Foxconn the Taiwanese manufacturing giant is investing billions of dollars in setting up manufacturing plants in India.
Different state governments are trying to wove foxconn with various incentives so as to benefit from the windfall. These include Maharashtra, Karnataka, Telangana, Andhra, Tamilnadu and the latest entrant, Uttar Pradesh.
Maharashtra being the most industrialised states is at the forefront in wooing foxconn.
It has offered sites at places such as Navi Mumbai, Pune and Aurangabad. Nagpur being the hometown of Chief Minister cannot be ruled out as one of the contenders for investment as previous experience have shown.
Of all the sites on offer why should foxconn invest in Aurangabad? What benefits can Aurangabad provide to a Multinational like foxconn?
- Aurangabad is classified as an industrially backward district with most of its industrial areas classified as ‘D’ category industrial estates, attracting tax benefits. If Foxconn is offered similar tax concessions, it can act as an incentive for investment.
- Aurangabad, though classified as an industrially backwards district nevertheless has an established manufacturing base. Thus providing the basic infrastructure needed to establish a manufacturing plant within its vicinity.
- With the upcoming AURIC industrial city being established under DMIC at Aurangabad, world class manufacturing and residential infrastructure will be made available to prospective investor at reasonable rates. Issues of Land, water supply, waste disposal, electricity etc being taken care off by DMIC /AURIC, readymade manufacturing site with plug and play facility will be available to Foxconn.
- Abundance of cheap and skilled manpower in Aurangabad and surrounding region is an added bonus to a prospective investor. There are many technical institutes and established Engineering colleges in Aurangabad and neighbouring districts which can cater to the demands of the industry for a long time to come.
- No labour unrest have been reported from the region since long. Calm and investor friendly labour climate is an added bonus to businesses, unlike some other developed industrial cities baying for investment.
- The under construction Dry Port with direct connectivity to JNPT port, expansion of Aurangabad Airport and with the upcoming Nagpur – Aurangabad – Mumbai Expressway, connectivity issues will be addressed to a large extent. Also with the network of State and National highways being expanded, road connectivity to North and South India will improve greatly, thus improving the access to markets in those regions.
- Finally Aurangabad being the tourism capital of Maharashtra offers a cosmopolitan climate with UNESCO recognised world heritage Buddhist sites at Ellora and Ajanta, and a readymade tourism infrastructure which can supplement business, in the form of star hotels, restaurants, translators, meeting places, good air connectivity etc. All these can offer as an added attraction to a prospective investor and their employees from Taiwan which other similarly sized cities cannot count as their USP.