“Super offers only for those who come first. If you are late, there will be no chance.” Such early-bird offers usually exist only in real estate ventures and private businesses. But the Andhra Pradesh government is also giving “early-bird offers” while allocating land to industrialists and granting indiscriminate incentives. Not only that, these are being officially included in government orders (GOs) as well. Looking at the way Chief Minister Chandrababu Naidu and his son Nara Lokesh are mobilising investments in Andhra Pradesh, even official circles are expressing doubts over whether they are working for the state or looting the state’s wealth for the benefit of industrialists. Among the companies coming into the state, while there are a few top companies, the majority are those without much brand image and companies that have emerged overnight. The Andhra Pradesh government is not only allocating land worth crores of rupees to these companies but is also granting them large incentives.
Not just in industrial projects, the same model is being followed for tourism projects as well. Even investors putting in ₹250 to ₹300 crore are being offered a government assurance of a 10-year time period or 100 percent reimbursement of net SGST until their fixed capital investment is recovered, whichever comes first. At the same time, the land allotted to these projects will initially be leased for 66 years, and if the project is implemented efficiently, an additional 33 years will be added, making it a total lease period of 99 years. This applies to tourism projects. As early as June this year, the AP government issued a GO allotting 15.25 acres of land at a nominal price to Megha Lawn Leasers and Entertainment LLP near the Polavaram Irrigation Project. Now, on Saturday, another GO was issued permitting the allocation of highly valuable five acres of land at Madhurawada in Visakhapatnam to Megha Lawn Leasers and Entertainment, a company with the same promoters, for the construction of a mega convention hall along with a five-star Hilton hotel. This too is on a nominal lease.
Official sources say that behind this company, there is a former YSRCP MP along with a mega corporate group. Another GO was issued allotting three acres of land at Endada in Visakhapatnam to PVR Hospitalities for the construction of a five-star hotel under the Hyatt brand, along with large incentives. Some of these projects involve companies that have emerged overnight. Jit Energy Private Limited, which is investing ₹198 crore to set up a solar PV module unit, has also been given early-bird incentives, as mentioned in the GO. Overall, it is clearly evident that, at present, the arrival of these companies will not bring any tax revenue to the state. This is because the state government is granting 100 percent SGST exemption to certain companies. As for whether these projects will generate large-scale employment, it is very limited. Official circles say it is clear that the approach being followed by Chief Minister Chandrababu Naidu and Minister Nara Lokesh is benefiting a select few companies and industrialists more than the state itself.