Industries leaving Andhra Pradesh over extortion by coalition leaders: YSRCP
Synopsis
YSRCP's Putta Sivasankar Reddy has alleged that coalition leaders in Andhra Pradesh are extorting industries, driving out marquee projects worth thousands of crores — including a ₹6,675-crore Tata Power plant and a ₹3,538-crore Websol project — while the state's Ease of Doing Business rank has fallen from first to eighth.
Key Takeaways
YSRCP spokesperson Putta Sivasankar Reddy alleged on 22 August that coalition leaders are extorting industries in Andhra Pradesh .
The ₹6,675-crore Tata Power project in Nellore reportedly moved to Odisha ; the ₹3,538-crore Websol project at Naidupeta allegedly shifted to West Bengal .
Land allotments to Coca-Cola (Anakapalli) and Azad Mobility (Sri Sathya Sai district) were reportedly cancelled by the current government.
Cement firms including UltraTech , Dalmia , Vicat , Srichakra , and Bharathi Cements allegedly face intimidation in Rayalaseema .
Andhra Pradesh's Ease of Doing Business rank has reportedly dropped from No.
1 to 8th since the change in government.
YSRCP challenged the government's claims of attracting ₹24 lakh crore in investment and creating 20 lakh jobs .
YSR Congress Party (YSRCP) spokesperson Putta Sivasankar Reddy on Saturday, 22 August alleged that industries are being driven out of Andhra Pradesh due to harassment and extortion demands by leaders of the ruling coalition government. Speaking at a press conference at the YSRCP Central Office in Tadepalli, he said the industrial climate in the state has deteriorated sharply since the coalition assumed power, with existing investors also choosing to exit.
Key Projects That Reportedly Moved Out
Sivasankar cited specific examples to back his allegations. The ₹6,675-crore Tata Power project proposed for Nellore has reportedly shifted to Odisha, while the ₹3,538-crore Websol project planned at Naidupeta has allegedly relocated to West Bengal. He demanded that the government explain the reasons behind these exits and challenged its claims of having attracted ₹24 lakh crore in investments and generated 20 lakh jobs.
Sivasankar urged the administration to place complete project and beneficiary details in the public domain. 'If full disclosure of 20 lakh jobs is not possible, the government should at least provide details of 10 per cent of them,' he said.
Land Allotments Cancelled, Employment Hit
The YSRCP spokesperson further alleged that the state government cancelled land allotted during former Chief Minister YS Jagan Mohan Reddy's tenure to Coca-Cola in Anakapalli and Azad Mobility in Sri Sathya Sai district. Land tied to the GINFRA and Jupiter projects was also reportedly cancelled, adversely affecting employment opportunities in the region, he claimed.
Pressure on Cement and Thermal Industries in Rayalaseema
Sivasankar alleged that cement and thermal industries across Rayalaseema are facing intense pressure from coalition leaders seeking transport, ash, and other contracts. Companies including UltraTech, Dalmia, Vicat, Srichakra, and Bharathi Cements are being subjected to repeated interference and intimidation, he claimed.
Ease of Doing Business Ranking Slips
The YSRCP leader pointed out that Andhra Pradesh, which reportedly ranked No. 1 in the Ease of Doing Business index during Jagan Mohan Reddy's tenure — including through the Covid period — has now slipped to the eighth position. He also criticised the government for celebrating an ASSOCHAM award given to APMDC after raising ₹9,000 crore by leveraging the state's mineral wealth, describing it as 'corporate lobbying rather than a genuine achievement.'
Sivasankar maintained that the prevailing atmosphere of fear and political interference is compelling industries to seek more stable destinations outside Andhra Pradesh. The ruling coalition government is yet to respond formally to the allegations.
Point of View
Not verified facts — and that distinction matters. YSRCP, now in opposition after Jagan Mohan Reddy's electoral defeat, has a structural incentive to frame every industrial exit as a governance failure of the coalition. That said, the specific project figures — ₹6,675-crore Tata Power and ₹3,538-crore Websol — are checkable, and the Ease of Doing Business ranking slip from first to eighth is a concrete data point that the government cannot easily dismiss. Andhra Pradesh has historically struggled with investor confidence amid political transitions, and the pattern of land allotment cancellations, if confirmed, would be a legitimate policy reversal worth scrutiny. The coalition's silence so far only amplifies the opposition's narrative.
NationPress
22 Aug 2026
Frequently Asked Questions
What has YSRCP alleged about industries in Andhra Pradesh?
YSRCP spokesperson Putta Sivasankar Reddy alleged on 22 August that industries are fleeing Andhra Pradesh due to harassment and extortion demands from coalition government leaders. He cited the exit of the ₹6,675-crore Tata Power project from Nellore to Odisha and the ₹3,538-crore Websol project from Naidupeta to West Bengal as specific examples.
Which companies have allegedly been targeted by coalition leaders?
According to YSRCP, cement and thermal companies in Rayalaseema — including UltraTech, Dalmia, Vicat, Srichakra, and Bharathi Cements — are allegedly facing pressure from coalition leaders seeking transport, ash, and other contracts. The claims are attributed to YSRCP and have not been independently verified.
What happened to Andhra Pradesh's Ease of Doing Business ranking?
YSRCP claims the state's Ease of Doing Business rank has fallen from No. 1 — a position it held during YS Jagan Mohan Reddy's tenure — to eighth place under the current coalition government. The ranking is used as a key indicator of the investment climate in a state.
Which land allotments did the current government allegedly cancel?
YSRCP alleged that the coalition government cancelled land allotted during Jagan Mohan Reddy's tenure to Coca-Cola in Anakapalli and Azad Mobility in Sri Sathya Sai district, as well as land linked to the GINFRA and Jupiter projects, adversely affecting employment in those areas.
How has the Andhra Pradesh coalition government responded to these allegations?
As of the time of reporting, the ruling coalition government in Andhra Pradesh had not formally responded to YSRCP's allegations of extortion and industrial flight. NationPress will update this report when an official response is issued.
