The TDP has repeatedly accused the YSRCP government of driving away investments, and has now claimed that many of the projects listed were approved by the previous government.

Andhra Pradesh Chief Minister Jagan Mohan Reddy wearing a white shirt, sitting at his desk in front of a micFile Photo
news Investment Thursday, June 10, 2021 - 15:33

Andhra Pradesh Industries Minister Mekapati Goutham Reddy on June 9 shared a “snapshot” of industries and investments which came to Andhra Pradesh since the formation of the YSRCP government in June 2019. According to the details shared by the Minister, nearly Rs 30,000 crore has been committed in investments between June 2019 and May 2021, with committed employment for 45,049 people. The announcements come in the backdrop of the opposition TDP repeatedly accusing the YSRCP government of driving away investments in the state. 

Within weeks after the YSRCP government came to power, the World Bank withdrew an expected loan of $300 million for the construction of the state capital in Amaravati. This was soon followed by the Asian Infrastructure Investment Bank (AIIB) also dropping its plans to support the Amaravati project, about five months before the decision to trifurcate the capital between Amaravati, Vizag and Kurnool was announced. In November 2019, UAE-based Lulu group said that it won’t be investing in Andhra Pradesh, after the YSRCP government cancelled land allotment made to the group by the previous TDP government for developing a huge commercial complex in Visakhapatnam. 

According to the information shared by the Industries Minister on “large and mega units grounded” between June 2019 and May 2021, a total investment of Rs 29780.86 crore has been committed by 65 projects. Of these, Anantapur district has the highest number of projects (23). Many of them were established in July-August 2019, and are auto components projects by Korean companies believed to be ancillary units of the KIA Motors production plant in the district. Sixteen of these projects are in Chittoor district, while 11 in Visakhapatnam, six are in Krishna district, three in Guntur, three in Srikakulam, two in West Godavari and one in Kadapa. 

The Minister also shared details of 62 projects still under implementation, with a committed investment of Rs 36,384.29 crore. Seventeen of these projects are expected to come up in Visakhapatnam district, where the government has announced plans to shift the executive capital soon. Twelve of the projects are in Chittoor, seven in Nellore, five in Krishna and three in Guntur (where Vijayawada and the Amaravati region are located), five in West Godavari, three in Kurnool, two each in Prakasam, East Godavari and Srikakulam, and one each in Anantapur and Vizianagaram districts. These projects have committed to creating 76,916 employment opportunities. 

Read: Andhra govt plans to reserve 75% of jobs for locals, but will it deter investors?

Another 21 projects, with  a potential investment of Rs 22,338 crore and 45,764 jobs, are under active consideration, the Minister said. He added that another 49 projects, with a potential investment value of Rs 1,25,572 crore, are under active discussion stage. 

The TDP, however, has pointed out that many of these projects had already been approved under the TDP government. This includes 12 projects including some of the ancillary units of KIA Motors in Anantapur, around 12 projects in Chittoor district including the electronic manufacturing services firm Dixon Technologies, and a few other projects that have either been set up or yet to be implemented across districts. In the past, the TDP had also accused the YSRCP government of reversing or cancelling projects started under the Chandrababu Naidu government, and both parties have blamed each other for the state’s poor financial condition. 

Read: KIA Motors to make an additional investment of $54 million in Andhra Pradesh