Union Minister for Steel and Massive Industries HD Kumaraswamy questioned the subsidy given to US microchip maker Micron Technology by the Gujarat government while addressing JD(S) party workers in Bengaluru on June 14, 2024.
A day after a public inquiry on whether the subsidy given to US microchip maker Micron Technology was justified, Union minister for ponderous industries and steel HD Kumaraswamy withdrew. He claimed he was “misquoted” in the media.
In what is being seen as an embarrassment to the Centre, Mr Kumaraswamy questioned the decision of the Center and the Gujarat government to give a subsidy of ₹ 3.2 crore to an American microchip maker for every job created in Prime Minister Narendra Modi’s home state.
Addressing JD(S) workers in Bengaluru on June 14, Mr. Kumaraswamy asked whether such an investment was needed at all. The company creates approximately 5,000 jobs and receives $2 billion in subsidies in return. The company will recover 70% of its $2.75 billion investment through state and central subsidies.
HDK questions the expenses for one job
“On a per-job-generated basis, we are spending ₹3.2 crore. I asked officials how many jobs were created in Peenya [industrial area in Bengaluru which houses small-scale industries] and what benefits were provided to them,” he said. Although he initially shared the company’s name, he later asked the media not to mention the company’s name.
“I need to understand the Ministry better and create employment opportunities in the country. Unemployment was an election issue,” he said in his first speech to the JD(S) after taking over as Union minister
On June 15, Mr. Kumaraswamy posted a snowball-threatening statement on social media platform This is a basic requirement in electronics and car manufacturing. Both of these sectors generate gigantic amounts of employment. I greatly appreciate the semiconductor-related initiatives undertaken by the Prime Minister’s Office and will work to implement them through my ministry.”
He later told reporters at Vidhan Soudha in Bengaluru that promoting the semiconductor sector on a gigantic scale is of strategic importance. “At the same time, we need to create jobs in compact industries where we can generate more jobs. We are thinking about it and working on it. I was misquoted… I have to be careful in the future,” he said.
MB Patil welcomes HDK’s statement
Karnataka Industries Minister MB Patil welcomed Mr. Kumaraswamy’s statement on Micron.
In a social media post on Page X, he stated, “It is unfair that a bonus of ₹3.2 crore is given for every job created by Micron Technology in Gujarat. Mr. Kumaraswamy is right to question this issue… Every state in the country should be provided with a level playing field and equal opportunities.
“If the government provides 70% funding for the project, we might as well call it a PSU. Even if it is to revitalize the ecosystem, all countries should benefit from it and have equal opportunities and opportunities.
“However, Prime Minister Narendra Modi seems to have shown special interest in his home state of Gujarat. This will lead to discrimination and unequal treatment.”