After Vedanta-Foxconn, PhonePe to exit from Maharashtra, will move to Bengaluru

Mumbai: Days after Vedanta-Foxconn semiconductor project was lost to Gujarat, Fintech app PhonePe has also decided to move from Maharashtra.

In a public notice in Thursday's newspaper from the Maharashtra government, it has notified that the PhonePe office in Mumbai will be shifted to Karnataka.

Phonepe shifting its Mumbai office to Bengaluru comes as another setback to the ruling Sena-BJP government as just recently Vedanta decided to move out of Maharashtra.

The Vedanta-Foxconn's announcement to implement its Rs 2.06 lakh-crore mega-project in neighbouring Gujarat sparked a political furore in Maharashtra. The 90% of the deal had the potential to generate over 2 lakh jobs which was finalised by the previous Maha Vikas Aghadi government headed by Uddhav Thackeray.

After a change of government to one headed by Chief Minister Eknath Shinde and Deputy CM Devendra Fadnavis, the Vedanta Group held series of meetings with them in July, but eventually decided to opt for Gujarat, giving a massive jolt to the western state.

The multinational mining company Vedanta Limited chose Gujarat for its $20 billion (Rs 1.54 lakh crore) semiconductor project. A joint venture with Taiwan’s Foxconn.

Headquartered in Mumbai, the firm has its main operations in iron ore, gold and aluminium mining in Goa, Karnataka, Rajasthan and Odisha. Vedanta Limited is a vastly diversified Indian multinational company that has a prominent presence in the power generation, mining, oil and gas sectors.

It has a revenue of over $20 billion. Hon Hai Technology Group, also known as Foxconn internationally, is a Taiwanese multinational electronics manufacturer ranked 22nd in the 2021 Fortune Global 500.

Shinde blamed MVA for Vedanta's exit

Chief Minister Eknath Shinde blamed the Maha Vikas Aghadi government for its inaction in bringing the Vedanta Foxconn project in Maharashtra saying that after the new government came to power it agreed for the capital subsidy for the project as sought by the company.

“It has been two months since our government was formed. The Vedanta Group had been trying for the project in the state for one and a half years. However, when our government took charge, I and Deputy Chief Minister Devendra Fadnavis held an urgent meeting to consider Vedanta’s demands and offered the subsidy as sought by it. However, by that time Vedanta had decided on Gujarat,’’ said had Shinde.

Published on: Thursday, September 22, 2022, 11:57 AM IST