The Maharashtra government led by chief minister Devendra Fadnavis has rolled out a range of incentives for Taiwan-based electronics manufacturer, Foxconn Technology, as the company is set to invest $5 billion (roughly Rs 32,000 crore) in the state over the next five years.
The state government said that it would assist Foxconn in getting loans at preferred rates of interest, including a payment moratorium period of 10 years.
The Bharatiya Janata Party-led government will also help Apple's iPhone-maker in obtaining "favourable working capital financing, with preferential interest rates for 10 years," the Business Standard reported.
Besides, the government will offer a subsidy on its total fixed capital investment, without a bar on the amount. Foxconn will also be eligible for 20% subsidy from the state government in addition to central government subsidies.
In August, the Maharashtra government had agreed to allot 1,500 acre land to Foxconn to set up a plant in the state, which is expected to generate 50,000 jobs.
Foxconn has been given 100% exemption in paying stamp duty during the investment period and exempted from paying local taxes such as property tax, land tax and entry tax, according to the memorandum of understanding (MoU) signed between Foxconn and the Maharashtra Industrial Development Corporation (MIDC).
Foxconn's project, code-named MF101 by the company, will come up at Talegaon or Khopoli and the MIDC will provide "a land parcel on a 95-year lease" by June 2016. The company is also permitted to flexibly sub-lease the land to third parties.
"All concessions are being proposed in line with the state's industrial and mega project policies," said a MIDC official, requesting anonymity.
Foxconn will get electricity supply at subsidised rates, which are likely to cost Rs 2 per unit. The company will also be exempted from paying energy duty, water charges and duties for 15 years.
Foxconn's manufacturing facilities are expected to be set up at Hinjawadi (100-300 acres), Chakan (300 acres), Ranjangaon (300 acres), Aurangabad (300 acres) and Supa (300 acres).
