Gulte News
Andhra Pradesh state has been under severe criticism for not able to pull of investments to the state unlike its peers including Telangana. In this backdrop, AP Industrial Minister Mekapati Gautam Reddy announced that the state government entered into 3 MoUs at Dubai expo. However, the company that AP entered into agreement has become a shot in the arm for the Opposition parties and netizens.
Going into details, AP signed an MoU with Causis E-Mobility for upgrading diesel vehicles for public transport. He stated that the Causis facility will come up at Jagananna Mega Industrial Hub at Kadapa with an nvestment of over Rs 3000 Crore.
Now, this is in soup. It can be noted that the Causis E-Mobility had earlier entered into a similar MoU with Maharashtra state government in October 2021 for investment of Rs 2800 Crore in Talegaon near Pune in a new zero-emission EV policy. So, it is not yet known whether Causis has cancelled its MoU with Maharashtra and moved onto AP or whether this is another investment by Causis in AP in addition to Maharashtra.
Meanwhile, reports indicate that Causis E-mobility was only founded on 4 June, 2021 with an authorised share capital of Rs 1,00,000 and paid up capital of Rs 1,00,000. All these reports are growing suspicion on AP’s MoU with Causis at Dubai Expo.
MP Raghurama Krishna Raju has come down heavily on the government’s tie-up with Causis E-mobility. Mentioning the company’s capital and formation year, Raju noted that the company has no major achievements so far. Alleging that this could be a shell company, Raju asked YCP leaders to do good to the state at least routing investments via such firms. He advised AP government to play smart and not get caught so easily within 24 hours. Netizens too heavily trolled these announcements of AP state government.
On the other hand, AP also struck an MoU with Trio General Trading company, part of Fluent Grid of Essar Investment Group in Vizag for high-end IT company AI and ML Technologies that is expected to provide 300 jobs in the Vizag unit.
Similarly, another agreement was struck with Regency Group which is into the retail market with its Grant Hyper Market brand. The Regency Group has agreed to set up 25 retail outlets with Rs.150 crore with distribution centres at Anantapur, Kadapa, Madanapalle, Chittoor, Nellore and Hindupur, and setting up spices and pulses package units.
On the whole, it needs to be seen how these investments announcements would actually turn into reality. Let’s wait and watch.
Tags ANdhra Pradesh CM Jagan Mekapati Goutham Reddy
