Gujarat’s Sops reason For Kaynes’ Shift: Sridhar Babu
Sridhar Babu clarified that the decision was driven by attractive subsidies offered by the BJP-led Gujarat government and the Centre under the India Semiconductor Mission (ISM).
HYDERABAD: IT and industries minister Duddilla Sridhar Babu strongly dismissed as baseless and politically motivated, allegations by BRS leader K.T. Rama Rao that Kaynes Semiconductor had relocated from Hyderabad to Gujarat due to failures of the Telangana government.
Sridhar Babu clarified that the decision was driven by attractive subsidies offered by the BJP-led Gujarat government and the Centre under the India Semiconductor Mission (ISM). The minister detailed that for Kaynes’ proposed Rs 3,307 crore project in Sanand, Gujarat, the Centre offered a massive subsidy of Rs 1,654.5 crore.
The Gujarat government provided an additional 40 per cent of the Central subsidy (Rs 661 crore). These incentives covered nearly 70 per cent of the total investment cost. In sharp contrast, Telangana's policies would have facilitated concessions of only Rs 330 crore for similar projects.
Sridhar Babu pointed out that this “stepmotherly treatment” by the Centre significantly influenced Kaynes’ decision. He criticised the BRS leader for ignoring the central government’s preferential treatment towards Gujarat and instead blaming Telangana’s governance.
“While Gujarat enjoys unparalleled support through subsidies, Telangana’s semiconductor industry continues to thrive and attract investments despite comparatively modest incentives,” said the minister. He also quoted Union minister H.D. Kumaraswamy, who acknowledged the extraordinarily high subsidy per job created in Gujarat, underscoring that the lure was financial rather than a reflection of Telangana’s capabilities.
Sridhar Babu urged the BRS to stop spreading misinformation and instead focus on addressing the real challenges posed by inconsistent Central policies. He reiterated that Telangana remains committed to fostering a strong semiconductor ecosystem and will continue to support the industry’s growth transparently and effectively.
