Union Communications Minister Ravi Shankar Prasad along with the secretaries of six ministries are expected to help finalise an estimated $20 billion investment in India by Foxconn Technology, the Taiwanese electronic component manufacturer.
Prasad was meeting with a delegation of 30 members led by the chairman and founder of Foxconn, Terry Gou, at a prominent hotel in the capital.
“Based on the discussion a final announcement along with Prime Minister Narendra Modi is expected to be made,” sources in Gou’s delegation told HT.
In the last two months Gou has held meetings with the chief ministers of Andhra Pradesh, Maharashtra, Gujarat and Telengana to accrue land for a technology park.
He also plans to invest in Bollywood, and held an hour long meeting with film director Subhash Ghai during a visit to Indian last month.
“Today’s meeting is crucial since Foxconn has decided on the areas where it wants to invest in India,” a source in the Commerce Ministry said.
The company could potentially manufacture Apple's iPhone in India, which would lower the prices for the Indian market, and allow them to take on Samsung and local players such as Micromax.
The move could help boost electronic component manufacturing in India, and allow the country to take on its rival China in the field of manufacturing cheap electronic goods.
Foxconn announced a partnership with TV manufacturer Sony on Tuesday, as the sole manufacturer of the Japanese giant's BRAVIA brand.
Gou’s visit was preceded by a 30 member delegation from Foxconn that visited various ministries and states government officials.
Sources in the company said that the investment was to be announced during Digital India week, launched by Prime Minister Narendra Modi on July 1st, but that Gou was unable to attend the government initiative due to technical reasons.
The company plans to spread the investments in setting up a technology park (with an estimated cost of $5 billion) and the rest in Indian and foreign mobile phone companies for manufacture of mobile display screens), with an Indian TV maker to manufacture thin film transistor (TFT) for high definition TVs).
It is also in talks with the Adani Group and also with Snapdeal and Flipkart for hawking products manufactured in India with its partners.
This will constitute a second innings for Foxconn in India which also makes components for companies like Sony, Xiaomi and Acer.
It currently is dealing with litigation issues over laid off employees, who allege that the company closed down units without “following any of the mandatory procedures under the Industrial Disputes Act”.
The company had to shut up shop in 2014, after its major client, Nokia, closed down its manufacturing facility at Sriperambadur near Chennai.