"Public-Private Push in AP Sparks Fears of Rising Costs for Industries"
Andhra Pradesh Industrial Infrastructure Corporation (APIIC). The role of this corporation is the development of industrial parks and the provision of necessary infrastructure for industries. However, the Andhra Pradesh government is now ready to hand over the work that APIIC is supposed to do to private companies. The key point here is that the land belongs to the government, i.e., APIIC—but the infrastructure development and provisioning will be done by private companies. According to industry circles, this will only impose an additional burden on industrialists rather than be of any real benefit. If APIIC itself were to handle this work, the cost of land allotted to private companies within industrial parks wouldn’t be so high. But if the same task is handed over to private companies, it will definitely become a burden for industrialists—the land rates will also go up.
In the state, new industrial parks are to be developed in ten locations, each ranging from 200 to 500 acres. Additionally, their maintenance and responsibility oversight are also to be handed over under the Public-Private Partnership (PPP) model. Dispute-free lands will be handed over to the selected private company. Even if each park is established on a minimum of 200 acres, that adds up to over 2,000 acres of APIIC land going into private hands across ten parks. Even if only five parks of 500 acres each are developed, the total will reach 3,500 acres. An Expression of Interest (EOI) notification has been issued, calling for bids from companies interested in developing industrial parks under the PPP model.
The notification states that interested companies should submit their proposals by June 6. However, even officials are expressing doubts that this is all part of a premeditated plan. They point out that if there is indeed an intention to develop new industrial parks in ten locations, and even if the government is facing a fund shortage, it could mortgage the land and get the work done through APIIC itself. But by not doing so and choosing the PPP model instead, it clearly suggests there is some scheme behind it, an official revealed. Now, as per the new EOI issued by APIIC, it remains to be seen who will secure these parks.
