Andhra to raise Rs 6000cr via land

Three wings told to extract maximum value from auctioning land

The Andhra Pradesh government has decided to raise over Rs 6,000 crore through sale of government lands during the current financial year. The move comes in the wake of the need to meet budgetary commitments as well as the time frame to complete most of the irrigation projects.

At a high-level review meeting held on the issue of disinvestment chaired by chief minister Y S Rajasekhara Reddy yesterday, the state government has set targets for three government bodies "� Hyderabad Urban Development Authority (Huda), Andhra Pradesh Industrial Infrastructure Corporation (APIIC) and Andhra Pradesh Housing Board (APHB) "� to contribute Rs 2,000 crore each to the exchequer this year, highly placed sources told Business Standard.

Although, the government initially thought of selling lands worth Rs 2,000 crore, the huge investment requirements for its ambitious irrigation projects has apparently forced it to depend entirely on this source.

According to official sources, the government instructed the three of its entities to undertake land auctioning and secure maximum value taking advantage of the real estate boom across the state.

The approximate market value of the lands under the possession of APHB is Rs 1,711 crore, according to officials. A detailed quantification of land under various public sector undertakings by the public enterprises reforms wing is underway.

Besides identifying the lands in its possession, the government has also instructed the departments concerned to resume lands from those organisations or firms that have failed to utilise it for the stated purpose within six months from the date of allotment. This decision also includes the lands given to L&T Infocity and Annapurna Studio among others, officials said.

While APIIC has already served notices to the companies and individuals who have failed to utilise the lands given to them within the stipulated period, the state revenue department has also undertaken a drive to resume the assigned lands that were originally given to SCs and STs but were sold to other parties by the beneficiaries. Officials said that these lands would also be sold to raise funds.