Dubai Investors Forced To Exit Indian Smart City Project
According to reports in the Indian press, the Dubai investors behind a Smart City IT project in Kochi, Kerala has been forced to exit the project.
A deal was signed in 2011 between the government of Kerala and a subsidiary of Dubai Holding, Dubai’s global investment arm.
Dubai Holding had a majority 84% stake, with the Kerala government owning the remaining 16%. It promised 90,000 direct jobs upon its completion in ten years and spurred a real estate boom in the area.
However, the Indian Express reported in December that the Kerala government now plans to purchase Dubai Holding’s 84% stake.
Photo: Smart City Kochi
This followed an audit report which raised several concerns, including the lack of a feasibility study for the project, the lack of transparency in selecting the majority partner, the handover of more public land than was required for the project at below market value, and the eventual dilution of the 90,000 job creation condition.
The New Indian Express said that while the IT park was meant to be 246 acres, the Dubai investors could only develop 40 acres.
The Maltese Smart City
A similar deal for a Maltese Smart City was signed between the government and another subsidiary of Dubai Holding back in 2007, with the investors leased the land for a nominal value of 50c per square metre.
The original plan entailed the construction of an ‘internet city’ along the coast of Kalkara that would employ thousands of workers with a $300 million investment.
However, over the years, the plans failed to materialise, and Smart City now houses government offices and the Shoreline shopping mall and residences.
Cover photo: Smart City Kochi
READ NEXT: Emotional Loneliness In Malta On The Rise Since Pandemic, Study Finds
