Comparisons are being drawn between Telangana and AP over how they are attracting big companies to invest in the state. While Telangana is walking the extra mile in luring the big investors, the AP government’s ways and the political interference are driving the industrialists away. While Telangana is rolling out a red-carpet to the investors, the situation in AP is driving people out.
Last week, Mahindra and Mahindra CEO CP Gurnani visited Telangana to inaugurate a couple of oxygen plants. KTR was there in tow rolling out a red-carpet to him. Ditto with Kitex company of Kerala. The Telangana government requisitioned a chartered flight to take him to Warangal and show him the lands. By evening Kitex announced investments worth Rs 1000 crore.
On the contrary, the companies are fleeing from AP. The Lulu Group, which promised to invest huge amounts, has fled the state. The automobile major Kia has put on hold its expansion plans in AP. The Reliance is all set to leave Chittoor, where it was allocated lands. The story of Amararaja Batteries is also well-known.
What is worrisome is the fact that even the public sector investments are fleeing the state. The Rs 4500 crore LNG terminal project near Gangavaram is now being shifted to Gopalpur in Odisha. Ditto with GAIL’s floating LNG project near Kakinada port. Not a single new investment has come to AP after 2019. This will affect the industrial outlook in AP on a long-term basis.
