Why was Telangana ignored in semiconductor project allocation? IT Minister Sridhar Babu asks Centre

Hyderabad: Minister for Information Technology D. Sridhar Babu today hit out at the Centre for not approving the semiconductor project for Telangama.

This comes a day after the Union Cabinet approved four semiconductor manufacturing facilities for Andhra Pradesh, Odisha, and Punjab,

In a post on X, Sridhar said Telangana government has met every requirement expected of a proactive State — from allocating 10 acres of prime land at Maheshwaram, to securing all necessary subsidies, and obtaining every clearance in record time — to host a world-class advanced system and packaging facility.

He said the investor is ready, the project is investment-ready, and the only pending step has been the India Semiconductor Mission’s final approval.

Yet, in what he called a perplexing and unfair decision, the Union Cabinet has cleared a similar project in Andhra Pradesh, where not even a single acre of land has been allotted, and the groundwork is still incomplete.

According to the Minister, Telangana’s proposal is backed by ready-to-use land, sanctioned subsidies, firm investor commitments, and a detailed execution roadmap. In contrast, he pointed out, the Andhra Pradesh project exists only on paper, with no land allocation or basic preparatory work undertaken.

Sridhar Babu alleged that the Centre is extending step-motherly treatment towards Telangana. “By sidelining a fully prepared, investment-ready proposal in favour of an incomplete one, the Centre has chosen political considerations over merit. Such decisions defy logic, undermine fairness, and send a troubling message to global investors about India’s policy priorities. Telangana has earned its rightful place in the national semiconductor growth story — and we will not accept being denied it,” he said.

The approved proposals by the Centre come from SiCSem, Continental Device India Private Limited (CDIL), 3D Glass Solutions Inc., and Advanced System in Package (ASIP) Technologies.

In Andhra Pradesh, the manufacturing facility by ASIP Technologies will be part of the Rs 4,600 crore allocation. ASIP will collaborate with APACT Co., Ltd, South Korea, to establish a unit with an annual production capacity of 96 million units. These components will be used in mobile phones, set-top boxes, automobiles, and other advanced electronics applications, significantly contributing to the vision of Atmanirbhar Bharat.