Telangana IT minister slams Centre for approving semiconductor projects to Andhra over 'fully prepared' state

Hyderabad: Centre approving a semiconductor manufacturing unit for Andhra Pradesh had turned a new flash point between both the Telugu states.

Telangana IT and Industries Minister Dudilla Sridhar Babu accused the Centre of discrimination in the allocation of a major semiconductor project, despite the state’s full preparedness to host it.

The Union Cabinet chaired by Prime Minister Shri Narendra Modi approved on Tuesday four semiconductor projects under India Semiconductor Mission (ISM) for Punjab, Odisha and Andhra Pradesh.

These four proposals approved were from SiCSem, Continental Device India Private Limited (CDIL), 3D Glass Solutions Inc., and Advanced System in Package (ASIP) Technologies.

Advanced System in Package Technologies (ASIP) was to setup a semiconductor manufacturing unit in Andhra Pradesh, under technology tie-up with APACT Co. Ltd, South Korea, with an annual capacity of 96 Million units. The manufactured products will find applications in mobile phones, set-top boxes, automobile applications, and other electronic products.

Sridhar Babu on Wednesday said the Telangana government has undertaken every step a proactive state should like allotment of 10 acres of prime land at Maheshwaram, approval of all subsidies, and completion of all clearances in record time for the establishment of a world-class Advanced System and Packaging Facility. “The investor is ready, and the project awaits only the India Semiconductor Mission’s final approval,” he noted.

Despite this, the Union Cabinet has approved a similar project in Andhra Pradesh, “where not even a single acre of land has been allotted and preparatory work remains incomplete,” he alleged.

The contrast, he said, was “stark” Telangana’s proposal is backed by ready-to-use land, sanctioned subsidies, investor commitments and a detailed implementation plan, while Andhra Pradesh’s proposal exists “only on paper.”

Sridhar Babu urged Union Cabinet Minister G Kishan Reddy to take up the issue with the Central Government and ensure Telangana’s rightful claim is secured. He also questioned the role of other BJP MPs from Telangana, asking what they were doing to protect the state’s interests. He cautioned that continued inaction would raise serious questions about their commitment to the people of Telangana.

Terming the decision blatant step-motherly treatment towards Telangana, Sridhar Babu said bypassing a prepared state in favour of an incomplete proposal defies logic, undermines fairness, and sends a damaging message to global investors about the Centre’s priorities. He warned that such politically motivated decisions insult Telangana’s preparedness and weaken the country’s investment climate.

“We will not accept being denied our rightful place in the nation’s semiconductor growth story,” he said, demanding that the Centre reconsider its decision and take a fair, merit-based approach.