Vedanta Group looks to invest ₹1.66 lakh crore in Maha

A delegation representing both the companies met chief minister Eknath Shinde and deputy chief minister Devendra Fadnavis on Tuesday.

Mumbai: Vedanta Group has expressed interest in setting up an integrated display and semiconductor fabrication eco-system in Maharashtra. The group is looking to invest as much as ₹1.66 lakh crore to set up display fabrication and semiconductor units along with their assembling and testing facilities. The group has partnered with Taiwan-based Foxconn for the project, which will generate over 2,00,000 direct and indirect jobs in Maharashtra.

Vedanta Group plans to execute the project in three phases. (REUTERS)

A delegation representing both the companies met chief minister Eknath Shinde and deputy chief minister Devendra Fadnavis on Tuesday.

Vedanta Group plans to execute the project in three phases. In the first phase, a display fabrication unit will be set up with an investment of ₹1 lakh crore. In the second phase, the company will develop a manufacturing unit of semiconductors by investmenting ₹63,000 crore and in the last phase, semiconductor assembling and testing facilities will be installed at the cost of ₹3,800 crore.

According to officials, the company requires a 1,000-acre plot and has sought several incentives and subsidies, including capital subsidy and concession in power tariff.

“Many states have already offered them incentive packages but the ecosystem and infrastructure in Maharashtra are good therefore they are interested in the state,” said a senior official from the industries department.

“The chief minister and deputy chief minister invited the group to invest in Maharashtra. The group has sought incentives and subsidies which are being examined. Both the chief minister and deputy chief minister have promised to give them the best offer,” said Harshdeep Kamble, industries commissioner.

Earlier this year Vedanta and Foxconn held multiple rounds of meetings with the state leadership. Vedanta conducted site visits in Talegaon in Pune and found the location to be an ideal match for their requirements, according to the officials.

The group has sought incentives from the state as well as from the central government. “From Maharashtra government, they want capital subsidy and concessions in land allotment and power tariff among others. As per our FAB policy, we do give capital subsidies to investors. We also provide many sops under electronic policy. The only issue is difference in the percentage for capital subsidy sought by them and offered by us under the provisions of the policy,” said a senior industries official, who did not wished to be named.

State government had in 2016 approved a ‘FAB’ policy for fabrication companies to attract chip and chip equipment makers.

The Vedanta Group is looking to capitalize on the global shortage of the chip which has severely affected the production of all types of electronics.

Meanwhile, the chief minister said that Maharashtra has planned a 10,000-acre hi-tech electronics manufacturing ecosystem in Pune. “For this, Vedanta, along with Foxconn, can play a pivotal role as anchor investor in creating the next silicon valley. It is a win-win situation as Maharashtra has the required skilled manpower and industrial & logistical infrastructure suited for a project of this scale. This project will anchor a high-quality manufacturing ecosystem and act as a catalyst in Maharashtra’s growth story,” Shinde said.