Hyderabad Competes for Rs 30,000-cr Foxconn Fab Facility, Gains Advantage with Robust Incentives
In the race to secure Foxconn’s substantial investment for a semiconductor and display manufacturing facility, Telangana is strategically outpacing Karnataka and Tamil Nadu. The Centre’s 50% incentive scheme, introduced in December 2021, triggered fierce competition. Telangana’s allure is heightened by its impressive offer of 30% incentives, surpassing the 20% to 25% presented by Karnataka and Tamil Nadu.
Notably, Telangana’s groundbreaking offer includes a willingness to acquire a 10% equity stake in the venture, a unique proposition in the country. To sweeten the deal, the state government has earmarked 100 acres on the outskirts of Hyderabad, offering power and water at subsidized rates. Moreover, Telangana is committed to bearing the expenses for developing essential infrastructure at the allocated site.
Beyond land and resources, the Telangana government pledges swift facilitation and support for all necessary approvals, along with an industry-ready workforce trained by TASK (Telangana Academy for Skill and Knowledge). This ensures seamless operations from day one of the plant’s commencement. To streamline the process further, TSIIC and the electronics wing will provide comprehensive support through a designated single point of contact, facilitating coordination and liaison with the Centre and key departments for approvals.
Foxconn has already initiated construction on a manufacturing facility in Kongakalan, on the outskirts of Hyderabad, dedicated to manufacturing Apple iPhones. With an expected completion by year-end, Foxconn has committed investments of Rs 4,500 crore in Telangana for this unit, solidifying the state’s position as a hub for cutting-edge technology manufacturing.
