Mallavalli Industrial Park allotted land free of charge

Amaravati: Following the request of Vice Chairman and Managing Director of Andhra Pradesh Industrial Infrastructure Development Corporation (APIIC) the government has agreed to provide its land of 743.62 acres free of cost as an extension of support/exemption for the development of Multi Product Industrial Park to be developed in an extent of 1341.67 acres in Survey No 11 of Mallavalli village of Bapulapadu mandal in Krishna District.

It may be recalled the Vice Chairman & Managing Director, A.P. Industrial Infrastructure Corporation Ltd., Vijayawada had submitted to the government that Mallavalli Industrial Park is being developed over an extent of 1,399.12 acres at Mallavalli in Krishna district out of which an extent of 57.45 acres has been earmarked as Mega Food Park and 42.55 Acres earmarked as Food Park, while balance area of 1,299.12 acres was earmarked for multi-product Industrial Park.

In this regard APIIC had submitted a proposal to the government for extending necessary support/waivers to APIIC to facilitate the reduction in land price to match the expectations of Industry Associations & entrepreneurs who are looking forward to establish their ventures in the said Park. The available allotment area of Multiproduct Industrial Park has been calculated after deducting the area of internal roads, open spaces & utilities proposed to be allocated to various Industry Associations and entrepreneurs.

APIIC has further stated that the District Collector, Krishna reported that an extent of 1,460.06 acres of land is available in Mallavalli village out of which 1,360.06 acres is currently under encroachment (by Sivai Zamaidars) and 100 acres is vacant on ground.

The basic value of the land is Rs 5 Lakhs per acre and accordingly the ex-gratia amount to be paid to the encroachers is calculated as Rs.74.80 crore whereas, the encroachers are demanding payment of Rs.7.50 lakhs per acre along with an additional compensation of Rs 50,000 for every ration card holder (approximately 1,500 ration card holders are present in the village) which lead to additional budget requirement of Rs.41.50 crore.

APIIC in its proposal to the government said that accordingly the capital expenditure requirements for developed Industrial Park is around Rs.465 Crores resulting into an allotment price of Rs.40-45 lakh per acre for developed land whereas, the Industry Associations and entrepreneurs are expecting the land allotment at concessional price within a range of 22-25 lakh per acre. In this situation APIIC appealed the Government for support/waivers in order to facilitate the reduction in land price to match the expectations of stakeholders.

After careful consideration of the entire issue and the proposals of APIIC Government in its recent order clarified that the ex-gratia/compensation payable to the assignees/encroachers should be paid by the APIIC as per the government orders in force time to time. It further stated that with an objective of accelerating the industrial growth leading to prosperity of people of the state the Government has decided to concede the proposals of the APIIC.

According to the orders the government has issued necessary support/exemptions to the APIIC which includes the available government land for an extent of 743.62 acres in Mallavalli village allotted free of cost to APIIC and water supply to the Industrial Park from existing Nuzvid Water Supply Scheme exempting the capital cost and connection charges.

NALA conversion charges payable to the Revenue Department for the land proposed to be acquired for Industrial Park are also exempted and layout approval and development charges for the Industrial Park payable to APCRDA are exempted. Out of the capital expenditure of Rs.80 crore required as assistance under IIDF, the allocated and available amount of Rs.68 crore during the financial year 2016-17 under IIDF is earmarked for APIIC towards development of external infrastructure.