Discrimination to Telangana reveals conspiracy in approving semiconductor project to Andhra Pradesh

Telangana claims discrimination after the Advanced System in Package (ASIP) semiconductor project was approved for Andhra Pradesh, despite the State having the required ecosystem. Similar past incidents, including Micron’s relocation to Gujarat, highlight concerns over lost investment and employment opportunities

Hyderabad: Indications of a major conspiracy in denying the Advanced System in Package (ASIP) Technologies project to Telangana and granting the same to Andhra Pradesh are emerging, even as the situation has confirmed the discrimination against the State.

The plot to get the ASIP project approved for AP was hatched by prominent personalities in the neighbouring State and equally supported at the central level.

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The Union Cabinet chaired by the Prime Minister on Tuesday approved four semiconductor projects under the India Semiconductor Mission (ISM) to Andhra Pradesh, Odisha and Punjab. Of these, the ASIP project was approved to Andhra Pradesh with an investment of nearly Rs 500 crore.

Interestingly, when compared with Telangana, all these three States do not have the required semiconductor ecosystem. Yet, the Centre approved the ASIP to Andhra Pradesh with central subsidy of 50 per cent and State government subsidy of 25 per cent totalling Rs 375 crore. The balance is to be borne by the company.

Now about the conspiracy. The same company had in the past wanted to establish the project in Telangana. Accordingly, the Telangana government had also arranged 10 acres for allotment to the company and the same was informed to the Centre.

However, sensing an opportunity to secure bulk investment, certain prominent personalities using their political acumen influenced the Centre to approve the project in favour of Andhra Pradesh.

As the BJP-led Centre is dependent on the Telugu Desam-supported NDA government in Andhra Pradesh for its survival, the company management was immediately summoned to New Delhi. The management was “briefed” that it would get central and State government subsidies only if the unit was established in AP. It was also assured that permissions would be granted immediately without any delay.

Despite the company management explaining that there was no required semiconductor ecosystem in Andhra Pradesh, the Centre allegedly insisted on setting up the unit in the State. Left with no choice, the management buckled under the pressure.

This is not an isolated incident or occasion. In the past, Micron wanted to establish its semiconductor unit in Telangana with a huge investment. The State government accorded all permissions and wanted formal approval from the Centre.

However, after a similar “briefing” that it would not get any subsidies if it established the unit in Telangana, the company was compelled to be relocated to Gujarat. After the Union Cabinet approved the plant establishment in June 2023, the foundation was laid in September 2023.

In both cases, it is not just about losing the investment but also opportunities to provide direct and indirect employment to many. Further, the talent and human resource available in Telangana would be forced to migrate to other States in search of jobs.

Despite the glaring discrimination, conspiracies and severe losses to Telangana, eight Congress MPs and eight BJP MPs seldom raised concerns over the State’s prospects and development. Dancing to the tunes of their party leaders in New Delhi, the 16 MPs from Telangana have repeatedly failed to protect the State’s interests.

On the contrary, former Industries Minister KT Rama Rao had locked horns with the Centre to get several projects and substantial investments to Telangana. The establishment of the Foxconn unit at Kongara Kalan is one example.