Reports confirm that Andhra Pradesh is gripped by a “goonda raj” (rule of thugs) under the TDP-led coalition government. MLAs and their followers from TDP, BJP, and Jana Sena are terrorizing renowned companies, demanding commissions and contracts. When refused, they launch attacks, block raw material supplies, and halt production, causing severe financial losses and leaving thousands jobless. Despite daily exposés of these extortion schemes, the government only offers empty promises of strict action, failing to register cases or arrest any culprits.
Industrial sector in turmoil
The coalition’s pre-election promise of an industry-friendly environment under Chandrababu Naidu has turned sour. Instead of attracting new industries, existing ones struggle to operate due to relentless extortion. A key coalition leader and his son have ordered MLAs to collect crores in commissions from industries across regions. For the past 11 months, industrialists have lived in fear, with some paying bribes to avoid trouble, while those who resist face threats and attacks. These incidents, when exposed, are met with superficial government responses, emboldening coalition leaders further. Industrialists lament the impossibility of doing business in such conditions, filing complaints that are ignored or settled through backroom deals, as top leaders reportedly share the profits.
Adinarayana Reddy’s cement industry thuggery
In YSR district’s Jammalamadugu, BJP MLA Adinarayana Reddy is extorting cement industries:
- UltraTech Blockade: Demands all transport contracts for raw materials and cement; blocked limestone and fly ash lorries with a mini-bus, halting one UltraTech plant since November 2024, with another set to stop from April 17, 2025.
- Adani Attack: In November 2024, his family members pelted stones at Adani Group staff in Kondapuram for refusing commissions, targeting a pumped storage power plant.
- Fly Ash Dispute: Clashed with TDP’s JC Prabhakar Reddy in November 2024 over fly ash transport from Rayalaseema Thermal Power Plant (RTPS), escalating to coalition leadership without resolution.
JC Prabhakar Reddy and BC Janardhan Reddy’s red soil war
TDP’s JC Prabhakar Reddy and Minister BC Janardhan Reddy fought over UltraTech’s red soil supply from Karnataka:
- JC’s Ultimatum: Demanded Rs. 200 per ton commission to allow red soil transport; blocked tippers when contractors refused, forcing compliance.
- Minister’s Demand: Janardhan Reddy insisted on his own commission, leading to a contractor agreement to pay both, splitting profits.
- Fly Ash Control: JC’s tankers supply fly ash to L&T Cement, but he clashed with Adinarayana Reddy over RTPS’s 3,926-ton daily allocation, with no action from coalition leaders.
Yarapathineni Srinivasa Rao’s cement factory shutdowns
In Palnadu district, TDP MLA Yarapathineni Srinivasa Rao has crippled cement factories:
- Factory Closures: Demanded per-bag commissions from Bhavya and Chettinad Cement; blocked coal, gypsum, and cement lorries, forcing both factories to shut for 50 and 30 days respectively in November 2024, leaving thousands jobless.
- Targeting Renowned Firms: Even prestigious Sri Cements-owned companies faced his thuggery, highlighting the coalition’s audacity.
- Broader Threats: His actions intimidate other factories, pushing industrialists to seek central intervention.
Jatwani’s Role in Jindal Steel’s Exit
The coalition allegedly used Jatwani to drive Jindal Steels out of Andhra Pradesh, redirecting its Rs. 3 lakh crore investment to Maharashtra. Jindal’s JSW Group signed an MoU with Maharashtra CM Fadnavis in Davos, planning iron-steel, solar power, automobile, and cement industries in Chhatrapati Sambhaji Nagar, Gadchiroli, and Nagpur. This cost Andhra Pradesh thousands of jobs and industrial growth, with YSRCP demanding a probe.
Other Coalition Extortion Cases
- Somireddy Chandramohan Reddy: Sarvepalli TDP MLA attacked Krishnapatnam Port staff in October 2024, using abusive language and demanding shares, criticized as a reaction to refused commissions.
- Inturi Nageswara Rao: Kandukur TDP MLA demanded a stake in Ramapatnam Port construction; blocked material supplies when refused, escalating to coalition leadership.
- Nadukuditi Eswara Rao: Srikakulam BJP MLA demanded Rs. 1.5 crore monthly (Rs. 1,000 per lorry) from United Breweries in June 2024, attacking the factory when refused, with the issue reaching central BJP leaders.
- Sattenapalli Shadow MLA: A TDP leader’s “KD tax” racket extorts Rs. 3,500 per granite lorry, detaining vehicles at police stations, backed by some officials.
- BJP Minister’s Hospital Contracts: Secured 7% commission (Rs. 105 crore) on Rs. 1,500 crore hospital security and sanitation tenders.
- Satyakumar vs. Palle Raghunatha Reddy: In Sri Sathya Sai district’s Penukonda, followers of Minister Satyakumar and ex-Minister Palle clashed over a land dispute, disrupting farmers and Kia Motors’ local businesses.
- Raptadu Extortion: The key leader’s son extorted Rs. 2 crore from a builder and Rs. 3 crore from a realtor, demanding payments despite permits, with one builder paying Rs. 1 crore, scaring off investors.
- BTech Ravi and Ramgopal Reddy: Clashed over commissions in Kadapa during a TDP meeting in April 2015, in front of Minister Savita, highlighting internal coalition greed.
Industries fleeing, No accountability
The coalition’s thuggery has terrified even globally renowned companies, driving industries out of Andhra Pradesh. Despite evidence in media reports, no arrests or legal actions have been taken. Complaints are buried, and disputes are settled privately to protect the coalition’s profits. YSRCP accuses top leaders of shielding culprits due to their share in the spoils, warning that this “loot, share, and eat” culture will ruin the state’s economy unless the government changes course.
