APIIC on land acquisition spree

Lines up Rs 2,500cr for acquisition to attract investments

The Andhra Pradesh Industrial Infrastructure Corporation (APIIC) has proposed to undertake the biggest-ever land acquisition drive across the state at an estimated cost of Rs 2,500 crore.

The move is part of its efforts to improve infrastructure in the state to fully turn the investment tide, which is slowly but steadily rising, in its favour.

Speaking to Business Standard, B P Acharya, vice-chairman and managing director of the state-owned infrastructure developer, said that a slew of proactive measures, including land acquisition, had been planned to tap the investment opportunities coming in the way of the state.

Acharya has adopted a double-edged strategy to make land and infrastructure readily available for both ongoing and future investment requirements, including the establishment of special economic zones (SEZs) proposed in the state.

APIIC, which is all set to increase its revenue by four-fold through sale of lands in its possession to prospective industrialists this year, is reinvesting the proceeds in further land acquisition and infrastructure development.

"The land being sold for industrial operations during the current financial year alone is expected to attract Rs 5,000 crore investments," Acharya said, adding that this time round the corporation's effort had been to ensure industrial development across the state instead of limiting focus to just a few places like Hyderabad.

The corporation has targeted to generate Rs 400 crore from the sale of land during the current year as compared to Rs 120 crore last year. It is also in talks with bankers to tie up for funds required for the proposed land acquisition.

Meanwhile, APIIC has undertaken measures to develop and market the lands lying vacant for decades since their acquisition. It recently appointed Apitco to assist the corporation in this regard. APIIC had set up an annual maintenance fund with Rs 5 crore for the upkeep of industrial estates a couple of months back besides giving financial sanctioning powers to zonal managers of the corporation.

"Over 1,000 acres of our land has been lying vacant in Bobbili in Srikakulam district for the past 20 years. The present drive is to ensure that they are developed and marketed to bring industrial units to those places," he said.

According to Acharya, APIIC is proposing to acquire land in all those places, which have the potential to attract investments. "We are also following the route of gas trunk line, which is proposed to be laid through seven districts covering about 565 km in the state, to identify suitable lands, which can be transformed into industrial centres," he said.

APIIC plans include acquisition of over 20,000 acre land at Tada in Nellore district for the development SEZ, besides lands in places like Khammam, Guntur, Kakinada, Bapatla, Eluru, Zaheerabad and Hyderabad. It could successfully sell over 350 acres of its 400-acre land to players like Rahejas in Hindupur in Anantapur district, which is close to Bangalore, for the development of an IT park and other industrial operations, Acharya said.

The state government recently entrusted APIIC with the responsibility to identify over 20,000 acre of land for the development of a multi-product SEZ proposed by the Reliance Industries Limited near the upcoming Hyderabad international airport.

Notices to 2,000 land allottees

APIIC is also eying the unused lands of the corporation, which was transferred to companies and entrepreneurs long back. It has so far served 2,000 notices to all those who have failed to set up units in the land taken from APIIC.

"We are ready to take action in at least 400 cases," B P Acharya said. According to him, the corporation is all set to cancel the sale deeds in up to 200 cases during this month alone.

While the land being taken back from the allottees for failing to start operations within the stipulated two years' time will be made available to those who are in urgent need to set up units, this action is also expected to force most of the allottees to speed up their plans.