One of the premier infrastructure companies in the country, GMR Group has proposed to buy lands from the farmers directly for its proposed SEZ near Kakinada. GMR Group has asked the government to expedite allotment of 2,000 acres of government land for its proposed Special Economic Zone near Kakinada coast. This is, apart from the 7,000 acres the firm is already acquiring from individual farmers. The company also wanted part of 2,000 acres that the Andhra Pradesh Industrial Infrastructure Corporation wanted to allot to other industries as well as the Petro Corridor. Sources said that the company recently wrote to the government to withdraw the proposed acquisition by the APIIC enabling it to buy the same land directly from the farmers.

The GMR Group gave a detailed presentation to the government on the use of land in the Kakinada SEZ, which will be set up on about 10,000 acres. The firm intends to build a captive port, mega power plant, oil refinery and petro chemical complex. The industries department is said to have sought remarks from the East Godavari district administration on withdrawal of the notification. The APIIC and industries department will have to decide on withdrawing the proposed acquisition to let GMR buy land from the farmers, it is said.