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Foxconn Will Have to Export 51% of Production at JNPT SEZ

Date 20-May-2017
Subject Foxconn Will Have to Export 51% of Production at JNPT SEZ

MUMBAI, MAY 19: The Taiwanese electronics giant Foxconn, which is seeking about 14 acres of in a special economic zone (SEZ) inside the Jawaharlal Nehru Port for a manufacturing facility, will have to export a minimum of 51 per cent of the goods manufactured at the SEZ facility.

Chairman of the Port, Anil Diggikar told BusinessLine that Foxconn after exporting the goods can make a sale in the local market with minimal taxes. 

The company will get a waiver on the customs duty for the imported raw materials. 

The company is yet to send a formal proposal to the port management but its representatives have spoken with the Chief Minister of Maharashtra Devendra Fadnavis and Union Shipping Minister Nitin Gadkari is also in the loop, he said. 

In August 2015, the companyhad signed a memorandum of understanding with the Maharashtra government for setting up manufacturing facilities with an investment of $5 billion.

The Shipping Ministry and the Jawaharlal Nehru Port Trust have been engaging with a number global companies, including Foxconn, Tesla and a few Korean car makers for setting up manufacturing units at the SEZ.

Diggikar said the port no longer has freehold land, therefore, the SEZ land has been offered.

Out of the total 278 hectares (687 acres), about 100 acres would be fully developed by December and after that, the required land parcel can be handed over to Foxconn.

A senior official of the port told BusinessLine that given the small size of the SEZ (278 hectares), the management is keen to attract only a few large manufacturers, who could populate the SEZ and provide employment to the locals.

The cost of the land at the SEZ would be in the range of about ?28.30 crore per acre, which works out to about ?400 crore for the whole parcel, the official said.

The SEZ is close to both Mumbai and Pune metropolitan areas, which have the highest density of trained manpower in Maharashtra.

Source: Thehindubusinessline.com

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