Telangana CM Revanth Reddy’s recent 10-day visit to the United States, purportedly aimed at securing investments, has stirred significant controversy. The Chief Minister’s Office (CMO) announced that Rs. 31,500 crore in investments had been secured, with 19 companies signing memorandums of understanding (MoUs) with the state government.
However, doubts have arisen regarding the legitimacy of some of these companies. Reports suggest that a few of the firms that signed MoUs with the state government are dubious, with questionable backgrounds and operations.
Additionally, some well-known companies included in the agreements had already initiated services in Telangana during the previous BRS government. Critics argue that these deals are being rebranded under the current administration despite pre-existing contracts.
One example of this controversy involves Swachh Bio, a biofuels manufacturing company with which the state government has signed an agreement. The Revanth government announced that Swachh Bio would invest Rs. 1,000 crores in Telangana, creating 500 jobs (250 directly and 250 indirectly).
However, skepticism surrounds the company’s capacity to make such a substantial investment, as it was established only some days ago and reportedly has fewer than two employees. Further fueling the controversy is the revelation that Swachh Bio is owned by CM Revanth Reddy’s brother, Jagadishwar Reddy, a fact allegedly concealed by government officials.
Another questionable deal involves Walsh Karra Holdings, which the government claims will invest Rs. 42 crores in We-Hub in Telangana and an additional Rs. 839 crores in startup companies associated with We-Hub. However, critics are skeptical about the company’s ability to make such a large investment, given that it was formed less than four months ago and has yet to release any annual reports.
However, the BRS questioned the Congress party on these investments. “Officially, on Telangana CMO’s X handle, investments totaling Rs. 5,540 crore was announced. If we subtract dubious entities like Swacch Bio and Walsh Karra holdings, the actual remaining amount is Rs. 3,720 crores. Can you explain to the people of Telangana where the figure of Rs. 31,532 crores came from? Or is it just another attempt to deceive the public as usual?” asked the BRS party.
Industry experts too have also pointed out the dubious history of two other companies involved in the government’s contracts. NRI Dr. Erram Reddy Tirupathi Reddy has publicly criticized Revanth Reddy’s US visit, calling it a failure and labeling the investments as bogus.
The controversy has spilled over onto social media, where many users have questioned the legitimacy of the deals and accused the government of renegotiating existing contracts in the name of expansion. As a result, Revanth Reddy’s US trip is being widely criticized, with many deeming it a flop.