AP Govt Allots Prime RTC Land in Vijayawada to Lulu Group for Mall Project
Andhra Pradesh Chief Minister Chandrababu Naidu shares a very close relationship with Lulu Group CMD M.A. Yusuff Ali. Even this photo clearly shows the warmth between the two. From the beginning, CM Chandrababu Naidu has followed only one model — allotting government lands at extremely low prices to corporates, offering them as many incentives as they ask for, getting praised as a visionary by them, and creating an image among corporate sections. This has been the norm for a long time. Even now, it continues in the same way. In Amaravati, a Quantum Valley is being set up with major companies, and prestigious institutions like BITS are being brought in — this is good for the state and a welcome development. But now, a company constructing a mall is not a big deal at all. Already, there are many private malls in Vijayawada. However, Chandrababu Naidu is showing a special kind of affection towards the Lulu Group and has decided to allot land belonging to the RTC bus stand in Vijayawada to that company for a mall. In this regard, the Andhra Pradesh government issued orders on Sunday.
It has been decided to allot 4.15 acres of land, located in the heart of Vijayawada city and belonging to RTC, to Lulu International Shopping Malls Private Limited (LISML). For this, the Revenue Department and the District Collector have been directed in the government order (GO) to allocate alternative land to the RTC. This land allotment is being made under the Andhra Pradesh Tourism Land Allotment Policy 2024–2029. It is already known that the government allotted lands at extremely low prices to Lulu for a mall in Visakhapatnam as well. In Vizag, the company was allotted 13.74 acres. Now, a decision has been made to allot 4.15 acres in Vijayawada. Both of these allotments are on lease for a period of 99 years under the company’s control.
These lands, worth hundreds of crores, are being allotted on lease. In both locations, there will be no lease charged for the three-year period during which mall construction will take place. This means lease payment will only start once the business begins, which is another benefit provided. What’s more surprising is that the value of the land being allotted to the company in Vijayawada is far higher than the company’s proposed investment. Here, Lulu Mall is planning to construct a shopping mall in 2.32 lakh square feet with an investment of ₹156 crore. Once the 99-year lease agreement is completed, there is also a possibility that the company may mortgage this land with a bank to raise loans for its projects, according to official sources. Officials also state that because of Lulu’s brand and business potential, raising loans on these high-value lands would be very easy. That’s what defines the Chandrababu model, doesn’t it?
