Amara Raja Group Celebrates Launch of Customer Qualification Plant and Phase 1 of 1.5 GWh Battery Pack Plant in Mahabubnagar District.
Jayadev Galla, Chairman of Amara Raja Energy & Mobility, expressed concern over the financial stability of the Congress government in Telangana on Saturday. He warned that if the current administration does not uphold the promises made by the previous BRS government, the company might have to seek alternative locations for expanding their plant’s capacity.
Galla’s remarks came as Chief Minister A Revanth Reddy and his team are promoting Telangana as an investment hub during their tour of the US.
Earlier, Amara Raja Group marked a milestone with the groundbreaking ceremony for their Customer Qualification Plant dedicated to cell manufacturing and the inauguration of Phase 1 of their 1.5 GWh battery pack plant in Mahabubnagar district.
The company had previously signed a Memorandum of Understanding (MoU) with the former BRS government to invest ₹9,500 crore over 10 years to establish a research and development facility and a Greenfield manufacturing plant for Lithium-Ion batteries in Telangana. This facility is expected to have a total capacity of up to 16 GWh, with a Battery Pack Assembly unit reaching up to 5 GWh.
Galla highlighted that the earlier government had assured various industrial incentives to attract this project to Telangana and expressed hope that these commitments would be honored by the current administration. He raised concerns about whether the new government has the financial resources to fulfill these promises.
While he acknowledged that there is no immediate issue with the government, Galla pointed out that changes in administration often lead to uncertainties regarding the fulfillment of commitments. He stressed that the company remains hopeful and will continue to monitor the situation. If the experience remains positive, Amara Raja will not need to consider other locations for future expansion beyond 16 GWh.
Looking ahead, Galla is optimistic that the Amara Raja Group could grow into a $5 billion entity within the next five years, provided that the electric vehicle market dynamics remain favorable and plans proceed as expected.
