Indian conglomerate Vedanta and electronics manufacturing giant Foxconn have finalised the Dholera Special Investment Region in Gujarat as the location for their semiconductor and display manufacturing facility. This joint venture company signed a Memorandum of Understanding (MoU) with the Gujarat government in September 2022, to invest Rs 1,54,000 crores and set up the plant in the state, which will be the first manufacturing facility for semiconductors in India. The exact location of the facility has just been disclosed. The MoU was signed in the presence of Ashwini Vaishnaw, Minister for Railways, Communications, Electronics & Information Technology.
On February 20, a senior state government official said, “After a detailed site analysis in consultation with Gujarat government authorities, the joint venture entity of Vedanta and Foxconn has selected Dholera SIR for setting up their semiconductor and display manufacturing facility. The project is in the advanced stage of evaluation by the government of India.”
Prime Minister Narendra Modi had given a clear indication in November 2022, during an election rally in Bhavnagar ahead of the state assembly polls, that the mega semiconductor plant would come up at Dholera SIR, nearly 100 kms from Ahmedabad. The project is likely to receive significant subsidies and incentives such as zero stamp duty on land purchase and subsidised water and electricity, under the ‘Gujarat Semiconductor Policy 2022-27‘ which was announced by the state government in July 2022. Under this policy, eligible projects will receive a 75 percent subsidy on the purchase of the first 200 acres of land for setting up manufacturing units. Eligible projects will also be provided with good quality water at the rate of Rs 12 per cubic metre for the first five years.
According to a government official, Gujarat is the first state in India to have a dedicated policy for the semiconductor and display fabrication sector. Furthermore, the state government has also announced 100 percent reimbursement of stamp duty to investors paying for the first time for taking land on lease, sale, or on land transfer.
The joint venture between Vedanta and Foxconn will invest Rs 1,54,000 crores to set up the facility in Gujarat, and is expected to create one lakh job opportunities. It will be the largest corporate investment in the history of independent India. Gujarat Chief Minister Bhupendra Patel has said that his government would provide all cooperation to set up the facility in the state and make it a success.