AP CM denies kickbacks in Infotech City deal

Chief Minister N Chandrababu Naidu has refuted allegations of kickbacks in the land agreement for setting up the Rs 15 billion Infotech City, a joint venture between Larsen and Toubro and the Andhra Pradesh Industrial Infrastructure Corporation.

Addressing the media, he refused to make public the memorandum of understanding signed in this regard. He, however, agreed to place all documents pertaining to the proposed joint venture before leaders of all political parties.

He said L&T's track record and experience in information technology and its financial strength were the main criteria in finalising the agreement. Besides, the firm had developed a similar information technology park at Bangalore, he added.

Naidu disclosed that six acres of land valued at Rs 37.2 million was transferred to L&T for a 11 per cent equity worth Rs 19.8 million. He said the balance Rs 17.4 million due from the company would attract 16 per cent interest per annum with yearly rests from the date of handing over possession.

He said the state government had also agreed to give an additional 79 acres to the joint venture at Rs 1,282 per square yard while the market rate would be charged for the remaining 50 per cent of the land as on the date of transfer.

He accused the Congress of indulging in political blackmail to prevent industries from coming to Andhra Pradesh.

UNI

EARLIER REPORT:
Naidu got huge kickbacks in Infotech City deal: Congress