Foxconn Won’t Set Up Manufacturing Units In State: Minister

Electronic giant Foxconn Technology Group will not set up its manufacturing units in Maharashtra, as the Taiwanese firm is facing some issues, said state industries minister Subhash Desai on Monday, while clearing the air over the proposed investments worth Rs. 30,000 crore.

“There is no chance of Foxconn exercising its commitment for investment in the state, as it is facing some problems related to its business. The decision will not have a direct impact on the consumers, but manufactures of electronic gadgets may be affected. Many other smartphone manufacturing firms have also entered in the market and are doing well as well,” said Desai.

Foxconn did not respond to the queries sent by HT till the time of going to press.

In 2015, Foxconn, which manufactures iPhones, iPad, laptops and silicon chips, had shown interest in setting up manufacturing units in the state, and signed a memorandum of understanding (MoU) for investing around $5 billion over five years. However, the plan did not materialise despite several meetings between the two sides and options of land parcels offered by the state government.

The firm had planned to set up the unit at Chakan-Talegaon near Pune but the state had suggested a land parcel in Khopoli. The firm was also offered a 500-acre plot at Palghar. Later, Foxconn planned to set up a manufacturing hub at Jawaharlal Nehru Port Trust (JNPT) in Navi Mumbai and bid for a tender for 44 acres of land in JNPT’s special economic zone (SEZ). The firm, however, could not succeed in the bidding process as it was second highest bidder. “The land parcel went to DP World, a global terminal operator,” said an official from industries department.

Meanwhile, Desai said that the government plans to introduce incentives to firms on the basis of employment generation.―Hindustan Times