The multi-national L&T infrastructure company is facing an unexpected, rare problem in AP. The company’s Rs. 9000 cr worth projects in the state are stopped. All these works fall within the new rule that all projects should be stopped if less than 25 per cent works are completed.
The Jaganmohan Reddy’s policy gave a strong blow to the L&T company whose shares are also affected in the stock exchange. The company has got overall Rs 3 lakh crore across India and the world. The projects in AP form nearly 3 per cent of its total business.
Following the latest crisis, L&T Managing Director SN Subramanian said that their company is facing an unusual problem in AP and such a situation is not faced ever before. If the projects begun by a previous government are stopped, it will set a bad precedent. He said that such a policy will affect the future investments in AP. Already, the World Bank and Asian Bank have already withdrawn from the state citing negative policy making by the new government.
