Opinion: When governments roll out red carpet for industries, AP acts different; an Amara Raja tale

Any industry has to ensure that it has to comply with the laid down norms. There's no second thoughts on it. Non-compliance, if any, should be dealt with later exhausting all avenues of reconciliation instead of pushing industries out. This piece analyses the gains and losses of Amara Raja Group exiting Andhra Pradesh.

Amaravati: "Amara Raja Batteries is not moving out, the government is in fact evicting the company from the State" said Sajjala Ramakrishna Reddy, Advisor to Government (Public Affairs) of Andhra Pradesh. The reaction from the ruling party's chief troubleshooter is not anew as he had made similar remarks on Amara Raja's possible exit citing government's harassment. Minister Botsa Satyanarayana had earlier commented that the government did not pressurise Amara Raja to move and that the decision to move out was for-profit.

Such comments reflect the irresponsibility of people in key positions who should be trying to stop a huge industry from leaving from the state. Any industry has to ensure that it has to comply with the laid down norms. There's no second thoughts on it. Non-compliance, if any, should be dealt with later exhausting all avenues of reconciliation instead of pushing industries out.

Amara raja joins the list of industries displaced by government harassment. Governments usually offer red carpet welcome to anyone who proposes to invest in their State and dole out concessions as much as they can. But this YSRCP government is different! It neither invites new industries nor pays adequate attention to protect the existing investments. Industries established during the previous regimes or those of which having any links to the opposition face harassment.

The Jagan government has been harassing Amara Raja group since it belongs to TDP MP Galla Jayadev. The harassments forced the company to shelve its proposed expansion in Chittoor district. It is learnt that the company at one stage was planning to move to Tamil Nadu.

However, Telangana government which got the whiff of the expansion plan of the group offered a conducive environment for the development and further expansion of Amara Raja group in Telangana. Telangana IT and Industries Minister KT Rama Rao aka KTR took special interest and promised full support.

Result, Amara Raja will now set up a state-of-the-art lithium-ion batteries research and manufacturing unit in the Mahbubnagar district of Telangana, bringing in an investment of Rs.9,500 crore in a staggered manner over ten years. Amara Raja is a leading battery manufacturing company in the country and thanks to the Jagan's government.

Amara Raja leaves Andhra, Telangana welcomes with open arms

The question— 'who stands to lose' with the Amara Raja's exit from Andhra Pradesh move is pertinent. Amara Raja has nothing to lose. It is the playbook of any investor to look for necessary resources, facilities, and a friendly government to set up the industry. With Telangana promising all of it, the group is on the front foot. YSRCP top brass who had sleepless nights until Amara Raja won't suffer any personal loss.

It is the State of Andhra Pradesh, which will lose. So will the 20,000 directly employed and 50,000 indirectly employed in Amara Raja factories in the Chittoor district of backward Rayalaseema. If not for the exit, the group would have pledged and rolled out the same expansion in Chithoor and Andhra Pradesh would have gotten a special recognition.

While lithium-ion battery manufacturing being touted as the future, the industry would generate thousands of employment directly and the government will also earn a huge revenue. Ancillary industries would spring up around Amara Raja group's site and that would generate more employment. The group has announced that it will set up the 'Amara Raja Giga Corridor' in Telangana, which will lead to setting up of the country's first state-of-the-art Energy Research and Innovation Center in Hyderabad.