The Vadarevu and Nizampatnam Ports Industrial Corridor’s promoters have been forced to dump the Navayuga group from the project in response to a show-cause notice by the state infrastructure and investment department, asking why action should not be initiated against the company for taking Navayuga on board without obtaining the prior permission of the government.
Vanpic is already in a trouble, with the Central Bureau of Investigation including it in the list of projects awarded by the YSR government on quid pro quo basis for making investments in Kadapa MP Y.S. Jagan Mohan Reddy’s group of companies. Vanpic promoter Nimmagadda Prasad was made an accused in Mr Reddy’s assets case. Sources said the deal between the Navayuga group and Mr Nimmagadda Prasad’s company for the purchase of equity was worth about Rs 350 crore.
The lead partner of the project, Ras Al Khaima, on the other hand, is willing to raise its stake to 51 per cent from the current 26 per cent. The move comes in the wake of the CBI preparing to file a chargesheet in Mr Reddy’s assets case. The YSR government gave away the mega twin port project to Mr Nimmagadda Prasad. To avoid a competitive bidding, Ras Al Khaima, one of the seven United Arab Emirates firm, was roped in as joint venture partner. The government defended the nomination, stating that it was done on “government to government” model. The CAG had recently asked the state to explain the legal sanctity for the G2G model.