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Jagan plans commercial, residential hubs in land allotted to UAE’s Lulu Group
National Buildings Construction Corporation Ltd (NBCC) and AP Industrial Infrastructure Corporation submitted the details of the proposals to the chief minister stating that the commercial and residential complexes would fetch revenue of at least ₹1,450 crore net income to the government.
Multi-storeyed commercial plazas and residential complexes will come up in prime land in Visakhapatnam, which was originally allotted to UAE-based Lulu Group International for the development of an international convention centre and a five-star hotel.
The decision was taken at a high-level meeting held by chief minister YS Jagan Mohan Reddy at his camp office in Amaravati on Monday.
An official release from the chief minister’s office said the previous Telugu Desam Party government had given 13.59 acres of land on the beach road to the Lulu Group for a 33-year lease at a nominal price. The present government will now construct commercial plazas and residential complexes in the area, which would become prestigious projects for the port city.
National Buildings Construction Corporation Ltd (NBCC) and AP Industrial Infrastructure Corporation submitted the details of the proposals to the chief minister stating that the commercial and residential complexes would fetch revenue of at least ₹1,450 crore net income to the government.
In February 2018, the Lulu Group signed the agreement with the state government for developing an international convention centre, a five-star hotel and a mall at the leased site. The foundation stone for the international convention centre was laid by Vice President M Venkaiah Naidu in the presence of then Union ministers Suresh Prabhu, P Ashok Gajapati Raju and Lulu group chairman M Yusuf Ali.
In October 2019, the Jagan Mohan Reddy government terminated the project on the ground that it was not viable.
Subsequently, the Lulu Group announced that it would not invest in any new projects in Andhra Pradesh. The company said it had planned to invest ₹2,200 crore on the projects to provide global exposure to Visakhapatnam as a convention and shopping hub that would provide employment to over 7,000 local youth.
Monday’s meeting also discussed the issue of completion of all abandoned work in Amaravati, the present capital of Andhra Pradesh. Several official and ministers’ quarters, state government employees and bungalows meant for judges and other higher officials, which were in final stages of completion, have been abandoned after Jagan took over as the chief minister.
The chief minister instructed the officials to complete all the pending work of various buildings in a phased manner.
He also instructed that the Krishna river bund be expanded into a four-lane road so as to provide easy access to the villages in Amaravati. The officials estimated that it would cost ₹150 crore to expand the river bund.
