Andhra Pradesh - Ongole   

Civic body in an unenviable situation

Special Correspondent

Row over resolution allotting land to star hotel

ONGOLE: The Congress-ruled Ongole Municipality finds itself in a piquant situation in clearing doubts over allocation of one acre of prime land in Ura tank here to a private organisation, Bhuwaneswari Hospitalities, for construction of a three-star hotel and justify the proposal.

The municipal council passed the resolution without debate in the absence of both municipal chairman Bapatla Hanumantha Rao and municipal commissioner Challa Anuradha. Unable to face criticism from opposition members, vice-chairperson Nagalakshmi, who was in chair, adjourned the meeting abruptly after declaring that all resolutions on the agenda, including land allotment to hotel, were passed, leading to doubts over fairness of the land deal.

Damage control

In a damage-controlling exercise, Mr. Hanumantha Rao explained that the land was allotted to Bhuwaneswari Hospitalities for hotel construction on build-operate-transfer (BOT). The private organisation would construct hotel at its own cost and pay a lease of Rs. 31.2 lakhs per year for the land for 25 years. It should hand over the land along with hotel to the municipality after the lease period.

He said it was fair deal because the municipality would get revenue through lease besides property tax assessed on building cost. It would give additional facility like three-star hotel to Ongole and it would help spur commercial, industrial and tourism activities.

Ms Anuradha pointed out that it became a difficult task to protect the land on Ura tank from encroachment. The municipality had proposed to allot two acres of land in Ura tank for construction of a fire station.

It now wants to allot one acre to fire station and one acre to the private hotel.

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