I, Sarat Ramachandran Nair Infosys Technologies Limited Technopark,TVM, would like to share with you some information and analysis regarding “Smart City “…!!! We are providing a comparative study of Trivandrum Techno Park, Info Park and Proposed Smart City. It will highlight the neglect towards prospective sectors and losses for the state of Kerala and people because of blind support for DIC.
Investment
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Technopark Current Status: 200 Crores by Gok
Technopark Proposed Status:1000 Crores by Infosys, TCS, Us Software, Sasken and 100 crores by GokSmartcity/infopark current status: 100 Crores by Gok
Smartcity/infopark Proposed status: 400 Crores by DIC in 2 yrsOwnership
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Technopark Current Status: GoK and multiple investors
Technopark Proposed Status: GoK and multiple investorsSmartcity/infopark current status: GoK and multiple investors
Smartcity/infopark Proposed status: DIC and multiple investorsLand Requirement
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Technopark Current Status: 242 acres
Technopark Proposed Status: Additional 100 acresTotal – 342 acres
Smartcity/infopark current status: 400 acres initial
Smartcity/infopark Proposed status:1000 acres finalBuilt Up Space
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Technopark Current Status: 15 lakhs sq ft by GoK
Technopark Proposed Status: 40 lakhs sq ft by Gok and Pvt. investors
Smartcity/infopark current status: 3.25 lakhs sq ft
Smartcity/infopark Proposed status: not mentionedNo: of Companies
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Technopark Current Status: 75
Technopark Proposed Status: --
Smartcity/infopark current status: 25
Smartcity/infopark Proposed status: not mentioned
Jobs
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Technopark Current Status: 7500
Technopark Proposed Status: Additional 20,000 (no investment by Gok) + 2500 in next 3-4 years
Smartcity/infopark current status: 721
Smartcity/infopark Proposed status: Maximum 3000 p.a., 10,000 in next 5 years
Employer: Employee (average)
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Technopark Current Status: 1:100
Smartcity/infopark current status: 1:28
Jobs/Acre
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Technopark Current Status: 49
Technopark Proposed Status: 116Smartcity/infopark Proposed Status :30-35
Revenue for Gok
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Technopark Current Status: Rent/Lease/ of 15 lakhs sq ft and Land Selling. Recurring in nature.
Technopark Proposed Status:Rent/Lease/ of 20 lakhs sq ft and Land Selling. Recurring in nature.
Smartcity/infopark current status: Rent/Lease/ of 3.25 lakhs sq ft and Land Selling. Recurring in nature.Smartcity/infopark Proposed status:
Only if dividend declared.
Maximum 9% of any profit.
Drawbacks:-Since inception 4 years ago DIC - Dubai has managed to attract 615 companies and provide employment for 5500 only, which questions against their credibility.
Transfer of 100 acres of land originally acquired for Bhramapuram Thermal plant will curtail future expansion of the plant.
Preference for employment only for local population for specified jobs is against constitution. (News in Malayala Manorama)
Most of the employees will be from outside Kerala and India. (News in Malayala Manorama)
Gok Kerala cannot be a member in Directors Board. As per companies act 1956 an individual should have more than 9% share to represent director’s board. The DIC has agreed to pay 136 crores for Info Park and 62 acres of land.
Total Investment 1500 Crores9 % Share will be 1500 * 9/100 = 135 Crores - - - - Tricky Mathematics
DIC has not mentioned about the sector to create 33,000 jobs. Whether it’s in IT/ITES, Tourism, Real Estate, direct or indirect jobs.
* The facts and figures used in analysis has been gathered from official sources and news paperThe “Kerala’s largest circulation daily” – Malayala Manorama and some other electronic media are behind the much hyped “Dubai Smart City”. The Gok of Kerala is giving 100 acres of free land; selling existing infrastructure facilities for Rs 136 crores, Gok will be shortly declaring Info Park as “SEZ”. Gok has giving so much incentives and option to develop Kochi and DIC to generate around 3000 jobs in 3 years, 10,000 jobs in 5 years and 18,300 jobs in 10 years respectively in different sectors. If DIC failed to generate this much jobs in phased manner they will be charged a compensation of Rs 6,000 per job. Even if DIC is not generating any jobs the maximum compensation payable to Gok will be Rs 19 crores and 80 lakhs. (33,000 * 6000). Can Gok surrogate 400 acres of land and Info Park facility with this compensation amount?
Can you justify answers for the following questions?
Does Smart City really need 400 acres of land (4 times the size of Vatican City)? The DIC here in Dubai is based on not more than 50 acres of land!
The DIC is not a technology company as it might seem from the outside. The DIC itself is essentially a Real Estate company. Do our politicians understand this?
By giving away excessive land (as freehold) to one party, would it not jeopardize the potential for other future development in that area (i.e. more employment opportunities employing the same resource of land)?
Would the new land owners later use the excess freehold land for other real estate business - like selling apartments and villas?
Are there sufficient controls in place to ensure that the future use of land is strictly for its originally intended purposes?
Aren't there Indian corporations that can do the same real estate development for the technology park, like DIC could do? If Kochi has so hyped potential, Can't the Gok develop and IT Park? Why we need a "Third Party"?
So don’t go behind media hype, Ommen Chandy, V. S or MFAR group; just make ourselves an evaluation on facts……….!!!
Some other responses to this chain mail
What VS told about Internet City & the Facts?
That the smart city agreement will be reconsidered if LDF comes to power since :
It is the biggest ever land scandal in the history of Kerala.
Land and assets worth Rs 1115 crores is sold out for just 145 crores.
The state government is planning to sell the info park building( for which 70 crores was already spend) + 298.67 Acres of land for 145 crores. Do you believe that this is a genuine deal? If so you have to go back to your LKG classes...Presently the state government is getting 5 crores per annum from rent alone.
If Dubai internet city is not able to generate 33000 jobs in10 years the penalty they had to pay is only 20 crores after 10 years!!!!!
Other Responses
A rational thinking man knows very well that DIC is not credible body regarding IT; they are neither a software co or software service provider. They are simply a real estate developer.
The DIC at Dubai is also not a big thing; they are employing only 5500 people in more than 300 or 350 cos. So average 15 people per company!! Most of the offices are regional marketing offices or sales offices. Dubai being an entry point for several countries in middle east, Africa etc, some companies have put up their office there. Infact not much software development taking place.
What VS argued is true. How can a company employing only 5500 people give job to 33000 people here? The fallacy is the compensation if they are not able to provide that, that too after 10 years, a meager 19 crores. The infopark building itself costs now 70 crores, not to mention about the acres of land surrounding it.
The argument that DIC is owned by Dubai Govt is not much valid. It is not like a democratic govt like ours. ...Why Govt of Kerala is not so fast in granting them land. Infoys had been waiitng for about 2 years to get land in TVM. Now they are expected to get it by November. Why the interest shown to DIC is not in the case of these desi companies?. Perhaps the middlemen would not be benefitted in the deal, isn't it?
Best Regards,
Sarat Ramachandran Nair Infosys Technologies Limited
Technopark,TVM