The Telangana government on Monday released to the public a letter written by Foxconn Technology Group (Hon Hai Precision Industry Company Ltd) Chairman Young Liu confirming the establishment of its facility on the outskirts of Hyderabad, ending conflicting reports over the location of the new manufacturing facility of the multinational electronics giant in India.
In the letter, written to Telangana chief minister K Chandrasekhar Rao on Monday, the Foxconn chairman said his company was committed to setting up a manufacturing facility at Kongara Kalan. He sought the support of Telangana government’s team in operationalizing the Kongar Kalan Park as early as possible.
The Foxcon chairman visited India recently and met several leaders including Prime Minister Narendra Modi, Telangana chief minister K Chandrashekar Rao (KCR) and Karnataka chief minister Basvaraj Bommai.
Both chief ministers claimed that Foxconn chairman has committed to set up a manufacturing unit in their respective states.
On March 2, Liu met with KCR at the latter’s camp office, Pragathi Bhavan in Hyderabad, following which the state claimed that Foxconn would set up an electronics manufacturing facility in Telangana that would create 100,000 jobs directly and indirectly over a period of 10 years.
Two days later he met with Bommai. “Agreement signed with Foxconn, leading electronics major, to make major investment in state after a detailed discussion with co’s C’man Young Liu. It will expected to create 1 lakh jobs. 300 acres of land near Bengaluru Int. airport allocated,” the Karnataka CM tweeted on March 4.
{{/usCountry}}Two days later he met with Bommai. “Agreement signed with Foxconn, leading electronics major, to make major investment in state after a detailed discussion with co’s C’man Young Liu. It will expected to create 1 lakh jobs. 300 acres of land near Bengaluru Int. airport allocated,” the Karnataka CM tweeted on March 4.
{{/usCountry}}Following the reports of investment in two states, Foxconn in a statement on March 4 said that no deals had been finalised during chairman and CEO Young Liu’s visit to India from February 27 to March 4.
“Foxconn has not entered into binding, definitive agreements for new investments during this trip. Negotiations and internal review are ongoing. Financial investment sums discussed in media are not information being released by Foxconn.”
It added that the employment figures being reported ”do not equate to direct jobs” with the company.
Following this, a political controversy erupted in both states. The Telangana BJP alleged that the Telangana government was lying .
On Monday, the Telangana government released the Foxconn chairman’s letter . “As discussed with you during our meeting on March 2, Foxconn is committed to setting up a manufacturing facility at Kongara Kalan and I seek support of your team in operationalising the Kongara Kalan Park as early as possible,” the letter, signed by Liu and addressed to KCR read.
“I was indeed inspired by your vision and the efforts towards transformation and development of Telangana. I now have a new friend in India and I look forward to working with you in future,” Liu added in the letter, extending an invitation to KCR to Taiwan as his personal guest, mentioning that it would be his honour to host the Telangana chief minister in Taipei.
KCR emphasized that Telangana considered Taiwan as a natural partner and that the state is glad to be a part of Foxconn’s growth story.
He assured Young Liu that the state government would provide all support to Foxconn for its operations in Telangana.