Civil Supplies Minister Nadendla Manohar, also from Jana Sena, joined in, questioning the officials on the concessions being extended to Lulu.
Published Oct 11, 2025 | 6:00 PM ⚊ Updated Oct 11, 2025 | 6:00 PM
Pawan Kalyan. (X)
Synopsis: After Pawan Kalyan stood firm on his demand that Lulu should listen to the government and not the other way round, it gave enough food for thought whether it was a harbinger of friction. Though there is no alarm as such as whatever differences that are there, they are firmly under the surface. As Pawan Kalyan is more closer to the BJP, he seemed to have raised Lulu issue since the saffron party is against the company.
Early signs of friction appear to be surfacing within the NDA coalition in Andhra Pradesh. Jana Sena chief Pawan Kalyan reportedly took officials to task at the state cabinet meeting held in Amaravati on Friday, 10 October, for bending backwards to please the Lulu Group.
The cabinet meeting, chaired by Chief Minister N Chandrababu Naidu, is said to have generated heat as Pawan Kalyan, who is also deputy chief minister of the state, cornered officials, demanding answers why they were giving a go-by to established rules to accommodate the company.
Civil Supplies Minister Nadendla Manohar, also from Jana Sena, joined in, questioning the officials on the concessions being extended to Lulu.
Pawan Kalyan sought clear answers on what Lulu’s subsidiary, Fair Exports, intended to do at its proposed food park in Mallavalli, Krishna district. The government had allotted 7.48 acres of land for the project. When officials replied vaguely that the company planned to “process food,” Pawan Kalyan pressed further.
“What does that mean exactly?” he asked, refusing to let the matter slide. “Are they going to grow vegetables and fruits? Or are they setting up a slaughterhouse to kill cows and export meat?” His pointed questions reportedly raised the temperature inside the cabinet hall.
Though Pawan Kalyan is not a BJP member, he is known to endorse the party’s Hindutva ideology and often identifies himself as a proponent of Sanatana Dharma. He has frequently said that Prime Minister Narendra Modi is close to him and that he holds him in high regard.
As Pawan Kalyan’s questions became more direct, officials appeared uneasy. Chief Minister Naidu intervened to defuse the situation, clarifying that no permission had been granted for slaughtering cows. “Approval is only for food processing, not for slaughtering,” he assured, drawing a clear boundary.
However, Pawan Kalyan remained relentless. He questioned why the government seemed so eager to accommodate Lulu, as though the company was doing Andhra Pradesh a favour. Turning to Revenue Minister Anagani Satya Prasad, he asked why the state appeared desperate to appease the firm.
He demanded specific details about land allotments, employment assurances, and benefits for local youth. “Will Lulu hire people from Andhra Pradesh, or bring staff from outside?” he asked. “If locals don’t get jobs, what is the point of giving them land? We can’t give away the family silver without returns.”
Minister Manohar highlighted that the government had agreed to increase the lease amount by only 5 percent every five years, whereas the rules require a 10 percent hike every three years. When asked to justify the relaxation, officials claimed that concessions were offered since Lulu promised employment generation.
Pawan Kalyan immediately cut in, demanding clarity. He asked on what basis the land was being allotted to Lulu in Vijayawada and Visakhapatnam. He wanted to know why the company was being allowed to dictate terms despite receiving prime government land.
“The lease agreement says the amount should be reviewed every three years,” he said. “But Lulu wants the review once in ten years. How is that fair? When shops inside Lulu’s malls open, will the company wait ten years to raise rents? If not, why should the government wait that long? There cannot be two sets of rules—one for them and another for us.”
He also sought clarity on local employment. “Lulu is known to employ its own staff elsewhere. If they follow the same policy here, what will our youth gain?” he asked. “We need firm assurances, not vague commitments.”
Revenue Minister Satya Prasad conceded that Lulu was making unreasonable demands. He explained that after the previous Jagan Mohan Reddy government drove the company away, the present government was trying to bring it back. “But Lulu is pushing hard with too many conditions,” he admitted. “We are examining their proposals carefully. Our decisions will serve the interests of the people and the state.”
Chief Minister Chandrababu Naidu, sources said, also appeared displeased with Lulu’s high-handed attitude. He reportedly shared Jana Sena’s concern that the company should not be allowed to dictate terms to the government.
After Pawan Kalyan stood firm on his demand that Lulu should listen to the government and not the other way round, it gave enough food for thought whether it was a harbinger of friction.
Though there is no alarm as such as whatever differences that are there, they are firmly under the surface. As Pawan Kalyan is more closer to the BJP, he seemed to have raised Lulu issue since the saffron party is against the company.
It is said that the BJP’s opposition to Lulu Group is less from economic grounds and more from ideological, religious, and political perspective. The BJP apparently feels discomfort as the group is suspected to be involved in meat processing and halal practices like eating, dressing, or living, that is lawful or permissible according to Islamic law and also because opposition-ruled states lay red carpet for the company led by Yusuf Ali, a UAE-based businessman of Indian origin.
(Edited by Sumavarsha)
