After Adani, Reliance exits Andhra!

After Adani, Reliance exits Andhra!

Days after Adani group decided to exit AP and chose Hyderabad to set up its solar powered data centre park, Mukesh Ambani-led Reliance Industries has scrapped its plans of setting up of electronic devices manufacturing plant in Tirupathi, Andhra Pradesh. Many other mobile manufacturers such as Celkon, Micromax, Lava and Karbonn have already established their units in Tirupati.

Earlier in 2018, Reliance has signed an MOU (Memorandum of Understanding) with Telugu Desham government, agreeing to set up two large-scale industries with an investment of Rs 52,000 Cr. While the mobile handset manufacturing unit is planned in Tirupathi with 15,000 Cr, an oil and gas venture is planned in Kakinada with 37,000 Cr.

For proposed manufacturing unit in Tirupati, the previous TDP government has arranged 150 acres of land and the YSRCP government delivered 75 acres, according to state officials. But, around 15 farmers have filed cases against the company with regard to 50 acres of land. Considering the legal issues over these lands, Reliance didn't see any viability in continuing with the project as per agreement.

Reacting to it, State IT minister Gautham Reddy said: 'Most of the companies that have agreed to set up industries in AP during previous government are going back. We are in contact with Reliance regarding their decision to step back.'