TS looks to beat out Karnataka, TN to Rs 30,000-cr Foxconn fab facility investment
Hyderabad: The Telangana state government is confident of beating its southern counterparts of Karnataka and Tamil Nadu to clinch a Rs 30,000-crore investment from Taiwanese major Foxconn, for setting up a fab display facility.
If successful, this would mark the largest investment attracted by the newly formed Congress government in its three-month tenure.
Official sources in the industries department told Deccan Chronicle that Telangana has offered better incentives to Foxconn than Karnataka and Tamil Nadu, and that the company was willing to set up the facility in Hyderabad.
“The Centre announced 50 per cent incentives as part of its incentive scheme for developing the semiconductor and display manufacturing ecosystem in the country in December 2021. Telangana government has offered 30 per cent incentives from its side, while Karnataka and Tamil Nadu offered 20 per cent to 25 per cent incentives,” a source said.
In addition, the Telangana government even offered to take 10 per cent equity in the company, if required, which is a first-of-its-kind offer in the country. All these factors gave Telangana an edge over other states, the source said.
The Telangana government has offered 100 acres on Hyderabad’s outskirts, power and water at subsidised rates and development of bearing the expenses to develop basic infrastructure at the allotted site.
The other incentives offered by the Telangana government were quick facilitation and support for all approvals under the state government, industry-ready workforce to be trained by TASK (Telangana Academy for Skill and Knowledge) for operations from Day 1 of the plant commencing operations, hand-holding by TSIIC and electronics wing through a single point of contact for all requirements, who shall coordinate and liaison with Centre and key departments for facilitating approvals.
Foxconn has already launched the construction of a manufacturing facility in Kongakalan on city outskirts to manufacture Apple iPhones last May, with the facility expected to be ready by the year-end. The company has committed to investments worth Rs 4,500 crore in Telangana so far on this unit.
