Infosys withdraws from Technocity project

Officials said Infosys should have started construction within a year from the date of lease deed

In a huge blow to the proposed Technocity project in Thiruvananthapuram, IT major Infosys has decided to withdraw from it, citing 'non-cooperation' in providing infrastructure, a charge rejected by the Kerala government, which has so far invested over Rs 26 crore.

In a letter sent on May 18 to Technopark CEO K G Girish Babu and IT secretary P H Kurian, Infosys said it was withdrawing from the project as the government had "failed" to provide required infrastructure and also the fact that there was a temple in the about 50-acre site leased by Infosys.

Girish Babu said Infosys had signed an agreement and paid Rs 47 crore as one time lease in 2012 but has so far failed to start any construction activities.

Refuting the charges of 'non-cooperation' in building infrastructure for Infosys in Technocity, the Phase IV expansion of Technopark, he said the IT Park had provided all facilities to start construction in the acquired land.

On Infosys' request, Technopark had handed over 49.84 acres of land, notified as Special Economic Zone  on March 27, 2013 for its new campus in Technocity, Kurian said.

Quoting the MoU signed between Technopark and Infosys in April 2012, he said Infosys should have started construction within a year from the date of lease deed (in this case at least from the date of handing over the possession along with notified SEZ status).

"Even when Technopark had provided all basic infrastructure facilities required for construction, we haven't received from Infosys the building plans or any explanation on this delay so far. This is a clear violation of the terms and conditions mentioned in the MoU," Girish Babu said.

The CEO also mentioned that Infosys had not replied to a reminder letter sent six months ago by Technopark.

Infosys had informally indicated its reluctance to set up a new campus within Technocity, but was only keen on expanding its under-construction Phase-2 campus near Technopark.

"They promised to create as much employment opportunities in Phase-2 expansion as offered in the proposed Technocity campus, but never mentioned any dissatisfaction about the infrastructure provided by us", he added.

Dismissing Infosys' allegations that the allotted land comprises a temple that would hinder its construction, Girish Babu made it clear that the temple was never under the possession of Technopark and was not included in the tract given to the software company.

"With the excellent relationship running between the top managements of Infosys and Technopark, we do not believe that the corporate would blame us for lack of support. The allegations mentioned in the letter are bereft of facts and sound like individual perceptions of the person who wrote the letter, but these need not be a considered corporate view," Girish Babu said.