Two days after issuing a ‘clarification’ that “no binding and definitive” agreements were made on investments in Karnataka, Taiwanese Hon Hai Precision Industry Co. Ltd. (Foxconn Technology Group) on Monday wrote to Karnataka Chief Minister Basavaraj Bommai expressing keenness to take forward its proposed electronics production facility in Karnataka.
Foxconn Chairman Young Liu, in his letter to Mr. Bommai, promised to ensure successful grounding of the project in Bengaluru. This is seen as an attempt to dispel any confusion triggered by the company’s earlier statement issued on March 4 that the Letter of Intent signed between the company and the State government on March 3 was “not definitive’‘ in nature.
The proposed Foxconn facility is expected to come on a 300-acre land close to the airport in the city, as per the Letter of Intent.
‘Project Elephant’
“My team will be in close contact with your team to take this forward and ensure successful grounding of ‘Project Elephant’ in Bengaluru,’‘ Mr. Liu wrote to Mr Bommai. Sources said that ‘Project Elephant’ is a reference to the proposed 300-acre facility.
“I am confident that this project will lay a strong foundation for our other multiple plans, spanning mechanical/precision machinery, electric vehicle, IC design & semiconductor segments to consider your State as a potential investment destination.”
He had a word of praise for “infrastructure readiness, timelines, Government of Karnataka’s support for skilling and talent acquisition and the availability of social infrastructure around the region where the plot is earmarked for the project.”
Addressing the Chief Minister he further wrote, “We hope that you and your team found our visit as successful and fruitful as we did.”
Why the clarification
The clarification issued by the company earlier is said to have been triggered by corporate governance issues and public statements of politicians that overlooked official processes. Mr. Bommai and Union Minister Rajeev Chandrashekar on Friday had tweeted that Apple phones are to be built in Karnataka. This had not gone down well with the company, according to sources, since it was announced before all processes were in place and because the project is not of Apple alone.
Foxconn has written a similar letter of appreciation to Telaganga Chief Minister too, whom Mr. Liu also met during his visit to India.
