Vedanta-Foxconn has decided to build their first Indian semiconductor factory in the Dholera SIR.
The joint venture between Vedanta, led by Anil Agarwal, and the manufacturing behemoth Foxconn announced that it would set up the semiconductor and display manufacturing facility in the Dholera Special Investment Region, which is located near Ahmedabad in the Indian state of Gujarat.
In September of the previous year, the joint venture between Vedanta and Foxconn signed a Memorandum of Understanding (MoU) with the government of Gujarat to spend 1,54,000 crore to establish a manufacturing unit for semiconductors and displays. It is the pioneering establishment of its kind in India's semiconductor industry.
"The joint venture company formed by Vedanta and Foxconn has decided to establish their semiconductor and display manufacturing plant at Dholera SIR.
This decision was made after a comprehensive site study and discussions with officials from the state of Gujarat. The Indian government is now doing a comprehensive review of the project at an advanced stage, "said one of the state's officials.
The memorandum of understanding was signed in Gandhinagar in the presence of Ashwini Vaishnaw, the Minister for Railways, Communications, Electronics, and Information Technology.
The Chief Minister of Gujarat, Bhupendra Patel, had previously said that the JV would spend 1,544,000 crores on building up the facility in Gujarat, which would result in creating one lakh employment opportunities. In addition, he had said that his government would assist in establishing the institution and ensuring its success.
Prime Minister Narendra Modi indicated that the mega semiconductor plant would come up at Dholera SIR, nearly 100 kilometers from Ahmedabad when he spoke at a poll rally in Bhavnagar in November ahead of the Assembly elections. The rally was held before the elections.
Under the "Gujarat Semiconductor Policy 2022-27," which was announced by the state government of Gujarat in July of the previous year, it is very likely that this project will be eligible for significant financial subsidies and incentives. Some examples include the elimination of stamp duty on the purchase of land and reduced water and electricity costs.
According to a statement by a government official, Gujarat is the first state in the nation to have a strategy specifically tailored to the semiconductor and display production industries.
In accordance with the provisions of this policy, qualified projects will be awarded a subsidy of 75% towards the acquisition of the first 200 acres of land required for the establishment of industrial units. Over the program's first five years, high-quality water will be available to the approved projects at 12 euros per cubic meter.
The state government has also announced that it would compensate investors for one hundred percent of the stamp duty they would pay for the first time when they take property on lease, sale, or transfer.
