Taiwanese tech giant Foxconn Technology is reportedly in advanced talks with the Gujarat state government to set up a manufacturing plant near Sanand, in which it is likely to invest $4 billion (around Rs 25,000 crore).
Foxconn, the world's largest contract manufacturer of electronic items, is looking to manufacture smartphones for Apple and other items at the proposed plant.
"Foxconn is keen to develop a manufacturing park and a plant in Gujarat. The company has been shown several locations across the state and it has chosen 1,000 acres near Sanand. The company has sought financial and other concessions. After deliberating on the demands, a state support agreement (SSA) is being prepared," a source in the government told The Times Of India.
Senior executives of Foxconn have recently held discussions with senior officials of various government departments besides calling chief minister Anandiben Patel and chief secretary G R Aloria, the report said.
The Gujarat government is also examining the incentives given by the Maharashtra government to Foxconn, after it announced its plan to invest $5 billion in the state over the next five years.
The Maharashtra government led by chief minister Devendra Fadnavis had rolled out a range of sops for Foxconn including 100% exemption in stamp duty during the investment period and exemptions on local taxes such as property tax, land tax and entry tax.
The state government had said that it would assist Foxconn in getting loans at preferred rates of interest, including a payment moratorium period of 10 years.
Foxconn was offered electricity supply at subsidised rates of Rs 2 per unit. The company was also exempted from paying energy duty, water charges and duties for 15 years.
Foxconn currently manufactures iPhones and iPads for Apple and Kindle e-book readers for Amazon Inc., besides making electronic equipment for top global tech firms such as Cisco, Dell, Microsoft and Hewlett-Packard.