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<\/div>\nThe Vedanta project will include display and semiconductor facilities near Ahmedabad.<\/p>\n<\/div>\n
New Delhi: <\/b><\/p>\n
Vedanta Ltd has selected Prime Minister Narendra Modi’s home state of Gujarat for its semiconductor project, two sources told Reuters, the first major step in its $20 billion joint venture with Taiwan’s Foxconn.<\/p>\n
Vedanta obtained financial and non-financial subsidies including on capital expenditure and cheap electricity from Gujarat to build the semiconductor plants, the first source with knowledge of the matter said.<\/p>\n
The project will include display and semiconductor facilities near Ahmedabad, the source added, declining to be named ahead of an official announcement.<\/p>\n
While lobbying for incentives, Vedanta had sought 1,000 acres (405 hectares) of land free of cost on a 99-year lease, and water and power at concessionary and fixed prices for 20 years, Reuters reported in April.<\/p>\n
A spokesperson for Vedanta did not respond to a request for comment while Foxconn did not immediately respond.<\/p>\n
A senior official in Gujarat’s science and technology department, and another in Chief Minister Bhupendrabhai Patel’s office, declined to comment.<\/p>\n
An announcement is expected this week with a formal signing of a memorandum of understanding between the two sides, which is likely to be attended by Mr Patel and Vedanta officials, the source added.<\/p>\n
Other regions including Maharashtra in west and Telangana and Karnataka in the south had also been in the running to host Vedanta-Foxconn’s mega project.<\/p>\n
But in the last leg of negotiations in recent weeks, Gujarat pipped Maharashtra to the post.<\/p>\n
India’s semiconductor market is estimated to reach $63 billion by 2026 from $15 billion in 2020, the government says.<\/p>\n
Most of the world’s chip output is limited to a few countries like Taiwan and late entrant India is now actively luring companies to “usher in a new era in electronics manufacturing” as it seeks for ways to have seamless access to chips.<\/p>\n
Vedanta, an oil-to-metals conglomerate, decided in February to diversify into chip manufacturing and formed the joint venture with Foxconn.<\/p>\n
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)<\/i><\/p>\n<\/div>\n