AP Industrial Infrastructure Corporation’s drive to cancel allotment of land to companies who failed to comply with the norms has sent shivers down the spine of the allottees in and around Vizag.

After APIIC officials served the notice to terminate 21.16 acres allotted to Kenexa Technologies for not grounding work on the entire stretch of 25 acres allotted to it, there is panic in other allottees. Kenexa has been charged with providing jobs to only 384 against its contractual obligation to employ 2,500 jobs within three years of the allotment.

No work yet

The AP Industrial Infrastructure Corporation had earlier cancelled 1500 acres allotted to HPCL for setting up a 15 million tonne refinery at Atchutapuram, 1750 acres allotted to Unitech for developing Knowledge City at Kapulappada, 50 acres to Satyam Computers at Thotlakonda and 9.65 acres given to Wipro at Rushikonda.

There are over a dozen allottees, which have not yet appointed either a watchman or constructed boundary wall at Rushikonda IT SEZ. The Gambheeram IT SEZ is a non-starter. An official of APIIC said they were only sticking to the rule book though some of the allottees say the corporation is implementing the regulations on employment selectively.

“We do admit that we have failed to provide 2,500 jobs within the stipulated period. But APIIC should also consider the impact of market meltdown, severe power cuts resorted to by APEPDCL forcing us to run minimal operations by using diesel-run generators,” Aneeta Sakuru, director of Kenexa Technologies, told The Hindu .

She pointed out that the land being resumed by AP Industrial Infrastructure Corporation would not be useful for allotment to others as Kenexa’s building was located in the middle of the 25-acre plot. “We had big plans for expansion. We could not do much due to the global recession slump and other factors beyond our control,” she pointed out.

Many investors feel the heat and are in a hurry consulting with others to resume work and begin recruitment campaign due to fear of losing ‘precious’ land at Rushikonda. To pre-empt the move, some want to approach court.

“As an entrepreneur I want that everyone should abide by the employment norm. At the same time, the government should provide all basic facilities like electricity, drinking water, streetlights and public transport to increase flow of funds in SEZs,” said O. Naresh Kumar, CEO of Symbiosys Technologies.


  • The Gambheeram IT SEZ is a non-starter

  • The government should provide all basic facilities: CEO, Symbiosys Technologies