Government of Andhra Pradesh looks to sell share in Hyderabad infra projects
The government of Andhra Pradesh is going to sell its equity share in some marquee urban infrastructure projects in Hyderabad, likely boosting up a row because the state is in the process of being divided to from Telangana.
The stake sale could collect hundred of cores of rupees but it can also lead to controversy, because Hyderabad is located in Telangana, the new state which may claim ownership of the equity holdings in the public-private partnership (PPA) projects. The Parliament approved the creation of Telangana as India’s 29th state in last month. It also says that, Hyderabad will be the capital of both Telangana and residual Andhra Pradesh for 10 years.
The undivided Andhra Pradesh authorities began dividing the state government’s equity holdings in dozens of infrastructure projects taken up under public-private partnerships (PPP) and aim to complete the work by June 2.
A person with knowledge of selling off subsidiary business interests says, that, the state government, through its nodal agency Andhra Pradesh Industrial Infrastructure Corporation, has decided to sell share in at least three landmark projects in Hyderabad. These projects include the Hyderabad International Convention Centre, Hyderabad Information Technology and Engineering Consultancy (Hitec) City and Mind Space IT Infrastructure Project. The source also added, that, APIIC holds stakes ranging from 11% to 26% in these urban infrastructure projects.
The state government of Andhra Pradesh has appointed valuers and auditors to assess the worth of the share investments in 300 industrial parks spread over 1.21 lakh acres. It has share in 29 joint venture companies with private entities.
APPIC’s main aim to sell developed industrial plots to direction of itself to the changing needs of the economy and collaborated with private firms. . The corporation holds equity shares in projects instead of the land given to infrastructure projects. In some conditions, cash investment as also an option.
Source: The Economic Times
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