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On August 15, 2025, the Union Cabinet approved four new semiconductor manufacturing facilities. These were assigned to Odisha, Punjab, and Andhra Pradesh, highlighting a fresh expansion in India’s semiconductor infrastructure.(LatestLY)
Karnataka Congress Leaders’ Reactions
Several senior figures from Karnataka’s Congress vocally criticized the central government, accusing it of favoritism toward BJP-ruled states and downplaying the strategic needs of the South.
- A.S. Ponnanna, legal advisor to Karnataka’s CM, accused the Centre of placing “political gains over national interest.” He cited infrastructure examples like the Yellow Metro line—pointing out that even with Karnataka contributing ₹51,000 crore and the Centre only ₹7,000 crore, the credit was being framed as primarily the Prime Minister’s.(LatestLY)
- Rizwan Arshad alleged that tech giants were being coerced into investing in BJP strongholds like Gujarat and Andhra Pradesh. He went as far as to say a semiconductor plant meant for Telangana was “blackmailed” into moving to Andhra Pradesh.(LatestLY)
- Sharath Bachegowda condemned what he called a “step-motherly attitude” toward South India, where states like Karnataka—despite having robust infrastructure—were passed over for semiconductor projects in regions lacking such ecosystems.(LatestLY)
- N.A. Haris, another Congress MLA, emphasized that this pattern has been consistent for the past decade, highlighting that treating BJP and non-BJP states differently is both unconstitutional and unacceptable.(LatestLY)
- Jairam Ramesh, a senior Congress leader, dismissed the notion of states competing fairly for semiconductor projects as a “farce.” He claimed that similar relocations had taken place before—citing forced transfers from Telangana and Tamil Nadu to Gujarat. His point: if the umpire (Centre) is biased, the competition can’t be fair.(LatestLY)
Summary Table
| Speaker | Key Concern |
|---|---|
| A. S. Ponnanna | Central government pushing projects for political credit despite Karnataka’s investment |
| Rizwan Arshad | Investment coercion steering projects to friendly states; Telangana project shifted |
| Sharath Bachegowda | Perceived discriminatory attitude toward South Indian states |
| N. A. Haris | Unequal treatment across states viewed as unconstitutional |
| Jairam Ramesh | State competition is meaningless if central authority shows bias |
Broader Implications
This controversy underscores ongoing tensions around how strategic economic development—especially in high-tech fields like semiconductors—is distributed across states. While Andhra Pradesh, Odisha, and Punjab welcome the projects, Karnataka’s leadership sees this as neglect of the South, undermining fair growth and investment principles.
