The Nokia unit near Chennai was shut down in 2014. The tax dispute between the Indian government and Nokia was recently resolved, allowing the plant to be up for sale again.
The Tamil Nadu government is in talks with Foxconn to revive the Nokia plant near Chennai, Tamil Nadu Industries Minister M C Sampath has confirmed.
The Tamil Nadu government is in touch with both Foxconn in India and the manufacturer's headquarters in Taiwan.
"Foxconn is interested in reviving the Nokia plant. The Nokia unit is their neighbour and houses a lot of manufacturing capabilities for global electronic majors. It will be fit and appropriate if they are able to resume operations at the plant," said a government official, Business Standard reports.
Foxconn already has manufacturing units in Tamil Nadu.
The Nokia plant at Sriperumbudur has been defunct since 2014 after Nokia sold its mobile device business to Microsoft. About 15,000 employees lost their jobs.
The settlement of the tax dispute will enable the plant to be open for sale.
The five-year tax dispute got resolved last week, after India and Finland signed the Mutual Agreement Procedure (MAP) system. The settlement included payment of Rs 1,600 crore in tax by Nokia.
The Income Tax Department had issued a tax demand of Rs 2,500 crore to Nokia in 2013.