AP state Government cancels Rs 1,000 crore project awarded to Nagarjuna group

The Andhra Pradesh state government has cancelled the Rs 1,000-crore Andhra Pradesh International Centre project, a multi-utility complex at the AP Bhavan premises in New Delhi, given to Nagarjuna Construction Company.
The project was cancelled as Nagarjuna Construction Company-NCC Infrastructure Holdings consortium failed to execute the Development Agreement (DA) as well as License Agreement (LA) even after expiry of the 75-day deadline. The consortium also failed to submit performance security of Rs 100 crore before the execution of DA and LA.
The Andhra government proposed to take up the project in public-private partnership on a build-operate-transfer basis. It envisaged setting up an international convention centre, guesthouse, residential quarters, hostel and dormitory facilities for government use, and service apartments on 19.84 acres at AP Bhavan.
The consortium was also required to pay Rs 25 crore towards project development expenses but had paid only Rs 5 crore so far, he pointed out. The consortium sought an extension of time by another 60 days but did not give any reason for not fulfilling the contractual obligations.