AP govt modifies sale agreements for land allotted to two Adani group SPVs

VISAKHAPATNAM: The State administration has approved modifications to the sale agreements for land allotted to two Adani group special purpose vehicles (SPVs) for data centre projects at Tarluvada in Visakhapatnam district and Rambilli in Anakapalli district.

Key points

• After recommendations of the State Investment Promotion Board (SIPB) at its gathering on August 12, the G.O.
• The Rambilli allotment was subsequently reduced to 159.80 acres based on field conditions.
• The administration has additionally permitted a provision for execution and registration of sale deeds in accordance with administration directions issued from time to time.

After recommendations of the State Investment Promotion Board (SIPB) at its gathering on August 12, the G.O. Was issued on August 20.

Meanwhile, the administration had earlier allotted 160 acres at Adavivaram and Mudasarlova for Vizag Hyperscale Data Center Park Ltd, 266.6 acres at Tarluvada in Anandapuram mandal for Vizag Mega Data Center Park Ltd, and 174.8 acres at Rambilli for Vizag Rambilli Data Center Park Ltd. The Rambilli allotment was subsequently reduced to 159.80 acres based on field conditions.

Notably, the latest decision follows a proposal from Adani Infra (India) Ltd, identified as the primary notified partner for Raiden Infotech for setting up a data centre for Google.

One of the key changes approved by the administration is the inclusion of a provision allowing external commercial borrowings (ECBs), along with financing through financial institutions approved by the Centre. The administration has additionally permitted a provision for execution and registration of sale deeds in accordance with administration directions issued from time to time.

In practice, the modified agreements will include a 30-day period for the project proponents to rectify any breach or default before proceedings are initiated for cancellation of the land allotment.

In a separate decision, 5.84 acres of GVMC land at Adavivaram and Mudasarlova have been approved for lease to Vizag Hyperscale Data Center Park Ltd, an SPV of Adani Infra (India) Ltd.

For now, AP govt modifies sale agreements for land allotted to two Adani group remains the part of the story worth watching, and further updates are likely as more details are confirmed.