The IT Special Eco nomic Zone proposed by Satyam Computers in the coastal city of Visakhapatnam has run into trouble.
Though the Centre has notified SEZ status to the project, the company is now being forced to shift its location from Thotakonda following objections from the Indian Navy.
The government had allotted 50 acres to Satyam Computers, which started operations in Visakhapatnam in 2005.
However, the land allotted to the company had earlier been given to the Navy though it did not use it for any purpose.
"The district collector resumed the land and allotted it to Satyam but naval authorities took exception to the government's decision," said a senior official.
The Chief-of-Naval Staff wrote to the Chief Minister, Dr Y.S. Rajasekhar Reddy, explaining the importance of the location and informed that the Navy wanted to set up wireless signal system there. This prompted the government to step back.
Sources said that the Chief Minister held a meeting with officials on Friday to check out alternative locations.
Officials informed him of the availability of 50 acres in Kapula Vuppada in city outskirts.
"But this land belongs to AP Greyhounds, the elite anti-Naxal squad, and the Visakhapatnam Urban Development Authority," a senior official pointed out.
Dr Reddy was amenable to the suggestion and said that the Greyhounds could be shown an alternative location in the state capital and Vuda could be compensated.
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