Foxconn To Get Rs 6,970 Cr Incentives From Karnataka

Foxconn, the Taiwanese company that manufactures iPhones, will receive an incentive of Rs 6,970 crore under Karnataka's Electronics System Design and Manufacturing (ESDM) policy, as announced by Chief Minister Siddaramaiah in his budget on Friday.

Foxconn has started building a mobile phone manufacturing plant in the Devanahalli Industrial Area with an investment of Rs 21,911 crore. The company will receive Rs 6,970 crore as part of the ESDM policy.

This makes Foxconn the first electronics company in Karnataka to receive such a large incentive, as the state aims to grow its high-end electronics manufacturing sector.

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The new Foxconn facility, located on a 300-acre plot in Devanahalli, near Bengaluru, will assemble 20 million smartphones annually. Production is expected to begin soon. This plant is in addition to Foxconn's upcoming unit in Hyderabad and existing units in Sriperumbudur near Chennai and Sri City in Andhra Pradesh.

Karnataka’s ESDM policy offers several incentives, including a 1% production-linked incentive (PLI) based on annual turnover for the first five years of commercial operations.

In his budget speech, Siddaramaiah also announced a INR 300 Cr fund-of-funds (FoF) and an additional INR 100 Cr to support deeptech startups in the state.

These investments are part of the government’s Local Economy Accelerator Programme (LEAP), aimed at creating jobs in smaller cities in the state. The initiative is expected to generate 5 lakh jobs and help develop startup ecosystems in cities like Mysuru, Mangaluru, Hubballi-Dharwad and Kalburgi.

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