News that Reliance and Adani groups have backed out of investing in Andhra Pradesh were doing the rounds on social media in the first week of November, 2019. An article published by news portal Gulte.com on 3rd November, 2019 claimed the following.
The article even quotes State IT minister Gautham Reddy as shown below.
But are Adani and Reliance taking back their investments from Andhra Pradesh?
Adani group had agreed to invest Rs 70,000 crore over 20 years to set up solar-powered data centres in Visakhapatnam during Chandrababu Naidu’s tenure. It has now decided to settle for an investment of Rs 3,000 crore over two years. The group has conceived its first phase of Data Centre Park in the land parcel of 89 acres at Kapuluppada ushering in the concept of Data Centre Park with presence of Hyper-scalers in a differentiated manner at Vizag.
Similarly, Reliance group had signed an MoU with the previous TDP government, agreeing to set up two large-scale units; a mobile handset manufacturing unit in Tirupati with Rs 15,000 crore and an oil and gas unit in Kakinada with Rs 37,000 crore.
Speaking on the side lines of the two-day BIMSTEC conclave of ports, which was inaugurated in Visakhapatnam on 7th November 2019, IT minister Gautham Reddy thrashed the claim.
He further clarified that: “The Adani group has not withdrawn its plans to invest in a data park near Visakhapatnam. We have asked the group to come up with a clear investment plan so as to allocate land in phases. We want the project to take a concrete shape.”
Similarly the minister also clarified that due to legal issues raised by some farmers in Tirupati, negotiations are being done with the Reliance group and the government is hoping to allocate land someplace else.
Therefore, the claim published by Gulte.com and similar claims, about Adani and Reliance groups dropping their investment plans in the State are false. In fact, the original investment plans are being diluted with their scope being severely reduced.