Upset over not starting the work on multi-crore SmartCity IT Project in Kochi by its promoters Dubai based Tecom Investments, Communist Party of India-Marxist-led Left Democratic Front government in Kerala said on Tuesday it would take a 'decision one way or other'.
'The Cabinet has taken a decision. Details will be announced later', state Chief Minister V S Achuthanandan said in Thiruvananthapuram on Tuesday during Cabinet briefing.
State government and the investment partner of the project was on a dispute over 'free hold land' issue.
Government had on September issued an ultimatum and send a letter to the company to reply whether they were interested in continuing the project slated to attract more than Rs 1500 crore (Rs 15 billion) in initial phases itself.
Tug of war between the state government and its joint venture promoter over the IT Park, considerd to be one of the dream schems of the state to promote IT ventures, began over the question of 'free hold land' out of 256 acres acquired and given to the promoters.
Government maintained that it was ready to treat 30 acres of land as in the agreement as free hold land but without any right for sale, which was not acceptable to Tecom.
Achuthanandan said Tecom was repeatedly asking for free hold land with right to sell which was not in the original agreement.
'The company seem to be financial trouble, may be that is why they are demanding something that is not in the agreement', Achuthanandan said.
Though number of discussions between the state government officials and Tecom to find a agreeable solution were held, with both parties sticking to their stand, the project had failed to take off.
The foundation stone for the project was laid three years back.
Company had failed to start the work and not a single brick had been placed after the foundation stone, he said.
