FCC

Lulu Gets Prime Land In AP Amid Protests From RTC Unions

2025-08-01

The Andhra Pradesh government has leased prime land in Visakhapatnam and Vijayawada to Lulu International Shopping Mall Pvt Ltd for the construction of shopping malls, drawing sharp criticism from RTC employees’ unions and other groups over the use of public land for commercial purposes.

As per Government Order No. 137 issued by the Industries and Commerce (Infra) Department, 13.74 acres at Harbour Park in Visakhapatnam and 4.15 acres of APSRTC’s Governorpet-II bus depot land in Vijayawada have been leased to Lulu Group for 99 years. The lease includes a three-year rent-free period or until the malls commence operations, whichever is earlier. The lease amount will increase by 10 per cent every ten years. The land will be routed through the Andhra Pradesh Industrial Infrastructure Corporation, which will oversee its handover to Lulu.

In Visakhapatnam, Lulu Group plans to invest Rs 10.66 billion to build a G+3 shopping mall with 1.35 million square feet, including 0.6 million square feet for parking 2,000 vehicles, anchor stores, and retail spaces. In Vijayawada, the Rs 1.56 billion G+3 mall will span 0.232 million square feet and include parking for 200 vehicles and 120 retail units.

The proposal, approved by the State Investment Promotion Board (SIPB) on July 17 under the Andhra Pradesh Tourism Land Allotment Policy 2024–29, aims to attract investment and maintain policy continuity.

However, RTC employees’ unions have strongly opposed the allotment, especially the transfer of the Governorpet-II bus depot land in Vijayawada, reportedly worth over Rs 3 billion. Union president Palisetti Damodara Rao condemned the TDP-led NDA government's "unilateral and unwarranted" decision and warned of statewide protests if the move is not rolled back. The union plans a teleconference on July 29 and will announce an agitational programme the following day.

Union leaders argue that relocating the depot will disrupt public transport and have raised environmental concerns due to the proximity of the site to a canal, warning of potential water pollution. They claim the alternative site offered to the RTC is unsuitable and allege that the allocated land is ill-suited for Lulu’s project as well.

The government has directed the Transport Department and RTC to move existing structures to the new site, while the Revenue Department and district collectors will facilitate land transfers for both the RTC and the Tourism Department. As protests gather momentum, the controversy underscores the growing tension between infrastructure development and public interest.