AP to take back lands from firms failing to launch projects

AP to take back lands from firms failing to launch projects
Highlights

The State government decided to take back lands and act tough against the private companies which had obtained hundreds of acres of government lands on lease basis under Private Public Partnership (PPP) mode to establish tourism projects but failed to complete the projects on time.

Amaravati: The State government decided to take back lands and act tough against the private companies which had obtained hundreds of acres of government lands on lease basis under Private Public Partnership (PPP) mode to establish tourism projects but failed to complete the projects on time.

The tourism department will initiate action against such companies and review all projects that had MoU with the State government and obtained lands. Tourism and Culture secretary Mukesh Kumar Meena said that the department would take action on ‘City of Destiny Clubs and Resorts’ of Visakhapatnam which had obtained government land in 2012 and did not begin any project in the last five years.

“The company which had MoU with State government in 2011 even did not pay lease amounts for lands to Tourism department as per rules of Private Public Partnership (PPP) agreement and violated some other norms also. There has not been any progress towards creating recreation and amusement even five years after it entered into an MoU with the government,” said Meena. He also said the action on ‘City of Destiny Clubs and Resorts’ could be an example for other organisations which are on the same lines.

The tourism department is now in the process of issuing notices to some other companies too that had obtained government lands under PPP mode. Several of them at least did not pay lease amounts for lands and did not respond to enquiries by the government.

The department is of the view that it should act tough against the companies which do not provide proper reasons for their failure to take forward the PPP projects. Officials said that the companies should complete projects after MoU with the government and start commercial activities but most of them were inactive.

The ‘City of Destiny Clubs and Resorts’ company have to pay dues to government to the tune of Rs 50 lakh and did not even pay interest on lease amounts. Mukesh Kumar Meena warned of action over the company by initiating legal action to collect dues.

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