The Greater Visakhapatnam Municipal Corporation (GVMC) has scrapped the existing tender for a proposed horse-riding training centre near Mudasarlova park and will now call for fresh bids. This decision follows a council review that uncovered serious financial and procedural irregularities in the project, initially approved under the previous YSRCP-led administration.
Project Cancellation and Financial Irregularities
The project, conceived in the first half of 2024 with an estimated cost of Rs 6 crore, was officially cancelled during the GVMC council meeting in December 2024. The council, now led by the TDP which secured the mayor's post, cited multiple flaws in the earlier tender process. A key resolution included recovering an advance payment of Rs 3 crore already made and initiating action against officials responsible for the lapses. A committee with representatives from all political parties will conduct a detailed inquiry into the matter.
Visakhapatnam MP M Sribharat, who visited the site with the mayor and local MLA, highlighted the discrepancies. "Although the estimated project cost was Rs 6 crore, claims of Rs 3 crore having been spent were not reflected in the limited progress visible on the ground," he stated. He emphasized that the 2.75-acre site is a prime public asset valued at nearly Rs 75 crore, and leasing it at a nominal rate represented a significant concession.
New Model: Private Investment, No Public Funds
Under the revised plan, the municipal corporation will adopt a completely different model. Mayor P Srinivasa Rao clarified that the GVMC is not against the idea of a horse-riding centre but objected to the previous financial arrangement. "We objected to the earlier arrangement under which the GVMC must purchase horses and bear recurring expenses such as fodder, sheds, electricity bills, and caretaker costs, while the operator pays only Rs 3,000 per month," Rao explained.
The new tender will require private operators to invest their own capital for development and manage all operations and maintenance independently. They will pay a lease to the state government, ensuring no public funds are involved. "Through a re-tender, the park would be developed in a pleasant manner and made accessible to all sections of society," the Mayor added.
Environmental Concerns and Allegations of Illegality
The project also faces opposition on environmental grounds. CPM floor leader and corporator B Ganga Rao questioned the logic of reviving a project previously deemed problematic. "No cement construction should be allowed in a water catchment area, as such works could dry up groundwater and pose serious environmental risks," he argued. He pointed out that several environmentalists had earlier visited the site and opposed the construction, which had begun without formal approval from the GVMC council.
The controversy underscores the challenges in urban project execution and the scrutiny they face following political transitions. The GVMC's move to restart the process aims to ensure transparency, financial prudence, and environmental compliance for the proposed facility at Mudasarlova.