The Andhra Pradesh government has issued notices to IT companies in the Rushikonda IT Special Economic Zone here as they have not yet begun operations despite having been allotted land long ago.

State IT Minister Nara Lokesh, the son of the Chief Minister N Chandrababu Naidu, on Sunday said the allotment would be cancelled if the companies failed to start construction.

After inaugurating two-day global workshop on ‘Supporting Innovative Entrepreneurs and the Role of Technology Transfer’, organised by the Asia and Pacific Centre for Transfer of Technology (APCTT) in collaboration with Indian Innovators' Association (IIA) and AP Innovation Society, Lokesh told reporters that the government had classified the companies into three categories.

The Minister said the government would take firm action within three months. On the plea for de-notification by some of the IT companies in the SEZ, he said the matter had already been referred to the Centre for clearance.

He said Andhra Pradesh stood first, along with Telangana, in ‘ease of doing business’ and provided details of incentives being doled out to encourage innovative entrepreneurs.