Jairam Ramesh Accuses PM Modi of Favoritism in Semiconductor Project Approvals

Speedy summary:

• Senior Congress leader Jairam Ramesh accused PM Modi of bias regarding teh allocation of semiconductor projects to States under the India Semiconductor Mission (ISM).
• The Union Cabinet approved four semiconductor manufacturing projects: two in Odisha, one in Andhra Pradesh, and one in Punjab.
• Telangana had prepared extensively for a semiconductor project but reportedly lost out when a private company was allegedly pressured to relocate its proposal to Andhra Pradesh.
• Jairam Ramesh alleged previous cases where projects were shifted from Telangana and Tamil Nadu to Gujarat under similar circumstances.
• Telangana IT Minister D. Sridhar Babu criticized the decision, highlighting the State’s readiness with land allotments and approvals, compared to claims that Andhra Pradesh lacked preparatory work for the project it received.
• Concerns were raised that bias undermines merit-based competition among States and could hurt India’s investment climate as it develops its semiconductor ecosystem aligned with “Make in India”.

Indian Opinion Analysis:
The situation raises critical questions about equity in resource allocation within federal frameworks, notably concerning high-stakes investments like those under ISM. While fostering intra-state competition is essential, allegations of favoritism challenge transparency and potentially damage investor confidence both domestically and internationally. If true, such shifts could disincentivize proactive governance by States that invest heavily in preparedness-a setback considering India’s aspiring goal of positioning itself as a global electronics hub through schemes like ISM. Ensuring impartiality is crucial for long-term policy success while maintaining trust among all stakeholders involved.

Read more on the Hindu: Telangana feels left out after Union Cabinet nod for semicon projects