KTR Lying On Kaynes Semiconductor: Sridhar Babu

Telangana IT and Industries Minister Sridhar Babu on Monday dismissed BRS leader K T Rama Rao's claim that Kaynes Semiconductor moved from Hyderabad to Gujarat due to the State government's failure.

He said that the allegation was a desperate attempt to divert attention from KTR's own shortcomings.

Babu said that the company chose Gujarat because of massive subsidies offered by the Centre and the BJP-led State government.

"Kaynes did not flee Telangana; it was lured by incentives. KTR knows this but continues to mislead people," he said, and accused the BRS of spreading false propaganda.

The minister explained that under the India Semiconductor Mission (worth Rs 76,000 crore), the Centre approved a 50% subsidy for Kaynes' Rs 3,307 crore project in Gujarat, amounting to Rs 1,654.5 crore. The Gujarat government added a 40% subsidy, covering nearly 70% of the project cost. In Telangana, the project would have received only about Rs 330 crore in concessions.

Calling this step-motherly treatment, Babu alleged that the Centre extended extraordinary benefits only to Gujarat, and criticised KTR for targeting the State government instead of questioning the Centre's bias.

He also cited Union Minister H D Kumaraswamy, who admitted that Gujarat's subsidies worked out to Rs 3.2 crore per job created. "This proves Kaynes was lured by Central and Gujarat incentives, not because of Telangana's failure," Babu said.