Apple Inc. supplier Foxconn & Dixon urge India to pay pending production subsidies
Apple Inc. supplier Foxconn Technology Group and Dixon Technologies India Ltd. are asking India to pay them billions of rupees in subsidies they think they are entitled to under the government’s production incentives program.
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The government pledged a total of 410 billion rupees ($4.8 billion) in subsidies to manufacturers, and part of that remains unallocated because some companies didn’t meet estimated production targets. Foxconn and Dixon argue that, according to the program rules, they are eligible for some of the unallocated funds, people familiar with the matter said.
Foxconn could get as much as 6 billion rupees and Dixon 1 billion rupees if the government releases the funds, the people said, asking not to be identified as the matter isn’t public. The government is reviewing the two requests, the people said.
Representatives of Foxconn, Dixon and India’s technology ministry didn’t respond to requests for comment.
Prime Minister Narendra Modi’s production-linked subsidy plan set annual value-based thresholds for global and local electronics firms, capped at certain levels. The project also envisaged that any unused subsidies, resulting from some companies failing to produce enough to hit their caps, would be allocated to the remaining eligible applicants that exceeded theirs.
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