Vedanta-Foxconn JV choose Dholera SIR for 1st semiconductor facility
Anil Agarwal-led Vedanta and manufacturing behemoth Foxconn announced their joint venture’s plans to build a semiconductor and display manufacturing facility in Gujarat’s Dholera Special Investment Zone.
India’s first semiconductor facility: Key Points
- In September of last year, the Gujarat government and the Vedanta-Foxconn JV inked a Memorandum of Understanding (MoU) for the JV to invest 1,54,000 crore to build a semiconductor and display manufacturing facility.
- It is India’s first factory for the production of semiconductors.
- The joint venture between Vedanta and Foxconn chose Dholera SIR for the location of their semiconductor and display production facility after conducting a thorough site analysis and consulting with Gujarati government officials.
- The Indian government is now evaluating the initiative at a high level.
- Ashwini Vaishnaw, the minister for railways, communications, electronics, and information technology, was present when the MoU was signed in Gandhinagar.
- Bhupendra Patel, the chief minister of Gujarat, had stated that the JV will spend 1,54,000 crore to establish the facility in Gujarat, which would result in the creation of a lakh jobs.
- Additionally, he had stated that his administration will work with others to set up the facility and ensure its success.
- Prior to the Assembly elections in November, Prime Minister Narendra Modi spoke at a rally in Bhavnagar and made it very apparent that a massive semiconductor facility would be built at Dholera SIR, some 100 kilometres from Ahmedabad.
Gujarat Semiconductor Strategy 2022-27
According to the “Gujarat Semiconductor Strategy 2022-27” issued by the state government in July of last year, this project is set to receive significant subsidies and incentives, including no stamp duty on land purchases and discounted water and energy.
According to this programme, qualified projects will receive a 75% subsidy on the first 200 acres of land they purchase for the construction of manufacturing facilities. For the first five years, the eligible projects will receive high-quality water at a cost of 12 per cubic metre. The state government has also said that it will give back 100% of the stamp duty that investors first pay when acquiring land through a lease, sale, or land transfer.