Addressing a press conference after a cabinet meeting, Chief Minister V S Achuthanandan said the agreement was expected to be signed with the Technology and Media Free Zone by month end.

As per the conditions, Achuthanandan said, the government would have 16 per cent share in the first phase of the IT Park and it would be increased to 26 per cent in next five years.

The project would generate 90,000 jobs. The company would construct 88 lakh sq feet area building and 70 per cent of the area constructed should be used for IT and IT related services as per the conditions in the agreement, he said.

This would ensure that the project provided the promised number of jobs. The government would provide 246 acres of land for Rs 104 crore for 99 years lease, he said adding the government owned Info park would not be handed over to TECOM as per the conditions.

Protracted negotiations over Smart City took a positive turn earlier this month when TECOM signalled its willingness to go by the state's conditions on most aspects, including the land lease pattern and the government's equity in the venture.

The Smart City proposal originally came up when UDF was in power, but it got delayed as assembly polls were announced last year. Also, the LDF, which was in opposition then, had seriously objected to most of the conditions agreed by the government.

On coming to power, the LDF government has been able to bring round the promoter to accept most of the government's conditions.

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