Anil Agarwal explains why Vedanta chose Gujarat over Maha for its semiconductor plant?

The billionaire gave the reason why Vedanta and Taiwan’s Foxconn chose Gujarat over Maharashtra. “Setting up (the plant) in Gujarat has its own challenges. Maharashtra will set up one of the largest downstream, which will be even bigger than Gujarat. it will happen,” Vedanta Boss said this in response to a question asked about what went in favor of Gujarat at the Hindustan Times Leadership Summit 2022.

Agarwal further said that a complete ecosystem has to be created. “We are manufacturing only basic raw material,” he said, adding, “We will get the water if the well is khudega.”

Vedanta and Taiwan’s Foxconn will invest $19.5 billion to set up a semiconductor and demo production plant in Prime Minister Narendra Modi’s home state of Gujarat.

investment of 1.54 lakh crore, which Gujarat said is the largest by any group in an Indian state, comes ahead of key local elections in the state where PM Modi’s ruling group faces a tough challenge from opposition parties.

The companies had also said that the Vedanta-Foxconn joint venture project would create over 100,000 jobs in Gujarat.

Agarwal had earlier said at a public event in Gujarat that the Vedanta venture aims to start manufacturing display and chip products within two years.

After the event, Agarwal tweeted, “India’s very own Silicon Valley is now one step closer.”

Will set up a display manufacturing unit with investment from Vedanta 945 billion and by investing different chip related production units 600 billion, the state government had said in its statement.

Vedanta and Foxconn will work closely with the Gujarat government to set up high-tech clusters with necessary infrastructure including land, semiconductor grade water and electricity.

Gujarat pipped Maharashtra in a close race to win the semiconductor plant spot.