18 Jan : A 50-acre land, "allotted" to Satyam Computers for setting up an IT Park at Kapuluppada village near Visakhapatnam, is now being handed over to the Indian Navy.On a request from Satyam, the state government "allotted" the land three years ago as part of its initiatives to promote growth of Information Technology companies in Tier-2 cities.
Though officially the land was not handed over to Satyam, the software company reportedly built a fence around the land and claimed ownership.
Visakhapatnam District Collector Sanjay Kumar, however, wrote to the state government after the Satyam scandal broke out, stating that the said land at Kapuluppada, located on the Visakhapatnam-Bheemunipatnam beach road was required for use by the Navy and the land available be allotted to it.
The state government accepted the Visakhapatnam Collector’s proposal and decided to "cancel the earlier allotment".
"Since Satyam was not given possession of the land, the allotment order would be cancelled," state Finance Minister K Rosaiah said in Hyderabad on Sunday.
Satyam was also allotted a 6.55-acre land at Resapuvanipalem in Visakhapatnam in 2005 for an IT Park. Satyam purchased the land for Rs 5.01 crore and signed a memorandum of understanding with the state government on 10th May 2005 for providing employment to 2,000 people in seven years.
Chief Minister Y S Rajasekhara Reddy inaugurated the phase-1 building in the IT Park in 2007. As per government records, only 680 persons, including 150 under training in Hyderabad, were appointed till date by Satyam.
The Andhra Pradesh government is unsure whether the IT Park will take full shape as per the agreement in the light of the Satyam scandal.
Likewise, doubts are also being expressed in official circles here over the fate of IT special economic zone at Madhapur in the Cyberabad area.
Satyam got 19.71 lakh acres allotted for the IT SEZ way back in 2002 when the Telugu Desam Party was in power.
"The global recession as well as slowdown in the IT sector took the first toll on the SEZ project. Now, the scandal has virtually dashed all hopes of the project taking full shape," a senior official of the AP Industrial Infrastructure Corporation observed.
When Ramalinga Raju was at the helm, Satyam Computers also wanted to expand its base to Vijayawada another Tier-2 city in the state and held consultations with local industry leaders.
Going by his personal attachment with the city, Ramalinga Raju also was keen on setting his footprint in the commercial hub of the state but, alas, his dream remains unfulfilled.