The firm mentioned in the CMO's X post doesn't have a digital footprint, making many question the rationale behind signing an MoU with such an entity.
Published Aug 08, 2024 | 10:59 AM ⚊ Updated Aug 08, 2024 | 8:10 PM
There is much confusion regarding the CMO's announcement of a ₹1,000 crore investment in Telangana by Swachh Bio.
Raising charges of nepotism, the Opposition BRS in Telangana has questioned the government for signing a memorandum of understanding with a private firm for investing ₹1,000 crore to set up a biofuel plant in the state.
The BRS raised the question soon after an “excited” Chief Minister’s Office (CMO) announced the firm’s investment plan on X.
“Exciting news! After a productive meeting with Chief Minister @revanth_anumula and Industries and IT Minister @OffDSB, Swachh Bio, a lignocellulosic biofuels manufacturing company, has announced plans for a 250 KLPD (Kilo Litres Per Day) biofuels plant in Telangana,” the CMO exclaimed on Tuesday, 6 August.
Chief Minister A Revanth Reddy is currently leading a delegation in the US to attract investments to the state. The CMO added that the investment would create 500 jobs, besides promoting sustainable growth in Telangana.
The BRS, however, did not share the same excitement.
Exciting news! After a productive meeting with Chief Minister @revanth_anumula and Industries and IT Minister @OffDSB, Swachh Bio, a lignocellulosic biofuels manufacturing company, has announced plans for a 250 KLPD biofuels plant in Telangana!
With a ₹1,000 crore investment,… pic.twitter.com/3blr6selJ0
— Telangana CMO (@TelanganaCMO) August 6, 2024
Broadly, the Opposition party based its arguments on two aspects. First, Swachh Bio, the firm mentioned in the CMO’s tweet, has no digital presence. It doesn’t seem to exist in the United States.
Second, a company called Swachh Biogreen Private Limited, has been registered under the name of Jagadeeshwar Reddy Anumula, the chief minister’s brother.
The CMO’s tweet mentioned Praveen Paripati. While there is no visible connection between him and Swachh Bio, he is the owner of Virginia-based SuGanit Systems. The company, founded in 2006, dealt primarily with biofuels.
Paripati is also the founder of SuGanit Bio-Renewables (SBR). Notably, this company works to produce five-carbon and six-carbon sugars and their derivatives from lignocellulosic biomass.
This company has worked in collaboration with the United States Department of Energy, the Department of Agriculture, and the State of Ohio.
Although the seemingly inactive SuGanit Systems received a patent in 2016. The patent is related to deriving valuable products from lignocellulosic biomass.
Despite Paripati’s relations to SuGanit Systems and SBR, Swachh Bio is not registered in the United States.
After the CMO’s tweet, many netizens reported that they could not find any website or social media pages of Swachh Bio. Many raised suspicions over how a virtually unknown company would invest ₹1,000 crores in Telangana.
Additionally, there are no available results on Swachh Bio in the National Corporation Directory, a platform that tracks corporations in the United States.
Meanwhile, it was alleged that the CMO’s tweet referred to Swachh Biogreen Private Limited, a company registered in Hyderabad. The company registered on 21 July 2024, is about two weeks old.
Given its similar name, the opposition is questioning the deal’s legitimacy.
Interestingly, Vedavalli Shivananda Reddy and Jagadeeshwar Reddy Anumula, Revanth Reddy’s brother, co-hold the company. The company has been registered as a beverage manufacturer.
The second name caught everyone’s attention, with the BRS media convener, Krishank, questioning if the US deal was with the chief minister’s brother.
Guys, you represent the Telangana State Government and can't be announcing such deals without due diligence.
Smt. Santhi Kumari, IAS, @TelanganaCS garu, at least you shouldn't be party to such shady deals!
This so called Swachh Bio doesn't seem to have a website, or a Social… https://t.co/n3yjMP0dql
— Konatham Dileep (@KonathamDileep) August 6, 2024
At a press conference, Krishank alleged that Reddy behaved like a nepotist by signing MoUs with his family members. He further demanded that Congress clarify things to the public.
Speaking at a press conference BRS spokesperson Krishank alleged that the Congress was fooling the public
“BRS brought in companies like Foxconn, Lockheed Martin, and Amazon. What credibility do the companies brought in by the Congress have?”, he asked while accusing the Congress of running an ‘office-of-profit,’ and fooling the people.
Announcing that the BRS would take the issue to court, he asked Revanth Reddy to stop taking advantage of the people.
This is not the first time the BRS has raised suspicions regarding the investments pouring into Telangana. Ever since Reddy’s US tour began, the Opposition has been questioning the legitimacy of the deals.
Alleging that companies like Godi India and Walsh Karra Holdings are ‘bogus companies,’ it accused the Congress regime of misleading the public.
However, given the multiple layers of this claim, it remains to be seen if it is an actual concern or plain political mudslinging.
Congress spokespersons did not respond to South First‘s queries on the allegations.
(Edited by Majnu Babu)
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