Andhra govt deals fresh blow to Navayuga, cancels allotment of land for Krishnapatnam SEZ
Earlier, the YSRC government had terminated the contract with Navayuga for the Polavaram irrigation project as well as a hydro-power project. It also cancelled the agreement with Navayuga on the development of the Machilipatnam port and withdrew the land allotment.Updated: Oct 21, 2019 18:52 IST
The Andhra Pradesh government has dealt yet another shock to infrastructure major Navayuga Engineering Company Limited (NECL) by cancelling the allotment of 4,731 acres of land made to its sister concern Krishpatnam Port Infrastructure Limited (KPIL), for the development of a multi-purpose special economic zone in Nellore district.
The order was issued by the Andhra Pradesh Industrial Infrastructure Corporation Limited (APIIC) of the state government on Saturday.
“The APIIC resumes the entire land of 4,731.15 acres allotted to KPIL without encumbrances and forfeits the amount paid to the corporation by the company in public interest,” the order said.
Earlier, the YSRC government had terminated the contract with Navayuga for the Polavaram irrigation project as well as a hydro-power project. It also cancelled the agreement with Navayuga on the development of the Machilipatnam port and withdrew the land allotment.
The land allotted for the Krishnapatnam SEZ is in three different pieces spread across Kota and Chillakur blocks of Nellore district. It was allotted to KPIL, the sister concern of Navayuga, over a period of time since February 2008 for industrial and economic development near Krishnapatnam port developed by Navayuga.
The KPIL obtained various approvals from the Centre and proposed to set up units for automobile ancillary, chemicals, cold storage, container freight station, food processing, heavy machinery, IT/ ITES, leather, pharmaceuticals, refineries, warehousing, textile parks, residential complexes, and educational, commercial and recreational facilities.
“However, even after a lapse of 10 years since conditional transfer of such huge extent of land near a strategic location, KPIL has failed to take even basic steps to realize the joint purpose of establishing a multi-purpose special economic zone which was expected to create jobs and help socio-economic development of the people in Krishnapatnam area,” the order said.
The APIIC also alleged that KPIL had mortgaged a huge extent of land allotted to it to various banks such as ICICI, Central Bank of India and Allahabad Bank and borrowed huge loans to the extent of Rs 1,965 crore.
“All that KPIL built in the last few years was a couple of guest houses, an administrative building and a few other structures all in an area of four to five acres. Despite repeated show cause notices, there has been no satisfactory reply from the company,” the APIIC order said.
Efforts to reach out to Navayuga for its reaction proved futile as the spokesperson did not respond to calls.