Karnataka, Tamil Nadu Announce Slew Of Incentives To Attract Pegatron As It Plans To Build iPhone Plant In India

The states of Karnataka and Tamil Nadu are lining up a slew of offers to attract iPhone manufacturer Pegatron, which is all set to establish a greenfield manufacturing facility in South India, Deccan Herald has reported.

Pegatron has already held discussions with Tamil Nadu Chief Minister Edappadi K Palaniswami and is also expected to meet with Karnataka government officials to explore its options.

Tamil Nadu government which has held four round of talks with Pegatron has identified a large tract of land near Vallakottai outside Chennai as a possible site for the plant.

Tamil Nadu has promised a capital subsidy under its Electronics Hardware Manufacturing Policy, based on the range of investment and location chosen. The subsidy is capped at 15 per cent for investment below Rs 500 crore and at 18 per cent for investments of more than that amount. Tamil Nadu will also give a 50 per cent exemption on stamp duty if the land is leased from state agencies like ELCOT, SIDCO, SIPCOT.

Karnataka on the other hand is offering 50 acres of land outside Bengaluru along with a 25 per cent capital subsidy on land value and plant and machinery. The state is also offering a stamp duty concession and a 1 per cent additional incentive on turnover over and above the 5 per cent stipulated under the PLI scheme.

It was reported earlier that Pegatron's board has green-lighted an initial investment of $150 million (Rs 1,110 crore) to build manufacturing facilities in India.

The Taiwanese smartphone manufacturing giant is expected to begin production from the upcoming Indian facility in the second half of next year or in early 2022. Further, the company plans to make more successive investments in the next two years.