Maharashtra government’s much touted USD 5 billion MoU with the world’s largest electronics contract manufacturer and iPhone maker Foxconn is yet to materialize as the Taiwanese giant has “yet to find customers” to start its production unit, a top bureaucrat said today. Foxconn is primarily a contract manufacturer and its clients include major American, Finnish, Japanese and Canadian electronics and information technology companies. Also Read - Cryptocurrency regulation bill: How worried are Indian investors?Also Read - Indian mobile gaming market to shoot up to at least $5 billion by 2025: Report
Apurva Chandra, Principal Secretary, Industries Department, said the MoU is not the only aspect to be considered while gauging the industrial growth of the state, which has received investments worth several thousand crores, which are not part of any MoU. “Don’t only look at the materialization of MoUs to gauge the investments that Maharashtra has received. There are several projects worth thousands of crores happening on ground and these are investments beyond the MoUs we have signed,” Chandra told reporters here.
To a query on Foxconn, the top bureaucrat said, “As far as Foxconn is concerned, they say they haven’t found customers yet and have thus not started their manufacturing plant. We don’t think this as disappointing yet as we would like to give them some more time before coming to a decision.” Chandra added, “Out of total MoUs worth Rs 8.5 lakh crore signed during ‘Make in Maharashtra’ event, proposals for investment worth almost Rs 1.5 lakh crore are in process. It takes two to three years for actual manufacturing and hence, speculation of failure of the event is wrong.” ALSO READ: Xiaomi, Foxconn plan to set up two more manufacturing facilities in India
An email sent to Foxconn seeking their reaction did not elicit any response. Foxconn Technology had last August announced a USD 5-billion investment in Maharashtra over the next five years to set up manufacturing, research and development facilities. The announcement was considered the biggest under the ‘Make in India’ and ‘Digital India’ initiatives. Around 1,500 acres of land was to be allotted for the plant, which was to come up either near Mumbai or Pune. ALSO READ: Foxconn plans to revive its Chennai units
Chief Minister Devendra Fadnavis had announced that Foxconn will create direct employment for 50,000 people through the MoU. Meanwhile, as per figures released by Industries Department, various investment proposals totaling Rs 4,609.83 crore in textile industry are in progress. While Rs 211.5 crore is already invested in this sector, whereas discussions are going on for investment worth Rs 1,014 crore. ALSO READ: Foxconn re-employs around 3,000 ex-Nokia staff for its new unit in Andhra Pradesh