The $350-million SmartCity project in Kochi has swung to realty turf, after Dubai Tecom Investments communicated its consent to the terms of equity put forward by the Kerala government. This also means that Tecom has relented over the 99-year lease proposal.

The tidings from Tecom came in the form of a fax to Kerala chief secretary Lissy Jacob. A draft MoU on the IT infrastructure project is likely to be signed within two or three weeks, sources close to the Chief Minister told FE. A masterplan will be charted out soon after signing the draft MoU.

The newly formed entity SmartCity Dubai will be the implementing agency. SmartCity Dubai is a joint venture between Dubai Holdings (owned by the Dubai government)- owned Tecom Investments and its international projects division Sama Dubai.

Tecom had asked for ownership of the 246 acres of land transfered to its on a 25-year lease. After a round of discussions, Chief Minister VS Achuthanandan had agreed that ownership for 12% of the land (about 30 acres) could be allowed. After sitting on this new proposal for a month, Tecom has informed of its consent.

The Kerala government is to have 26% share in the project, first 16% and another 10% after five years.

The State government will be entitled to chairmanship and two nominees in the board of directors.

As distinctive from the SmartCity agreement proposed during the Oommen Chandy government where 33,330 jobs were assured, the new proposal assures 90,000 jobs in 10 years. "I would reserve my comments till after the MoU is signed," Opposition leader Oommen Chandy said, responding to the better terms that the LDF government had negotiated with Dubai Tecom.