Two major projects - the desi car venture by MLR Motors and the 100-storied trade tower - are bogged down by controversies even before taking off.
The State government is believed to have opposed a move by MLR Motors to accept investments from an automobile company and an airline.
Official sources told this correspondent that the government got an alert note from the Intelligence Bureau that unaccounted money belonging to a dead BJP leader was in circulation in the two companies.
There is also a question mark over the trade tower project at Manchirevula with Chief Minister Y.S. Rajasekhar Reddy not yet deciding to award the project to the highest bidder, Reliance Energy, in the auction held on July 6.
The company, owned by Mr Anil Ambani, had offered to pay Rs 6.57 crores per acre while an Israeli firm, Elibt Medical Imaging, had offered Rs 6.10 crores.
However, Mr Anil Ambani's ties with Samajwadi Party chief Mulayam Singh Yadav are coming in the way of the Chief Minister deciding in his favour. Dr Reddy is wary of how the Congress high command would take it.
The AP Industrial Infrastructure Corporation has not moved on the project though its managing director B.P. Acharya announced on the day of auction that a Letter of Intent would be issued within a few days and the project would start in September. The corporation has not yet issued the LoI. Sources said the Chief Minister was in two minds over awarding the project and might discuss the issue with the party high command before taking a final decision. The desi car venture is facing other problems too. Sources said there were differences of opinion between the chief architects of the project, M. Lokeshwara Rao of MLR Motors and Mr B.V.R. Subbu, a big name in Indian automobile market, over mobilising finances and utilising the defunct Daewoo Motors plant at Surajpur. Mr Subbu's Crosslinks has already acquired the plant.
"We did alert MLR Motors against making wrong moves. There will no be dearth of finances for MLR Motors which can easily raise money from the market. We advised the promoters to avoid controversies that may land the project in trouble," a senior industries department official pointed out.
The State government is believed to have opposed a move by MLR Motors to accept investments from an automobile company and an airline.
Official sources told this correspondent that the government got an alert note from the Intelligence Bureau that unaccounted money belonging to a dead BJP leader was in circulation in the two companies.
There is also a question mark over the trade tower project at Manchirevula with Chief Minister Y.S. Rajasekhar Reddy not yet deciding to award the project to the highest bidder, Reliance Energy, in the auction held on July 6.
The company, owned by Mr Anil Ambani, had offered to pay Rs 6.57 crores per acre while an Israeli firm, Elibt Medical Imaging, had offered Rs 6.10 crores.
However, Mr Anil Ambani's ties with Samajwadi Party chief Mulayam Singh Yadav are coming in the way of the Chief Minister deciding in his favour. Dr Reddy is wary of how the Congress high command would take it.
The AP Industrial Infrastructure Corporation has not moved on the project though its managing director B.P. Acharya announced on the day of auction that a Letter of Intent would be issued within a few days and the project would start in September. The corporation has not yet issued the LoI. Sources said the Chief Minister was in two minds over awarding the project and might discuss the issue with the party high command before taking a final decision. The desi car venture is facing other problems too. Sources said there were differences of opinion between the chief architects of the project, M. Lokeshwara Rao of MLR Motors and Mr B.V.R. Subbu, a big name in Indian automobile market, over mobilising finances and utilising the defunct Daewoo Motors plant at Surajpur. Mr Subbu's Crosslinks has already acquired the plant.
"We did alert MLR Motors against making wrong moves. There will no be dearth of finances for MLR Motors which can easily raise money from the market. We advised the promoters to avoid controversies that may land the project in trouble," a senior industries department official pointed out.
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