AP’s First IT Tower Loses Its Major Stakeholder

Andhra Pradesh government is struggling to denotify Medha Towers in Vijayawada as a special economic zone (SEZ). Even before the clarity on this emerged, the major partner in Medha Towers, Larsen & Toubro, made a quiet exit from the ownership selling its stake to another company.

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Medha Towers is the first IT SEZ to be set up outside Hyderabad in united Andhra Pradesh during YSR’s regime. But subsequent governments failed to make use of it for various reasons. Chandrababu Naidu government is trying to get it denotified and use the office space for some other purposes of the government.

Medha Towers was built as a joint venture between L&T and APIIC back in 2008. The APIIC has 26 per cent share and L&T has a stake of 74 per cent. The project cost was Rs 70 crore. The new entrant, Greenko, has bought all the stakes of L&T. Though it was touted to be the most suitable office accommodation for IT companies in Vijayawada, only two companies are operating there.