The BJP in Andhra Pradesh, India has sought the return of the excess 700 acres of land from Brandix India Apparel City Pvt Ltd (BIAC), since the latter has failed to keep its promise of providing direct employment to 60,000 people at the apparel park.
The integrated apparel supply chain city, managed by Brandix Lanka Ltd, had been able to provide jobs to only 18,000 people, which is about one-third of what it had promised. The issue was brought to the notice of the State Assembly by BJP MLA Penmetsa Vishnu Kumar Raju, who stated that the BJP demands the land be surrendered.
As per the deal signed between the Andhra Pradesh government and Brandix Lanka Ltd in July 2005, Brandix holds 76 per cent share, while the government 24 per cent share in the apparel park. In return, the state government agreed to give 1,000 acres land at a concessional rate of Re 1 per acre per year for 25 years. It had also spent Rs 2,27.69 crore towards providing power, water supply pipelines, and laying roads to the apparel park.
Under the lease agreement, which was drawn up in June 2006, BIAC agreed to create direct employment for 60,000 persons within five years of its commencement. On its failure to meet its employment target, it is liable to surrender the balance of land in proportion to employment not generated to the APIIC. If the company fails to return the excess land as well, it must pay lease rental as per market rates.
“Since the company has been able to generate employment for only a third of its promised figures, the balance of land must be surrendered to the APIIC,” the MLA stated.
Furthermore, he demanded that the employees, who are still being paid wages as per a GO of the Labour Department issued back in 2011, should be paid as per a fresh GO that the government must issue at the earliest to ensure living wages to the workforce.
