Lulu Likely To Get Prime Vizag Land Back

Visakhapatnam: Acting on the request made by Abu Dhabi-based Lulu Group for revival of its International Convention Centre and other facilities at a prime land in the city with a seafront view, the State Government has asked the Visakhapatnam Metropolitan Region Development Authority (VMRDA) to transfer the land in question to the AP Industrial Infrastructure Corporation (APIIC) fuelling speculation on its formal allotment.

The CMD of Lulu Group International has made a request before the State Investment Promotion Board (SIPB) meeting held on March 13, 2025, with the recommendations of the State Investment Promotion Committee (SIPC). The SIPB has discussed the proposal and approved authorising the APIIC to evaluate the proposal of Lulu Group International and finalise with the approval of the competent authority and transferring the possession of 13.43 acre of Harbour Park Lands in Visakhapatnam back to APIIC from VMRDA, to process further.

The government has authorised the APIIC to evaluate the proposal of Lulu Group International and finalise with the approval of the competent authority. APIIC has been instructed to examine all the court cases on the subject land and comprehensively examine the proposal of the Lulu Group and take the approval of the competent authority for early implementation of the project. The YSRCP Government had tried to monetise the land by engaging NBCC to auction the land in question at Rs107 crore per acre.

The land, which is called ‘LuLu land’ was taken back after annulling the allotment in November, 2019 by the YSRCP Government. The foundation stone for the convention centre, a five star hotel and shopping mall was laid in 2018 when TDP was in power. YSRCP at that time had alleged it as big scandal as the land costing over Rs700 crore was ‘gifted away’ to the LuLu Group for just Rs4 lakh per acre ignoring the State’s interest.

Following the cancellation of the allotment, LuLu Group had declared that they would not make any investment in future in Andhra Pradesh.

However, immediately after the TDP-led NDA formed the government, the top brass of the group called on Chief Minister N Chandrababu Naidu and formally expressed its desire to revive the project at the same land, which was earlier allotted to it. The State Cabinet also gave the green signal for an investment of Rs1,500 crore on the project even as the prior to this the project proponent had proposed an investment of Rs2,200 crore.

A GO Ms. No.45 dated March 26, 2025 by the Industries & Commerce Department Secretary N Yuvaraj said the Chairman & Managing Director of Lulu Group International has submitted representation that they are ready to restart the international-standard shopping mall project at Visakhapatnam and informed that the shopping mall will have numerous specialties including a world-class Lulu Hypermarket along with a huge number of national and international brands, children’s amusement park Futura, fine-dining food-court and an 8-screen imax multiplex, with ample car-parking. According to the GO, the project upon its completion will be a landmark leisure and shopping destination for the residents and tourists in the State. In this regard, Lulu has requested the State Government on following things: a. To extend the tenure of the land allotted earlier, on lease basis for a period of 99 years; To provide a rent-free period of 3 years or till the date of opening of the shopping mall whichever is earlier; c. Increment of 10 per cent in the rental in every 10 years; d. To support with all the possible incentives.

Activist opposes bid to give APIIC land to LuLu Pg 3