Bengaluru, February 16 Karnataka's Minister of Commerce and Industries, M B Patil, stated on Monday that Aequs continues to expand within the state, and its proposed investment in neighboring Tamil Nadu was a business decision aimed at diversification, not a departure from Karnataka.
In response to criticism on social media regarding reports that the Karnataka-based firm had signed a major investment deal in Krishnagiri district of Tamil Nadu for establishing a specialized aerospace and defense manufacturing cluster, he said the state government was fully aware of the company's plans and remained confident about its long-term commitment to Karnataka.
"While we welcome every major investment in India, we would like to clarify a few points," Patil said on 'X'.
Aequs was significantly expanding its presence within Karnataka, including a ₹3,000 crore investment in Kolar for electronics manufacturing.
"Its recently approved ₹1,500 crore ECMS project will also be based in the state. Karnataka remains central to its long-term strategy," he said.
Patil added that the government was already informed about the TN proposal.
The government was already informed and aware that the TN investment is a business decision aimed at geographic diversification and de-risking operations, not a departure from Karnataka.
"Healthy competition between states strengthens India's manufacturing ecosystem," he said.
Emphasizing the state's focus on high-technology sectors, Patil said, "We remain committed to deepening Karnataka's leadership in aerospace and advanced manufacturing, and our engagement with industry partners is strong and ongoing."
The Aequs Group has pledged ₹4,000 crore to bolster Tamil Nadu's aerospace manufacturing capabilities at the SIPCOT-Shoolagiri Industrial Park in Krishnagiri district.
The group proposes to establish a specialized aerospace and defense manufacturing cluster for the production of aircraft engines, gearbox components, and precision engineering parts. This initiative is expected to create employment for 7,000 individuals.