Will AP CM take up stalled LuLu project in Vizag?

TimeLine

♦ Investment plan finalised in 2018, foundation stone laid after

♦ YSRCP Govt canceled MoU

♦ YS Jagan alleged land was allotted at Rs4 lakh/ acre as against market price of Rs700 cr

♦ Later YSRCP govt tried to auction land at Rs107 cr/acre

♦ It was highest at that time in both Telugu States

♦ But this attempt failed

Visakhapatnam: With the plans to auction the precious land in City of Destiny, which was once allotted to UAE-based LuLu Group, hitting a roadblock during the five-year rule of the YSRCP Government and its status still remaining same, there is hectic speculation that Chief Minister and TDP supremo N Chandrababu Naidu may woo the project proponent to reconsider their investment plan finalised in 2018.

After laying foundation stone for the ambitious project with an investment of Rs2,200 crore comprising an international convention centre, multiplex and a five star hotel in an area of 13.59 acres with the panoramic beachfront view, LuLu Group announced that they would not invest in any project in Andhra Pradesh under the ‘present dispensation.’ The trigger for the drastic step, which surprised many, was the decision of the YSRCP Government to cancel the MoU after a change of guard in AP, following TDP’s failure to retain power in 2019 elections.

At the time of cancellation, then Chief Minister YS Jagan Mohan Reddy had alleged that the TDP Government gave the land to LuLu Group at just Rs4 lakh per acre when the market price of the entire parcel of land in the APIIC Harbour Park was estimated at around Rs700 crore.

Later the YSRCP regime tried to auction the land in question through NBCC at an upset price of Rs107 crore per acre, the highest at that time in both Telugu-speaking States of Andhra Pradesh and Telangana. When this attempt failed, another exercise was undertaken by transferring the land possession from APIIC to Visakhapatnam Metropolitan Region Development Authority (VMRDA) to sell it.

With NDA forming the government, Naidu at a high-level meeting at Amaravati directed the officials to find out how to improve the investors’ confidence and bring back those investments, which did not materialise due to the policies adopted by the erstwhile YSRCP Government.

According to government sources, most of the MoUs envisaging an investment of Rs12.5 lakh crore at the CII Partnership Summit organised in 2018 when Naidu was the Chief Minister, have not taken off. Industries Minister TG Bharat, while indicating that they will unveil new industries policy soon, said they will roll out a red carpet to investors.

It is pertinent to note here that the government during Naidu’s earlier stint had to acquire nearly 4 acres of function hall owned by CMR Group as the LuLu Group had insisted on better profitability. Subsequently, six government plots were allotted to CMR Group in lieu of the function hall land under a swapping deal with free registration charge.

Asked to comment on the LuLu Group land, noted social activist and former IAS officer EAS Sarma told Bizz Buzz: “The land in question is public land that should be used for a genuine public purpose. Since it is on the beachfront, in my view, it should be left open for public meetings, as any construction there would violate the CRZ norms.”

He said such lands are held by the government on behalf of the public and commercialising them would amount to a breach of the public trust.