MUMBAI: Industries minister

on Monday said that

, the world’s biggest contract manufacturer of

, will not be setting up its unit in the state.

Desai’s comments finally set the record straight on Foxconn’s proposed $5 billion investment in the state to set up a plant to make mobile phones and components and help create 50,000 jobs by 2020.

Desai said the Taiwanese electronic giant is facing market-related issues and also competition from smartphone-assembling firms in India. “Foxconn’s commitment of investing in the state will not work. It doesn’t serve directly industries department said that land was also identified in the

of Jawaharlal Nehru Port Trust, but things did not work out, they said.

Desai said that the state had learnt its lesson and will now think twice before believing industries in their claims on investments.

Desai also said that the state, in order to boost emploto the consumer but manufactures electronic gadgets for Apple and is now facing some internal issue with them,” Desai said.

The state had signed a memorandum of understanding (MoU) with the manufacturing giant in 2015. Officials said that the state was keen to host Foxconn but things did not materialise despite multiple meetings. Sources in the yment, is trying to change its industrial policy to give incentives on the basis of employment generated by the industry rather than the investment they are bringing.

“We are proposing to change the way we give incentives. Investment in the state is important, but job creation is equally important. We want to encourage industries that create more jobs where locals can be hired,” he said.

He said that the government has readied the draft of the law which will make it mandatory for locals to get 80% quota in jobs. “It will be tabled in the upcoming legislature sessions for clearance,” Desai said. Bringing in a law to reserve 80% jobs for locals was one of the key promises made under the common minimum programme chalked out by the Maha Vikas Aghadi before formation of their government. A similar law exists in Andhra Pradesh.