VIJAYAWADA: The Andhra Pradesh government has allotted prime land in Vijayawada and Visakhapatnam to Lulu International Shopping Mall Pvt Ltd for constructing shopping malls, sparking strong opposition from RTC employees’ unions and other organisations.
The Industries and Commerce (Infra) Department has released Government Order No. 137, leasing 13.74 acres at Harbour Park in Visakhapatnam, and 4.15 acres of APSRTC Governorpet-II bus depot land in Vijayawada to Lulu Group for 99 years, with a three-year rent-free period or until the malls open, whichever is earlier. The lease amount will be increased by 10% every decade. The lands will be transferred to the AP Industrial Infrastructure Corporation, which will oversee their handover to Lulu Group.
Unions flag operational & environmental issues
In Visakhapatnam, Lulu plans to invest Rs 1,066 crore to build a G+3 shopping mall with 13.50 lakh square feet, including 6 lakh square feet for parking 2,000 vehicles, anchor shops, and leasable retail spaces. In Vijayawada, the Rs 156 crore project includes a G+3 mall spanning 2.32 lakh square feet, accommodating 200 vehicles and 120 retail shops.
The proposal, aligned with the Andhra Pradesh Tourism Land Allotment Policy 2024-29, was approved by the State Investment Promotion Board (SIPB) on July 17, following recommendations from the State Investment Promotion Committee (SIPC). The government believes the project will boost investor confidence and policy continuity.
However, the land allotment has triggered significant backlash from the RTC employees’ unions, which are planning protests against the privatisation of public land. The Governorpet-II bus depot land in Vijayawada, valued at over Rs 300 crore in the open market, is in the heart of the controversy.
Employees Union president Palisetti Damodara Rao criticised the TDP-led NDA government’s ‘unilateral and unwarranted’ decision, warning of severe consequences if it is not reversed. The union plans to hold a statewide teleconference on July 29 to chalk out the course of action, and announce its agitational programme on July 30.
Union leaders argued that relocating the RTC depot to an alternative place identified by the District Collector will disrupt public transport services.
They also raised environmental concerns, noting that the land’s proximity to a canal could lead to severe water pollution. “The land offered to the RTC in lieu would not serve our purpose, and the allotted land is unsuitable for Lulu’s needs,” the leaders said, urging the government to prioritise public interest. The government has instructed the Transport Department and the RTC to transfer existing structures to the alternative lands, while the Revenue Department and the District Collectors are tasked with facilitating the hand over of these lands to the RTC, and the project lands to the Tourism Department.
As protests loom, the issue highlights the rift between commercial development and preserving public infrastructure.