Move To Reallot Prime Vizag Land To Lulu Generates Heat

Visakhapatnam: The proposed ‘shopping and leisure destination landmark’ near the beach front here by giving little over 13 acres of land on lease to Lulu Group International is snowballing into a major controversy with the Opposition parties and activists opposing it lock, stock and barrel.

The opponents of the international convention centre, Lulu Hypermarket, eight screen I-max & multiplex and children amusement park, have picked holes in the GO Ms. No. 45 dated March 26, 2025 issued by the Department of Industries and Commerce.

Vide this GO, Industries Secretary N Yuvaraj directed the VMRDA to hand over the possession of the said land to APIIC in the Harbour Park.

The allotment, which was made in 2018 by the then TDP government despite opposition from certain quarters, was cancelled by YSRCP regime a year later, saying the project will not be beneficial to the State exchequer.

After scrapping the allotment, YSRCP government tried to auction it at a reserve price of Rs 107 crore per acre and later handed it over from APIIC to VMRDA to explore alternatives for monetization.

“We had asked the Lulu Group to explore alternative sites instead of insisting on this valuable land. Instead they opted out of the project giving the impression that we had asked them to get out of Andhra Pradesh,” Gudivada Amarnath, who served as Minister for Industries in the Jagan Mohan Reddy-led Government, told Bizz Buzz.

YSRCP and the Left parties strongly opposed the reallotment of the land. Activist and former IAS officer EAS Sarma already wrote a letter to Municipal Administration Secretary S Suresh Kumar pointing out that commercial venture at such a prime area will not benefit anyone. He said the land in question falls in CRZ area.

Leader of Opposition in Legislative Council Botcha Satyanarayana said against an estimated value of Rs 2,000 crore, the TDP-led NDA coalition is trying to give it for peanuts on a 99-year lease. He alleged that several subsidies like zero stamp fees are being offered to Lulu Group.

CPI (M) district secretary M Jaggu Naidu said the project, which lacked transparency, will not benefit the public. Instead of a commercial complex let the vacant site be converted into a multi-layer parking complex or made a lung space by converting into a park, Pydiraju, a CPI leader said.