According to officials, Maharashtra defeated at least five other states to receive a staggering Rs 2.06 lakh crore investment from Vedanta Group-Foxconn cooperation in Pune’s rising semiconductors chips and display fabrications sector.
The agreement was signed in the presence of the chief minister of Maharashtra, Eknath Shinde, and the deputy chief minister of the state, Devendra Fadnavis. It is the single largest investment of its kind in Maharashtra and is sought after by Gujarat, Tamil Nadu, Karnataka, Telangana, and Himachal Pradesh.
Vedanta Group, a major mining company with headquarters in Mumbai, teamed up with Hon Hai Precision Industry (Foxconn) earlier this year with intentions to invest $15 billion in phases over the following five to ten years to produce semiconductor chips and displays in India.
In order to build its 1,000-acre projected manufacturing complex at Talegaon near Pune, Vedanta-Foxconn will invest Rs 166,800 crore and Rs 40,000 crore from other sources.
The agreement comes to an end a series of meetings the state government held over the past few months to secure the prestigious deal, including the final one presided over in June by Subhash Desai, the former Industry Minister of the Maha Vikas Aghadi (MVA) government. The Vedanta team had previously surveyed Pune in preparation for the establishment of its plant there in February 2022.
Around 200,000 direct and indirect jobs will be generated by this massive project, which would also generate GST income worth Rs 125,230 crore, of which Rs 37,500 crore will come from state GST and the remaining Rs 88,079 from interstate GST.
The state would offer a variety of incentives, including a 25% capital subsidy, discounted water and power, and land, and Shinde-Fadnavis promised all other support to ensure that the project is completed without a hitch in three years.
According to estimates, the Indian semiconductor market will increase by more than four times to more than $60 billion in the following four years. Fadnavis stated that the state was eager for this industry, which is currently only present in four countries, to move here.
In 2015, when he was the Chief Minister, Fadnavis visited the Foxconn plant in China, where the initial negotiations to bring the electronics giant to India were place. Unfortunately, the development of those negotiations stalled due to tense ties between India and China.
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