Former TDP MP and chairman of Amara Raja Energy and Mobility, Jaydev Galla, on Saturday said that if the Congress government in Telangana does not honour the commitments made by the previous BRS government, they may consider expanding the plant’s capacity elsewhere. Galla said the issue was not about intent but whether the state government could deliver the promised industrial incentives, considering its current financial situation.

Amara Raja had decided to shift to Mahabubnagar district in Telangana after being invited by then industry minister KT Rama Rao at a time when the company was being hounded by the YSRCP government led by YS Jagan Mohan Reddy in his home state, Andhra Pradesh. It had signed an MoU for investing Rs 9,500 crore over ten years for a Lithium cell Gigafactory with an ultimate capacity of 16 Giga Watt hours (GWh) and a battery pack assembly unit of 5 GWh, promising to employ 4,500 people in phases. The group held a groundbreaking ceremony on Saturday for their Customer Qualification Plant for cell manufacturing and also inaugurated Phase 1 of the battery pack plant. Speaking after the ceremony, Jaydev Galla said that the previous BRS government had made certain commitments such as industrial incentives while expressing hope that they would be honoured by the current government.

“It is a different government now, and until we see it actually happen, we won’t know for sure. We are hopeful, but there are concerns about the government’s financial situation and whether they can provide the promised industrial incentives. It is not about the government’s intent; it’s about their financial capability,” Galla said when asked about the doubts regarding the government’s commitment. Galla said at the moment there were no such issues with the present regime. He went on to add, “We are not expecting trouble but you know how things are in India. When the government changes, generally commitments are not necessarily 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.”

The Congress government in Telangana has so far continued most of the projects taken up by the previous government except for the proposed Pharma City at Mucherla, which the current regime has proposed to be converted into a futuristic city with a medical hub and skill centres instead of just for pharma companies. It also scrapped the Metro network between Raidurgam and Airport and instead proposed to take it through the Old City Area.