APIIC to raise Rs 300 cr from banks, FIs

State-owned Andhra Pradesh Industrial Infrastructure Corporation (APIIC) is planning to raise over Rs 300 crore required for land acquisition for the proposed special economic zone (APSEZ) near Vizag from banks and other financial institutions (FIs).

The APIIC management is understood to have initiated informal talks with several banks after it received a go-ahead from the state government.

According to APIIC officials, the banks that are being approached include Bank of Maharashtra, Bank of India, Oriental Bank of Commerce besides Hudco.

The move to raise money from banks reflects the changed stance of the state government, which till now, arranged resources for such purposes from its own exchequer.

In its latest decision, the government on Sunday issued orders with regard to release of Rs 100 crore to the APIIC towards land acquisition for the SEZ, but as an interest-free loan.

APIIC, as the nodal agency for the APSEZ, had so far spent Rs 110 crore on land acquisition for the project and has acquired over 3,000 acres of land in the proposed area. An additional Rs 300 crore is required to complete the process of land acquisition for the SEZ which was proposed to be set up in 9,200 acres out of which another 3,500 acres would be acquired by May 2005.

"We require the money from the banks by May," a senior official told Business Standard. APIIC is expected to request the banks and other institutions to submit their proposals in this regard soon.

Meanwhile, APIIC is planning to provide land to the Bhabha Atomic Research Centre (BARC) outside the proposed APSEZ area, in contrast to the original decision of earmarking 2,400 acres land in SEZ itself.

Confirming the development, an APIIC official said the Ministry of Defence has agreed to release Rs 50 crore as compensation for the land to be taken over from farmers and others.

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Banking on...

• APIIC approached Bank of Maharashtra, Bank of India, Oriental Bank of Commerce and Hudco
• The state government issued orders to release Rs 100 crore to APIIC for land acquisition for the SEZ
• Corporation expects the money from banks by May