iPhone-Maker Foxconn Receives Karnataka Govt Approval On Rs 8,000 Crore Project, May Generate 50,000 Jobs

Foxconn will reportedly establish a mobile phone plant on 300 acres of land at Doddaballapura in three phases.

The Karnataka government on Monday gave its nod to Rs Rs 8,000 crore project by iPhone-Maker Foxconn Hon Hai Technology India Mega Development Private Limited (FHH). According to the government release, the investment is expected to create 50,000 employment opportunities. The project was cleared at the 61st meeting of the State High-Level Clearance Committee (SHLCC), under the chairmanship of Chief Minister Basavaraj Bommai. The committee also cleared 18 other projects with a total projected investment of around Rs 75,393.57 crore. 

Last month, confusion erupted around Taiwanese-based Foxconn’s investment in India’s southern states. Both Telangana and Karnataka governments claimed that the iPhone manufacturer has signed up to make big investments in their respective states. 

However, the company said that there were no “definitive agreements” in place. The company wrote to the chief ministers of both states saying that it was committed to its agreements with the two states. 

On March 3, a delegation led by Foxconn CEO and chairman Young Liu visited Karnataka and held a meeting with CM Basavaraj Bommai. 

A statement from the Karnataka government on Monday said, "The meeting was held at CM's office-cum-residence 'Krishna' on Monday under the chairmanship of CM Bommai. Among the 18 projects that were approved, 10 are new and five are expansion projects, and three are additional projects,"

“FHH would invest Rs 8,000 crore with employment opportunities for 50,000 people,” the statement added.

“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.

According to a report by The Hindu, Foxconn will establish a mobile phone plant on 300 acres of land at Doddaballapura in three phases. The report cited a government document saying that the source of funding would be capital or other forms of funds from the parent company, which would cover Rs 6,000 crore while the rest would be a term loan.

Phase 1 (2023-24) will see an investment of Rs 3,000 crore; Phase 2 (2025-26) Rs 4,000 crore, and Phase 3 (2026-27) Rs 1,000 crore, the report said.