The Government of "Blunder" Pradesh. Investors Sur

[Andhrawala]

Hi All,

Here i included a report on GOAP(Govt. of AP) by real estate sources. Please make a comment on it.



By observing this article we may think that the land rates are increasing without showing the actual progress. This affected the common man's dream to a own house in and aroungd the hyderabad.





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Chennai, Bangalore, Pune, Cochin races ahead while Hyderabad, Blunders on!



After the success of previous Govt. in building an efficient image and projecting the state as progressive, fast and investor friendly, the per agencies like HUDA and APIIC seem to be just firing in the dark, with toy guns. Exclusive Ventures takes a Hard Look at the Dismal Scenario, in the State of Andhra Pradesh, India.



After seeing the series of blunders during the last two years, Indian and International investors planning to associate with the Govt. of AP, will have only one thing to say. "This Government is absolutely unreliable. There is no coordination, no control. Its utter chaos all over. Investors who get trapped, will find that they have entered a black hole. It's a miserable failure. Absolute mess!"



The image of the State is being crushed and stamped upon, by the horrendous acts of the Govt agencies. Is the Govt. aware? Lets hope that this report would contribute to make the Govt. and its agencies sit up and take stock, of the situation.



Big Business Ventures "Announced" by Govt. Building Business in Air!



Golden Mile Auction by HUDA



Announced with fanfare, HUDA went ahead corporate- style to lure investors from all over India, into buying land at Kokapet which it did not own. Crores of rupees was collected as advance. Companies who had solid business plans were duped and deprived of business opportunity. HUDA has NOT returned advances since it just does not have any cash in its coffers!



Raidurg Auction by APIIC -Knowledge City??



APIIC tried to sell 30 Acers under dispute, at Rs.16 Crore per Acre just because it wanted Money. No proper Project Plan. No Infrastructure Support. No explanation for such pricing for barren land. After having been given thumbs down, they are again trying to fool companies by asking for 100% payment before execution of Sale Deed. (Since land I s under litigation, it can not be registered) If Govt. has control, will it allow its agencies to march ahead, on such dangerous course?



Tellapur Auction by HUDA



Touted to be the biggest single point investment in Hyderabad. More than Rs.4500 Cores into Tellapur. Well, except that the Govt. had allowed HUDA to go ahead and make a mess, in front of the largest and most reputed International Real Estate Developer, Tishman Speyer and hence the International Business Community & the US Govt. All the while, Govt seem to be under the impression, that they are the Law. "Any land is Govt land and no one can object." Shouldn't Govt. go ahead with auctions after due public notice and disposing of any cases? ICICI as partner of Tishman, will now be advising all companies who want to come into Hyderabad, to be very cautious.



Infosys at Shamshabad



500 Acers Campus near Shamshabad Airport. The project was announced with such fanfare and the Govt. projected this as a great achievement! After an year of groping in the dark, the Govt. found that its department has goofed up on land ownership. It offered 400 acres which belonged to someone else to Infosys! After having blundered, its now into litigation. The High Court found the whole exercise funny! Here is a Govt. which didn't know whether 400 acers belonged to it or not! And then, goes ahead and tries to grab land from the present owner!



Fabcity: Will this end up in thin air?



This takes the cake! Govt. talked about bringing Billions into Hyderabad. After blaming lack of Semi Conductor Policy for an year and a half, for delay, it now appears, that the Govt. Agency responsible for developing Fabcity, APIIC, has not done any ground-work on how the whole project is to be developed!! Valuable time has been lost for ever. And its sure that this inept Govt. can do little to bring the project back in action. What is left, is a few Million Dollars in ATMP plant to be built by SemIndia. SemIndia's Fab Unit, if at all it gets built, will bring max of 20,000 jobs in some 6 or 7 years. That is absolute pittance for all the "hungama" created by the Govt. Unless the Govt. goes into urgent action to plan and implement the entire project and THEN bring in new Investors to take up the entire 1200 acres, this project will be the biggest act of fraud, on gullible public. High expectation was built based on numbers and figures given out in news conferences. The Govt. Agencies can not be so callous as to just brush aside everything, disregarding the fact that public has acted in good faith and invested near fabcity.



Mucherla IT Park, This IT Park, That IT Park!!



OOPS! Wonder whether the Govt., at least know, where these places are! Are these all created solely for duping poor individual plot buyers, who naturally had no reason to disbelieve Govt. Departments and its Agencies? While individuals put their hard earned money into land believing the Govt. agencies, all we find, after months is nothing but non existent projects which even the Govt. has forgotten.



Electronic City at Chevalla!



Heard of it. Yes the Real one in Bangalore! While Chennai, Bangalore, Cochin, Pune etc. are powering ahead with REAL Projects, Real Invetments, Real Jobs, the Govt. agencies and departments have turned Andhra Pradesh into "Blunder" Pradesh with only shadows of Big Projects.



Projects by TCS, Wipro, Cognizant etc at Adibhatla



Other than making announcements, there is no proactive action on any project. Castles in the air?



Volkswagen



This time Minister himself "botched it up" as was widely reported in news papers. Starting off with Minister, Mr. Bosta who gave Rs.20 Crore to a non existent firm, the Govt is put to hardship by HUDA and APIIC and Govt Departments.



Hundreds of other Projects in non- IT Areas including Power, Infrastructure, Communication, Education, Primary Health, Housing……



While it has been an absolute disaster in handling high profile projects, we can rightfully assume that dreadful mess is being created, throughout the state, in all areas of activity.



The only jobs and projects that we can actually see, in Hyderabad, seem to be the result of work done by previous Govt. IT and Financial District at Guchibowli, Hitec City, Bio Tech Park, ORR, Airport; all are projects which the previous Govt. founded. And today, they are REAL not shadows.



Large Investors



There is no doubt that news about AP Govt's failure is spreading fast through the community of Investment Advisors including arms of major banks and financial institutions in India and abroad. If the situation is not controlled, AP will become a pariah in the eyes of Investors. It would take huge effort to put the state back into the radar of business community.



The talk of Govt. sending APIIC to do quick fire auction of land in Kadappa for cement factory has created nausea among business community. Can a Govt. expect any Business house to bid for land for building a cement factory, with 3 weeks notice? Does it think that Businesses are built out of the hat?!



The actions of this Govt. is a procession of blunders, packaged unfortunately, in public money. The Govt. would be looked upon suspiciously by investors, who are being invited to be trapped, in the mess.



Individual Investors



The public naturally believes that the Govt. is capable and is acting in their interest. Small investors who rightfully invested in land, based on projects "announced" by the Govt. have all been lead up the garden path. They have been left in the lurch while, insiders in the Govt. have bought and sold land and got out in time, trapping small investors. Unless the Govt changes its ways, learns to take control of its agencies and acts fast, to put projects back on track, the public will be left with non performing assets.



Obviously, urgent and immediate action is required to prod the Govt. into action. Like Mr. Chappel said of Sachin, "Its time, now, to take a close look at the mirror, and ask, all those uncomfortable questions!"

[Andhrawala]

Please read the suject line of above post as



The Government of "Blunder" Pradesh. Investors Sure to Rush Elsewhere. Credibility Crisis Hits.

[Moon_me]

Nice eye-opener for everyone who are investing crazily in all those grave yards....

[MAHARSHI]

you are absolutely right the castels in the air are slowly blowing off. And i think it is the time that people realize that there is nothing greter in investing greratr hyerabad except a panniking later. Why do they invest thier hard earned money in the areas where it takes minmum of 1/2 hr to reach a main road and nearly 1 an d 1/2 or 2 hrs in reaching main city. Moreover this traffic adds up to the frustration of people. How can leave in such places.