Jagan Affect? Investment Goes To Other State

Jagan Affect? Investment Goes To Other State

Noted mobile Xiaomi's component supplier Holitech Technology has started its first production plant in Uttar Pradesh. The company, which aims to produce key parts such as Compact Camera modules, Capacitive Touch Screen modules, Thin Film Transistors, Flexible Printed Circuits, and Fingerprint modules has set up a production plant in Greater Noida in Uttar Pradesh. The production capacity of the plant is estimated at over 300 million components per year.

But here is the twist. The Holitech Technology had first signed an MoU with Andhra Pradesh government in August 2018. As part of the MoU, the Holitech planned to set up a production facility in Tirupati, Andhra Pradesh with an investment of 200 million USD. While it is not clear on what happened to Holitech's plant at Tirupati, speculations are rife that the firm has shifted its plant from AP to UP after the change of state government in AP.

The MoU was signed between Holitech Technology and then CM Chandrababu Naidu-led AP state government in August 2018 in a grand way. The top executives of the firm have met Naidu and shared the MoUs with one another. But it all seems to have gone wasted.

It is rumoured that the same project has been shifted to UP. As per reports, Yogi Adityanath-led Uttar Pradesh has extended several incentives to establish Holitech Technology's manufacturing plant under UP Electronics Manufacturing Policy. While this is said to be one of the possible reasons for Holitech moving to UP, the other reason is cited as the political reason - change of state government in AP. With the entry of Jagan and exit of Naidu, tech companies seem to have their own apprehensions.

Meanwhile, Holitech Technology hasn't responded on the speculations. It is not clear whether its plan to set up a production plant in Tirupati is still on or not. Overall, the Chinese company has plans to invest 200 million USD in three years.