The Andhra Pradesh government has cancelled the land allocated to Lulu Group, VBC Fertilisers & Chemicals.

The state government has cancelled the allotment of 13.83 acre of land in Visakhapatnam to UAE-based Lulu Group for construction of an international convention centre.

The company had laid the foundation stone for its Rs 2,200 crore project in February 2018. It included a mega commercial complex, a convention centre-cum-exhibition hall with 7,000 seating capacity, a five-star hotel with 220 rooms and other supporting facilities.

The project would have provided over 5,000 direct and 5,000 indirect jobs, which was expected to be operational from 2022.

The land that was worth Rs 50 crore per acre was given away at for lease of Rs 4.51 lakh per month. The land was allocated to the sole bidder, though global tenders were floated for the purpose.

Apart from this, the Cabinet also scrapped the allocation of 498.93 acre at Jaggaiahpet in Krishna district to VBC Fertilisers & Chemicals. The land allotment was cancelled as setting a chemical factory in the area will endanger the health of local people.