K’taka minister reiterates Kumaraswamy’s stance on Gujarat’s semiconductor firm

Karnataka Minister for Large and Medium Industries and Congress leader, MB Patil, today termed the US-based Micron Technology potentially receiving ₹3.2 cr in subsidies for every job it creates at its planned semiconductor unit in Gujarat as unjustifiable.

Speaking to reporters in Bengaluru, Patil said, “If this applies to Gujarat, the same formula should be followed in other states as well to create more opportunities.”

Patil also said that if a company is given this much incentive, it could be considered a public-sector undertaking (PSU).

“It could be a welcome step if higher incentives are extended to create a conducive industrial ecosystem. So this policy should be the same for other states as well. However, currently, the Central government’s approach seems to only favour Gujarat, which is the prime minister’s home state,” said Patil, as he expressed concern that this could lead to a disparity among the states.

Patil’s statement comes a day after Janata Dal (Secular) leader and former Karnataka chief minister HD Kumaraswamy reportedly raised concerns over the investments made by companies like the US-based Micron Technology, which touched the $2.5 bn figure for a semiconductor unit in Gujarat.

He presented an argument that this deal would incur a subsidy bill of ₹3.2 cr for each job it creates.

Further adding to his statement given at a television programme of a news media house, Kumaraswamy said that this unit will generate “about 5,000 jobs.”.

Against which, as he pointed out, the company “will fetch $2 bn in subsidies.”.

As per his calculations, this translates to 70% of the total investment made by the company.

In a pledge to “safeguard the nation’s wealth,” he mentioned tackling matters such as how many jobs these firms have created and what benefits the government has provided to them.

Notably, clarifying this statement today, Kumaraswamy posted on X, "Semiconductor is a strategic industry. It is a basic requirement for electronics and automobile manufacturing. Both these sectors generate lots of employment. I greatly appreciate the semiconductor-related initiatives taken by @PMOIndia and will work towards fulfilling them through my ministry.”

(With inputs form syndicated feed)