Reportedly the andhra pradesh government on thursday responded to a statement put out by uae based Lulu Group, which said that it had decided to stop investing in the state, after land allotted to it in visakhapatnam was revoked. Earlier the Lulu Group had planned to develop a massive commercial complex in the coastal city, but its land allotment was pulled by the ysrcp government.
When speaking to reporters on thursday, minister for industries mekapati goutham reddy said that the project had been shelved mainly for two reasons. He said "One problem was that there was a dispute on the land and the second problem was that it was against environmental norms. Moreover, standing guidelines are that a single bid should not be accepted". Furthermore stating the government had not received any valid document from the Lulu Group saying that they would not invest in the state, he said, "The cancellation of land by the government was not against the Lulu Group but the procedure that was followed by the previous telugu desam party (TDP) government the UAE-based group had laid the foundation stone for the Rs 2,200-crore project in february last year and the company had promised to provide numerous jobs to locals.
Moreover the ysrcp after taking power found fault with the rental agreement, which was priced at Rs 7.09 crore per month. Goutham Reddy said that this amount was not feasible, as it would cost around Rs 50 crore in rent, according to the present market value.
