$5 billion investment not in place India says Foxconn’s local plant plans canceled

On Monday, Subhash Desai, india’s minister of industry in Maharashtra, announced that a deal to build an electronics manufacturing plant with Foxconn had been cancelled, according tomedia reports. Mr Desai said Foxconn had decided not to honour its commitments. A memorandum of understanding signed by Foxconn with the government in 2015 showed that it would invest about $5 billion in the state.

$5 billion investment not in place India says Foxconn's local plant plans canceled

Due to an internal dispute between Foxconn and Apple, the deal will not proceed and will not continue in the future: “Foxconn’s investment commitments have not been fulfilled, ” Mr. Desai said. It won’t happen in the future. They occupied land near New Mumbai to build initial facilities, but there appeared to be a number of factors that led to their withdrawal from Maharashtra. “

Desai said there were no loopholes in the memorandum of understanding with Foxconn and that the government had made every effort to ensure the agreement was implemented. “The current global economic situation, the better performance of competitors and differences within Apple have made it impossible for Foxconn to make a good start, ” he said. Desai added, “We want to do everything we can to ensure that this memorandum of understanding is adopted.” “But it’s all in vain. “