RAK writes to PM on Vanpic

HYDERABAD: The CBI’s probe into the Vodarevu and Nizampatnam Ports Industrial Corridor (VANPIC) has put the AP government in a fix. A letter written by the ruler of Ras al Khaimah (RAK), one of the emirates in the UAE, to the Prime Minister over the delay in clearances for the project has put the government in a tricky situation.According to the letter written by Saud bin Saqr al Qasimi to Manmohan Singh (dated Aug. 16, 2011), the ruler of the emirate raised concerns regarding the delay in the Vanpic project, stating that it would be a huge setback to the investment climate in India in general and AP in particular.The letter, to which Express has access, goes into details of investments made by RAK through its investment arm, the RAK Investment Authority and other RAK-owned government institutions.It said RAK has made various investments in India including in aluminium smelting, tile manufacture, real estate and ports along with port-based industrial development.One such investment executed on a government-togovernment basis was Vanpic for which an MoU was signed with the government of AP. ‘’I bring to your notice that despite best intentions, the vital project of India’s strategic coast was unable to take off and is now mired (sic) in various difficulties which is beyond the control of the principal decisionmakers and civil service of the AP Government,’’ he said. The letter further pointed out that over 200 million US dollars has been invested in the project and neither the RAK government nor the Indian government was able to make any headway despite repeated efforts.‘’It is of great concern to us how the project is getting delayed for myriad reasons and the original investments are not generating returns.Importantly, the input cost for development has risen steeply,’’ the RAK ruler observed.Qasimi requested the Prime Minister to initiate enquiries with the state government so that the project is made to progress without any further delay.Consequent to the letter, the Prime Minister’s Office replied (dated Oct. 7) to the RAK ruler, informing him that the issues and concerns raised would be examined by the authorities concerned.On the same day, the PMO wrote to the chief secretary of AP to give the state government’s comments on the matter.Receiving no reply, the PMO sent two reminders, one on Oct. 7 and again on Oct. 21. But so far, no reply has been sent.Sources said the government finds itself in a fix as a CBI probe is underway into the project. ‘’Though there was a discussion that the CBI probe should not come in the way of giving clearances to the project, the government is wondering how to wriggle out of the situation,’’ government sources said.One of the promoters, Nimmagadda Prasad, who had transferred 40 per cent stake in Vanpic to the Navayuga group, reportedly for an undisclosed sum, is under CBI scanner in connection with the alleged quid pro quo benefits received by various companies from the YSR government for investments in Jagan’s companies.