Less than a month after the Andhra Pradesh government cancelled the land allotment made to the Lulu Group for developing a huge complex in Visakhapatnam, the UAE-based group has said that it won’t be investing in the state.
The group planned to develop an international shopping mall and convention hall in the coastal city, across 13.83 acres of land.
In a statement, Ananth Ram, the Lulu Group Director for India said, "Our Group which is based in the Gulf had decided to invest Rs 2,200 crore in the state of Andhra Pradesh to build an International Convention Centre, Shopping Mall and a Five-Star Hotel project to provide global exposure to Visakhapatnam as a Convention & Shopping hub. Apart from this, the proposed mixed-use project was expected to provide employment to more than 7000 local youth."
The land was allotted to the group by the Telugu Desam Party (TDP) government, and the YSRCP alleged that, while the market value of the land was Rs 50 crore, it was allegedly given at a meagre cost of Rs 4 lakh per acre.
"We had participated in a very transparent bidding process and were awarded the land on lease for this project," the company said.
Pointing out that they had incurred huge expenses towards initial project development costs which included appointing internationally renowned consultants and designing the project by world-class architects, the Lulu Group said that they agreed with the Andhra government's decision.
"Given the current scenario, we have decided not to invest in any new projects in the state of Andhra Pradesh," the statement said.
"At the same time, we wish to reconfirm that your investments in upcoming projects in the other states i.e., Uttar Pradesh, Telangana, Tamil Nadu and Kerala will go ahead as per schedule," it added.
The UAE-based group had laid the foundation stone for the Rs 2,200-crore project in February last year and the company had promised to provide over 5,000 direct and 5,000 indirect jobs.
Ever since it came to power in May, the YSRCP government has rolled back several schemes, initiatives and projects undertaken by the Chandrababu Naidu government, claiming that the TDP had indulged in corruption, and caused a loss to the state exchequer.
This has left several companies and investors worried.
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