Home / News / India /  Vedanta-Foxconn deal: Raj Thackeray demands probe as Maharashtra loses to Gujarat

Maharashtra Navnirman Sena chief Raj Thackeray has demanded a probe into how the Vedanta-Foxconn deal went from Maharashtra to Gujarat. 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. We should go beyond politics and look at this issue".

Yesterday, India's mining conglomerate Vedanta and Taiwanese electronic giant Foxconn signed a Memorandum of Understanding with the Gujarat government to set up a 1.54 lakh crore semiconductor and display manufacturing unit in Gujarat.

Additionally, Shiv Sena leader Aaditya Thackeray accused the 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.

"Although I'm glad to see this in India, I am also a little bit shocked," Thackeray said.

"For a project almost finalised, and a new dispensation claiming credit over it, only shows lack of commitment from the new dispensation for our State's progress," Aaditya Thackeray said.

Former Maharashtra minister said that he himself had worked on the deal and the Maha Vikas Aghadi (MVA) government had almost finalized it.

"Industries Minister Subhash Desai Ji, the Maharashtra Industrial Development Corporation (MIDC) and I myself held meetings for bringing this semiconductor project to Maharashtra. The MVA Government had brought this to the final stage. Under the MVA, our effort was to make Maharashtra, the lead state contributor to India's progress, just like other states in a healthy competition," the Shiv Sena leader said.

What is the Vedanta-Foxconn deal?

As per the Vedanta-Foxconn deal, India will get its first semiconductor plant in Gujarat. The two companies will be investing 1.54 lakh crore.

The 60:40 joint venture of Vedanta-Foxconn will set up a semiconductor fab unit, a display fab unit, and a semiconductor assembling and testing unit on a 1000-acre land in the Ahmedabad district.

According to Vedanta chairman Anil Agarwal, the plant will start production in two years.

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.

Prime Minister Narendra Modi hailed the MoU as one that will boost the economy and create jobs.

"This MoU is an important step in accelerating India's semiconductor manufacturing ambitions. The investment of 1.54 lakh crore will create a significant impact to boost the economy and jobs. This will also create a huge ecosystem for ancillary industries and help our MSMEs," he tweeted.

Moreover, Gujarat Chief Minister Bhupendra Rajnikant Patel assured his government will provide cooperate with the investing entity in setting up the facility and make it a success.

"We will provide all help to the joint venture so that the plant can start its operations soon. We are determined to make our country more self-sufficient in tech and curb our reliance on imports from other countries. We sincerely hope that the hub will be the beginning of a bright future and attract investment from other multinational companies down the line," he said.

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.

A massive shortage in the semiconductor supply chain last year affected many industries, including electronics and automotive.

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

Besides Vedanta, a consortium comprising Dubai-based NextOrbit and Israeli tech firm Tower Semiconductor has signed a deal with the Karnataka government for a plant in Mysuru while Singapore-based IGSS Venture has chosen Tamil Nadu as the location for its unit.

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