Telangana accuses centre of bias in semiconductor project approvals

On Tuesday, the Union Cabinet approved four new semiconductor manufacturing units, two in Odisha, and one each in Andhra Pradesh and Punjab.

Hyderabad: The Telangana government has accused the BJP-led Centre of deliberately ignoring the state in approving semiconductor projects, despite strong interest from investors.

In an official statement issued on Tuesday, the state said Telangana offers one of the most favourable environments for semiconductor manufacturing, with strong infrastructure, stable governance, and investor-friendly policies. However, it alleged that the Union government continues to show “intentional bias” by favouring BJP-ruled states.

The statement noted that Chief Minister A. Revanth Reddy and IT & Industries Minister D. Sridhar Babu had repeatedly appealed to Union Ministers during visits to Delhi for approval of semiconductor projects in Telangana. Despite these requests, no project has been sanctioned for the state.

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On Tuesday, the Union Cabinet approved four new semiconductor manufacturing units, two in Odisha, and one each in Andhra Pradesh and Punjab with a total investment of Rs.46,000 crore. This takes the total number of projects under the Indian Semiconductor Mission to ten.

The Telangana government also claimed that some companies initially planning to set up facilities in the state have been diverted to other states due to the Centre’s intervention. It said such actions were creating a concentrated semiconductor ecosystem in select states while ignoring Telangana’s potential.

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