Mumbai: The state government of Kerala is in talks with Dubai Internet City (DIC) to set up an integrated IT park in Kochi, at an estimated cost of $400 million (around Rs.2,000 crore). This was stated by Aruna Sundarajan, IT secretary, Kerala, talking informally to the media during the Nasscom 2005 India Leadership Forum in Mumbai today.

To attract overseas BPO, software and hardfare supliers, the government is also planning to develop a four-lane highway connecting Kakkanad in Ernakulam to the airport, which is around 60 km away, while power in the range of 50-100 MW would also be provided, she added.

"An MoU is expected to be signed soon." Sundarajan said, adding that the Kerala government had already identified land for the project at Kakkanad. The government would most likely set up a special purpose vehicle, Smart City, in association with DIC, to develop the project, she said.

The park, to be constructed in three phases, would have the status of a special economic zone for global BPO, software, hardware and ancillary companies.

Sundarajan disclosed that in the first phase the government plans to develop 400 acres of land, at an investment of Rs.600 crore, which is expected to be completed by the end of this year and provide over 37,000 jobs.

Another Rs.600 crore would be invested under the second phase, expected to be completed by 2007, while the remaining would be utilised in the third phase. She stated that DIC was being roped in as a partner, since it has over 650 multinational companies on its list. "This association will benefit the state," she said. When fully operational the proposed IT park will provide jobs to over one lakh professionals.

"This will also showcase Kerala as an IT destination in the country, if we provide quality infrastructure at low cost, as the state has immense educated human resource," Sundarajan said.