It was only last September the Vedanta-Foxconn JV signed a Memorandum of Understanding with the Gujarat Government to invest Rs 1,54,000 crore in setting up the first semiconductor manufacturing facility in India.
Ahmedabad: On Monday, the joint venture (JV) between India’s Vedanta Limited and Taiwanese Foxconn announced that it’s setting up the much-hyped semiconductor and display manufacturing facility in Dholera Special Investment Region (SIR) near Ahmedabad, Gujarat.
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It was only last September the Vedanta-Foxconn JV signed a Memorandum of Understanding with the Gujarat Government to invest Rs 1,54,000 crore in setting up the first semiconductor manufacturing facility in India.
“After a detailed site analysis in consultation with Gujarat government authorities, the joint venture entity of Vedanta and Foxconn has selected Dholera SIR for setting up their semiconductor and display manufacturing facility. The project is in the advanced stage of evaluation by the government of India,” said a state official.
There was a political furore in the country when the MoU was signed with the Gujarat government as Maharashtra was the first choice for the project. This announcement also coincided with the time when the Maha Vikas Aghadi government fell after Eknath Shinde-led Shiv Sena members deserted the alliance. Aditya Thackeray, son of Uddhav Thackeray and former Maharashtra minister, had lashed out at the then newly-formed Shinde-Fadnavis government over the loss.
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This MoU was signed in Gandhinagar in the presence of Ashwini Vaishnaw, Minister for Railways, Communications, Electronics & Information Technology. On the occasion, Gujarat Chief Minister Bhupendra Patel had said that both companies would invest Rs 1,54,000 crore to set up the facility in the state and the project would create one lakh job opportunities.
The Vedanata-Foxconn project is likely to get huge subsidies and incentives, like zero stamp duty on land purchase and subsidised water and electricity, under the ‘Gujarat Semiconductor Policy 2022-27’ announced by the state government in July last year.
The policy, the first of its kind in India, will provide heavy subsidies on power, water, and land tariffs for entrepreneurs who are interested in investing in semiconductors or display fabrication manufacturing in Gujarat.
Through this policy, the Gujarat government aims to make the state the leader in the development of an Electronics System Design & Manufacturing (ESDM) ecosystem. The eligible projects under this scheme will be given 75 per cent subsidy on the purchase of the first 200 acres of land for setting up manufacturing units. Good quality water will also be provided to the eligible projects at a subsidised rate for a certain number of years.
The state of Gujarat is clearly aiming to bag a bigger share of the investments under the government’s mission to turn India into a semiconductor manufacturing hub.
