Foxconn's board of directors to visit Maharashtra in October

Foxconn officials will scout for land for $5-billion investment

Foxconn’s board of directors will visit Maharashtra next month to scout for land for its proposed $5 billion investment in the state. The company, which entered into an MoU with the state government on August 8, has so far indicated its interest in land parcels at Khopoli in Raigad district and Talegaon-Chakan in Pune district. In the past month and a half, Foxconn representatives have been to these sites but now it’s the turn of board members to visit.







As per the present market rates, the land cost is at Rs 1 crore per acre. Foxconn is keen to acquire 1,500 acre of land. The company has already announced to set up  a manufacturing unit as well as R&D (research and development) facility in Maharashtra.

The state government and the state undertaking Maharashtra Industrial Development Corporation (MIDC) have  clarified that Foxconn will have to pay the prevailing market rate for the land. That means the firm will have to shell out  over Rs 1,500 crore towards acquiring land and also the development charges to MIDC.  

However, both the government and MIDC have said Foxconn will be entitled to incentives under the ultra-mega project policy in force since April 2013 till March 2018.

As per the policy, projects with investment above Rs 1,500 crore are termed as ultra-mega projects and will be eligible for VAT rebate.

MIDC CEO Bhushan Gagrani told Business Standard: ''Foxconn's board of directors will visit Khopoli and Talegaon-Chakan in October.'' He mentioned that the company chairman Terry Gou won't be part of the proposed visit.

Further, another senior official at the MIDC, said MIDC was in the midst of notification of 1,500 acre in Khopoli and it could be subsequently offered to Foxconn. In case of Talegaon-Chakan, the land is already in MIDC's possession. ''Khopoli will be close to Jawaharlal Nehru Port Trust and also to the upcoming Navi Mumbai international airport. It is also accessible through old Mumbai-Pune highway and is also on the Mumbai-Pune expressway.

As far as Talegaon-Chakan is concerned, it is in the vicinity of Pune airport and is accessible to Mumbai port through the expressway. "MIDC will put in place modern infrastructure at Khopoli while it has already developed state of the art facilities at Talegaon-Chakan industrial estate. Foxconn will have to take a final call,'' the MIDC official added.

Meanwhile, Foxconn has taken about 16,000 sq ft of space on rental space in World Trade Centre, Cuffe Parade for its camp office.