After Karnataka dropped its plan to acquire farmland near Devanahalli for an aerospace park, Andhra Pradesh quickly stepped in to attract those companies. Just hours after Karnataka CM Siddaramaiah announced the decision, following protests from farmers, Andhra’s Human Resources Minister and CM Chandrababu Naidu‘s son, Nara Lokesh, took to X and invited aerospace firms to consider moving to his state instead.
Why did Karnataka make a u-turn?
Farmers had actually been protesting for years against Karnataka government’s plan to take over their land in Devanahalli. They were unhappy with the compensation being offered, especially since the land prices have shot up since the Kempegowda International Airport was built in the area. Many farmer groups came together and asked the government to cancel the land acquisition plan.
Industries Minister MB Patil had said that the government wanted to support both farmers and industry equally. That’s why it decided to cancel the plan to acquire land in Channarayapatna village, located in Devanahalli taluk.
Andhra’s pitch
Highlighting over 8,000 acres of ready-to-use land near Bengaluru and promising strong incentives, Nara posted on social media that Andhra Pradesh has a better offer ready for the industry. “Dear Aerospace industry, sorry to hear about this. I have a better idea for you. Why don’t you look at Andhra Pradesh instead? We have an attractive aerospace policy for you, with best-in-class incentives and over 8000 acres of ready-to-use land (just outside Bengaluru)! Hope to see you soon to talk across the table,’ Nara wrote on X.
Andhra vs Karnataka
Karnataka minister G Parameshwara said on Wednesday that the state will not allow investors to shift to other states. He admitted that the government may not be able to provide land in Devanahalli taluk but clarified that this doesn’t mean companies should look elsewhere to invest.
Parameshwara said that if the land isn’t available in Devanahalli, the government will offer land in another location within Karnataka. The minister also said they will work to persuade investors to stay and set up their projects in the state instead of moving to places like Andhra Pradesh, Maharashtra, or Tamil Nadu.
Resonating with the sentiment, another senior official from Karnataka’s industry department had earlier told BusinessLine that dropping the land acquisition in one location does not mean land is unavailable for the proposed aerospace park. The official said that Karnataka is not giving up on attracting those companies and will find another suitable location for them.
According to the official, companies are not just looking for land, they are also in search of skilled workers and a strong supply network. He added that Bengaluru and Karnataka have a big advantage in these areas, which other states, including Andhra Pradesh, will find hard to match. He said that Karnataka will continue to be a top choice for investors.