Amaravati: Amaravati, the capital city of Andhra Pradesh, has come to a grinding halt when it comes to investment and attracting new businesses. The clog in the machine has been the YSRCP government that came to power three and a half years ago. Forget attracting newer players, the state government has gradually forced out established companies and shelved projects that were about to be completed.
Sample this: A Singaporean consortium that would have developed a startup zone in the capital was evicted. Lulu Group from the UAE was sent out from Visakhapatnam. Adani was threatened. Franklin Templeton was shunted out. In Sri Satyasai district, Kia suffered harassment. Jockey was made to leave and Reliance too was kicked out.
One can count on fingers the number of industries that have come to the state since the YSRCP came to power. Instead many have left. While all the neighbouring states are trying to attract industries and investments, the Andhra government is pushing out industries for which land allocations and agreements have already been made in the past.
Several established companies are moving to the neighbouring states fearing for their business interests by the ruling party's representatives and the constant demands for concessions.
Lulu runs away to Tamil Nadu
During the previous government's tenure, the Lulu company of UAE signed an agreement to build an international convention center and a mega shopping mall in Visakhapatnam with an investment of Rs 2,200 crores to employ 7,000 people. The government leased out 13.83 acres on Visakha beach road. The project's foundation stone was also laid.
Also read: Opinion: When governments roll out red carpet for industries, AP acts different; an Amara Raja tale
However, as the project was about to start, the YSRCP government came to power and cancelled the land allocation. The issue was handled unprofessionally so much so that the company announced that it will not invest in any project given the situation in the state. On March 28 this year, Lulu Group signed an MoU with the Tamil Nadu government to invest Rs 3,500 crore.
Franklin Templeton expelled
Franklin Templeton, one of the Fortune 500 companies, took the initiative to set up a technology development campus in Visakhapatnam during the previous government's tenure. The company said that it will provide 2,500 high-level IT jobs and invest 70 million dollars. The government had allocated 40 acres for the institution and announced incentives for the project. However, soon after YSRCP came to power, the company faced issues in kickstarting the project as the new government reallotted the same land to some other company. Even after 5 years since it was first initiated, the project has not seen the light of day yet.
Jockey too moves out
The previous government had allotted 27 acres to Page Industries Limited (a Jockey apparel manufacturer) for setting up a factory at Raptadu near Anantapur. With an investment of Rs 129 crore, the company planned to set up a factory and warehouse to manufacture 32.4 million garments annually. It was estimated that 6,420 people would have been directly employed.
After YSRCP came to power, a public representative of the party threatened the representatives of the company for donations. He warned that the subcontracts should go to his acquaintances and the jobs should be given as he said. As a result, Jockey group approached the government seeking cancellation of the MoU it had signed with the Andhra Pradesh Industrial Infrastructure Corporation (APIIC).
Triton suffers a similar fate
In September 2018, American company Triton signed an agreement to set up solar battery manufacturing plants in Visakhapatnam and Chittoor with an investment of Rs 727 crore. It is a leading manufacturer of printable solar cells, printed lighting, and printed batteries. After YSRCP came to power, the government showed little care for the project following which the company bid the state goodbye and shook hands with the Telangana government.
Reliance left after giving back the lands
During the previous government's regime, the Reliance company came forward to set up an electronics manufacturing unit near Tirupati at a cost of Rs 15,000 crores. The government had allocated 136 acres to the project. YSRCP handed over 75 acres to Reliance after coming to power. As many as 15 of those landowners filed cases in court for various reasons. As a result, 50 acres of land fell into dispute.
As an alternative, Reliance did not agree to APIIC's proposal to give land free of any disputes at Padiredu Forest of Vadamalapet Mandal. They returned the lands allotted to them to APIIC.
