Foxconn has proposed to establish a new electronics manufacturing facility with the investment of US$5 billion over five years
The Maharashtra government's patience is running thin as the Taiwanese firm Foxconn has not yet revealed its business plan for its US$5 billion investment, fix site for the manufacturing plant and submit proposal in writing for the land acquisition. This is despite the completion of two years on August 8 for the signing a Memorandum of Understanding (MoU) with the state government. So far, the company has started the assembly of mobile phones from the 2 lakh sq ft rental facility in Navi Mumbai.
The state undertaking, Maharashtra Industrial Development Corporation (MIDC), has notified lands at Talegaon, Khalapur and Palghar. However, the company is unable to zero in on either of the sites. Foxconn has proposed to establish a new electronics manufacturing facility with the investment of US$5 billion over five years (since signing the MoU on August 8, 2015).
A fortnight ago, the Foxconn team held a meeting with MIDC officials and informed that the company awaits the Central government's response on its proposal seeking incentives for the investment in Maharashtra. The company clearly told the MIDC officers that it was not committed to specific timetables.
State industries minister Subhash Desai told DNA, "We are also concerned as it is very mysterious. Foxconn is not talking to us openly what is there in their mind. At the same time the company representatives are meeting everyone in the country.'' On the allotment of land in the tribal dominated Palghar district, the minister said it is mere a discussion as there has been no decision as yet.
''Unless Foxconn signs in black and white, I will not speak on its investment plan,'' Desai said, and added that it is good for the state if Foxconn carries out its investment, but the government will not wait for the same as the Maharashtra is attracting investments from several others.
Desai said that the Vedanta Group will invest $10 billion to set up LCD screen plant in the state. The plant will be operated by Twinstar Display Technologies,'' Desai said. He informed that the government has already released an investor friendly fab policy which provides a maximum capital subsidy of 10 per cent, along with other incentives already given to companies in the electronics sector. The policy will be in effect till 2020.
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