New Delhi: India’s biggest oil refiner Reliance Industries Ltd (RIL) plans to lead Rs65,000 crore in investments in chip and liquid-crystal display (LCD) factories as the nation tries to build a manufacturing sector.
Mumbai-based RIL is seeking approval to spend Rs30,200 crore on facilities to make semiconductors and chip wafers, according to a government statement on Thursday.
Videocon Industries Ltd may spend Rs8,000 crore on setting up an LCD manufacturing site.
India, which failed to win Intel Corp.’s first Asian chip- making plant, is offering tax breaks and subsidies to create manufacturing jobs as growth falters in Asia’s third largest economy. RIL and Videocon will compete with chip and display companies in China, Taiwan and South Korea.
RIL, controlled by billionaire Mukesh Ambani, intends to spend Rs18,520 crore on a chip plant over 10 years, and Rs11,630 crore on a factory to make solar cell modules, according to the statement.
“The group is currently evaluating an investment in an integrated semiconductor facility,” Tushar Pania, a spokesman for RIL said on Thursday. “The group will make necessary announcements when plans are final.”
RIL shares rose 2.1% to close at Rs2,393.75 on the Bombay Stock Exchange.