HYDERABAD: Galla Jayadev, the former MP and chairman of Amara Raja Energy and Mobility, on Saturday expressed concerns regarding the financial stability of the Telangana government. He suggested that if the commitments made by the previous BRS government are not fulfilled, Amara Raja may have to reconsider plans for expanding its plant in the state.
His comments come at a time when Chief Minister A Revanth Reddy is on a visit to the United States to attract investments to the state.
Amara Raja had signed an MoU with the previous BRS government, committing to a Rs 9,500 crore investment over a period of decade.
This investment is intended for the establishment of a research and development centre, as well as a greenfield manufacturing unit for lithium-ion batteries, with an ultimate capacity of up to 16 GWh and a battery pack assembly unit of up to 5 GWh.
There are no issues with govt as of now: Jayadev
Jayadev spoke to reporters during the groundbreaking ceremony for the company’s customer qualification plant for cell manufacturing and the inauguration of Phase 1 of the battery pack plant in Mahbubnagar district. He recalled the commitments made by the previous government and expressed the hope that the current dispensation would honour them.
The former MP also raised questions about the financial capacity of the present government, saying, “The doubt is, now it’s a different government and until we see it actually happen, we won’t know... Do they have the funds? Do they have the resources to honour those commitments?”
Asked about potential expansion beyond the 16 GWh capacity and whether the company had concerns regarding the new government, Jayadev responded, “There are no issues with the government as of now. We are not expecting trouble, but you know how things go in India... We are hopeful and we are waiting and watching. As long as the experience is positive, we would not have to look elsewhere (for expansion beyond 16 GWh).”
He also projected that Amara Raja Group could become a US$5 billion entity in the next five years.