Winning Bizness Desk
Mumbai. Semiconductor manufacturing company Foxconn has given a shocker to India's Semiconductor Project taken by terminating the agreement with Vedanta to manufacture semiconductors in India. Foxconn has issued a statement and has announced that it has decided not to do a joint venture with Vedanta. Last year, Vedanta and Foxconn announced plans to set up a semiconductor and display production plant in Gujarat with an investment of $19.5 billion. The political atmosphere in Maharashtra was also heated due to this project. In a previous disclosure, Vedanta said it felt it was running the project. The company clarified that this comment was made regarding the Vulcan Investment project. Last year, Anil Agrawal's Vedanta teamed up with Foxconn to set up a semiconductor and display production plant in Gujarat. The Vedanta Group was given financial and non-financial subsidies by the Gujarat government to set up a semiconductor plant which included cheap electricity and other items.
No effect India's semiconductor project- minister
Meanwhile, Union Minister of State for Information and Technology Rajeev Chandrasekhar has said that Foxconn's termination of the contract with Vedanta will not affect India's semiconductor project. Notably, the Vedanta-Foxconn semiconductor project was to come up in Maharashtra. However, the sudden shift of this project to Gujarat led to a lot of politics. The Mahavikas Aghadi had alleged that the project went to Gujarat with the help of the Center as the Shinde-Fadnavis government did not make an effort after coming to power last year. The Shiv Sena Shinde group-BJP said that the project went out of the state only because the permission and other matters were stalled when the Mavia government was in power. Earlier, the semiconductor project was to be started at Talegaon in Pune district. This project would have created 80 thousand to one lakh jobs. 30 percent of this employment would be direct employment. So, almost 50 percent of employment would have been indirect employment generation.
