New Delhi: Mining giant Vedanta, along with Taiwan’s electronics manufacturer Foxconn, met Maharashtra Chief Minister Eknath Shinde and his deputy Devendra Fadnavis Thursday for a proposed USD 22 billion investment in a manufacturing facility for semiconductors that is expected to generate around 200,000 jobs.
Talegaon in Pune has emerged as a prominent option for the facility due to its high concentration of skilled manpower, port connectivity and industrial infrastructure among other factors, a government readout said. The project has been envisioned under the “Aatmanirbhar Bharat” initiative.
A Maharashtra Industrial Development Corporation (MIDC) media release quoted Fadnavis as saying: “Vedanta’s proposed investment in Talegaon, Pune is a tribute to Honourable Prime Minister’s vision of Aatmanirbhar Bharat. We believe Maharashtra is the natural choice for Vedanta and Foxconn’s semiconductor manufacturing operations and the state government is thankful to the Prime Minister and the Government of India for their support. We are committed to realizing the $5 trillion goal for India and a trillion-dollar economy for Maharashtra.”
India has been hit hard by the worldwide semiconductor shortage, which was exacerbated by the Covid pandemic and the Russia-Ukraine conflict, as global markets were heavily reliant on supply of semiconductors from a handful of countries.
The adverse effects of this dependence were glaringly evident during the supply-chain breakdown in these past years. To mitigate global risks and make India achieve some chip self-sufficiency, the Modi government has pushed through manufacturing incentives to help states build a strong electronics ecosystem.
Notably, Maharashtra was the first in India to implement an “Electronics & Fabrication” policy in 2016. Under the policy, the state government provides land at subsidised rates, waives electricity dues for 25 years, and promises uninterrupted power supply with 100% return of Value Added Tax. The policy is meant to ensure at least two semiconductor units are set up in the state in the next ten years.
The government release quoted Chief Minister Eknath Shinde: “Maharashtra has planned a 10,000 acre hi-tech electronics manufacturing ecosystem in Pune. For this, Vedanta, along with Foxconn can play a pivotal role as the anchor investor in creating the next Silicon Valley… This project will anchor a high-quality manufacturing ecosystem and act as a catalyst in Maharashtra’s growth story.”
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