Foxconn might go back on committed $5 bn investment in Maharashtra: Desai

Maharashtra Industries Minister Subhash Desai today hinted that Taiwanese contract manufacturer Foxconn may go back on its committed USD 5- billion investment in the state.

"Foxconn has not come and I feel as bad as you do. But we do not regret it, we are discussing with other companies," Desai told reporters when asked about the progress investment commitment made by the world's largest contract manufacturer of smartphones' including the iPhones.

The comments come days ahead of a mega investor summit planned by the state and more than two years after announcing it at the first Make-in-India summit.

The commitment from Foxconn, which was received after an intense competition among the states, was one of the biggest single investment proposals received by the Devendra Fadnavis government.

In August 2015, the company had entered into an agreement with Maharashtra to invest USD 5 billion over a five-year period and was also given 1,500 acres for setting up an R&D and manufacturing facilities.

According to Foxconn chairman Terry Gou, he chose Maharashtra due to the availability of quality talent and software-hardware integration facilities in the state.

Desai today stressed the state has come out with a detailed electronics policy and continues to attract investments from other companies.

Asserting the strengths of the state, he said despite the Foxconn investment not fructifying, the state continues to lead the charts when it comes to foreign direct investments into states.

The state accounted for half of the FDI flows into the country last year and has been averaging 30 per cent levels for long time now, he said.