BRS scrambles to save face after Foxconn denies signing investment agreement
HYDERABAD: A statement from Taiwanese major Foxconn on Saturday, denying it had “binding, definitive” agreements to invest in India, left the ruling Bharat Rashtra Samithi (BRS) scrambling to save face, three days after it had claimed that the firm would set up a Hyderabad unit and generate 1 lakh jobs over 10 years.
While there was no clarification from the state government or the industries department, official sources in the department said that a letter of intent was signed and negotiations were in the final stages to finalise the investment.
Sources maintained that the company expressed its willingness to set up operations in Hyderabad and the plant will be a reality soon.
“Foxconn officials, along with officials of industries and revenue departments, also visited land sites where this plant can be set up. We have shown two land parcels of over 200 acres each in Kongarakalan and Dundigal. They were in favour of Kongarakalan. Once land is finalised, the MoU will be signed. The project is very much on and there is no need for any doubt,” an official, requesting anonymity, said.
Foxconn issued the statement in response to announcements by the Telangana and Karnataka governments, claiming that agreements had been signed during Foxconn CEO Young Liu’s visit to India over the past week.
During the visit, Liu met Chief Minister K. Chandrashekar Rao at Pragathi Bhavan along with a delegation of company officials on Friday. The meeting was also attended by ministers K. T. Rama Rao, T. Harish Rao and P. Sabitha Indra Reddy, Chief Secretary A. Santhi Kumari, DGP Anjani Kumar, and special chief secretaries K. Ramakrishna Rao and Arvind Kumar.
Following the meeting, the Chief Minister’s Office also issued a press release, which stated: “Chief Minister of Telangana K. Chandrashekar Rao along with Foxconn chairman Mr Young Liu announced setting up of electronic manufacturing facilities in Hyderabad.
The historic deal has potential to generate employment to over one lakh people over a period of 10 years. Hon Hai Technology Group (Foxconn) and Government of Telangana signed an agreement at Pragathi Bhavan, Hyderabad for the proposed facilities.”
