Karnataka releases Foxconn's letter to Bommai after Congress accuses it of lying

Amid a political fracas over Foxconn's project, the Taiwanese electronics firm wrote to Chief Minister Basavaraj Bommai on Monday, saying it would “ensure successful grounding” of its proposed manufacturing facility near Bengaluru.

Foxconn has proposed to set up a facility to make Apple iPhones on a 300-acre plot in the Information Technology Investment Region (ITIR) at Devanahalli and Doddaballapur. It is also proposing to build a facility in neighbouring Telangana, where the government, too, has widely publicised it.

“My team will be in close contact with your team to take this forward and ensure successful grounding of ‘Project Elephant’ in Bengaluru,” Foxconn CEO Young Liu said to Bommai in the letter. “I am confident that this project will lay a strong foundation for our other multiple plans...”

Read | Apple faces obstacles in move to boost India manufacturing: Report

The two-page letter was released by the chief minister’s office after Bommai became a lightning rod for criticism over allegations of "lying" on the matter.

Last Friday, Union Minister Rajeev Chandrasekhar and Bommai had announced that an Apple iPhone plant would come up near Bengaluru, creating one lakh jobs. Foxconn assistant vice-president Vincent Lee had signed a letter of intent with the government.

What was a straightforward announcement by the government, which is heading to polls amid massive anti-incumbency, was muddied on Saturday when the company issued a statement saying it had not signed any “binding, definitive agreements” in India.

The statement was seized by the Opposition and allegations that the government had lied began to swirl.

"BJP only knows to serve lies to our people and make tall claims with no authenticity," remarked Karnataka Congress president DK Shivakumar.

The JD(S), too, took a dig at Bommai.

Amid the row, Foxconn also wrote to Telangana Chief Minister K Chandrashekar Rao on Monday stating that the company is “committed to setting up a manufacturing facility in Kongara Kalan”. But according to sources in the Union government, Foxconn’s project in Telangana is a different one.

Describing the Bengaluru visit as “a big success,” Liu recalled that the Foxconn team was welcomed by IT/BT Minister CN Ashwath Narayan at the airport with a walkthrough of the “world-class” Terminal-2. They were given a presentation on cargo infrastructure at the airport and were shown land identified for the project near the airport.

Read | Foxconn says committed to set up manufacturing facility in Telangana

The Foxconn delegation held talks with chief secretary Vandita Sharma at Vidhana Soudha. "It was great to note the 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," Liu stated, lauding Bommai's "vision and drive to make Karnataka an attractive investment destination."

When contacted, Chandrasekhar, the junior IT minister in the Union government, told DH: "The Apple plant in Bengaluru is coming after a lot of work and effort that went into it."

Row in other states

Last year, Foxconn was caught up in another political storm. The Taiwanese firm and Vedanta Ltd joint venture decided to ditch Maharashtra and move their $19.5-billion semiconductor project to Gujarat.

That this happened in the run up to the Gujarat Assembly elections, held in December, added a political colour to the decision.

With the Opposition slamming the Eknath Shinde-BJP government, Vedanta Chairman Anil Agarwal felt compelled to issue a statement. "We decided on Gujarat a few months ago, as it met our expectations. But in the July meeting with Maharashtra leadership, they made a huge effort to outbid other states with a competitive offer. We have to start in one place and based on professional and independent advice, we chose Gujarat," he said.

But the Opposition was not convinced, as a 1,100-acre plot had already been identified for the project at Talegaon — the industrial fringe of Pune city.