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Opinion: Amara Raja Threatens to Leave Telangana

Opinion: Amara Raja Threatens to Leave Telangana

Amara Raja Batteries company owner, Galla Jayadev, is warning that if the promises given to them are not fulfilled, they may leave Telangana.

“If the Congress government does not fulfill the promises made to the Amara Raja Company during the BRS regime in Telangana, we will have to look elsewhere for our plant,” said Jayadev Galla, Chairman, Amara Raja Energy & Mobility.

But is this a warning or blackmail? What happens if the Revanth Reddy government doesn't heed such warnings? Will the company really move to another state? If so, how will it find manpower immediately and set up a new plant? A complete relocation would be costly for the company.

Typically, in such situations, opposition parties seize the opportunity to portray the current government as anti-development and accuse them of driving companies away. A similar situation arose a few years ago between Amara Raja Batteries and Jagan Mohan Reddy's government.

Some companies like Amara Raja seem unwilling to follow certain government rules or compromise on promises made by the government. They want everything on their terms, or else they resort to warnings and tactics like this.

Furthermore, Galla also expressed doubts about the Telangana government's ability to fulfill promises made by the previous administration due to financial constraints, though he remains hopeful. In doing so, he has already put the Revanth Reddy government’s image at risk for his personal demands.

Whenever companies operate in a region, it’s expected that the surrounding real estate market will flourish. So, when a company threatens to leave, they anticipate that the government will fear losing real estate value and local employment.

Whatever the outcome, it will be interesting to see how Revanth Reddy responds. Will he calmly settle the issue by releasing the promised funds, or will he turn a deaf ear and let the company owner make his own decision?

Kiran Sharma

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Tags: Telangana Amara Raja Group