Oppn-ruled states cry foul as Andhra Pradesh gets semiconductor project

New Delhi: The Union Cabinet's nod for a semiconductor facility in Andhra Pradesh has triggered a political controversy, with Opposition-ruled states accusing the Centre of weaning away investments and directing them to NDA-ruled states.

The Centre's nod to a semiconductor manufacturing facility by Advanced System in Package Technologies Private Limited with an expected investment of ₹1,500 crore in Andhra Pradesh under Indian Semiconductor Mission (ISM) has run foul of Opposition-ruled states.

Telangana's industries and IT minister Sridhar Babu Duddilla had stated on X, "The Telangana government has done everything a proactive state should do, from allotment of 10 acres of prime land at Maheshwaram to all subsidies being approved... The company has been waiting only for the India Semiconductor Mission approval. Yet, in a baffling display of bias, the Union Cabinet has greenlit a similar project in Andhra where not even a single acre of land has been allotted... A state with ready infrastructure, investor commitment and a clear execution plan has been sidelined in favour of an unprepared proposal existing only on paper."


Andhra government sources, however, told ET that the state offered "superior package, including better-priced land and fast-track approvals".

Karnataka minister MB Patil told ET: "Several players came to Karnataka and were quite eager to invest here but when they went to Delhi they were diverted to BJP-ruled states."

Earlier, in an interview to this correspondent, Kerala minister P Rajeev said that the Centre had withdrawn permission given to a GIFT city in the state.