The Kerala government on Wednesday entered into an agreement with its Dubai-based promoters for establishing the Smart City IT project in Kochi. This was a long pending project which was on halt due to some disputes between the two parties.

It is anticipated that Smart City project will generate direct employment for 80,000 people and indirect employment to another 20,000 people.

The dispute was regarding the land ownership but the dispute was resolved at the talks between Chief Minister V S Achuthanandan and Ahmed Homaid al Tajir, member of the Supreme Committee for Dubai World Group and Public Holding Group.

Around Rs 1500 crore is invested in Kochi Smart City IT Project, which is finally settled after six years of uncertainty.

The government has passed an ultimatum to the Dubai-based TECOM that if the issue remains unsettled then government is forced to drop the investors. Listening this, Dubai government has quickly send its representative to settle the outstanding dispute over land.

The talks were mediated by NRI businessman M A Yusafali, Kerala government has proposed a condition that the investor would get free holding of 12 per cent of the total project area but without the right to sell it and Dubai agreed to this condition.

Previously, Dubai TECOM wanted free holding and the right to sell 12 per cent of the project area of 246 acres which has caused stoppage in the proceedings of the dream project.

While the remaining 88% of land would be given on lease for 99 years, to which both the parties agree.