The Uttar Pradesh government has signed a Memorandum of Understanding with Samsung Electronics, which includes the expansion of its Noida plant with an investment worth Rs 1,970 crore, The Indian Express reported on Tuesday. The state's cabinet also approved a Rs 2,118 crore investment proposal by self-styled godman Ramdev’s Patanjali.
The MOU, signed by Samsung India President HC Hong and Uttar Pradesh Chief Secretary Rahul Bhatnagar aims to double the manufacturing capacity at the South Korean electronic giant's Noida plant. Hong said, "A bigger and more robust manufacturing facility will help us address the needs and demands of our growing customer base across the country and the region." The Economic Times quoted a senior Samsung official, who said the added capacity will help improve exports "in a phased manner".
Officials said the approval will help generate job opportunities for 2,200 people . Chief Minister Akhilesh Yadav said the state would continue to receive investments from smartphone companies, once the Samajwadi smartphone scheme is implemented. The proposed scheme promises the distribution of smartphones after the completion of the state Assembly election, The Indian Express reported.
The approval follows the controversy surrounding Samsung's faulty Galaxy Note7 device, the production of which was terminated after two recalls. According to a Reuters report, the company lost $17 billion (approximately Rs 1.13 lakh).
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