The state government has introduced new policies and has eased government licensing to win the leading companies.
Ashok Leyland of Hinduja Group allocated 75 acres to a bus factory in 2018, when Naidu served as chief minister during his tenure. When Jagan Mohan Reddy took over Naidu in 2019, Vijaywada’s factory was 90% completed. The commission could not be made because it did not receive the final permission, forcing the company to abandon the project.
Naidu’s son, Nara Lokesh, the country minister in information technology, electronics and communications, real-time governance and human resources development, has been turning to new investments.
In December, the Ashok Leyland factory was commissioned last month after a meeting with Ashok Hinduja, chairman of the Hinduja Group, in Hyderabad. The organization is considering plans to expand its presence in the state.
“We are exploring more business opportunities, especially in manufacturing, financial services and renewable energy in different verticals,” said Shenu Agarwal, managing director and CEO of Ashok Leyland. “We are delighted to commission the Ashok Leyland bus plant in Vijayawada.” Lokesh told ET that it was not easy to convince businesses to return. “It’s very challenging to withdraw investments during this semester compared to 2014-19,” he said. “But it’s exciting to see people believing in Mr. Naidu’s leadership. He and I personally spoke with investors who have established family relationships with us. If you look at the large amount of investments we’ve attracted in the first 11 months of this government, we’re second, but not second in attracting domestic investment.”
The renewal of Green Energy Professionals faces challenges due to the unilateral reset of tariffs by the previous Andhra Pradesh government, which has been determined under a 777 MW power purchase agreement. Although the renewal claim was upheld in court, the company made no investments in the state.
A meeting held by Lokesh and renewed chairman Sumant Sinha in Davos this year paved the way for its re-entry. Renew is now building India’s largest hybrid project in Anantapur and invested Rs 220,000 crore in two phases, with a groundbreaking ceremony on Friday.
“Andhra Pradesh presents an attractive combination of investor-friendly policies, excellent transmission connections and abundance of solar and wind resources,” Sinha told ET.
