Amaravati:With reference to reports in a section of the media that the UAE-based Lulu Group decided not to invest in Andhra Pradesh, Minister for industries Mekapati Goutham Reddy here on Thursday said the project was cancelled mainly for two reasons. One problem was there was a dispute on the land and second problem was it was against environmental norms. Moreover, standing guidelines are that a single bid should not be accepted.
He said the government had not received any valid document from the Lulu Group saying that they would not invest in the state. He said the cancellation of land by the government was not against the Lulu Group but the procedure that was followed by the previous government in the issue.
The minister said that the government found fault with the rental agreement as price at just Rs 7.09 crore per month is not feasible as it would cost around Rs 50 crore according to present market value Moreover, he said the previous government had not adhered to environmental norms in leasing the land in the beach area.
Lulu Company and previous government had signed an agreement one year ago. What has stopped them from starting construction all these months, the minister asked. By now they should have completed eight floors, which is means there is an inherent problem.
Regarding new investments coming to the state, the minister said, “We have allocated 120 acres of land to a bus company called Veera Vahan Udyog Private Limited. They are going to manufacture buses and their investment is about Rs 1,000 crore in the first phase. He said eventually, the government is going to release a progress report of what happened over the past six months.
With reference to the Reliance group, he said we have asked them to come with a revised proposal as the land given to them by the previous government was in dispute.