AP to scrap Unitechs city project

The repercussions of the 2G spectrum scam are being felt in Andhra Pradesh where the state government has decided to cancel allotment of 1,750 acres of land given to Unitech Ltd for developing a knowledge city in Visakhapatnam. Though the company clarified that Unitech Ltd and Unitech Wireless were two different legal entities,the state found an excuse to scrap the project that never took off. In September 2007,the Andhra Pradesh Industrial Infrastructure Corporation APIIC had finalised the bid submitted by Unitech Ltd for development of the Integrated Vizag Knowledge City. The firm quoted Rs 3,288 crore as the highest guaranteed amount for 10 years for the state government. The Unitech Knowledge City had proposed to construct residential apartments,villas,hotels and townships. However,Unitech has not paid the auction fees till date,sources in APIIC said. Unitech also paid Rs 225 crores for the land and then started defaulting on the total amount of Rs 350 crores.

APIIC vice-chairman B R Meena said a show cause notice has been issued as to why permission for the project should not be cancelled.

In another development,the state has cancelled MoU with Moser Baer India to set up a SEZ by its subsidiary company Moser Baer Infrastructure Developers. Sources said that the project did not take off and there was unexplained delay.