Land acquisition for APSEZ by March-end

After the initial setback in attracting private developers for the proposed Andhra Pradesh Special Economic Zone(APSEZ) near Visakhapatnam, the AP Industrial Infrastructure Corporation (APIIC) is now concentrating on land acquisition before scouting anew for a private partner.

According to government sources, the APIIC management has been making serious efforts to acquire 3,500 acres of land proposed under the first phase of APSEZ by the end of March.

"Without the land in our possession it is not advisable to invite bids for this mega project once again,"observed a senior official, indicating the change in attitude of the management. As of now, the government has only identified the land for the project.

APIIC is the nodal agency for the APSEZ project proposed to be developed in a 36.8 km (9,200 acres) area in Atchutapuram and Rambilli mandals near Visakhapatnam in two phases.

In spite of the APIIC extending the date for the third time in a row for submitting bids for the project, not a single developer turned up on the last date which expired on 10 December 2003.

Out of the 3,500 acres of land identified for the first phase, about 2,200 acres belong to private individuals and the remaining is government land.

Initial efforts for land acquisition failed as farmers did not agree to the price offered by the government.

While negotiations failed at the district land acquisition committee level, the district authorities took the matter to the state level committee headed by the chief secretary.

According to land value regulations, local authorities are allowed to pay only up to Rs 2 lakh as compensation for each acre of land in that area. The state government later revised the compensation amount to Rs 2.75 lakh in the last week of January 2004.

In this backdrop, the APIIC management is hopeful of acquiring the private land at the earliest, which is now expected to cost around Rs 60 crore. Sources said the government land also would be priced on par with that of the private land.

Besides the fresh drive for land acquisition, the APIIC management is also in the process of proposing some changes in the proposed project to ensure an easy take-off.