'Political gains over national interest': Karnataka Congress leaders slam Centre on semiconductor project locations

Aug 14, 2025

Bengaluru (Karnataka) [India], August 15 : After the Union Cabinet approved four new semiconductor manufacturing facilities in Odisha, Punjab, and Andhra Pradesh, Congress leaders in Karnataka on Thursday accused the Centre of favouring BJP-ruled states.
Karnataka CM's legal advisor AS Ponnanna alleged the BJP-led Union government was prioritising "political gains over national interest."
"It is very clear that for the BJP government, their political gains are more important than national interest... The yellow metro line here is a prime example of their politicking. We contributed Rs 51 thousand crore, they contributed about Rs 7 thousand crore, yet they are claiming it as if the whole credit goes to the Prime Minister," Ponnanna told ANI.
Congress leader Rizwan Arshad accused the central government of "twisting" technology giants into investing in Gujarat and other "friendly states." He claimed a semiconductor factory initially planned for Telangana was "blackmailed" into relocating to Andhra Pradesh.
"The Modi government has always been at twisting technology giants into investing in Gujarat and their friendly states. Similarly, the semiconductor factory to be located in Telangana has been blackmailed to be shifted to Andhra Pradesh. This is a regressive move. The Modi government has always discriminated against the Southern states. They don't treat equally," Arshad told ANI.
Congress leader Sharath Bachegowda alleged a "step-motherly attitude" towards South India, saying, "We have seen that whenever these companies come to make investments in semiconductors and silicon, they are always pushed to state which do not have any ecosystem, which do not have an ability to support these kinds of semiconductor industries, and the states which the BJP government currently rules."
"Using a step-motherly attitude towards South Indian states, we have been completely against this since day one," he said.
Congress MLA NA Haris said, "We have been seeing these things for the last 10 years. They have taken many things to Gujarat...If they make it about BJP-ruled states vs non-BJP-ruled states, then it's not acceptable, and also against the Constitution."
Senior Congress leader Jairam Ramesh called the "competition" among states for semiconductor projects a "farce."
"Much earlier similar transfer of locations were forced through. 2 semiconductor manufacturing projects were compelled to shift their proposed location from Telangana to Gujarat. Similarly, another factory planned for Tamil Nadu got approval on the condition that it shifts to Gujarat. Need anything more be said? The PM speaks of competition among states that will make India strong. But if the umpire is so blatantly biased, the competition becomes a farce," he posted on X.
The Cabinet's decision, however, drew praise from Union Ministers, state leaders, and industry representatives, who took to X to welcome the move.