In a significant development, TECOM Investments, a subsidiary of Dubai Holding LLC, has decided to withdraw from SmartCity Kochi, a 246-acre IT park in Kakkanad. The state government, which holds a 16% stake in the project, has welcomed the move and will now explore options to take over TECOM's 84% equity.

The decision to exit the project was taken after TECOM expressed its desire to withdraw from SmartCity Kochi two years ago. The state government had been negotiating with TECOM since then, and the cabinet recently approved the recommendations of a committee headed by the chief secretary to allow TECOM to exit the project.

Industries Minister P Rajeeve said that TECOM had failed to deliver on its promises, including the development of infrastructure facilities. "The state government will hold discussions with TECOM to arrive at a formula regarding exit plans," he said.

The exit of TECOM is seen as a positive development for Infopark, which is looking to expand its operations. According to sources in the IT department, Infopark is one of the few agencies capable of taking over TECOM's equity.

SmartCity Kochi was launched in 2004 as a joint venture between the Kerala government and Dubai Holding to develop an IT special economic zone in Kochi. However, the project has been plagued by controversies and delays, and has failed to meet its promised potential. As of 2021, SmartCity houses only 50 companies and employs around 5,000 professionals, far short of its promised target of 90,000 direct jobs.