Rs 8,000-crore Foxconn Project Receives Karnataka Govt's Approval

The Karnataka government has approved a project by Foxconn Hon Hai Technology India Mega Development (FHH) that may see an investment of around Rs 8,000 crore. The project may also create job opportunities for around 50,000 people.

There was confusion around Foxconn’s investment plan in India after the Telangana and Karnataka governments simultaneously claimed that the Taiwanese giant had signed up to make big investments in their respective states to manufacture electronics. The company, however, later said that there were no “definitive agreements” in place. Following this confusion, the company wrote letters to the chief ministers of both states, stating that it was committed to its agreements with the two states. At present, around 65 per cent of the company's total production base is in China and its expansion in India is seen as a strategy to diversify its manufacturing base.

Foxconn’s project was cleared at the 61st meeting of the State High Level Clearance Committee (SHLCC), which approved 18 projects with a total projected investment of Rs 75,393.57 crore on Monday.

The meeting was held under the chairmanship of Chief Minister Basavaraj Bommai at his home office 'Krishna'.

“FHH would invest Rs 8,000 crore with employment opportunities for 50,000 people,” a statement by the government has said. A delegation led by Foxconn CEO and Chairman Young Liu had visited the state and held a meeting with Bommai a fortnight ago in Bengaluru. According to media reports, the Apple supplier had won an order to make AirPods and planned to build a facility in India to manufacture the wireless earphones.

Amongst the 18 projects that got approval, 10 are new and five are expansion projects, and three are additional projects. “We are happy that the state has received such a huge investment. In this regard, the proposals for green hydrogen, ethanol production, wind energy power plant, electrical and electronic items assembling, lithium batteries and electric vehicles, and cement and steel companies in the state have been approved in the meeting. Karnataka’s contribution to the manufacturing sector will be remarkable in the country,” Bommai said.

Murugesh R Nirani, minister of large and medium industries, said: “Karnataka is at the forefront of the renewable energy, ethanol production, and manufacturing sectors. In order to encourage green hydrogen production, ethanol production, aerospace, renewable energy, and ESDM (electronics system development and maintenance), we have approved proposals from Amplus Active, Ayana Renewable Power Six, and Tata Advanced Systems.”