The Lulu Group has stated that it will not be investing in any new projects in Andhra Pradesh. The UAE-based conglomerate took the decision after the YS Jagan Mohan Reddy-led government recently scrapped the land allotted for the construction of the group’s mega commercial complex in Vizag.
Announcing the decision, Lulu Group’s Director of India, Ananth Ram, said that they agreed to the decision of the Andhra Pradesh Government to revoke the land allotment made for their ambitious project in Visakhapatnam. He added that given the “current scenario”, Lulu group will not invest in any new projects in Andhra Pradesh.
“We had participated in a very transparent bidding process and were awarded the land on lease for this project. Though we have incurred huge expenses towards initial project development costs such as appointing internationally renowned consultants and designing the project by world-class architects, we agree to the decision of the new Government of Andhra Pradesh to revoke the land allotment for this project. Given the current scenario, we have decided not to invest in any new projects in the state of Andhra Pradesh,” Mr. Ram said in a press statement.
He further reconfirmed that the investments made by Lulu Group in the states of Uttar Pradesh, Telangana, Tamil Nadu, and Kerala will go as per schedule.
The Lulu Group had decided to invest Rs 2200 crore to set up an international convention centre along the shore in Vizag. The group had promised that the mega project will be creating direct and indirect jobs for thousands of youth.
However, claiming the land allotment made to the group by the previous TDP government as unethical, the YSRCP government canceled the agreement. Finding fault with the deal, Andhra Pradesh Minister for Information & Public Relations & Transport Perni Venkataramaiah stated that the land was allotted for a paltry sum of Rs 4 lakh per month while the market value was Rs 50 crore per acre.