Anil Agarwal explains why Gujarat was chosen over Maharashtra for Vedanta-Foxconn plant

Vendanta Chairman Anil Agarwal

Anil Agarwal on Saturday explained why Gujarat was chosen over Maharashtra as the preferred destination to set up the new Vedanta-Foxconn semiconductor and display manufacturing unit worth about Rs 1.54 lakh crore.

The Vedanta chairperson said at the HT Leadership Summit that an independent committee, comprising "very good consultants", had visited five to six states to zero in on one site for the plant to find that Gujarat was the best option. It had the right atmosphere and was also providing better facilities for the unit, the committee said, according to Agarwal.

The companies were earlier reported to have zeroed in on Maharashtra for the strategic investment.

"We are setting (the plant) there (in Gujarat)," he said. "We had gone to Maharashtra... In Maharashtra downstream will be set up which will be bigger than Gujarat."

Earlier, the Vedanta chairperson had indicated to CNBC-TV18 that he had not entirely given up on plans for Maharashtra.

“The company will create a hub for manufacturing of iPhones and TV equipment at Maharashtra, which will be a kind of forward integration for Gujarat JV Plant,” Anil Agarwal had said.

A joint venture of the Indian conglomerate Vedanta and Taiwanese electronics manufacturing giant Foxconn signed a Memorandum of Understanding with the Gujarat government earlier to set up a semiconductor and display manufacturing unit in the state. Semiconductor chips -- used in cars, mobile phones and other electronics devices -- are not manufactured in India at present.

Agarwal said that production at its semiconductor and display manufacturing unit in Gujarat would start within two and a half years of the groundbreaking ceremony.

"My heart and soul is into it and the way the government is supporting, the state government is supporting... I have no doubt that within two and a half years (of the groundbreaking ceremony production will start)."

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Vedanta-Foxconn would invest Rs 1,54,000 crore to set up the facility in Gujarat, which would create one lakh job opportunities, Chief Minister Bhupendra Patel had said after the MoU was signed.

Out of the total investment of Rs 1,54,000 crore, Rs 94,000 crore will go into setting up the display manufacturing unit, while Rs 60,000 crore will be invested for the semiconductor manufacturing facility.

(With inputs from PTI)

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