Muthoot Fincorp Gets 3 Acres in Vizag for Rs 100 Crore AI Hub

In Vizag, Andhra Pradesh, the government is allegedly handing over land worth crores of rupees to private companies in the name of investments. It is citing investments and employment generation in the state without any rationale behind such allocations. In the case of some companies, the Andhra Pradesh government is not hesitating to bend even its own policy to benefit private companies. Now, another unusual allocation has been made. Muthoot Fincorp Limited has come forward to set up an Integrated AI Hub in Vizag. For this, the government stated in its order that the company is proposing an investment of Rs. 100 crore and has the potential to generate employment for 2,400 people. For this Integrated AI Hub, the company requested the government to allot 4.10 acres at Plot Nos. 3 and 4 in Kapuluppada, Vizag. However, the government approved this proposal at the recently held State Investment Promotion Board (SIPB) meeting.

Instead of the 4.10 acres sought by the company, it was decided at the recent meeting to allot 3 acres at the rate of Rs. 2 crore per acre. The IT Department issued a Government Order (GO) to this effect on Friday. What is unusual here is that the price of an acre in Kapuluppada is at least more than Rs. 40 crore. Even by this calculation, while the company is investing Rs. 100 crore, the value of the land being allotted by the government to the company itself would be Rs. 120 crore. This is not all. The GO clearly states that the company will also be eligible for all other incentives under the Andhra Pradesh IT and GCC Policy. A condition has been imposed that only IT-based activities should be undertaken on the land allotted by the government.