Caste, commerce drive politics in Andhra

Prashun Bhaumik |

Even before his father was laid to rest, there was an unprecedented clamour to install son Jagan as chief minister. It was not emotion but pure business calculation that drove the campaign.

By Our Correspondent

Gandhi Jayanti has set the perfect stage for YS Jagan Mohan Reddy, the prince awaiting coronation in Andhra Pradesh. On this day, the businessman-turned-politician will “hand over the ownership” of all his companies to close relatives and plunge headlong into politics.

This act of renunciation comes against the backdrop of widespread perception that business interests are driving the campaign to anoint the 36-year-old, first-time MP as the next Chief Minister to carry forward his father late YS Rajasekhar Reddy’s political legacy.

It is also seen as a move to placate the Congress high command which is clearly annoyed over the manner in which the business lobby is pushing Jagan for the top post.

That a combination of caste and commerce provides the ammunition for the “Jagan-for-CM” was clear from the profile of the lobbyists, both within the party and outside. As many as 55 legislators out of the party’s strength of 155 in the Assembly are from the Reddy community, a strong support base for the party.

Several business houses, contractors and industrialists are rooting for Jagan, a political novice, to take over the reins of the state because his installation will ensure continuity and protection of their long-term interests.

YSR, a strong leader who ran the party with an iron grip, had nurtured many businessmen and realtors; doling out favours, often brazenly.

Irrigation, infrastructure and real estate were the key areas which enjoyed political patronage during the YSR regime that also saw his son’s meteoric rise as a businessman.

Of particular focus was the irrigation sector. The Congress government had unveiled an ambitious “Jala Yagnam” programme, dubbed by the opposition parties as “Dhana Yagnam” to complete all pending irrigation projects with a whopping investment of Rs one lakh crore.

A new breed of powerful irrigation contractors have emerged with strong links with the ruling party. A majority of Congress MLAs have their close relatives or followers executing these money-spinning projects.

The chief architect of the “Draft Jagan” campaign and Rajya Sabha member KVP Ramachandra Rao has been a close family friend of YSR and was largely seen as a deal maker for the late Chief Minister.

“It’s these forces who have enormous commercial interests at stake that are campaigning for Jagan so that they continue their back-seat driving,” an AICC leader and a known detractor of YSR pointed out.

With Andhra Pradesh emerging as the SEZ capital of India, there is a strong lobby of industrialists – who were liberally given land – backing Jagan. As many as 103 SEZs have been approved for the state, highest in the country.

Major business houses in the country, with interests ranging from real estate to pharmaceuticals and IT, have invested several thousands of crores in their projects and have high stakes in seeing YSR’s son in the chief minister’s gaddi.

Several construction companies like Gammon India, Nagarjuna Construction Company have considerable stake in the Jala Yagnam programme.

Mining tycoon and owner of Obulapuram Mining Company Gali Janardhan Reddy of neighbouring Karnataka is among those industrialists in the forefront of the Jagan campaign. His company has been among the major beneficiaries of the YSR regime.

Similarly, YSR had backed to the hilt a major port project taken up by N Prasad, founder of Matrix Laboratories. His Vadarevu and Nizampatnam Port Infrastructure Company were given a mandate to develop the two ports on the coast.

Along with several big business houses, Prasad is a major investor in Jagathi Publications, owned by Jagan which publishes the Telugu Daily Sakshi.

Telugu superstar and businessman Nagarjuna has openly extended his support to Jagan for CM. Nagarjuna, earlier an admirer of TDP’s Chandrababu Naidu, grew close to late YSR in an apparent bid to further his commercial interests. A file pertaining to his seven-acre land in the posh Jubilee Hills is pending with the government and was almost cleared by the late chief minister.

With Hyderabad and surrounding areas witnessing phenomenal growth in real estate, realtors are rooting in a big way for the young MP to step into his father’s shoes.

With the state attracting infrastructure majors, city builders say that Jagan, being a businessman, could ensure continuity.

“YSR made Hyderabad the most happening city and Jagan alone can carry this forward, being an industrialist and entrepreneur himself,’’ P V S N Murthy, president, AP Builders Association, said.

YSR was known for his “builder-friendly” policies including introduction of the “green channel” for the speedy disposal of building applications, in addition to liberalising building regulation rules and waiver of stamp duty.

It is no secret that YSR had openly promoted his clansmen and succeeded in securing party tickets for his followers. As a result, a majority of the party legislators have their political interests inexorably linked to his family.

Their loyalty to his family is linked as much to his mass appeal as to his patronage and largesse.

And Jagan is seen by them as a protector of their business and political interests. It is this section of Congressmen which is more vocal in their lobbying for him. There was a sense of urgency in the “Jagan-for-CM” clamour as a signature campaign was launched even before his father’s body could reach the state capital after his helicopter crashed in the Nallamalla hills.

Jagan may be new to politics, having been elected to Lok Sabha from the family stronghold of Kadapa in May, but is no stranger to controversies. His dramatic rise from a small-time businessman to a big industrialist owning 18 companies has evoked serious charges of nepotism, manipulation and dubious business practices. He has businesses interests in infrastructure, power, cement and media sectors. He owns the Telugu newspaper, Sakshi, and a TV channel of the same name, Bharathi Cements and the Sandur Power Company. The opposition charge is that his empire has been built with liberal support from the government.

There are allegations that individual and institutional investors in Jagan’s companies and the media group were rewarded with allotment of land, contracts for SEZ and port development.  The main opposition Telugu Desam Party (TDP) has circulated documents detailing the alleged ill-gotten wealth of the YSR family particularly in the last five years.

From three infrastructure companies, Jagan’s empire has risen to holdings in 18 companies.

It is this tag of a businessman that the young MP wants to get rid of and don a more political image for the benefit of the party high command.