Hyderabad: Telangana Chief Minister A Revanth Reddy’s tour to the US to attract investments, especially in the IT sector, also unleashed a political slugfest in the state.
While BRS working president and former IT minister KT Rama Rao tried to take some credit for the investments Telangana has received in the last 10 years and also lamented that IT exports had seen a drop in the last fiscal, his party colleagues are picking holes in the MoUs Revanth has been signing to bring investments into Telangana.
On day one of his US tour, Revanth concluded an agreement with IT major Cognizant to expand its facility by 10 lakh square feet in Hyderabad, which is expected to provide around 15,000 new jobs. His government had also signed an agreement with Walsh Karra Holdings (WKH), a US-based investment firm, guaranteeing an investment of $5 million in WE Hub over the next five years. WE Hub is India’s first state-led nodal organisation for women’s entrepreneurship.
Phani Karra and Greg Walsh of Walsh Karra Holdings, and Sita Pallacholla, Chief Executive Officer of WE Hub, signed the MoU in New York in the presence of Chief Minister Revanth Reddy and IT Minister D Sridhar Babu on Monday.
KTR laments drop in IT exports
“We’ve had a great run in terms of the growth of IT jobs created and IT exports over the last 6-7 years. I had a chance to look at the latest trends released by the government. The alarming decline in Telangana's IT exports is a matter of serious concern. Even more concerning is the fact that new IT jobs created in Telangana have fallen to one-third of the 2022–23 numbers. As a reference point, IT exports saw a growth of Rs 26,948 crore in 2023–24, compared to Rs 57,706 crore recorded in the previous fiscal year. Similarly, the number of new IT jobs generated in the state dropped to 40,285 in 2023–24, compared to the 127,594 created in 2022–23. The IT sector is a crucial engine that fuels the growth of Hyderabad city and Telangana state,” KTR said on X.
He added that during BRS' tenure, the IT sector experienced "unprecedented growth with several path-breaking policies" and the TSiPASS single-window initiative.
“I urge the Congress government to prioritise the IT and ITES sectors and ensure policy continuity. Existing investors need to be supported, and new investments must be attracted. Young entrepreneurs and startups must be supported by all means. Incessant infrastructure upgrades and the strict maintenance of law and order play an important role in sustaining the growth of the IT sector in the state. The Congress government needs to focus on these two areas, which seem to have taken a back seat since they assumed office,” he added.
Revanth govt signed MoU with dubious firm, says BRS
BRS leader Krishank Manne said that the Congress government has signed a MoU with a "bogus company", Walsh Karra Holdings, "in desperation to prove that Revanth Reddy too went to the US and brought in investments like KTR".
“You took a large delegation of officials and party leaders to the USA to sign bogus business deals? Announcing a Rs 839 crore investment with a dubious company that was incorporated just 5 months ago, a company that was struck off. Why fool people in Telangana?” said Krishank.
Talking to reporters on Tuesday, Krishank questioned the legitimacy of Walsh Karra Holdings, pointing out that it was incorporated only four months ago with just two directors, each holding 50 shares. There are no financial statements of the company available in the public domain, he added.
The Telangana CMO on the other hand said on Monday that Walsh Karra Holdings (WKH), co-founded by seasoned global entrepreneurs and investors Greg Walsh and Phani Karra, operates out of the United States and Singapore.
“It is uniquely positioned to find and develop new investment opportunities to drive the next century’s sustainable economy. It supports early-and-growth-stage companies that demonstrate their commitment to solutions that model innovation, sustainability, and profitability. By investing in these solutions, WKH aims to not only accelerate their scalability but also contribute to building a more sustainable future,” said the CMO in a statement.