Foxconn to get Rs 6,970 cr in incentives for iPhone unit in Karnataka

Foxconn, Apple's primary supplier, is set to receive Rs 6,970 crore in incentives as part of Karnataka's special incentive scheme for the Electronics System Design and Manufacturing (ESDM) sector from 2020 to 2025. Chief Minister Siddaramaiah made this announcement during the state budget presentation.

The Taiwanese contract manufacturer has established a mobile phone manufacturing plant in the Devanahalli Industrial Area with an initial investment of Rs 21,911 crore. As highlighted by the Chief Minister in his budget address, the company will benefit from an incentive of Rs 6,970 crore under the ESDM policy.

“Foxconn is setting up a mobile phone manufacturing plant in Devanahalli Industrial Area with an investment of Rs 21,911 crore and will be provided incentives under the ESDM policy,” said Siddaramaiah.

The ESDM policy offers various incentives, such as a 25% capital investment subsidy on land, a 20% subsidy on plant and machinery, and a full reimbursement of stamp duty, registration charges, and land conversion fees provided by the state.

Foxconn apparently is the first electronics company to receive such a substantial incentive, and this signifies Karnataka's commitment toward enhancing its presence in high-end electronics manufacturing.

CM Siddaramaiah also announced a series of measures for Bengaluru in response to increasing public criticism regarding the city's poor infrastructure, just ahead of the Bruhat Bengaluru Mahanagara Palike (BBMP) elections.