Foxconn iPhone factory: Clash for credit breaks out between BJP, Cong; DK had called Bommai govt MoU with company 'fake'

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Months after Congress leader DK Shivakumar termed “fake” the then BJP government’s claims of new MoU with Foxconn to manufacture iPhones in the state, Priyank Kharge, the Minister for Rural Development and Panchayat Raj, who is also in-charge of the IT & BT department, in the newly-formed Karnataka government on Thursday confirmed the veracity of the upcoming project.

The development has paved the way for both the BJP and the Congress to claim credit for the project announced in March by former Karnataka Chief Minister Basavaraj Bommai. Since the project is seeing the light of the day under the newly-formed Congress regime, it is in all likelihood that the party would claim credit for the project.

Taking to Twitter, the minister said, “Huge boost for Karnataka with Foxconn’s Project Elephant. They will set up an iPhone assembly plant with an investment of $ 1.7 Bn & will generate 50,000 jobs. The proposed annual capacity up to 20 million smartphone units per annum.”

In another tweet, he said,”A great start for Sri @MBPatil’s tenure. Assuring investors & industry captains that Karnataka will provide a conducive environment for business was need of the hour. Foxconn investment of $1.7bn will pave way for more business & restore the State’s status as the #1 destination.”

In March, the then Karnataka Chief Minister Basavaraj Bommai had announced that the government has signed a memorandum of understanding (MoU) with Foxconn, a leading electronics major, to manufacture iPhones in the state and land has been allocated to the company near Bengaluru airport.

CM Bommai said that the investment is expected to create 1 lakh jobs.

“An agreement was signed with Foxconn, a leading electronics company of the world’s leading electronics company, Hon Hai Technology Group, to invest heavily in the state. A detailed discussion was held with the company’s chairman, Young Li,” Bommai had tweeted.

He added, “300 acres of land near Devanahalli International Airport has been identified for the establishment of this company, which is expected to create 1 lakh jobs in the state. Our government is committed to providing all necessary cooperation to the Foxconn company.”

However, Karnataka Congress chief and now the Deputy Chief Minister DK Shivakumar had lashed out at the BJP for serving lies to the people of the state.

“BJP only knows how to serve lies to our people and make tall claims with no authenticity,” Shivakumar had tweeted.

“Recently, they boasted about an iPhone manufacturing unit coming up in Bengaluru with a potential of creating 1 lakh jobs, which has been proved false already. Karnataka won’t trust BJP again,” he added.

With inputs from agencies

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