Karnataka to compensate Bengaluru landowners in Foxconn deal

Farmers in Devanahalli near Kempegowda International Airport in Bengaluru protested on May 3 during the laying of fencing for Foxconn’s land acquisition. They objected to the acquisition, stating they hadn’t received proper compensation and relied on the agricultural land for their livelihoods.

Srinivas S, a farmer told Moneycontrol, “We have not received a single paisa from Karnataka Industrial Areas Development Board (KIADB) or Foxconn so far, but they are acquiring our land forcefully. We are protesting against it.”

M. Mahesh, CEO of KIADB, stated that they would erect fencing for the land designated to Foxconn in Doddagollahalli and Chapparadahalli villages, with help from the land acquisition officer and police personnel.

“The compensation amount related to the 300 acres allotted to Foxconn in Kundana village of Devanahalli taluk will be deposited in court,” he said.

“The third additional senior civil judge and JMFC (Judicial Magistrate of First Class), Devanahalli, has issued a stay order directing not to distribute the compensation directly to the land owners. The compensation amount will be deposited in court,” he added.

In October 2023 and January 2024, Karnataka’s Large and Medium Industries Minister M B Patil convened meetings with farmers and government officials to discuss the land acquisition. However, the matter remains unresolved. In May 2023, Hon Hai Precision Industry (Foxconn) bought the land for Rs 300 crore ($37 million). Officials mentioned that the manufacturing facility is being established within the Information Technology Investment Region (ITIR) industrial area in Doddaballapur, Devanahalli Taluk.

Foxconn is investing Rs 8,500 crore in the manufacturing unit, which is expected to create over one lakh job opportunities within the state over the next 10 years. Production at the plant was supposed to begin by April 2024, but it missed the deadline.

The investment is divided into three phases: Rs 3,000 crore in Phase 1 (2023-2024), Rs 4,000 crore in Phase 2 (2025-2026), and Rs 1,000 crore in Phase 3 (2026-2027). The manufacturing targets include one lakh units of iPhones by December 2025, 50 lakh units by December 2026, one crore by December 2027, and two crore by December 2028.

On March 20, the Karnataka government signed an MoU with Foxconn. The agreement entails an investment of Rs 8,000 crore for a mobile manufacturing unit, creating job opportunities for 50,000 people in the state. BusinessToday