Last updated: February 21, 2023, 10:37 AM IST
Ahmedabad, Feb. 20: A joint venture of Indian conglomerate Vedanta and electronics maker Foxconn has completed the special investment region of Dholera near Ahmedabad’s Gujarat city to set up their semiconductor and display manufacturing facility, a senior state government official said Monday.
In the largest ever business investment in the history of independent India, a joint venture of Vedanta and Foxconn signed a Memorandum of Understanding (MoU) with the Gujarat government in September last year to invest Rs 1,54,000 crore to set up the factory in the state. This will be the first semiconductor manufacturing facility in India.
At the time, the joint venture had not disclosed the exact location of the facility.
“Following a detailed site analysis in consultation with the Government of Gujarat, the joint venture entity of Vedanta and Foxconn selected Dholera Dholera to set up their semiconductor and display manufacturing facility. The project is at an advanced stage of evaluation by the Government of India,” the official said.
The MoU was signed last September in Gandhinagar in the presence of the Minister of Railways, Communications, Electronics and Information Technology, Ashwini Vaishnaw.
Both companies would invest Rs 1,54,000 crore to set up the facility in Gujarat which would create jobs of one lakh, Gujarat Chief Minister Bhupendra Patel had said on the occasion. Patel had also said that his government will cooperate in setting up the facility and making it a success.
Prime Minister Narendra Modi, in particular, had given a clear indication during a poll in Bhavnagar in November ahead of the General Assembly polls that the mega semiconductor factory will be located at Dholera SIR, nearly 100 km from Ahmedabad.
This project is likely to receive 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.
Gujarat became the first state in the country to have such a specific policy for the semiconductor and display manufacturing sector, a government official said earlier.
Under this policy, eligible projects receive a 75 percent subsidy on the purchase of the first 200 hectares of land to set up production units. The eligible projects will be provided with good quality water at a rate of Rs 12 per cubic meter for the first five years.
To encourage investors under the policy, the state government also announced it would refund 100 percent of the stamp duty investors would first pay for leasing, selling or transferring land.
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(This story has not been edited by News18 staff and was published from a syndicated news agency feed)