Dr Reddy’s Laboratories Limited (DRL), has reportedly agreed to pay a penalty of Rs 45mn towards delay in project implementation to Andhra Pradesh Industrial Infrastructure Corporation (APIIC), which in turn has agreed to restore 62 acre allotted to the company in the 1990s.
Sivarama Subrahmanyam, chairman of the state nodal agency was quoted as saying that the company will be setting up a pharma unit at an investment of Rs 250 crore on the said land at Paidibhivaram in Srikakulam district. The company acquired the land from APIIC by paying the land cost in the 90s, it could not execute the project due to delay in clearances from the Pollution Control Board and the ground water department of the state government.
The APIIC board has given time up to 2014 to execute the project, though the company management is willing to complete the same in two years, added reports.