₹1,622 Cr Project, ₹602 Cr Sops: Reliance Deal Sparks Debate!
Andhra Pradesh Chief Minister Chandrababu Naidu appears to be spending more time in the service of corporates than in the service of the people of the state. On one hand, government lands are being indiscriminately handed over to industrialists at throwaway prices, and on the other, there is no hesitation in granting incentives to the extent demanded by companies. The Chandrababu government is going to the extent of overriding the very policies it framed and granting exemptions, openly favouring big corporates. Looking at the massive incentives being extended by the Chandrababu government, one IAS officer sarcastically remarked that it appears as if the wealthy state of Andhra Pradesh is rescuing the so-called poor company Reliance Industries. Reliance Industries recorded a net profit of as much as ₹81,309 crore in the last financial year, that is, 2024–2025. On the other hand, the Chandrababu government is borrowing regularly month after month to meet its expenses.
Reliance Consumer Products Limited (RCPL), a subsidiary of Reliance Industries, has decided to establish an integrated manufacturing facility for carbonated soft drinks, fruit juices, and packaged drinking water at Orvakal in Kurnool district of Andhra Pradesh. For this, the company is planning to invest ₹1,622 crore. It is estimated that this investment will generate employment opportunities for 1,200 people. For this project, the company sought tailor-made incentives to the tune of ₹602 crore. Consequently, even though the Food Processing Policy does not permit such incentives, the government agreed to grant the concessions as demanded by the Reliance company. The proposal was placed before the SIPB and was given a green signal.
After carefully examining the decision of the State Investment Promotion Board, the government approved the sanction of tailor-made incentives up to ₹601.87 crore, which is 37.10 percent of the total fixed capital investment (FCI), as requested by the company, in accordance with the ‘Andhra Pradesh Food Processing Policy (4.0) 2024–29’. These incentives were approved to be paid over a period of five years by specifically relaxing the ineligible condition in the ‘AP Food Processing Policy (4.0) 2024–29’. That too, without even a single rupee difference from the amount sought by the company—whatever was asked was given in full. In this regard, the government has recently issued a GO as well.
