Foxconn’s ‘no definitive pact’ statement stirs row in Telangana, Karnataka

Days after the visit of Foxconn chairman Young Liu’s visit to the country followed by several meetings with national and state leaders ranging from Prime Minister Narendra Modi, Telangana chief minister K Chandrashekhar Rao and Karnataka chief minister Basavaraj Bommai, a row on the ‘actuality’ of investments has stirred up in both the southern states.

Announcements made by Telangana and Karnataka governments
After the Foxconn chairman’s meeting with chief minister KCR, Telangana government announced that the company has decided to set up electronics manufacturing facilities in Hyderabad along with the generation of over 1 lakh jobs in a period of ten years.

“The historic deal has potential to generate employment to over one lakh people over a period of 10 years.

HonHai_Foxconn Technology Group and Govt. of Telangana signed an agreement today at Pragathi Bhavan, Hyderabad to this effect,” Telangana CMO tweeted on Thursday.

Also, Karnataka chief minister Basavaraj Bommai tweeted on Friday that Apple would build iPhones at a new plant in the state, creating employment of around 100,000, post a meeting with Young Liu.

Foxconn is the world’s largest contract electronics manufacturer and a primary Apple iPhone assembler. The Karnataka chief minister stated on Saturday that the corporation will receive approximately 300 acres of property near Kempegowda International Airport.

What Foxconn said
Post these announcements, Foxconn stated on Saturday that its chairman had visited India, but denied having ‘entered into any binding, definitive agreements’ following reports that it was preparing major investments in the nation.

“Foxconn has not entered into binding, definitive agreements for new investments during this trip. Negotiations and internal review are ongoing. Financial investment sums discussed in media are not information being released by Foxconn,” the company’s statement read.

Foxconn said employment figures currently being reported ‘do not equate to direct jobs’ with the company.

Opposition parties in both states took over the situation and slammed the respective ruling governments over the confusion.

Congress leader Randeep Singh Surjewala called Basavaraj Bommai a ‘Liar’ for making the announcement of a deal. Siasat