This is an archive article published on November 20, 2019
UAE-based Lulu group snubs YSRCP govt: ‘Won’t invest in new projects in Andhra Pradesh’
Andhra Pradesh: The Lulu group stated that although they were allotted land in Visakhapatnam by previous TDP government in a transparent manner, they accept the new government's decision to revoke the land allotment.
The Jagan Mohan Reddy-led YSRCP government on October 30 had cancelled the land allotment made to Lulu Group in Visakhapatnam by the previous Telugu Desam Party regime. (PTI Photo/File)
Snubbing the YSRCP government in Andhra Pradesh, UAE based Lulu Group Tuesday said that it will never invest in the state again after the government cancelled the allotment of land in Visakhapatnam to build an international convention centre.
The group stated that although they were allotted land in Visakhapatnam by previous Telugu Desam Party government in a transparent manner, they accept the new government’s decision to revoke the land allotment. Lulu group officials, however, made it clear that they will never invest in Andhra Pradesh again.
“We had participated in a very transparent bidding process and were awarded the land on lease for this project. Though we have incurred huge expenses towards initial project development costs such as appointing internationally renowned consultants and designing the project by world-class architects, we agree to the decision of the new Government of Andhra Pradesh to revoke the land allotment for this project. Given the current scenario, we have decided not to invest in any new projects in the state of Andhra Pradesh,” said Ananth Ram, Lulu Group’s Director for India.
The LuLu Group chairman, who was ranked the richest expat in UAE by the Forbes magazine. (Source: lulugroupinternational.com. File photo)
“Our Group which is based in the Gulf had decided to invest Rs 2,200 crores in AP to build an international convention centre, shopping mall and a five-star hotel project to provide global exposure to Visakhapatnam as a convention and shopping hub. Apart from this, the proposed mix-use project was expected to provide employment to more than 7000 local youth,” Ram said. He said that the group accepts the decision of the new Government to revoke the allotment of land.
“At the same time, we wish to reconfirm that our investments in upcoming projects in the other states of Uttar Pradesh, Telangana, Tamil Nadu and Kerala will go ahead as per schedule,” Ram said
The YSRCP Government on October 30 cancelled the land allotment made to Lulu Group in Visakhapatnam by the previous Telugu Desam Party regime. Chief Minister Y S Jagan Mohan Reddy decided to take back 13.83 acres given to the Lulu Group to build an international shopping mall and convention centre near Harbour Park facing the sea. A decision was also taken at the Cabinet meeting to cancel the agreement signed with Lulu Group. Information and Public Relations Minister Perni Venkataramaiah said that the land was allotted unethically by the TDP Government. “The TDP government did not invite global tenders and gave away the land to Lulu Group because of their proximity to the former CM. Lulu group was favoured and land was allotted in contravention of central and state rules. The land was also given at Rs 4 lakh per acre while the market value is much higher,’’ he said.
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Officials said that the group had laid the foundation stone for the Rs 2,200 crore project including a luxury hotel, exhibitions halls and commercial complexes last February.
Sreenivas Janyala is a Deputy Associate Editor at The Indian Express, where he serves as one of the most authoritative voices on the socio-political and economic landscape of Telangana and Andhra Pradesh. With a career spanning over two decades in mainstream journalism, he provides deep-dive analysis and frontline reporting on the intricate dynamics of South Indian governance.
Expertise and Experience
Regional Specialization: Based in Hyderabad, Sreenivas has spent more than 20 years documenting the evolution of the Telugu-speaking states. His reporting was foundational during the historic Telangana statehood movement and continues to track the post-bifurcation development of both Telangana and Andhra Pradesh.
Key Coverage Beats: His extensive portfolio covers a vast spectrum of critical issues:
High-Stakes Politics: Comprehensive tracking of regional powerhouses (BRS, TDP, YSRCP, and Congress), electoral shifts, and the political careers of figures like K. Chandrashekar Rao, Chandrababu Naidu, and Jagan Mohan Reddy.
Internal Security & Conflict: Authoritative reporting on Left-Wing Extremism (LWE), the decline of the Maoist movement in former hotbeds, and intelligence-led investigations into regional security modules.
Governance & Infrastructure: Detailed analysis of massive irrigation projects (like Kaleshwaram and Polavaram), capital city developments (Amaravati), and the implementation of state welfare schemes.
Crisis & Health Reporting: Led the publication's ground-level coverage of the Covid-19 pandemic in South India and major industrial incidents, such as the Vizag gas leak.
Analytical Depth: Beyond daily news, Sreenivas is known for his "Explained" pieces that demystify complex regional disputes, such as river water sharing and judicial allocations between the sister states. ... Read More
The Jagan Mohan Reddy-led YSRCP government on October 30 had cancelled the land allotment made to Lulu Group in Visakhapatnam by the previous Telugu Desam Party regime. (PTI Photo/File)
The LuLu Group chairman, who was ranked the richest expat in UAE by the Forbes magazine. (Source: lulugroupinternational.com. File photo)