Archive · 19 Aug 2025
Gujarat's Subsidies Lured Kaynes Semiconductor Away from Hyderabad
A company called Kaynes Semiconductor decided to move its project from Hyderabad to Gujarat.
The reason for the move was mainly because the government in Gujarat offered them a lot of money to set up their business there.
The central government also gave a large subsidy, and Gujarat added even more.
Telangana, on the other hand, wasn't offering as much money, which made the Gujarat offer more attractive.
A minister from Telangana stated that the move was due to these financial incentives rather than any problems with Telangana's government.
Telangana minister disputes BRS leader's claims on Kaynes Semiconductor's relocation.
Kaynes Semiconductor chose Gujarat due to significant subsidies offered by the central and Gujarat governments.
The central government offered Rs 1,654.5 crore subsidy, and Gujarat added Rs 661 crore.
Telangana's incentives would have been significantly less at Rs 330 crore for similar projects.
The minister criticized BRS for misinformation and urged them to address central policy inconsistencies.
- Who
- Telangana IT minister Duddilla Sridhar Babu and BRS leader K.T. Rama Rao, along with Kaynes Semiconductor.
- What
- Kaynes Semiconductor's shift from Hyderabad to Gujarat was due to financial incentives.
- When
- Not explicitly mentioned in the articles.
- Where
- Hyderabad and Gujarat, India.
- Why
- Kaynes Semiconductor relocated to Gujarat because of substantial subsidies offered by the Gujarat government and the central government.
Telangana Government Perspective
BRS Leader Perspective
Reason for relocation
Telangana Government Perspective
The relocation was driven by financial incentives.
BRS Leader Perspective
The relocation was due to failures of the Telangana government.
- Company
- Kaynes Semiconductor
- Project Location
- Sanand, Gujarat
- Central Subsidy
- Rs 1,654.5 crore
- Gujarat Subsidy
- Rs 661 crore
- Telangana Incentives
- Rs 330 crore
- Telangana Minister
- Duddilla Sridhar Babu