Local activists and retired APSRTC employees have joined the opposition, emphasising the historical and functional importance of the Governorpet-2 depot, which was Vijayawada’s primary bus station before 1990.
Published Jul 24, 2025 | 3:34 PM ⚊ Updated Jul 24, 2025 | 3:34 PM
The LuLu Group was reportedly allotted the prime land at ₹4 lakh per acre.
Synopsis: LuLu chairman MA Yusuff Ali is reported to have shown renewed interest in investing in Andhra Pradesh following his proposals being rejected by the previous YSRCP government. The group is also said to be exploring future investments in the food processing and logistics sectors.
The Andhra Pradesh government’s decision to allocate approximately five acres of prime land at the State Road Transport Corporation’s (APSRTC) Governorpet-2 bus depot in Vijayawada to the UAE-based LuLu Group for the development of a shopping mall and hypermarket has kicked up a controversy.
The project received the green light from the State Investment Promotion Board (SIPB) on 17 July 2025.
The initiative is part of the LuLu Group’s bigger investment plan in Andhra Pradesh, which includes similar projects in Tirupati and Visakhapatnam. The group is expected to invest ₹1,222 crore in the state as part of its expansion strategy.
However, the Vijayawada project has come under fire from opposition parties, APSRTC employees, and local activists. They oppose allocating APSRTC land—valued at approximately ₹400 crore—to the LuLu Group. Chief Minister N Chandrababu Naidu’s government defended the proposal, touting it as a significant step toward economic development and employment generation.
LuLu has proposed to build a state-of-the-art shopping mall and hypermarket on five acres that formerly housed the APSRTC bus station before operations were moved to the Pandit Nehru Bus Station in 1990. The land subsequently became the Governorpet-2 depot.
Strategically located on the banks of the Ryves Canal, near the Police Control Room, the site lies at the heart of Vijayawada. The Ryves Canal was named after Captain Joseph Gore Ryves, a British engineer associated with the construction of the Krishna Anicut between 1852–55.
The Andhra Pradesh Industrial Infrastructure Corporation (APIIC) has already initiated the formal process of requesting APSRTC to transfer the land, with plans to relocate the depot to Gollapudi, around 10 km away. The Vijayawada mall is part of a broader set of LuLu’s investments that include a mall and multiplex in Visakhapatnam and hypermarkets in Tirupati.
The Vijayawada project alone is expected to generate around 1,500 jobs and contribute to the city’s commercial infrastructure.
LuLu chairman MA Yusuff Ali is reported to have shown renewed interest in investing in Andhra Pradesh following his proposals being rejected by the previous YSRCP government. The group is also said to be exploring future investments in the food processing and logistics sectors.
Thanks to the NDA government’s investor-friendly policies, LuLu has revived its interest in Andhra Pradesh. Ali announced ambitious plans, including an international-standard shopping mall with an eight-screen IMAX multiplex in Visakhapatnam, hypermarkets in Vijayawada and Tirupati, and modern logistics and food processing centers across the state.
Despite the promises, resistance to the Vijayawada mall project remains strong. Critics argue that APSRTC would lose valuable land and that the project could adversely impact local businesses.
The CPI(M) has been among the most vocal critics, denouncing the land transfer as a “huge scam” and an act of “economic colonization.” Party leaders Ch. Babu Rao and D. Kashinath condemned the decision to hand over land worth more than ₹400 crore to a multinational corporation, claiming it undermines public interest and diminishes APSRTC’s role as a public transport provider. The party also raised concerns about the impact on small and medium-scale traders. CPI(M) leaders have held protests in Vijayawada and threatened statewide agitations unless the decision is reversed.
The YSRCP, which in 2019 cancelled LuLu’s Visakhapatnam project, has also raised objections. YSRCP MLC Botcha Satyanarayana criticised the allocation of prime land at nominal rates and cited the earlier Visakhapatnam case, where 13.83 acres, reportedly valued at over ₹700 crore, was allotted at just ₹4 lakh per acre.
APSRTC employees and unions, particularly the Andhra Pradesh Public Transport Department (APPTD) Employees Union, have also opposed the transfer of the Governorpet-2 depot. Together with the neighboring Governorpet-1 depot, it supports crucial bus operations and employs around 1,000 workers, including 200 women conductors. The unions argued that shifting the depot to Gollapudi—a location lacking proper highway access—would hamper services and harm employees’ livelihoods.
They estimated the land’s worth at ₹300–400 crore and see the transfer as the loss of a critical public asset. The union submitted a memorandum to the APSRTC Vice-Chairman and Managing Director Ch. Dwaraka Tirumala Rao warned of statewide protests if RTC assets are privatized.
Local activists and retired APSRTC employees have joined the opposition, emphasising the historical and functional importance of the Governorpet-2 depot, which was Vijayawada’s primary bus station before 1990.
In May 2025, a Public Interest Litigation (PIL) filed by Paka Satyanarayana prompted the Andhra Pradesh High Court to issue notices to the state government regarding land allocations to the LuLu Group, especially in Visakhapatnam. The PIL questioned the transparency of these allocations and alleged procedural irregularities. While no PIL has yet been filed concerning the Vijayawada land transfer, it appears increasingly likely given the mounting public resistance.
Political analyst M. Yugandhar Reddy criticised the move as lopsided, pointing out that the land lies in a narrow ribbon along the Ryves Canal bund, which may raise concerns over structural stability. He also noted that the area is already a traffic bottleneck, where Eluru and Bandar Roads converge, leading toward another junction from where the One Town flyover on one side, the road to Pandit Nehru Bus Station, and another to the Low Bridge branch out. Introducing a major commercial complex in such a congested area, he warned, would further aggravate the traffic situation.
“In the first place, public assets like RTC land should not be gifted to private companies at throwaway prices,” he asserted.
In contrast, the state government has portrayed the LuLu Mall proposal as a linchpin of its economic revitalization strategy. In a post on X (formerly Twitter) after a meeting with Ali on 28 September 2024, Naidu stated:
“I’m pleased to welcome the Chairman & MD of Lulu Group International, Mr @Yusuffali_MA, and the Executive Director, Mr Ashraf Ali MA, back to Andhra Pradesh. I had a very productive meeting with their delegation in Amaravati today. We discussed plans for a mall and multiplex in Vizag, hypermarkets and multiplexes in Vijayawada and Tirupati, along with investments in the food processing sector across the state. The GoAP shall extend every possible cooperation and support.”
The government contends that the LuLu Group’s ₹1,222 crore investment will not only create 1,500 jobs in Vijayawada but also stimulate the local economy. The larger investment portfolio, including the Visakhapatnam mall and food processing plant, is expected to generate 5,000–8,000 jobs and attract further foreign direct investment.
The Naidu government sees the LuLu projects as a turning point after the YSRCP government’s earlier rejection drove the group away from Andhra Pradesh. Naidu has repeatedly emphasized his focus on both “ease of doing business” and “speed of doing business,” claiming that Lulu’s return will inspire more global investors to consider the state.
To address concerns over the depot’s relocation, the government has promised to allocate equivalent land in Gollapudi for APSRTC operations. Officials argue that the shift will modernize transport infrastructure without disrupting essential public services. They maintained that the long-term economic gains from the LuLu project will outweigh any temporary inconvenience. Chief Minister Chandrabbau Naiu appears determined to pitch the initiative as part of his vision to transform Andhra Pradesh’s urban centers into modern commercial hubs.
(Edited by Majnu Babu).
