What is the real situation behind the massive investments reportedly coming to Andhra Pradesh after the Chandrababu government came to power? A project that was announced with much fanfare as a ₹4,708 crore investment, 1,200 jobs and an 800 MW power project at Avuku has now hit a roadblock.
The RVR Projects company, which was supposed to establish the pumped storage power project at Avuku in Nandyal district, has now backed out.
The company reportedly wrote to the government stating that its financial position was not sound and that it did not have the funds required to take up the project. As a result, the Chandrababu government has been forced to withdraw the government order allocating the project.
With companies such as Tata Power and Websol already reported to have moved their projects out of the state, RVR’s withdrawal has once again raised serious questions about the investment climate in Andhra Pradesh.
Avuku Power Project Out.. RVR Also Bows Out!
RVR Projects had proposed setting up an 800 MW pumped storage power project at Avuku in Nandyal district. The company has now withdrawn from the proposal.
The company reportedly requested the government to cancel the land allocation, stating that “the company’s financial position is not good and it does not have the funds required to take up the project.”
According to the news report, after the Chandrababu government came to power, the tenders related to the Avuku project were cancelled and the project was subsequently allotted to RVR Power Projects, which the report describes as being linked to close relatives of the Eenadu Ramoji family.
At the time, the government publicised that the project would bring an investment of more than ₹4,700 crore and create employment for around 1,200 people.
However, with the same company withdrawing from the project within a year, those promises have now come under question.
₹4,708 Crore Investment.. 1,200 Jobs Promised
On July 9, 2025, RVR submitted a key proposal to the state government.
The company wrote to the government stating that it would establish an 800 MW pumped storage power project at Avuku in Nandyal district with an investment of ₹4,708 crore, creating employment opportunities for approximately 1,200 people.
Based on the company’s letter, the government approved the investment proposal.
But then came a sudden turn of events.
On July 9, 2026, exactly one year later, the same RVR company reportedly wrote another letter to the government.
It stated that the company did not have the necessary funds to execute the project and requested that the proposal be cancelled.
In other words, exactly one year after submitting a letter promising to undertake the project, the company submitted another letter on the same date stating that it was withdrawing from the project.
The development has now triggered intense discussion.
Approval Based on Letter a Year Ago.. Cancellation Based on Another Letter a Year Later!
The government, which approved the investment proposal a year ago based on RVR’s letter, is now withdrawing the project based on another letter submitted by the same company.
According to the report, K. Vijayanand, Special Chief Secretary of the state government, issued orders on Monday regarding the withdrawal.
This is where several questions arise.
How did a company that had promised to invest ₹4,708 crore and create 1,200 jobs face a funding shortage within just one year?
Despite the project allocation, government approvals and investment proposal being processed quickly, why did the project fail to reach the implementation stage?
From Auro Infra Under Jagan to RVR After Chandrababu Came to Power!
The allocation of the Avuku pumped storage project has also become a matter of political controversy.
According to the report, as part of efforts to promote green energy projects, the YS Jagan Mohan Reddy government had earlier allotted the 800 MW pumped storage power project at Avuku in Nandyal district to Aro Infra, a company belonging to the Aurobindo Group.
However, after the Chandrababu government came to power, the allocation made to Aro Infra was cancelled and the project was subsequently allotted to RVR Projects, the report stated.
The developments that followed have now raised questions over the government’s decisions.
Letter on July 9.. DPR Within a Month.. Approvals at Lightning Speed!
RVR reportedly submitted its letter expressing willingness to take up the project on July 9, 2025.
The company also submitted the DPR during the same month, according to the report.
Subsequently, the project reportedly received approvals from SIPC, SIPB and the State Cabinet, with the entire process being completed within a short period.
The report states that the government issued orders allocating the project on July 28.
In other words, a project involving an investment of more than ₹4,700 crore reportedly received allocations and approvals at remarkable speed. Yet, within a year, the same company has withdrawn from the project.
This has now put the government in a position where it has to answer questions over the project.
Did the ‘Power Centre’ Push Power Companies Out?
The report has launched strong criticism, alleging that power companies are leaving Andhra Pradesh because of the influence of a “power centre” under the Chandrababu government.
According to the report:
- Tata Power reportedly moved its project from Nellore district to Odisha.
- Websol reportedly shifted its project from Tirupati district to West Bengal.
- Now, RVR Projects has also withdrawn from the Avuku project in Nandyal district.
With power-sector projects reportedly leaving the state one after another, the question now being raised is:
What message is Andhra Pradesh sending to potential investors?
Just Three Projects.. ₹14,921 Crore Investments Reportedly Gone!
The Avuku project is not the only case.
According to the report, including two other power projects, investments worth a total of ₹14,921 crore have reportedly moved out of the state through just three projects.
More concerning is the claim that:
Projects worth ₹20,956 crore that received government orders after the Chandrababu government came to power have reportedly subsequently exited the state.
The issue is therefore not merely about announcing investments. Projects leaving the state after receiving government approvals and government orders raises a different set of questions.
Three Projects Have Left.. What Will the Government Say?
At a time when the state government is carrying out extensive publicity about attracting investments, projects reportedly withdrawing from Andhra Pradesh present a serious contradiction.
When it is being claimed that three power projects have taken ₹14,921 crore worth of investments away from the state, and that projects worth ₹20,956 crore have left after receiving government orders, the government needs to explain the situation to the people.
Why are investments not staying in the state?
Why are projects being withdrawn?
Why are companies reportedly backing out only after receiving government approvals?
These are now some of the key questions facing the Chandrababu government.
Investment Promotion on One Side.. Projects Leaving on the Other!
RVR’s withdrawal from the Avuku pumped storage power project has once again opened up a debate over the Chandrababu government’s investment policies.
A project that was announced with a ₹4,708 crore investment, 800 MW power generation capacity and a promise of 1,200 jobs has reportedly withdrawn within a year, citing a lack of funds.
The report states that projects involving companies such as Tata Power and Websol have already moved out of the state, while RVR has now followed the same path.
The report further claims that three projects together have taken ₹14,921 crore worth of investments away from Andhra Pradesh, while the value of projects that reportedly left the state after receiving government orders has reached ₹20,956 crore.
The real test for any government is not merely to announce investments, but to retain investors, ensure projects remain in the state and convert announced proposals into actual projects.
Why did the Avuku Power Project stop?
Why are investments reportedly moving out of Andhra Pradesh?
Why are companies allegedly leaving the state after receiving government orders?
The answers that the Chandrababu government provides to these questions are now likely to attract significant public and political attention.
