Kaynes went to Gujarat for subsidies, not due to state’s failure: Telangana minister

Telangana: State IT & Industries Minister D. Sridhar Babu on Tuesday dismissed allegations by BRS working president K.T. Rama Rao (KTR) that Kaynes Semiconductor shifted its project from Telangana to Gujarat due to the state government’s failure, calling them “outrageous lies.”

In a press statement, Sridhar Babu said Kaynes was attracted to Gujarat by massive subsidies offered under the Centre’s ₹76,000 crore India Semiconductor Mission (ISM) and additional incentives from the BJP-led state government. He pointed out that the company’s proposed investment of ₹3,307 crore received a central subsidy of ₹1,653.5 crore, with Gujarat adding another ₹661 crore, taking the package to nearly 70% of the project cost.

The minister cited Union Minister H.D. Kumaraswamy’s remarks that incentives in Gujarat translated into subsidies of ₹3.2 crore per job, arguing this proved Kaynes moved for financial reasons, not because of Telangana’s shortcomings.

Accusing KTR of spreading “Goebbels-style propaganda,” he said the BRS leader was blaming the Congress government instead of questioning the Centre’s bias.

KTR had earlier accused the Congress of incompetence, claiming that Telangana lost the ₹2,800 crore semiconductor project and 2,000 jobs due to the government’s failure to retain investor confidence. DeshGujarat