Mumbai: Days after Maharashtra lost the Vedanta-Foxconn semiconductor project to Gujarat, Fintech giant PhonePe has also decided to move out of the state. In a notice published in newspapers on Thursday, the company has informed that it plans to shift its base from Mumbai to Karnataka.
The Company has proposed an application to the Central Government under Section 13 of the Companies Act, 2013 to enable it to shift its registered office from Maharashtra to Karnataka. To be able to do so, confirmation of amendment in the memorandum of association of the company needs to be obtained. For this, a special resolution was passed in the general meeting held on August 16 in which the company decided to shift the office.
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.
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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.
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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.
Chief Minister Eknath Shinde blamed the Maha Vikas Aghadi government for its inaction in bringing the Vedanta Foxconn project to Maharashtra saying that after the new government came to power it agreed to the capital subsidy for the project as sought by the company.
