Come August 17, Tamil Nadu is set to witness the inauguration of a unique housing infrastructure for 18,720 women employees of Foxconn, a supplier of Apple, at Vallam Vadagal near Chennai. This is the first-of-its-kind initiative in India, where a state government is constructing such a large hostel for workers of a private company, a successful model in countries like China and Vietnam.
Interestingly, the state will also be operating and maintaining the housing complex for Foxconn. This comes at a time when Apple has reportedly lined up a plan to create residential accommodations for 78,000 people, out of which Tamil Nadu is set to receive the highest allocation of 58,000 units. A similar residential unit for another 18,000 workers is also coming up in Sriperumbudur, which will be operated by Foxconn itself.
"For investors, this achievement showcases our innovative policy-making, our willingness to collaborate closely with the private sector, our ability to unite various stakeholders from the Union to the state government alongside private entities, and our ability to execute large-scale projects efficiently," said state industries minister TRB Rajaa. "This project also reflects our unwavering commitment to sustainability and our dedicated efforts to bring more women into the workforce by ensuring safe, secure, and clean housing facilities," he added.
Seeing the success of the Foxconn model, Taiwanese fabless hardware major Adata Technology has also approached the government to come up with a similar facility for 2,000 workers. The total cost of the current project is Rs 706.5 crore, of which Rs 490 crore is through a loan from the State Bank of India. The facility at Vallam Vadagal will be managed by the State Industries Promotion Corporation of Tamil Nadu (SIPCOT). The Centre has contributed around Rs 37.44 crore to the project under the affordable housing scheme.
"SIPCOT wants to provide a safe, comfortable, and peaceful environment for industrial workers to stay and work. Locating housing closer to the workplace will not only improve productivity but also provide additional quality time for employees personally after work," said SIPCOT managing director K Senthil Raj.
The Foxconn hostel, to be inaugurated on August 17, includes 13 blocks with 10 floors each. Each room will accommodate six employees, and as per the plan, there will be 24 rooms on each floor. Out of the total land area of 20 acres, around 5 acres will be open space. The project includes common facilities and amenities such as the supply of potable water, stormwater drains, solid waste management, rainwater harvesting, and solar energy utilisation. For the safety of employees, 1,170 CCTVs are already installed. While the kitchen will be managed by Foxconn itself, the dining area will be able to accommodate 4,000 people at one time.
In addition to this, the project has space for recreational facilities and outdoor game activities. A separate commercial area is also provided for employees, which will house a shopping complex and supermarket.
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According to sources, the Foxconn unit in Sriperumbudur has around 40,000 employees, of which around 80 per cent are from outside Sriperumbudur and Chennai. To further push the idea of industrial housing, SIPCOT has formed a special purpose vehicle called Tamil Nadu Industrial Housing Private Limited (TNIHPL), in association with Tamil Nadu Infrastructure Fund Management Corporation (TNIFMC).
The State Industries Promotion Corporation of Tamil Nadu (SIPCOT) has formed a special purpose vehicle—Tamil Nadu Industrial Housing Private Limited (TNIHPL)—and, jointly with Tamil Nadu Infrastructure Fund Management Corporation (TNIFMC), aims to provide affordable and sustainable housing for industrial workers.