Telangana’s industries, investments take a hit under Congress regime

Industries Minister D Sridhar Babu recently claimed that in the last one year, 1901 units with proposed investments of Rs.12,626 crore and proposed employment of 49,384 had obtained approvals through TG-iPASS

Hyderabad: Speed, which was once Telangana’s USP in attracting investments and establishment of new industrial units in the State, appears to have taken a hit this fiscal year so far.

Industries Minister D Sridhar Babu recently claimed that in the last one year, 1901 units with proposed investments of Rs.12,626 crore and proposed employment of 49,384 had obtained approvals through TG-iPASS.

---

A total of 409 units had already commenced operations and balance was at different stages of implementation, he said at a press conference on Thursday.

However, considering the approvals issued through TG – iPASS during the last fiscal year, the investments have slowed down. In the 2023-24 financial year, 2,672 industries had obtained approvals and generated investments of Rs.28,135 crore to the State. In terms of employment, 84,901 persons were provided jobs in the State.

Though another three months are left for this fiscal year to end, only 1901 units had obtained approvals with proposed investments of Rs.12,626 crore.

As informed by the Industries Minister, another 882 units with an investment of Rs.9,646 crore and employment 40,468 have filed applications for clearances under TG- iPASS and they were under process. Yet, the total investments are unlikely to match the previous fiscal’s investments.

On top of this, Deputy Chief Minister Mallu Bhatti Vikramarka’s statement the other day that the MoUs signed in Davos are just expressions of interest and not binding on the State government, has raised concerns whether these MoUs will translate into those firms setting up shop here.

The pacts were purportedly for investments worth over Rs.40,000 crore as claimed by Chief Minister A Revanth Reddy. BRS leaders have been expressing their concerns over the industrial sector’s performance under the Congress government in the State.

BRS leader Y Satish Reddy posted on X: “Telangana Rising or Reversing? Under the 1 year Congress government TG-iPASS approvals dropped to shocking lows: Industries approved : 1269 (10 year average: 2641) Investments: Rs.8468 crore (10 year average: Rs.29,392 crore) jobs created: 34,862 (10 year average: 1,86,502),”. Is this Rising or Reversing?”
At the same time, considering recent trends as seen from different media reports, Telangana, which was popular for its industry-friendly policies and destination for investments, is losing the race in drawing big units to the State.

Former Industries Minister KT Rama Rao posted on X on October 8: “While Telangana is obsessed about destruction and distraction, TN gets FoxConn investment of Rs.13,180 crore and MH gets Toyota investment of Rs.21,000 crore…”

Denting Telangana’s image, a couple of big companies also relocated their proposed units and investments from the State to other States.

In January early this year, Corning International Corporation relocated its Gorilla glass manufacturing facility to Tamil Nadu. The company had signed a pact with Tamil Nadu to set up its Gorilla glass manufacturing facility at Pillaipakkam, Kanchipuram in Tamil Nadu. The nearly Rs.1000 crore project was initially planned to be set up in Telangana.

Similarly, Kaynes Semicon shifted its chip assembly unit from Telangana to Gujarat. One of the leaders in Outsourced Semiconductor Assembly and Test (OSAT) facilities, Kaynes Technology had in October 2023 signed a pact with the State government for setting up its OSAT and compound semiconductor manufacturing facility in the State for the Rs.2,800 crore investment project.

However, the Industries Minister in September claimed on X that Kaynes Semicon was “fully dedicated” to its Hyderabad project.

“The company remains committed to its Kongara Kalan facility, with the first phase already inaugurated. The new facility in Gujarat does not diminish their investment in Telangana; rather, it enhances employment opportunities,” he had said.

Whether the State can regain its top position as the sought after destination for marquee companies from across the world remains to be seen.