No funds from Centre to take up NIMZ project: AP govt body

The Centre has sanctioned "no funds" till now to take up the National Investment and Manufacturing Zone project in Prakasam district, the Andhra Pradesh Industrial Infrastructure Corporation said today.

The state government body said without the Centre fulfilling any of its financial commitments, it would be "very difficult for the state" to take up a project of this scale.

The statement comes two days after BJP MP G V L Narasimha Rao wrote to chief minister N Chandrababu Naidu reportedly criticising the state government for failing to take up the NIMZ.

"As of now, total extent envisaged for development (of NIMZ) is 14,231 acres, of which APIIC is in the possession of 1,839 acres. As per NIMZ guidelines, the entire extent of land has to be acquired and transferred to the SPV within 18 months," APIIC vice-chairman and managing director Babu Ahamed said.

This forces the state government to spend an upfront amount of Rs 2,800 crore, on a very conservative basis, on land acquisition, he said.

"It may be noted that Government of India has sanctioned no funds till now to take up the NIMZ, even though the state government set up an SPV for the project."