Megha way to weather the change and thrive

Their statements were due to rumours that Megha had already entered into a pact with the TRS leadership to get Water Grid contracts. It now transpires that six out the 21 packages for the TRS government’s flagship programme have gone to Mr Krishna Reddy’s firm.

During the late Y.S. Rajasekhar Reddy’s regime, leaders of Telugu Desam would fire salvos at the company. But now that the TD is in power in AP, the government’s major Pattiseema project has gone to Mr Krishna Reddy. Not only in TS or AP, in other states too, Megha Constructions has bagged major contracts over the years and has now emerged as the second largest construction company in the country after L&T.

Executing works worth nearly Rs 10,000 crore across India and abroad, the construction company was started 25 years ago by P. Pitchi Reddy and Mr Krishna Reddy. From Rs 1 crore annual turnover, it has now gone to Rs 7,000 crore. Megha Krishna Reddy’s name — often alluded by politicians as “Mega Krishna Reddy” – is always invoked whenever political parties make allegations of massive corruption in project works.

Mr Krishna Reddy, 44, who hails from an agriculture family of Dokiparru village in Krishna District of AP, is a commerce graduate who studied in Hyderabad. At 19, he, along with his maternal uncle, started the Megha Engineering and Infrastructure Company in 1990. Initially taking sub-contract works, they later switched to independent projects and by 2006 the company had a Rs 100 crore turnover.

Many politicians believe that it was K.V.P. Ramachandra Rao and YSR who helped the company grow with “Jalayagnam” works. Politicians would also accuse Mr Krishna Reddy as a front for K.V.P., and later for Y.S. Jagan Mohan Reddy.

However, the fact remains that even after YSR’s death and KVP’s decreased influence in the successive governments, Mr Krishna Reddy’s clout has grown manifold.

YSR Congress leaders are now accusing AP CM N. Chandrababu Naidu of looting the state exchequer by awarding the Pattiseema contract to Mr Krishna Reddy.

For the first time, the media shy Mr Krishna Reddy agreed to answer the queries raised by DC:

“I know a lot of things are said about me…some call me the benami of KVP and then Jagan…but the fact is that till 2006 end, I had never met or knew KVP. After that I met him, but that doesn’t mean that I bagged all the Jalayagnam works during YSR’s time. I got only two medium projects.

“Today I am executing works in all the 29 states of India and in another five countries, do they mean to say that leaders of those states are all benamis? Only people who do not know the ABCD of how contracts are awarded and how works are executed make such noises. I have never bothered about criticism, I am only concentrating on my business,” said Mr Krishna Reddy.

When asked about his comment that he used to give hefty “mamools” (goodwill amounts) to several politicians for smooth execution of his works, Mr Krishna Reddy simply smiled and said, “When everything is so transparent where is the question of us offering something to politicians?”

Asked about the meteoric rise of his company, from a Rs 100 crore turnover in 2006 to bagging Rs 10,000 crore-worth projects annually, Mr Krishna Reddy said it was only due to his dedication and commitment.

“Today we have over 7,000 employees in the company and engage 80,000 labourers for our projects on any given day; our USP is that we don't take projects just like that and keep on asking governments to enhance the rates. We have excellent project evaluators and meticulous executing staff; we discuss and then participate in the tender system. There is no question of awarding works by nomination. All works that we have got so far are on merit. There is not a single instance when we have delayed projects. Ours is the only company that has completed the works on time. For that we have good ratings from reputed companies.”

He said that unlike other contractors and firms, Megha will not run after more contracts or go for diversification. “Now-a-days if one person is able to handle '10 crore turnover in a business, he tries to take up more projects without realising his capacity to execute.

Similarly, after a turnover of Rs 100 crore, contractors try to diversify into other activities including entering politics and floating organisations etc. I don't do such things, I have no other activity except to develop the company, I don’t go to anybody and I don't attend parties or events to get public attention. When I am travelling through the city, no one recognises me since nobody knows how I look,” added Mr Krishna Reddy.