'Monumental failure': Karnataka loses out on Ather EV plant as political blame game erupts

A war of words has erupted between the ruling Congress and the opposition BJP in Karnataka over the loss of a major investment by electric vehicle (EV) manufacturer Ather Energy. The Bengaluru-based company, which had initially planned to set up a manufacturing plant in its home state, ultimately opted for Maharashtra, sparking accusations and counter-accusations.

Karnataka Industries Minister MB Patil placed the blame squarely on the previous BJP government led by Basavaraj Bommai, alleging that their mishandling of land allocation led to Ather's decision to relocate.

"The investor got irritated and returned the entire land parcel to the government and decided to move to Maharashtra, influenced also by other factors,” Patil stated, highlighting that Ather had initially sought 50 acres of land but was only allotted 35 acres, a portion of which was caught in legal disputes.

Patil's comments drew a sharp response from Deputy Leader of Opposition, Arvind Bellad of the BJP. Bellad took to social media platform X, accusing the Congress government of inaction and jeopardising the state's reputation.

“Instead of taking responsibility for losing Ather Energy’s Rs 2000 crore investment and 4000 jobs to Maharashtra, they blame others without any evidence. Karnataka, home to Ather Energy, should have been the obvious choice for their new plant, but the Congress government's lack of effort and initiative cost us this significant opportunity,” Bellad posted.

Bellad further criticised IT/BT Minister Priyank Kharge's allegations about the Prime Minister pressuring companies to invest in Gujarat, stating that it reflected the Congress government’s “inability to compete effectively."

“Karnataka needs leaders who can secure investments through strong policies and proactive engagement, not by playing blame games. The Congress government’s failure to act has cost Karnataka not just this investment but also our credibility as an investment-friendly state. It's time for a leadership change to focus on real actions and results, not excuses and political distractions,” Bellad said.

The BJP leader had previously lobbied for the plant to be set up in Hubballi-Dharwad, citing the region's industrial advantages.

The loss of Ather's investment represents a significant setback for Karnataka, which has been striving to position itself as a leading hub for EV manufacturing in India.