IT Special Economic Zone, Madhurawada, spread over 200 acres, will now come under the administration of Industrial Area Local Authority (IALA).
The powers of Greater Visakha Municipal Corporation, such as maintenance of common amenities like roads, drainage, and streetlights, will be with the AP Industrial Infrastructure Corporation (APIIC). Even building approvals will be made by APIIC.
For spending the amount collected from various units, decisions will be taken by APIIC in consultation with representatives of various IT companies.
For several years, since IT SEZ came up at Rushikonda and other units were allotted land in parts of Madhurawada village, the entrepreneurs have been alleging negligence in providing basic amenities like drinking water, drainage, and streetlights.
As a follow-up to the GO on IALA status, now a letter has to be sent to GVMC by the Department of Municipal Administration and Urban Development. IT Promotion Officer Dinesh Kumar has told The Hindu that IALA will come into effect once relevant files are handed over to APIIC.
The GO mentioning that IALA has to pay 56 per cent of revenue collected from the IT units to GVMC has not gone well with the IT unit owners.
“What benefit it will fetch us if we are forced to shell down 56 per cent of revenue collected by us as royalty to GVMC? We appeal to Chief Minister N. Chandrababu Naidu to reduce it to 25 per cent as a special gesture,” says Rushikonda IT Park Association vice-president O. Naresh Kumar.
‘Futile exercise’He has said the SEZ could not be maintained with balance 44 per cent revenue. “This will become a futile exercise if the payment of royalty is not restricted to 25 per cent.”
Another entrepreneur has said APIIC will starve of funds if it is forced to forego 56 per cent of revenue to the municipal authorities.
