PNS|Vijayawada
Ecoren Energy India Pvt Ltd’s astonishingly swift expansion across Andhra Pradesh and Telangana has become the subject of murmurs – and mounting concern – within political and bureaucratic circles in both Telugu states.
While private investment is a welcome catalyst for growth, the pace at which Ecoren’s projects are being cleared has drawn sharp scrutiny. The Andhra Pradesh government recently granted rapid green clearance to Ecoren for energy projects valued at Rs 1,651 crore in Anantapur and Sri Sathya Sai districts. Shortly thereafter, Ananthapur Energy Pvt Ltd – a firm in which Lakshmi Prasad Yerneni serves as Director and is reportedly linked to Ecoren – secured another Rs 970 crore in project approvals. Several other Yerneni-associated companies have also received green lights in recent months, further fuelling speculation.
What has truly set alarm bells ringing is Yerneni’s reported proximity to Lingamaneni Ramesh, a long-time associate of Andhra Pradesh Chief Minister N Chandrababu Naidu and Deputy Chief Minister Pawan Kalyan. CM Naidu has famously resided in Ramesh’s riverfront guest house for years, and the latter is also known to maintain friendly relations with Pawan Kalyan. The confluence of political clout and business interest is leading many to question whether the approvals are purely procedural or politically charged.
Ecoren’s ambitions aren’t limited to Andhra Pradesh Just months after its windfall in AP, the company signed a staggering Rs 27,000 crore Memorandum of Understanding (MoU) with the Telangana government to develop wind-solar hybrid energy projects across several districts.
Yet, the scale and speed of Ecoren’s deals have prompted scepticism over the company’s financial and operational capacity. One senior IAS officer, speaking anonymously, warned that Andhra Pradesh has seen similar cases before -where grand investment promises were used as a pretext to acquire public land, only for the projects to be shelved or sold on. He cautioned against overlooking the risk of inflated valuations and unfulfilled commitments.
Doubts have also emerged over whether the Telangana government undertook thorough due diligence before entering into such a massive agreement. The episode bears an unsettling resemblance to the Ursa Clusters controversy, in which similar cross-state deals eventually unravelled. With major projects and land allocations now under the spotlight, Ecoren’s rise is being seen by some not as a green energy revolution, but a politically tinted business manoeuvre. Whether it’s legitimate enterprise or leverage by proxy, the coming months will likely reveal if the power surge is real – or merely smoke and mirrors.
