop Smart City, a hi-tech business campus for information technology companies in the city of Kochi.

The ambitious Dh1.26 billion ($343 million, or Rs15 billion) project had been under discussion for several months.

The campus will serve as an international centre of excellence for the IT industry with a special focus on IT-enabled services.

"We are delighted to sign an agreement with the Kerala Government to develop the Smart City project," said Ahmad Bin Byat, director-general of the Dubai Technology and Media Free Zone.

"This project is part of Dubai Internet City's global expansion plans seeking to evolve from a regional venture to an internationally diversified organisation.

"Our mission is to become the ICT business campus provider of choice across the world."

DIC is currently in talks with authorities elsewhere in India, Pakistan, Iran and Malta to set up facilities there.

Under the terms of the MoU, the Kerala Government will transfer ownership of the existing Infopark project, an IT business park in Kochi, to Dubai Internet City.

This will be merged into the Smart City project that will be developed alongside, said a statement issued in Dubai.

Smart City is expected to be one of India's largest IT parks and have a positive impact on the local economy.

The first phase will be developed on 350 acres in the heart of Kochi, Kerala's commercial hub, in seven years, and is expected to create 33,000 jobs.

The Kerala Government will lease 100 acres to DIC and 250 acres will be sold at a mutually agreed price.

The completed park is expected to cover 1,000 acres and create at least 75,000 jobs.

Yesterday's MoU lays to rest speculation in India that Kerala could lose the high-tech venture to the neighbouring states of Karnakataka or Andhra Pradesh over the pricing of land.

Kerala Chief Minister Oommen Chandy however said the necessary changes had been made in the MoU, and that the revised agreement had been found acceptable to all concerned within the state.

DIC will bring to the park the expertise it has gained in developing one of the word's most advanced IT business campuses.

It will also help create a one-stop-shop of services necessary for IT companies to run their businesses, including a single-window facility for government approvals, including licenses and permits.

Other services that will be provided include telecoms, hospitality, facility management and legal.