Smart City accorded SEZ status

KOCHI: The Smart City project received a shot in the arm on Thursday with the Board of Approval for Special Economic Zone (SEZ) of the Union government awarding SEZ status to it.

A meeting of the Board in New Delhi, chaired by Union Commerce Secretary G.K. Pillai, accorded SEZ status to 136 acres of the 236 acres earmarked for the project. The promoters will have to make a fresh application for SEZ status for the remaining 100 acres.

The Board took the decision partially because the entire 236 acres could not be treated as a single entity since the 100 acres acquired from the Kerala State Electricity Board is separated from the rest of the land by a water body. The decision also allays fears regarding waiver of registration fee (Rs.2 crore) and stamp duty (Rs.10 crore) for the project. The State government might no longer have any problem in waiving these fees paving the way for the registration of the lease agreement. The registration had been in limbo over the indecision regarding waiver of duties.

“Now there are no legal hurdles in waiving off registration and stamp duties,” S. Sarma, Fisheries and Registration Minister, who is also the Chairman of Smart City Kochi, told The Hindu.

Apprehensions that the promoters of the project would have to pay a hefty penalty for registration since the mandatory four-month period within which the agreement was supposed to be registered had expired on March 15 had also been laid to rest.

Big boost

This is a vital decision and would give the project a big boost, Ajay Kumar, State Information Secretary, who was in Delhi to attend the meeting, told The Hindu over the telephone. Three complaints regarding acquisition of land for the project came up before the meeting. The Board, however, was satisfied with the explanation that all stipulated procedures were followed in the acquisition process, Mr. Kumar said.

The last meeting of the Board set aside the application for SEZ status to the project for want of clarification from the State government over a complaint of forceful land acquisition.

This time, the officials made sure that no such scenario was repeated.

Once the minutes of the meeting are drafted, the Development Commissioner of Kochi SEZ would inspect the land which had been granted SEZ status and submit a report to the Union government. On receipt of the report, the Centre would issue necessary notification proclaiming the SEZ status. The promoters could go ahead with the initial constructions, like setting up an office, as soon as the notification is issued.

"Network of opportunities" – reads a signboard put up on the way leading to the site of the Smart City project.

That pretty much sums up the excitement surrounding the project.