The Andhra Pradesh government, led by Chief Minister N Chandrababu Naidu, appears to have gone silent on the proposed allotment of 60 acres of land in Visakhapatnam to Ursa Clusters, a recently incorporated private firm, following widespread criticism in the media and political circles.
Despite cabinet approval and clearance from the State Investment Promotion Board, the Naidu government has yet to issue an official Government Order (GO) regarding the land allocation to Ursa Clusters.
This delay has sparked speculation over whether the government has shelved the plan to allocate the land or if the company itself has withdrawn its proposal to establish a data centre in Visakhapatnam.
It may be recalled that the proposed allocation of 3.5 acres on Rushikonda Hill No. 3 and 56.5 acres in Kapuluppada to Ursa Clusters stirred controversy, especially since the company has no prior experience in IT or data centre operations.
Initial reports suggested that the land was being offered at a nominal rate of 99 paise per acre, similar to the rate offered to Tata Consultancy Services (TCS) for a project in the same area.
However, the company later clarified that it would purchase the land at ₹1 crore per acre in Rushikonda and ₹50 lakh per acre in Kapuluppada.
Despite this clarification, the move drew criticism at both the state and national levels due to the company’s lack of credentials and the seemingly favourable terms. It also triggered a political row between Kesineni brothers — former MP Nani and current MP Chinni.
In the wake of the controversy, the Naidu government seems to have backed off from proceeding with the land allotment.
While the government has issued the GO for TCS’s land allotment, it has kept the GO for Ursa Clusters on hold.
This has led to speculation in media circles about whether Ursa Clusters has withdrawn its project due to the delay, or if the government is reconsidering its decision. The suspense continues.
