Bengaluru, Jun 2 (IANS): Apple Inc supplier Foxconn, the world's biggest contract electronics manufacturer, is all set to manufacture iPhone units at its proposed plant in Devanahalli by 2024 April.
The declaration has come as a shot in the arm for the newly-elected Congress government in Karnataka.
The announcement came at a time when the opposition BJP, JD(S) and a section of experts are claiming that the state will lose its tag as the most favourable destination for attracting Foreign Direct Investment (FDI).
The process of Foxconn's investment in Karnataka began during the previous BJP regime. Ex-CM Basavaraj Bommai and former Minister for Large and Medium Industries Murugesh Nirani had made the big announcement regarding Foxconn setting up its manufacturing unit near Bengaluru.
The matter ran into controversy with the opposition parties calling it as a publicity stunt after the claims of the BJP government was disputed by the company.
An embarrassed Bommai had released the letter of appreciation by Foxconn to defend the government in the face of opposition attack.
The good news came before the Assembly elections when Foxconn said in a regulatory filing with the London Stock Exchange that it had bought a huge tract of land on the outskirts of Bengaluru.
The news had then given a boost to the BJP government ahead of crucial Assembly elections.
However, with the BJP failing to impress the voters in the polls, the Congress took over the reins of the state and soon announced the execution of the prestigious project.
The Congress government is now projecting the development as its first success towards ensuring the growth of the state and creation of jobs.
Minister for Large and Medium Industries, M.B. Patil, had announced on Thursday that Foxconn has plans to start manufacturing iPhone units by April next year at its proposed Devanahalli plant and the state government would hand over the required land to the company by July 1 to facilitate the process.
Patil said this after the representatives of the company led by George Chu met him as part of a courtesy visit in which Information Technology and Biotechnology Minister Priyank Kharge was also present.
The Rs 13,600 crore project is expected to create 50,000 jobs, he said.
The Taiwan-based multinational company has already paid 30 per cent of the cost towards the land (Rs 90 crore) to the Karnataka Industrial Areas Development Board (KIADB). It has set the goal to complete the project in three phases and has set a target of manufacturing 20 million units annually after the completion of the three phases.
Some sources termed Foxconn's initiative as an endeavour to look for alternative manufacturing destinations away from China due to the rigid Covid rules there.