Home / News / India /  PM assured Maharashtra will get 'Vedanta-Foxconn' like project soon: CM Shinde

After facing the ire of the Leaders of the Opposition for losing the mega Vedanta-Foxconn project, the Maharashtra government said Prime Minister Narendra Modi has assured the state will get a similar project or even a better one. State Industries Minister Uday Samant said Chief Minister Eknath Shinde spoke to the prime minister after Gujarat bagged the project.

The project was proposed to come up in Maharashtra but the Vedanta Foxconn finalised Gujarat triggering political game.

Yesterday, Maharashtra Navnirman Sena (MNS) chief Shiv Thackeray and Uddhav Thackeray's son Aaditya Thackeray expressed doubts regarding the crucial project.

The MNS chief said that the priority of the investors was Maharashtra than how the deal went into Gujarat's hands. Thackeray added that "it is serious and not a good sign".

Aaditya Thackeray also stated that he had worked on the deal and the Maha Vikas Aghadi (MVA) government had almost finalized it.

He then accused the incumbent Maharashtra government of letting go of the "significant" deal. The son of the former Maharashtra CM said although he is glad the deal is in India, it's sad to see an almost finalized deal getting out from Maharashtra.

Meanwhile, Vedanta Chairman Anil Agarwal has come out with a statement about why his company chose Gujarat over Maharashtra to establish a chip plant. In a series of tweets, Agarwal said several teams of Vedanta's “internal & external professional agencies shortlisted a few states" for the establishment of a chip factory in India.

Vedanta and Taiwanese company Foxconn have a 60:40 joint venture to set up a semiconductor fab unit.

According to Agarwal, Vedanta's teams did research in states like Gujarat, Karnataka, Maharashtra, and Tamil Nadu among others "to help achieve our purpose," he said.

The chairman of the mining behemoth said that the company has been doing proper analysis and was in talks with various state governments for the past two years.

"Vedanta-Foxconn has been professionally assessing sites for multi-billion dollar investment. This is a scientific and financial process that takes several years. We started this about 2 years ago," Agarwal tweeted.

"Our team of internal & external professional agencies shortlisted a few states viz., Gujarat, Karnataka, Maharashtra, TN, etc to help achieve our purpose. For last 2 years we have been engaging with each of these govts as well as central govt & have received fantastic support," Vedanta Chairman added.

He said, the company finally chose Gujarat as the state "met all expectations".

"They (Maharashtra cabinet) made a huge effort to outbid other states with a competitive offer. We have to start in one place & based on professional & independent advice we chose Gujarat".

However, Agarwal has said that he will create a pan-India ecosystem and added, "fully committed to investing in Maharashtra as well. Maharashtra will be our key to forwarding integration in our Gujarat JV (joint venture)".

What is the Vedanta-Foxconn deal?

It is a crucial deal to boost Prime Minister Narendra Modi's Aatmanirbhar Bharat goal.

To cut dependence on imports from nations like Taiwan and China, the government brought a financial incentive scheme for manufacturing semiconductors in the country.

As a result, Foxconn and Vedanta will be setting up a semiconductor fab unit, a display fab unit, and a semiconductor assembling and testing unit on a 1000-acre land in Gujarat's capital Ahmedabad. With an investment of 1.54 lakh crore, the production will begin two years from now.

Agarwal said the Gujarat unit will manufacture 40,000 wafers (that are used in fabricating integrated circuits) and 60,000 panels per month to begin with.

Semiconductor market

Semiconductor chips, or microchips, are essential pieces of many digital consumer products - from cars to mobile phones and ATM cards.

According to a report by PTI news agency, India's semiconductor market was valued at $27.2 billion in 2021 and is expected to grow at a healthy CAGR of nearly 19% to reach $64 billion in 2026. However, none of the chips have been manufactured in India so far.

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