The land allocation policy of the coalition government in Andhra Pradesh has come under intense scrutiny, with questions being raised over the rapid allotment of large tracts of government land and heavy incentives to newly formed private companies. Based on official Government Orders (GOs), critics allege that even inexperienced firms are being granted thousands of crores worth of land at highly concessional lease rates or long-term lease agreements within months of their incorporation.
Ursa Clusters Pvt Ltd: Massive Allocation Within Months of Formation
One of the most prominent cases involves Ursa Clusters Private Limited, a company reportedly registered in February 2025 with an apartment address in Hyderabad.
Within just two months of its formation, the company was allotted nearly 60 acres of land in Visakhapatnam IT Park and Kapuluppada area, including:
- 3.5 acres in the IT Park
- 56.36 acres in Kapuluppada
The lease rate was reportedly fixed at ₹0.99 per acre, raising concerns due to its extremely concessional nature. The market value of the allocated land is estimated to exceed ₹3,000 crore.
The company also proposed an investment of around ₹5,278 crore, despite lacking a proven operational track record, which has triggered further skepticism.
Averan Panels Pvt Ltd: 106 Acres in Chittoor District
Averan Panels Private Limited, incorporated on April 25, 2026, reportedly received 106 acres of land within two months of its establishment.
The land was allocated in Gudupalle and Shanthipuram mandals of Chittoor district. The company has proposed setting up a medium-density fibreboard manufacturing unit with an investment of approximately ₹1,123.49 crore.
Safe One India SP Compact: Maritime Land Lease in Kakinada
Safe One India SP Compact, registered on February 13, 2026 with a capital of just ₹1 lakh in Delhi, was granted 45 acres of Maritime Board land near Kakinada on a 30-year lease.
Concerns have been raised that one of its directors reportedly lacks prior experience in the relevant sector, despite the company proposing an investment of around ₹1,835 crore. The speed of approval and land allocation has drawn criticism from various quarters.
Non Magnetec Pvt Ltd: Incentives and Industrial Land in Nellore
Non Magnetec Private Limited, registered on April 13, 2026, was allotted 25 acres in the Naidupeta Industrial Park in Nellore district within two months.
The company has proposed an investment of ₹1,250 crore, and the government reportedly sanctioned:
- Capital subsidy of ₹564.92 crore
- Additional industrial incentives
These large-scale financial incentives have also been questioned by critics.
Device Pharma Tech Pvt Ltd: Early Bird Subsidy in Sri City
Device Pharma Tech Private Limited, established on January 19, 2026, was granted an early-bird capital subsidy of ₹45.20 crore in Sri City in June 2026.
This decision has also drawn criticism, with questions raised over eligibility and timing.
Concerns Over Policy and Transparency
Across these allocations, several concerns have emerged:
- Rapid land allotments to newly registered companies
- Lack of established operational history of beneficiaries
- Extremely concessional lease rates compared to market value
- Large-scale subsidies and incentives
- Accelerated approval processes outside normal industrial timelines
Critics argue that such decisions warrant deeper scrutiny, especially when public assets are being allocated at nominal rates.
Comparison With Other Allocations
It has also been pointed out that land allocations to certain central government institutions, including defence-related entities and RBI-linked establishments, have reportedly been made at market-linked rates. In contrast, some newly formed private companies appear to have received highly subsidized land deals, raising questions of consistency in policy application.
Policy Rule and Alleged Violation Concerns
According to critics, Government Order No. 571 reportedly stipulates that lease rates should be at least 10% of market value. However, in regions like Visakhapatnam, allegations suggest that land has been allotted at nominal lease rates, potentially deviating from established norms.
Opposition and Public Concerns
Opposition parties, public interest groups, and policy analysts argue that approving multi-thousand-crore investment proposals and allocating large land parcels within weeks or months of company formation is highly unusual in standard industrial policy frameworks.
They demand a comprehensive and independent inquiry into:
- The selection process of beneficiary companies
- Valuation of land parcels
- Justification of subsidies and incentives
- Compliance with government rules and industrial policy guidelines
Conclusion
The ongoing controversy highlights growing concerns over transparency, valuation standards, and procedural integrity in large-scale land allocation decisions in Andhra Pradesh. As criticism intensifies, calls for detailed investigation and policy review continue to gain momentum.
