Andhra Pradesh Industrial Infrastructure Corporation

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Andhra Pradesh Industrial Infrastructure Corporation Ltd also known as APIIC is an Andhra Pradesh Government initiative for providing infrastructure through development of industrial areas.[1]

APIIC was established in the year 1973 for identifying and developing potential growth centres in the State fully equipped with developed plots/sheds, roads, drainage, water, power and other infrastructural facilities; providing social infrastructure, like housing for workers near industrial zones; co-ordinating with the agencies concerned for providing communication, transport and other facilities. The Corporation also has active projects in the Public-Private Partnership Mode.

Projects undertaken[edit]

APIIC has been the principal facilitator in mega-projects like[2] Special Economic Zones like Sricity multi product SEZ, which is part of Sricity which is a developing Satellite City in the epicentre of Andhra Pradesh & Tamil Nadu. Visakha Industrial Water Supply, Gangavaram Port, Convention Centre and Mega Industrial Parks at Parawada.

Plans for APIIC Tower[edit]

The Government has earmarked a 97-acre (390,000 m2) site to the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) for the proposed trade tower to be constructed at Manchirevula near Narsingi, in the business district. According to APIIC Chairman S.Siva Rama Subramanyam, who recently led a three-member corporation team to Kuala Lumpur, Malaysia, to study the famed 'Petronas Towers' there, the modalities of the project were being worked out. After the initial expression of interest, global tenders were expected to be called in within a couple of months.

The APIIC tower could either be a joint venture or with the APIIC as an equity partner, the modalities of which were yet to be worked out with consultants. He said a consultant, Fortune Capitals had been mandated to work out the plan. The APIIC was keen to start the work at the earliest in the next fiscal.

This plan was eventually scrapped after the bifurcation of Andhra Pradesh and that planned land is now under the administration of Telangana State Industrial Infrastructure Corporation (TSIIC).

EMAAR-MGF Boulder Hills controversy[edit]

APIIC has been embroiled in a controversy over land acquisition for the Boulder Hills project in Hyderabad, a joint venture with EMAAR-MGF (also see EMAAR). News reports suggest that the APIIC agreed to dilute the public stake by undervaluing the land that it contributed. About 500 acres (2.0 km2) of land was acquired by APIIC in 2002-2003 for setting up a golf course and residential properties. Of the 535 acres (2.17 km2) of land in Manikonda near the Indian School of Business, APIIC sold 285 acres (1.15 km2) at 2.7 million per acre as against the prevailing price of 10 million per acre in 2003. The remaining 235 acres (and an additional 15 acres (61,000 m2) of unusable land) were allotted as a 66-year lease with a 2% share of the Golf course revenues. EMAAR sold this project to EMAAR-MGF and diluted the value of APIIC's stake from 26% to 4%, by not considering the prevailing market rate for the land in 2009.[3]

Multiple claimants to the land have emerged, including the WAKF board and the previous farmer owners of this land.[4][5] The customers who have paid for properties in the developed project are in jeopardy due to the unclear land title.[6] On the back of the controversial Boulder Hills deal with EMAAR-MGF, several other APIIC projects, including the Raheja Mindspace IT park, that were approved in the period between 2003 and 2009 are being questioned.[7][8][9] There are allegations of irregularities in land deals during the Chief Ministership of Y.S. Rajasekhara Reddy.[10][11]

There are also allegations that government officials were allocated parcels of the property at deeply discounted prices compared to the prevailing market price.[12] Officials who previously ran APIIC and seem to have conflicts of interest with the developers,[13] have refuted many of these allegations and defended earlier land allotment decisions.[14][15]

There have been several calls for a thorough investigation into APIIC deals either by the CBI or by the state investigative agency CID.[16][17][18] Though there were initial reports of an external audit,[19] the calls for a CBI enquiry were downplayed by the Andhra Pradesh Government, which has initiated an internal APIIC probe.[20][21][22]

Raheja Mindspace project[edit]

Raheja Mindspace is one of the IT parks established in Hyderabad's HITEC city developed with about 110 Acres of land allotted by APIIC.[23] Similar to Boulder hills, there are allegations of dilution of the Andhra Pradesh state's ownership (through APIIC) in the Mindspace project with active connivance of previous administrators of APIIC.[24] APIIC former managing director B. P. Acharya, principal secretary (information technology and communication) K Ratna Prabha, and Special Secretary (Information Technology) Gopi Krishna in the state Government, have been implicated by the Anti Corruption Bureau in taking decisions in favor of the developers and against the interests of the public.[25][26][27] Acharya has refuted these allegations of impropriety.[28] Recent negotiations between the Raheja group and APIIC (and Andhra Pradesh) seek to restore the state's share in the ownership and rental revenues from the project.[29][30][31]

Proposal to disinvest state share in key projects[edit]

Despite the background of controversies in the EMAAR Boulder Hills and Raheja Mindspace projects, the AP state government has made announcements about further disinvestment from such infrastructure projects.[32][33] Public disagreements between the cash-strapped state government and the APIIC have been voiced on this issue.[34]


  1. ^ "Archived copy". Archived from the original on 8 June 2007. Retrieved 1 June 2009.
  2. ^ "Archived copy". Archived from the original on 3 February 2010. Retrieved 1 June 2009.
  3. ^ Sengupta, Sudipta (11 August 2010). "APIIC loses prime land in blind deal". Times of India.
  4. ^ Sengupta, Sudipta (12 August 2010). "Wakf Board says APIIC-Emaar deal void". Times of India.
  5. ^ "KCR Wants Land To Be Given Back To Farmers". Times of India. 19 August 2010.
  6. ^ Sengupta, Sudipta (15 August 2010). "Emaar row gives customers the jitters". Times of India.
  7. ^ "'All APIIC deals dubious'". Times of India. 15 August 2010.
  8. ^ Sengupta, Sudipta (14 August 2010). "APIIC's Raheja deal gets hit too". Times of India.
  9. ^ "Another APIIC shady deal comes under scanner". The New Indian Express.
  10. ^ "'Rs 10,000-cr scam took place during YSR rule'". Hindustan Times.
  11. ^ "JC & co accuse Ambati of Rs 10,000 crore scam". The New Indian Express.
  12. ^ Sengupta, Sudipta (13 August 2010). "Babus, politicos got prime Emaar plots?". Times of India.
  13. ^ "Babu has road named after him!". Times of India. 14 August 2010.
  14. ^ "Acharya's bouncer". Times of India. 15 August 2010.
  15. ^ "Acharya denies wrongdoing". Deccan Chronicle.
  16. ^ "Desam seeks inquiry into land acquisition". Deccan Chronicle.
  17. ^ "Naidu demands CBI probe into Emaar land row". SIFY.
  18. ^ "Probe sought into anomalies". Deccan Chronicle.
  19. ^ "Emaar: third party audit likely". Chennai, India: The Hindu. 14 August 2010.
  20. ^ "Emaar deal facts may not come out". Times of India. 18 August 2010.
  21. ^ Nagaraju, Jinka (15 August 2010). "3-member panel to probe Emaar deal". Times of India.
  22. ^ "Cabinet goes soft on Emaar deal probe". Times of India. 20 August 2010.
  23. ^ "Raheja Mindspace Project, APIIC" (PDF). APIIC.
  24. ^ "APIIC's Raheja deal gets hit too". Times of India. 14 August 2010.
  25. ^ "Register case against State officials, ACB told". Chennai, India: The Hindu. 20 February 2011.
  26. ^ "FIR filed against officials in Rahejas case". The New Indian Express.
  27. ^ "IAS officers caused Rs 500 crore loss to AP". Siasat.
  28. ^ "Raheja case: Acharya counters petitioner's contention". Chennai, India: The Hindu. 21 February 2011.
  29. ^ "APIIC board defers decision on Rahejas' offer". Chennai, India: The Hindu. 21 December 2011.
  30. ^ "Emaar to restore APIIC stake in JV". Times of India. 21 December 2011.
  31. ^ "Ishaan Real-estate Portfolio Update" (PDF). Ishaan Real-estate. Archived from the original (PDF) on 26 April 2012.
  32. ^ "APIIC decides to offload more stakes". Deccan Chronicle.
  33. ^ "State mulls dis-investing APIIC stake in JVs". Chennai, India: The Hindu. 21 December 2011.
  34. ^ "APIIC to oppose Kiran move to sell profit-making JVs". Times of India. 15 December 2011.

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