YSR Congress party president and Andhra Pradesh chief minister Y S Jagan Mohan Reddy gave yet another rude shock to Navayuga Engineering, a major infrastructure group which bagged several contracts during the Y S Rajasekhar Reddy and Chandrababu Naidu regimes.
After terminating the contract of Navayuga for the Polavaram irrigation and power projects and later for Machilipatnam sea port, the Jagan government on Saturday announced resumption of 4,731 acres of land allotted to Krishnapatnam Port Infrastructure Limited (KPIL), a sister concern of Navayuga.
The land was allotted to Navayuga way back in 2008 by the then Y S Rajasekhar Reddy government through AP Industrial Infrastructure Corporation (APIIC) for development of a multi-purpose special economic zone in Kota and Chillakur mandals closer to Krishnapatnam in Nellore district.
The company obtained various permissions by the Centre. As per the agreement, Navayuga was expected to set up various projects such as automobile units, chemical factories, cold storages, food processing industries, T/ ITES etc. to generate huge employment.
But in the last 10 years, Navayuda did not take up any works except a few temporary structures. Instead, it mortgaged the lands in the banks and obtained loans worth nearly Rs 2,000 crore. And it did not give proper explanation despite repeated show cause notices.
As a result, the APIIC on Saturday issued orders reclaiming the entire land of 4,731.15 acres allotted to KPIL without encumbrances and forfeits the amount paid to the corporation by the company in the public interest.