Karnataka Vows to Oppose Centre’s Plan to Shift PSUs to Andhra Pradesh
Deputy CM Shivakumar warns of strong resistance, calls for protecting state’s industrial interests
Bengaluru, [Date]: Karnataka Deputy Chief Minister D.K. Shivakumar on [date] declared the state’s firm opposition to any move by the Central government to relocate public sector units (PSUs) from Karnataka to Andhra Pradesh, asserting that such a shift would disrupt livelihoods and industrial growth.
“Without the state government’s consent, the Centre should not undertake any such move, as it will affect thousands of lives,” Shivakumar said during the inauguration of the KASSIA Centre of Excellence and Innovation in Bengaluru. He vowed to escalate the matter with the Centre and urged industry bodies to lobby against the proposal.
Protecting Jobs and Industries
Shivakumar emphasized that Karnataka hosts a vast workforce, including temporary laborers, who would face severe consequences if industries were relocated. “We have lakhs of workers employed here, and we cannot allow their livelihoods to be uprooted,” he said, directing the Karnataka Small Scale Industries Association (KASSIA) to form a delegation and present their concerns to Union ministers.
Karnataka: A Premier Investment Hub
Highlighting Karnataka’s industrial potential beyond IT, Shivakumar credited the state’s investment-friendly policies for attracting major businesses. “We will continue supporting industries setting up operations here,” he said, citing ongoing infrastructure projects like flyovers, double-decker metro lines, and mobility enhancements to ease Bengaluru’s traffic congestion.
He also pointed to Karnataka’s skilled workforce, noting that prominent industrialists like Anand Mahindra and Sajjan Jindal studied in Bengaluru before establishing nationwide enterprises. “Our talent pool is unmatched, and initiatives like the KASSIA Centre of Excellence will further strengthen our industrial ecosystem,” he added.
Banks Urged to Back Startups
In a critique of financial institutions, Shivakumar accused banks of neglecting new entrepreneurs. “While established businesses get loans easily, startups struggle due to excessive collateral demands,” he said, urging lenders to support emerging enterprises to foster innovation.
Boosting MSMEs and Local Employment
Food and Civil Supplies Minister K.H. Muniyappa stressed the need for Micro, Small, and Medium Enterprises (MSMEs) to generate local jobs. “This training centre must ensure 100% placement and aid in product exports,” he said.
Muniyappa also pledged government backing for skill development and technological upgrades in the MSME sector, a key driver of India’s economy.
Industry Leaders Rally Support
KASSIA President M.G. Rajagopal welcomed the state’s initiatives, emphasizing the centre’s role in fostering innovation. The association also reiterated its demand for a dedicated KASSIA Secretariat to streamline industry support.
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The Road Ahead
With Karnataka positioning itself as a manufacturing and industrial powerhouse, the state government’s pushback against PSU relocations signals a broader effort to retain economic sovereignty. As tensions with the Centre simmer, industry stakeholders await further developments—with livelihoods and investments hanging in the balance.
Key Takeaways:
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Karnataka opposes Central plan to shift PSUs to Andhra Pradesh.
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Shivakumar warns of job losses, seeks industry and political intervention.
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State highlights infrastructure upgrades and skilled workforce as growth drivers.
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Banks criticized for neglecting startups; MSMEs urged to boost local employment.
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KASSIA’s new Centre of Excellence aims to foster innovation and industry collaboration.
Key Quotes:
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DK Shivakumar, Deputy CM:
“Without Karnataka’s consent, the Centre cannot shift industries—it will destroy livelihoods.”
“Our engineers and workers built this industrial ecosystem. We won’t let it be dismantled.”
“Banks must stop ignoring young entrepreneurs. Growth needs risk-taking, not just collateral.” -
KH Muniyappa, Food & Civil Supplies Minister:
“MSMEs must create local jobs. This training centre should guarantee 100% placements.”
“Skill development is non-negotiable for Karnataka to remain an industrial leader.” -
MG Rajagopal, KASSIA President:
“The Centre of Excellence will bridge innovation gaps. Now, we need a KASSIA Secretariat.”
#KarnatakaIndustries #PSURelocationRow #DKShivakumar #MSMEgrowth #InvestInKarnataka
