File photo of a Lulu Hypermart Image Credit: Archive

Amravati, Andhra Pradesh: Andhra Pradesh Industries Minister Mekapati Gautham Reddy on Thursday clarified that the state government is not against Lulu group but against the process in which the land was alloted to the company by the previous TDP government.

The clarification came after Lulu group in a press release said that it won't be making any new investments in the state of Andhra Pradesh in future.

On October 30, Chief Minister Jaganmohan Reddy led YSRCP government has cancelled the 13-acre prime land allotted to Lulu group in Vishakhapatnam by the previous TDP government.

"The land allotted to Lulu group by previous TDP government is in a land dispute. While the rental value of the land allotted to Lulu is almost Rs 50 crores per month; it was given at a throw-away price of Rs 7.02 crores per month; causing huge loss to the state revenue," Reddy told ANI.

He added that the allotment was done in single bidding, and Lulu group was directly allocated the land.

The minister also asked why the company could not start its work in past one year when it was allotted land. He reminded that the allotted land is in legal disputes, there is no environmental clearance, and due to such problems, the project could not be initiated.

"It is not the fault of YSRCP government, which is being blamed as if it is hampering the industrial growth of the state," he added.

The minister further said that the government has no intention to cancel all agreements with industrialists, just for the reason that they were made during the TDP regime.

"The then Chandrababu Naidu government made agreements for mere show off, and all its allocations are in disputes; when such agreements are cancelled, it is he who should be blamed. YSRCP is not against Reliance and Adani companies also; in fact, the present government has expressed its readiness to provide alternative land to Reliance," he said.

Citing his government's stand, he said: "Today itself, it is agreed to allot 120 acres of land in Anantapuram to one company named 'Veera Vahana Udyog Pvt Ltd', a manufacturer of electric buses."

He further said that the YSRCP government is coming out with a new industrial policy by the next budget session.