- Tata Sons plan a capital expenditure of $1.5 billion for building manufacturing capacity in this area
- It is looking to secure $750 million to $1 billion in external commercial borrowings and mobilise the remaining sum through internal accruals
As per a report by the Economic Times, Tata Sons is seeking up to $1 billion through overseas loans to setup a mobile phone and component manufacturing plant in Tamil Nadu to make Iphone parts as per sources aware of the development. It added that the Tata Group will avail the benefits under recently unveiled PLI (productivity-linked incentive) scheme of the government.
The Economic Times report adds that Tata Sons plan a capital expenditure of $1.5 billion for building manufacturing capacity in this area. It is looking to secure $750 million to $ 1 billion in external commercial borrowings and mobilise the remaining sum through internal accruals.
Tamil Nadu Electronics Hardware Manufacturing Policy 2020
It added that the new production unit is expected to cater to Apple’s sourcing needs to begin with. After that, it may eventually scale to meet the requirements of other original equipment manufacturers from South Korea and Japan.
Tamil Nadu government recently announced the Tamil Nadu Electronics Hardware Manufacturing Policy 2020. It aims to increase electronics industry output to $100 billion by 2025 with the state contributing 25 per cent of India’s total electronic exports by that year.
