Expansion plans of foreign investors in Telangana shrouded in uncertainty
Foxconn had previously announced plans for investment of Rs 4,000 crore in Hyderabad and to create around one lakh jobs
Hyderabad: After multinational companies like Corning International Corporation and Kaynes Semicon pulled out of Telangana and the Amara Raja Group having second thoughts on its expansion plans since the Congress government came to power in the State, doubts are now being raised about the future of other industry giants like Foxconn in Telangana.
Foxconn had previously announced plans for investment of Rs 4,000 crore in Hyderabad and to create around one lakh jobs.
The ground-breaking ceremony for its manufacturing unit in about 200 acres at Kongara Kalan in Rangareddy district was performed in May last year.
The facility was expected to commence operations by the end of August this year. A Foxconn delegation had also met Chief Minister A Revanth Reddy after the Congress government was formed in December last year, but there has been no further update.
There were reports that the firm had plans to invest an additional $400 million USD, but there has been no news on the same so far.
Triggering fresh speculations, a netizen and financial planner D Muthukrishnan raised doubts on X over Foxconn’s plans for Telangana in the backdrop of Foxconn chairman Young Liu meeting Prime Minister Narendra Modi on Wednesday.
“Foxconn is already a major investor for last two decades in Tamil Nadu. They are now spreading to Andhra (Pradesh) and Karnataka. But what happened to their mega investment plans for Telangana?” he posted on X and tagged BRS working president and former Industries Minister KT Rama Rao.
Foxconn is already a major investor for last 2 decades in Tamil Nadu. They are now spreading to Andhra and Karnataka. But what happened to their mega investment plans for Telangana? https://t.co/Q8TloW8jGK
— D.Muthukrishnan (@dmuthuk) August 14, 2024
In response, Rama Rao said the first phase with factories spread over 16 lakh sft was completed and was ready for inauguration to provide employment to more than 20,000 people.
He also informed that the company had sought approvals for the second phase of their $582 million investment with a massive addition of 68 lakh sft. After the second phase, they should be able to ensure total employment of over 80,000 people, he said.
“There was also an intent to invest an additional $400 million USD but I am not sure what’s happening there,” he said, indicating that even Foxconn’s future plans could be under a shadow of doubt after the change of regime in Telangana.
