Questions are being raised even within the Andhra Pradesh government over its approach to attracting investments. If the government succeeds in bringing large-scale investments to the state and genuinely creates jobs, it would naturally be welcomed by everyone. However, officials themselves say that the coalition government’s handling of certain projects has given rise to several doubts. According to official sources, whenever the Andhra Pradesh government receives a proposal from a company, it appears to focus more on granting immediate approvals and projecting them as a flood of investments and a wave of employment opportunities for the state. This has led to concerns over whether approvals are being granted without conducting proper scientific or technical evaluation.
Recently, the Andhra Pradesh government allotted 45 acres of land in Kakinada to SAF One India SP Compact Private Limited for setting up a Sustainable Aviation Fuel (SAF) project. The company has stated that it will invest ₹1,835 crore and generate employment for 2,500 people. The government order states that, with the approval of the SIPB, the company will be given the 45 acres of land in Kakinada on lease. The order also specifies that the company must implement the project within 15 months of the land allotment. It is well known that the Narendra Modi-led Central government has been blending ethanol with petrol on a large scale to reduce the country's oil import bill. However, there have also been concerns regarding the use of ethanol-blended petrol. Some consumers fear that it could damage the engines of cars and other vehicles, although the government has dismissed such concerns.
Similarly, just as ethanol-blended petrol is being used in automobiles, Sustainable Aviation Fuel (SAF) is an alternative fuel produced from renewable waste materials for use in Aviation Turbine Fuel (ATF) used by aircraft. What is noteworthy is that announcements have been made for around 200 projects aimed at producing 30 million tonnes of Sustainable Aviation Fuel by 2030. However, according to a recent report published by BusinessLine, these projects have not taken off as expected. Some projects have stalled midway, while others have witnessed significant delays.
The report also states that many projects are still at the initial stage and estimates suggest that production may reach only about 20 million tonnes by 2030, well below the target. A senior IAS officer expressed the view that the Andhra Pradesh government appears to have hurriedly allotted 45 acres of land to this company without taking into account the complexities associated with such projects. It remains to be seen how successfully this project progresses in Andhra Pradesh. Officials say that, apart from the absence of a proper policy framework for such projects, another major challenge is the limited availability of funding for the companies involved.