Vedanta and Foxconn are investing a record $19.5 billion, which translates to 1.54 lakh crore, to develop semiconductor and display manufacturing facilities in the Indian state of Gujarat. The recent development came to light thanks to Reuters and CNBC-TV18. Anil Agarwal, Chairman, Vedanta has told CNBC-TV18 that an independent agency has chosen to select Gujarat as it allows for “specific requirement of land, plot, skilled people, etc”
To make things official, an MoU has been signed between Foxconn, Vedanta and Gujarat that details the 1.54 lakh crore investment and the claim of creating 10,000 job opportunities for the people. In a recent tweet, Vedanta chairman tweeted “India will fulfil the digital needs of not just her people, but also those from across the seas. The journey from being a Chip Taker to a Chip Maker has officially begun…Jai Hind!”
Anil Agarwal also claims that once the plants are up and running – producing chipsets and displays, the end-consumer will be directly benefited as there’s a fair chance of laptop prices dropping down significantly. A laptop that costs a lakh, could be available for as less as Rs 40,000. But the goal isn’t to manufacture laptops, cell phones and other consumer electronics but to encourage OEMs. It is also claimed that the investment will prove vital for India’s growth, as it becomes the fourth country after South Korea, Taiwan and China to have semiconductor plants of its own.
However, Maharashtra seems to have been at the losing end of this ginormous exchange.As a result, a political furore has emerged, with opposition leaders downplaying Gujarat’s technical prowess. Speaking on the matter, Shiv Sena’s Ambadas Dambe said “Maharashtra, Karnataka and Telangana were competing for the project. The manufacturing plant needs a high-end technology environment, so these three states were competing for it,”
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The Maharashtra government has announced that Prime Minister Narendra Modi had given the state an assurance that it will receive a similar or even better project. Shinde talked with PM Narendara Modi on Tuesday after Gujarat bagged the deal, according to State Industries Minister Uday Samant. Also, based on the report by Reuters, in a bid to establish itself as a major player in the global chip supply chain, the Indian government has announced that it will give incentives for semiconductor production beyond the $10 billion first plan.
With inputs from Reuters and CNBC-TV18
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