India National News

Kumaraswamy Questions Massive Subsidy Of Rs 3.2 Cr To US Firm Unit In Gujarat

Union Steel and Heavy Industries Minister and Janata Dal (Secular) leader, H.D. Kumaraswamy, sparked controversy by highlighting the disproportionate subsidies given to a US-based semiconductor company.Ā 

 

He noted that Micron Technology, set to establish a $2.5 billion unit in Gujarat, was granted a subsidy of Rs 3.2 crore for every job it creates.

 

After returning to Bengaluru after taking charge as a Union cabinet minister, Kumaraswamy said, “The new manufacturing unit will generate about 5,000 jobs. For this, we are giving them $2 billion in subsidiesā€¦ If you calculate, that’s 70% of the company’s total investment.”

 

However, he quickly clarified that he was “not authorized” to identify the company in his public addresses.

 

Kumaraswamy’s remarks have reignited the political debate on rising inequality in the country. Opposition parties have accused the Narendra Modi government of waiving substantial taxes for corporations to incentivize investments while offering little to no tax relief for individuals.

 

Additionally, the opposition has criticized the government for increasing direct taxes on farm inputs, levying cess on various services, and tightening indirect taxes on FMCG products.

 

In this context, Kumaraswamy’s comments have bolstered the opposition’s criticism of the Modi government’s fiscal policies.

 

Kumaraswamy said, “I asked officials how justifiable it is to allocate such a significant amount of funds. Conversely, there are small-scale industriesā€¦ In Peenya (an industrial estate in Bengaluru), there are small-scale industries. How many lakh jobs have they created? What benefits have we provided to them? I am contemplating these matters, such as safeguarding the nation’s wealth.”

 

He added that his focus as a minister would be to create job opportunities for the youth. “I can facilitate job opportunities outside the state as well. You must be willing to relocate,” he told his audience in Bengaluru.

 

The minister’s independent remarks also reflect potential policy differences within the coalition government at the Centre. Over the past 10 years, with the BJP holding a majority, Modi’s cabinet ministers rarely expressed individual opinions on policy matters, reinforcing the perception that the Prime Minister’s Office guided all major decisions.

 

Kumaraswamy urged the Congress government in Karnataka to set aside mutual differences and “collaborate and contribute” for the welfare of the state.

 

 

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