Jayadev Galla, Chairman of Amara Raja Energy & Mobility, has raised concerns over the financial health of the Congress government in Telangana. He expressed these concerns in relation to the commitments made by the previous BRS regime regarding industrial incentives. Galla’s comments come at a time when Chief Minister A Revanth Reddy and his delegation are on a tour in the US, promoting Telangana as a viable investment destination.Earlier, Amara Raja Group conducted a groundbreaking ceremony for their Customer Qualification Plant for cell manufacturing. They also inaugurated Phase 1 of their battery pack plant, which boasts a capacity of 1.5 GWh, in Mahabubnagar district. The battery manufacturer had previously entered into a Memorandum of Understanding (MoU) with the BRS government, committing to an investment of INR 9,500 crore over 10 years. This investment was intended for setting up research and development facilities and a Greenfield manufacturing facility for Lithium-Ion batteries. The ultimate capacity planned for these batteries is up to 16 GWh, while the associated Battery Pack Assembly unit is set to reach up to 5 GWh.Galla stressed that the previous government had made promises regarding industrial incentives to attract this project to Telangana. He expressed hope that the current government would honor these commitments.
“The doubt is, it’s a different government (now) and until we see it actually happen, we won’t know. So we are hopeful, but I guess the financial situation of the government itself is in question, whether they’re capable of paying these things (industrial incentives). It is not about the intent (of the government). Do they have the funds? Do they have the resources to honor those commitments?” he wondered.
When asked about future plant capacity expansion beyond 16 GWh and his confidence in the current government’s ability to honor past commitments, Galla said there are no current issues with the government.
“We are not expecting trouble, but you know how things go in India. When the government changes generally commitments are not necessarily always kept. We are hopeful and we are waiting and watching. As long as the experience is positive, we would not necessarily have to look elsewhere (for expansion beyond 16 gwh)…” he added.
He also outlined ambitious growth plans for Amara Raja Group, indicating that the company might become a USD 5 billion entity within five years if everything goes according to plan and EV market dynamics remain favorable.
Chief Minister A Revanth Reddy and his team are actively working to attract investment despite these concerns, touring the US to promote Telangana’s potential as a lucrative investment destination. The financial health of the new Congress government, however, remains a point of contention for existing and potential investors like Amara Raja Group.
(Source- PTI)
