The Congress on Thursday accused Prime Minister Narendra Modi’s government of favouring BJP-ruled states in the allocation of semiconductor manufacturing projects, the allegation hurled two days after the Union cabinet approved four new plants worth about Rs 4,600 crore to be set up in Odisha, Andhra Pradesh, and Punjab.

Party general secretary in-charge communications Jairam Ramesh alleged that companies have been compelled to relocate projects from Opposition-ruled states to those governed by the BJP.

"The Modi Govt has just green signalled 4 semiconductor manufacturing projects in the country. After doing detailed home work, a leading private company had submitted its application for a project in Telangana. This was approved on the condition that it relocates to Andhra Pradesh,” Ramesh alleged.

“Much earlier similar transfer of locations were forced through. 2 semiconductor manufacturing projects were compelled to shift their proposed location from Telangana to Gujarat. Similarly, another factory planned for Tamil Nadu got approval on the condition that it shifts to Gujarat.

“Need anything more be said?” Ramesh added. “The PM speaks of competition among states that will make India strong. But if the umpire is so blatantly biased, the competition becomes a farce."

Among the beneficiaries of the semiconductor projects push, Odisha has a BJP government, Andhra Pradesh is ruled by N. Chandrababu Naidu’s TDP whose support is crucial for the NDA government of Prime Minister Modi, and Punjab has AAP in power.

The cabinet’s approval for the projects, under the India Semiconductor Mission (ISM) framework, includes units backed by US technology majors Intel and Lockheed Martin.

Union minister Ashwini Vaishnaw said two of the projects will be in Odisha and one each in Punjab and Andhra Pradesh.

"Cabinet has approved four semiconductor plants that will be set up in Odisha, Punjab and Andhra Pradesh," Vaishnaw said, adding that the chief ministers of Odisha and Andhra Pradesh assured him construction would start at the earliest.

"All these plants will be operational in two-three years," he noted.

The government said the projects will substantially strengthen India’s semiconductor ecosystem, featuring the nation’s first commercial compound fabrication facility and an advanced glass-based substrate semiconductor packaging unit.

These will complement India’s ambitions in the chip design sector, aided by government-supported design infrastructure for 278 academic institutions and 72 start-ups. Over 60,000 students have already benefited from talent development programmes.