The joint venture between Anil Agarwal-led Vedanta and manufacturing giant Foxconn on Monday announced that it is setting up a semiconductor and display manufacturing facility at the Dholera Special Investment Region near Ahmedabad, Gujarat.
The Vedanta-Foxconn JV had signed a memorandum of understanding (MoU) with the Gujarat government to make the investment in September last year. 1,54,000 crore for setting up semiconductor and display manufacturing plants. It is the first semiconductor manufacturing facility in India.
“After a detailed site analysis in consultation with the Government of Gujarat officials, the joint venture entity of Vedanta and Foxconn has selected Dholera SIR to set up its semiconductor and display manufacturing facility. The project is in an advanced stage of appraisal by the Government of India is,” said a state official.
The MoU was signed in Gandhinagar in the presence of Minister of Railways, Communications, Electronics and Information Technology Ashwini Vaishnav.
Gujarat Chief Minister Bhupendra Patel had said that the joint venture would invest 1,54,000 crore to set up the facility in Gujarat, which will generate one lakh job opportunities. He had also said that his government would extend cooperation to set up the facility and make it a success.
Addressing an election rally in Bhavnagar in November ahead of the assembly elections, Prime Minister Narendra Modi had given a clear indication that a mega semiconductor plant would be set up at Dholera SIR, about 100 km from Ahmedabad.
The project is likely to get huge subsidies and incentives, such as zero stamp duty on land purchase and subsidized water and electricity, under the ‘Gujarat Semiconductor Policy 2022-27’ announced by the state government in July last year.
A government official had earlier said that Gujarat has become the first state in the country to have such a dedicated policy for the semiconductor and display fabrication sector.
Under this policy, eligible projects will be given 75 percent subsidy on the purchase of first 200 acres of land for setting up a manufacturing unit. Good quality water will be made available to eligible projects at the rate of Rs. 12 per cubic meter for the first five years.
The state government has also announced 100 per cent reimbursement of stamp duty that investors would pay for taking land on lease, sale or transfer of land for the first time.
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