When in Opposition, the TDP accused SSEL of being a benami linked to Jagan Mohan Reddy and his cousin, Kadapa YSRCP MP YS Avinash Reddy.
Published Jan 12, 2026 | 6:21 PM ⚊ Updated Jan 12, 2026 | 6:21 PM
Andhra Pradesh Chief Minister N Chandrababu Naidu.
Synopsis: Critics and opposition voices are now questioning the motives behind this apparent flip-flop, with social media swarming with posts about whether it is symbolic of economic pragmatism or the result of undisclosed ties.
The Telugu Desam Party-led coalition government in Andhra Pradesh has approved the allotment of 466 acres in the Kadapa district to Shirdi Sai Electricals Limited (SSEL) for setting up a ₹4,914 crore greenfield manufacturing facility.
The decision to grant the land is seen as a U-turn by the TDP, which, while in Opposition, labelled SSEL as a “benami” (front) company for former Chief Minister YS Jagan Mohan Reddy and his associates during the YSR Congress Party (YSRCP) regime.
Critics and opposition voices are now questioning the motives behind this apparent flip-flop, with social media swarming with posts about whether it is symbolic of economic pragmatism or the result of undisclosed ties.
The approval, formalised through Government Order (G.O.) Ms. No. 16 on Saturday, 10 January, by the Industries & Commerce Department, follows clearances from the State Investment Promotion Committee on 3 January and the State Investment Promotion Board on 6 January.
According to sources, a few ministers are understood to have questioned the wisdom of favouring a company which the party had dubbed as Jagan’s benami. But the chief minister is learnt to have said that anyone who is willing to invest in Andhra Pradesh is welcome.
The project, located at the Mega Industrial Hub in Kopparthy in Kadapa, promises to produce electrical steel (Cold Rolled Grain Oriented or CRGO), package substations, ring main units, panel boards, wind masts, and related components.
It is expected to create 5,000 direct jobs and involves a fixed capital investment of ₹4,864 crore spread across four phases, with full operations slated between January 2027 and April 2028.
SSEL has been allocated 466.35 acres, adjusted down from an initial request of 540 acres due to site constraints, at a concessional rate of ₹8 lakh per acre. The incentives package, under the AP Industrial Development Policy 2024-2029, is substantial: up to 54.07% of the fixed capital investment, including a 15% subsidy capped at ₹729.6 crore, an 8% employment subsidy up to ₹349.12 crore, power tariff reimbursements, and full net SGST reimbursement on intra-state sales limited to Rs 1,481.7 crore. Additional support includes 30 acres for a railway siding and facilitation for a 100 MW solar plant nearby.
The TDP’s decision to favour SSEL contrasts sharply with its rhetoric during the YSRCP’s tenure from 2019 to 2024. When in Opposition, TDP leaders, including Chandrababu Naidu and Nara Lokesh, accused SSEL of being a benami entity linked to Jagan and his cousin, Kadapa YSRCP MP YS Avinash Reddy. The party alleged widespread corruption, including kickbacks in solar projects and power sector deals worth hundreds of crores.
During the TDP’s previous regime (2014-2019), the government had imposed a ₹178 crore penalty on SSEL for allegedly supplying substandard transformers. Post-2019, TDP spokespersons, including K Pattabhi Ram, made claims of scams in smart meter purchases and renewable energy contracts involving SSEL and related firms like Indosol Solar.
In 2023, the party demanded a CBI probe into a “transformer scam,” directly implicating SSEL.
Electoral bonds data released in March 2024 further fuelled controversy, revealing that the TDP accepted ₹40 crore in electoral bonds from SSEL and redeemed them on 11 January 2024.
The allotment of land to SSEL is seen as indicative of the fluid nature of Andhra Pradesh politics, where economic incentives often trump rivalries. While the project could catalyse growth in Rayalaseema, it risks eroding public trust in TDP’s anti-corruption narrative.
The controversy may intensify further, potentially impacting the party’s image ahead of future polls. For SSEL, led by CMD N Visweswara Reddy, the approval is a green light for expansion, but it comes amidst lingering shadows of political intrigue.
(Edited by Majnu Babu).
