Telangana govt to crack whip against defaulting companies
Hyderabad: Tourism Minister V Srinivas Goud instructed the tourism department officials to crack the whip on companies and firms that have been evading payment of arrears and revenue share (Additional Development Premium) of different projects developed under Public Private Partnership (PPP) mode. “Initiate strict action, including legal recourse against such companies as per the agreement […]
Hyderabad: Tourism Minister V Srinivas Goud instructed the tourism department officials to crack the whip on companies and firms that have been evading payment of arrears and revenue share (Additional Development Premium) of different projects developed under Public Private Partnership (PPP) mode.
“Initiate strict action, including legal recourse against such companies as per the agreement norms,” he told officials at a review meeting.
Apart from strict action against companies that come up with unreasonable and lame excuses for payment of arrears and revenue, he instructed the tourism officials to write letters to different government departments, electricity, water board and others and get the power and water supplies disconnected o such units.
In united Andhra Pradesh, the then governments, to promote tourism and develop different projects under PPP mode, sanctioned valuable and strategically located government land to different private companies.
Under this initiative, I-Max Theater (Necklace Road), Expotel Hotel (Lower Tank Bund), Trident Hotel (Madhapur), Daspalla Hotel (Jubilee Hills), Jalvihar (Necklace Road) and Golf Courses at Shamirpet were developed on government lands.
During the execution of lease agreements, the then governments had stipulated ules and regulations, especially in terms of annual lease and revenue sharing (ADP).
While some companies and individuals who obtained government lands and developed different projects and were running them successfully, some others, citing petty reasons, were approaching courts and not developing projects, the Minister said.
He said those who had developed various projects were not paying annual lease amount and revenue share and were approaching courts with different reasons. They were continuing operations and projects on government lands and this had resulted in huge financial losses to the government.
“Ensure all the arrears are paid immediately and initiate stern action against companies that don’t comply,” Srinivas Goud directed the officials. The issue would be taken up with Chief Minister K Chandrashekhar Rao and further measures would be taken accordingly, he said.
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