Union minister Kumaraswamy backtracks on Micron subsidy criticism, emphasizes full support for foreign investment | India News – Times of India


BENGALURU: Union minister for steel and heavy industries, H D Kumaraswamy, took to social media on Saturday to mitigate the fallout from his controversial statement regarding the subsidies granted by the state and central governments to the US semiconductor firm Micron in Gujarat.
Kumaraswamy clarified his position, saying that his comments were not meant to criticize the financial incentives provided to Micron but to highlight the need for a balanced approach in supporting domestic and foreign investments.He reassured stakeholders that the government remains committed to creating a favourable environment for international companies while also bolstering the local semiconductor industry.
“Semiconductor is an important industry. It is a fundamental prerequisite for electronics and automobile manufacturing. Both these sectors generate substantial employment. I immensely appreciate the semiconductor-related initiatives taken by @PMOIndia and will endeavour towards fulfilling them through my ministry,” Kumaraswamy affirmed in a post on platform X. “Why has my statement been highlighted in this manner? I must exercise utmost prudence in the future,” he added.
Micron, which plans to establish its unit in Gujarat (Sanand) with an investment of $2.7 billion, is anticipated to generate 5,000 jobs. In return, the company would receive $2.0 billion in incentives (50% from the central government and 20% from the Gujarat government). “The rationale behind this is not justifiable as we have been investing Rs 3.2 crore for each job,” Kumaraswamy had said on Friday while addressing JDS workers meeting soon after he arrived in Bengaluru for the first time after becoming a minister in the Prime Minister Narendra Modi cabinet.
Meanwhile, Karnataka industries minister M B Patil said that Kumaraswamy’s inquiry on this matter is pertinent. “If this is applicable for Gujarat, then the identical formula should be adhered to for other states to foster opportunities,” said Patil in a post on ‘X’, endorsing Kumaraswamy’s remarks. Patil also remarked that if a company is accorded this much incentive, it could be considered a public sector undertaking (PSU).
“It could be a welcome step if higher incentives are extended to create a conducive industrial ecosystem, and this policy should be uniform for other states as well. However, currently, the central government’s approach appears to favour Gujarat, which is the Prime Minister’s home state,” he said, expressing apprehension that this could lead to disparity among states.

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