Home / Companies / People /  Anil Agarwal explains why Vedanta picked Gujarat over Maharashtra for its semiconductor plant
Back

Vedanta Resources Chairman Anil Agarwal is in conversation with Mint editor-in-chief Sruthijit KK about the contest between Maharashtra and Gujarat on Vedanta-Foxconn's upcoming 1.5-lakh crore semiconductor and display fabrication plant.

The billionaire explained the reason why Vedanta and Taiwan's Foxconn chose Gujarat instead of Maharashtra. “Setting up (the plant) in Gujarat has its own challenges. Maharashtra will set up one of the largest downstreams, which will be bigger than Gujarat. This will happen," the Vedanta boss said while responding to a query on what swung in Gujarat's favour at the Hindustan Times Leadership Summit 2022.

Agarwal further said that a complete ecosystem has to be created. “We are just making fundamental raw materials," he stated, adding, "Kuan khudega toh paani sabko milega."

The Vedanta boss also said the production at its semiconductor and display manufacturing unit in Gujarat will start within two and a half years of the ground-breaking ceremony.

Semiconductor chips, used in cars, mobile phones and other electronics devices, are not manufactured in India at present, he noted.

Vedanta and Taiwan's Foxconn will invest $19.5 billion to set up semiconductor and display production plants in Gujarat, the home state of Prime Minister Narendra Modi.

The investment of 1.54 lakh crore, which Gujarat said was the largest ever by any group in an Indian state, comes ahead of key local polls in the state where PM Modi's ruling group is facing a tough challenge from opposition parties.

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

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

"India's own Silicon Valley is a step closer now," Agarwal had tweeted after the event.

Vedanta will setup a display manufacturing unit with an investment of 945 billion and separate chip-related production units by investing 600 billion, the state government had said in its statement.

Vedanta and Foxconn will work closely with the Gujarat government to establish high-tech clusters with requisite infrastructure, including land, semiconductor grade water and power, the statement read.

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

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less

Recommended For You

Trending Stocks

×
Get alerts on WhatsApp
Set Preferences My ReadsWatchlistFeedbackRedeem a Gift CardLogout
x