Begin typing your search...

Raheja Group to set up Inorbit Mall in Vizag

To pay Rs 125 cr towards the land based on prevailing market value

Raheja Group to set up Inorbit Mall in Vizag

Visakhapatnam: After the scrapping of agreement by the YSRCP Government for establishment of an ultra modern international convention centre and shopping mall by UAE-based LuLu Group, Raheja Group has agreed in-principle to set up Andhra Pradesh's first Inorbit Mall on a piece of land being provided by the Visakhapatnam Port Authority (VPA) on BOT basis.

The LuLu Group, after an MoU signed at the Partnership Summit here in 2018 during erstwhile Telugu Desam Party rule, had agreed to invest Rs 2,200 crore to build and operate an international convention centre, shopping mall and a five star deluxe hotel on 13.59 acres leased out by APIIC on a beachfront land located at Harbour Park. After the elections, YSRCP Government cancelled the agreement alleging a lot of irregularities in the deal.

Subsequently, it entrusted the responsibility to Navaratna CPSU NBCC Ltd for online auction of the land in question for an upset price of Rs 1,452 crore, almost at Rs 100 crore per acre-believed to be the highest per square yard price in any part of Andhra Pradesh and Telangana. There is no progress in the project till date due to a court case.

As part of the National Monetisation Pipeline, VPA, which is under the control of the Ministry of Ports, Shipping and Waterways, has decided to give 17 acres near National Highway at Saligramapuram on a 30-year lease for construction of the mall. The land where port quarters existed is being levelled to facilitate construction. Raheja Group will pay Rs 125 crore towards the land based on prevailing market value and on completion of 30 years, it has to either transfer the land with the super-structures built by it or opt for renewal of lease with mutual consent subject to fulfillment of conditions laid down in the concession agreement.

VPA Chairman K Rama Mohana Rao, when contacted by Bizz Buzz confirmed Raheja Group's decision to set up Inorbit Mall in the city on their land. A team of officials from Raheja Group visited the city and zeroed in on the land. The officials also made a courtesy call on Minister of Industries and Commerce Gudivada Amarnath, who is a native of Visakhapatnam.

Sources said Raheja Group, a leading real estate developer which built several skyscrapers and ventures in the metros, is for the first time has exuded interest to set up a mall in a tier-2 city. Visakhapatnam has a few malls at present. Raheja Group also has interest in the IT area. Infosys Group is in talks to take an IT building on the Rushikonda Hills on lease to start a development centre in the city in the near future. The State Government wants to develop Visakhapatnam as the Executive Capital.

Santosh Patnaik
Next Story
Share it