GoM clears 49 projects, cancels six

Naidu questions govt move

Even as the Andhra Pradesh government clarified the reasons behind withholding and partially canceling the orders issued in favour of IMG Bharat (IMGB) involving transfer of over 850 acres of land and crores worth of stadia property by the previous government, the clearance given to the Integrated Township and Convention Centre project being set up by Emaar group has now come in for sharp criticism.

Though both the projects were cleared by the previous government led by N Chandrababu Naidu, the Group of Ministers (GoM) constituted by the present government had deferred the former and cleared the latter with some modifications. Of the 64 projects/land allotment cases referred, the Group of Ministers had cleared 49 projects and cancelled six.

The decision on four projects, including that of IMG Bharat, was deferred and three cases have been referred to the house committee constituted by the state legislative Assembly.

Reacting to the government's stand on IMG Bharat, Naidu alleged that the whole issue of review of his government's decisions was only meant for collecting bribes from the parties concerned.

Interestingly, while questioning the government's motive behind withholding IMG Bharat project, Naidu has raised doubts over the government's decision on clearing the Integrated Convention Centre project.

The twin-project of Integrated Township with golf course and Convention Centre with business hotel proposed in 535 acres of land was awarded to Dubai-based Emaar Properties Public Joint Stock Company (PJSC) in collaboration with the state government's Andhra Pradesh Industrial Infrastructure Corporation (APIIC). An MoU between them was executed in November 2002.

After going into the original proposal, the state government led by chief minister Y S Rajasekhara Reddy had cleared the project by revising the original equity structure and other components of the project in November 2004.

One of the important modifications is that the government's equity component in the convention centre has been reduced to 26 per cent from 49 per cent, citing the reason that this project, along with business hotel, requires huge investment with high gestation period and poor returns.

Naidu has argued that this amounts to favouring the private developer. While the other prominent orders recommended by GoM that are to be cancelled include allotment of the government's Green Lands Guest House to Tourism department for developing five star hotel in the premises, the other important decisions deferred include the grant of coal mining lease to private sector for captive purposes.