KT Rama Rao Criticizes Telangana Government as Kaynes Semicon Moves to Gujarat

New Delhi, India – On Monday, the Union Cabinet approved the establishment of India’s fifth semiconductor manufacturing unit in Gujarat. This decision has sparked criticism from KT Rama Rao, the working president of Bharat Rashtra Samithi (BRS), towards the current Telangana government.

Kaynes Semicon Pvt Ltd, the company responsible for setting up the manufacturing unit, had initially planned to establish the plant in Telangana. KT Rama Rao expressed his disappointment on social media platform X, stating that the company had announced the project in October 2023 and that the then-state government under BRS had even allotted land for the unit near the Foxconn plant at Kongara Kalan, close to Hyderabad Airport.

Rao said, “Congratulations to Gujarat… This unit of Kaynes was announced to be set up in Telangana in October 2023. We had put in tenacious efforts to convince Kaynes to move from Karnataka to Telangana. They wanted land allotted right next to the Foxconn plant at Kongara Kalan, close to Hyderabad Airport. We got that done in less than 10 days to win them over.”

He added that it was “truly saddening” to see the company move to Gujarat, calling it a significant loss for Telangana, which was expecting an investment of over Rs 3,500 crore in the semiconductor industry.

In response, Telangana Minister for Industries and Commerce Sridhar Babu refuted the misinformation surrounding the issue. He stated that Kaynes Semicon remains fully committed to their Hyderabad project and that the additional facility in Gujarat does not detract from their investment in Telangana.

Babu said, “It is imperative to correct the blatant misinformation being spread about Kaynes SemiCon’s investment in Telangana. Kaynes SemiCon has unequivocally affirmed its commitment to its Hyderabad project. The company remains fully dedicated to establishing its advanced electronics manufacturing facility at Kongarkalan, with the first phase already inaugurated by me. The addition of a facility in Gujarat does not detract from their significant investment in Telangana; in fact, it increases employment capabilities. Kaynes’ commitment to Telangana remains unchanged, and employment at the Kongarkalan plant is expected to increase to 3,000.”

He further mentioned that spreading misinformation hampers Telangana’s growth and achievements. Babu emphasized that Telangana continues to attract substantial investments, and Kaynes Semicon’s ongoing commitment is proof of this.

Earlier on Monday, the Union Cabinet, chaired by Prime Minister Narendra Modi, approved Kaynes Semicon’s proposal to set up a semiconductor unit in Sanand, Gujarat, with an investment of Rs 3,300 crore. The unit will produce 60 lakh chips per day for various applications, including industrial, automotive, electric vehicles, consumer electronics, telecom, and mobile phones.