CM Uddhav Thackeray encourages industrialists to invest in Maharashtra; Foxconn Scraps its plan to invest

But his Industries Minister doesn’t want to trust them.
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Mumbai: While the political parties, including the Congress, Nationalist Congress Party (NCP) and also Shiv Sena, are crying foul over lack of investment in the state resulting in reduced jobs, their government in Maharashtra appears to be least bothered about foreign industries deciding not to invest in the state. Continuing its stint with the confusion and sheer lack of coordination among the cabinet colleagues, CM Uddhav Thackeray and Industries Minister Subhash Desai have once again got foot in mouth. This time it is over future of industries in the state. Both were seen completely contradicting each other this week, creating confusion among the prospective investors.

Reacting to the decision of world’s biggest contract manufacturer of consumer electronics Foxconn, not to invest in Maharashtra, industries minister Subhash Desai said, “The company will not invest in the state to start manufacturing facility. We have learnt a lesson and will think twice before believing industries when they claim to invest in the state.” The state government had signed a Memorandum of Understanding (MoU) with Foxconn in 2015. As per the agreement, Taiwan based Foxconn, had offered to invest $5 billion in the state and create 50,000 jobs by 2020. The company manufactures gadgets for leading brands like Apple, Huawei, Xiaomi and Black Berry.

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It is on the back drop of the meeting between CM Uddhav Thackeray and prominent industrialists of the country, including Ratan Tata, Anand Mahindra and Mukesh Ambani. During the meeting Thackeray assured all necessary cooperation from the state. Interestingly, during inauguration of Advantage Maharashtra Expo organized by Marathwada Association of Small Scale Industries and Agriculture (MASSI) at Aurangabad on Jan 9, Thackeray again appealed the industrialists to come forward to invest in the state. He even appealed them to brave the odds, as he did while forming the present government in Maharashtra. “The industrialists should come forward to invest in the state. They should brave the odds, like we did recently to form the government. The state will extend all possible help to the industries,” Thackeray said.

Chief spokesperson, BJP Madhav Bhandari said, “Basically, Shiv Sena which is leading the government had never been industries friendly. Its labour unions always tried to hinder the industrial operations in the state. Its stand on various projects during last government such as Nanar Refinery and Mumbai Metro Rail, has been a major deterrent for foreign as well as domestic industries. The statement by industries minister Subhash Desai is unfortunate.”

The company, despite signing the MoU in 2015, has not started its operations in Maharashtra since. After the news about company’s decision not to invest in Maharashtra due to its disputes with Apple, appeared in a section of the media, the company issued a denial. According to the statement by Hon Hai Precisions Co – known as Foxconn in global markets, there was no dispute whatsoever with Apple. The company, in the statement, published in Focus Taiwan, has stressed that it planned to start 10-12 manufacturing facilities as a part of Make in India initiative. However, it has preferred to keep silent on the reports that it has decided not to invest in Maharashtra.