The Indian government is planning to reject the request for billion of dollars worth of funding by the Vedanta – Foxconn joint venture. According to the Bloomberg report, authorities will soon officially inform the Joint Venture (JV) of the rejection of the funding.
Last year in September Billionaire Anil Agarwal’s Vedanta joined hands with Hon Hai Precision Industry Co Ltd popularly known as Foxconn to manufacture 28nm chips in India. The 69-year-old businessman had made headlines with this ambitious project and had dreamed of building India’s own Silicon Valley.
The JV was the largest-ever corporate investment in India to date with the Gujarat government, pledging a massive investment of $22 billion. The purpose of this substantial funding was to establish the nation’s inaugural semiconductor manufacturing facility, marking a significant milestone in India’s technological advancement.
The project was expected to create more than 1,00,000 jobs and was expected to benefit from generous subsidies and incentives under the Gujarat Semiconductor Policy 2022-27. These incentives included complete exemption of stamp duty on land acquisition and subsidized access to essential resources like water and electricity.
However, reports suggest that the venture’s request for government assistance, aiming to secure a substantial amount of funding, has not met the specified criteria set by the government. Furthermore, in order to proceed with the construction of 28nm chips, the project is currently lacking both a technology partner and a manufacturing-grade technology license.
Related:
- Foxconn increases pay and bonus package for workers in Zhengzhou, China
- India’s Vedanta and Foxconn team up to manufacture semiconductors in India
- Foxconn’s $500 Million Investment in Apple Factory to Fuel Job Growth in India
(via)
