It takes time for MoUs to ground, companies examine multiple factors, says Sridhar Babu
Industries Minister D Sridhar Babu said MoUs take time to turn into investments as companies examine financial and policy factors. He claimed the Congress government is working to ground most agreements and highlighted Telangana’s IT export growth under its rule
Hyderabad: A day after BRS chief K Chandrashekhar Rao questioned the Congress government’s claims on crores of investments at the Global Summit and World Economic Forum editions in Davos, Industries Minister D Sridhar Babu admitted that it takes time for agreements to get grounded.
Even after signing agreements, companies examine different factors, including financial closure, loans and measures to reach their objectives. Based on these outcomes, the agreements turn into investments and get grounded, he said.
At a press conference here on Monday, the Minister said after the investment announcements made at the Davos 2024 edition in January, questions were raised in April about their confirmation. The same was the case after the Davos 2025 edition announcements as well, he said.
“The Congress government is making all efforts to ensure 60 to 80 percent of these agreements get grounded. Every month, our Special Chief Secretary is reviewing the status and issues, if any, being faced by the investors,” Sridhar Babu said.
The Industries Minister stated that there was stiff competition for securing investments among the southern States. Companies examine the incentives, subsidies, land and other factors offered by different States and plan accordingly, he said.
“We need to create trust among the investors and the BRS should refrain from criticizing the companies’ investments. In other States, companies are worried over their future after five years,” Sridhar Babu stated.
Stressing that the BRS government was all about hype, the Industries Minister said the Congress government creates hope among the investors.
The BRS government boasts about IT exports increasing from Rs 55 crore in 2014-15 to Rs 2.42 lakh crore in 2022-23. In the last one and half years under the Congress government’s rule, the IT exports from the State were Rs 3.23 lakh crore, the Minister claimed.
