Change land laws proposed to check misuse
HYDERABAD: In order to keep a tight vigil on entrepreneurs who misuse the government land allotted to them for setting up industries, the Andhra Pradesh government is contemplating making changes in the existing laws.
The Cabinet Sub-committee, which met here under the leadership of deputy chief minister KE Krishnamurthy and finance minister Yanamala Ramakrishnudu discussed the changes needed in the existing laws with regard to allotment of lands to industrialists so as to restrict them from raising huge money by pledging those lands to banks without actually establishing industries.
As a part of its efforts to ensure that the allotted land is properly utilised by the entrepreneurs, the ministerial panel is of the view that the role of the APIIC in the allotment of lands be minimised.
As a large number of government lands were allotted through APIIC to various industrialists for setting up industries during the erstwhile Congress governments were misused, the ministerial panel felt that instead of allotting the land through the APIIC, it should be done through respective departments.
'This provision will make the respective departments to supervise the activities of the company on the given land. Thus, we can control the entrepreneurs from misusing the allotted land,' said a source.
Hence, the panel felt the need to either amend or cancel the GO No 571, which deals with allotment of lands to industrialists bringing APIIC into play.
In the wake of Lepakshi Knowledge Hub's incident in which the promoters of the company had taken `830 crore loan from banks by pledging the land allotted to them for setting up industry by the then YS Rajasekhara Reddy's government, the Cabinet panel reportedly decided to recommend to chief minister N Chandrababu Naidu to amend the existing laws with regard to allotment of government lands to entrepreneurs by incorporating all these suggestions.
The source further disclosed that the ministerial panel is also considering the option of giving land on lease instead of permanently giving away the land to the industrialists.
News Posted: 6 February, 2015
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