Andhra Pradesh Cabinet Sub-committee on corruption has recommended to the government to cancel the allotment of land to Vanpic Project, Lepakshi Knowledge Hub Pvt Ltd and Kineta Power Ltd in the wake of irregularities and violation of rules.
Briefing reporters after a meeting of the sub-committee on Wednesday, Information Technology Minister Palle Raghunatha Reddy said the Vanpic Ports Pvt Ltd was allotted 18,878 acres in Prakasam and Guntur districts in 2008. It was later handed over 6,608 acres at costs ranging from Rs.70,000 to Rs.1.68 lakh per acre.
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From the beginning there have been lot of irregularities in the entire process as the agreement with Ras Al Khaima and Matrix N port Holding Pvt Ltd on BOOT ( Build, Own, Operate and Transfer) basis. The then government extended more concessions than what were actually approved by its Council of Ministers.
Observing that all rules were violated, Mr. Reddy said sub-committee recommended termination of the agreement allotting 18,878 acres. The government land of 6,608 acres given so far would be taken back.
The committee also recommended the cancellation of 8,844 acres allotted to Lepakshi Knowledge Hub Pvt Ltd in Anantapur district 2008. It was to set up a national and an international university, research institute integrated knowledge hub and multi-product SEZ. Although previous government had issued notice cancelling the allotment, the company moved the court and secured interim orders. The government would go in for an appeal and get the orders vacated to resume the land.
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Mr. Reddy said normally government lands would be more expensive than DKT lands. But in the allotment to Lepakshi, the price of government land of 3032 acres was fixed at Rs.50,000 per acre while the cost of DKT land was Rs.1.75 lakh per acre. Instead of 15 per cent service charge, only two per cent was collected. The concession given was to the tune of Rs.15.19 crore, which was equivalent to the land cost and another Rs.8.24 crore process fee was exempted.
While not fulfilling the conditions like investing Rs.8,000 crore to Rs.10,000 crore, provide direct and indirect employment to 1.5 lakh people and implement the project in five years, land to an extent of 4,396 acres was pledged and loan of Rs.870 crore was taken from banks. Of that amount, Rs.695 crore was utilised and Rs.269 crore was repaid. Similarly, Kineta Power Pvt Ltd which was allotted 814 acres for Rs.80,000 per acre, also did not fulfil any conditions.
At the next meeting, the sub-committee would look into irregularities in Barytes mining leases in Kadapa district since 2004, granite mining and diversion of 27 acres for real estate in Srikakulam district, Nagarjuna power plant at Sompeta, cloud seeding in Anantapur and allotment of 200 acres to Ramkee pharmacy in Visakhapatnam.