LuLu Group decision taken following the new government’s move to revoke land allotment to the group for a $311m international shopping mall and convention centre in the state. LuLu Group International will not invest in any new projects in the southern Indian state of Andhra Pradesh, a senior executive of the group has said.
The Abu Dhabi-based Indian business group’s decision comes in the wake of the recently assumed Andhra government’s move to revoke land allotted to the group for an international shopping mall and convention centre in the coastal city of Visakhapatnam, which had a project value of $311 million.
“We had participated in a very transparent bidding process and were awarded the land on lease for this project,” Ananth Ram, LuLu Group’s Director for India. Though we have incurred huge expenses towards initial project development costs, 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,” Ram said.
Ram, however, said LuLu Group’s investments in upcoming projects in the other Indian states such as Uttar Pradesh, Telangana, Tamil Nadu, Gujarat, Karnataka and Kerala will go ahead as planned.
