Eyewear startup Lenskart has established its manufacturing facility in Telangana instead of Karnataka, citing the state’s favourable policies and rapid execution. Karnataka Industries Minister MB Patil explained that the state government is cautious about offering excessive incentives, as it could compromise the long-term viability of projects. He noted that some investors have requested incentives exceeding 100% of their investment, which is not sustainable.
“As custodians of taxpayers’ resources, we are committed to making prudent decisions that maximise long-term benefits for both the state and its people. Incentives by a state govt are provided only to reduce the burden on investors and increase the project’s financial viability,” Patil said in a statement to TOI.
“State govt cannot and should not provide incentives more than the planned investment. These practices raise concerns on the fundamental viability of such projects,” he added.
In a post on X, Patil wrote, “The government of Karnataka and I, as a minister, have to walk a tightrope. I, as industries minister, have taken steps to create confidence and make several structural reforms to the state industries department. All industrialists know our door is open for any of their concerns or expansion plans.”
“Blow for Karnataka.”
The industry minister clarified after Aarin Capital chairman TV Mohandas Pai urged Patil to intervene and save the investment that Lenskart had originally planned for Karnataka. Pai called it “another blow for Karnataka” and urged Patil to act immediately so that “we don’t lose this investment.”
How the talks of plant in Karnataka started
Earlier this year, Lenskart founder Peyush Bansal, in a Twitter post, asked about the availability of a 25-acre plot near the international airport in Bengaluru for his company to build its following megafactory. Minister Patil quickly responded, offering land. This was cheered by many citizens, with some even suggesting places outside of Bengaluru.
The Karnataka government has drawn flak in recent years after failing to secure significant manufacturing projects, including those from Ola, Ather Energy, and various semiconductor companies. In an interaction with TOI recently, Karnataka’s IT minister Priyank Kharge discussed the unbalanced allocation of semiconductor opportunities across Indian states and alleged that Prime Minister Narendra Modi employed coercive measures to secure agreements favouring Gujarat.
Lenskart goes to Telangana
On Monday morning, Telangana Minister Sridhar Babu, announced the details of Lenskart investments in a post on X. The Lenskart facility, the minister said, will produce eyewear, lenses, sunglasses, as well as accessories and other products catering to India, along with exports to other markets in Southeast Asia and the Middle East. “The facility will be established at Fab City, where land has already been identified and will be handed over to the company this week. The plant will create around 2100 jobs, and there are purported discussions around an R&D plant being set up. This is a testament to our policy that ensures speed and ease of business for companies.”
