In the largest corporate investment ever in the history of independent India, a joint venture of Vedanta and Foxconn had signed a Memorandum of Understanding (MoU) with the government of Gujarat on September 14 to invest Rs 1, 54,000 crore to install the plant in the state.
Nehra had signed the MoU on behalf of the state government.
“Vedanta and Foxconn have hired industry experts who are evaluating possible sites for the next factory in Gujarat. Previously, they were evaluating several sites in different countries. In December 2021, when the Center announced the “Indian Semiconductor Mission “They started looking for sites in different states of India (then selected Gujarat),” Nehra said.
The developers are currently evaluating the sites in Gujarat on different technical aspects, commercial viability, connectivity and utility point of view, Nehra said, adding that the site could be finalized within the next two weeks.
“There are many minute things to keep in mind when choosing the site. For example, the production process may be affected by vibrations from passing trains. “Factory. Even a second power outage in a year can result in a loss of millions of rupees,” he said.
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The project is likely to secure huge subsidies and incentives, such as zero stamp duty on land purchases and subsidized water and electricity, under the ‘Gujarat Semiconductor Policy 2022-27‘ announced by the state government in July this year.
Gujarat has become the first state in the country to have such a dedicated policy for the semiconductor and display manufacturing sector, a government official said earlier.
While announcing the policy, the government of Gujarat had announced that it would put in placeDholera Semicon City‘ in Dholera Special Investment Region near Ahmedabad to attract investors.
Under this policy, eligible projects will receive a 75% subsidy on the purchase of the first 200 acres of land for the installation of manufacturing units.
Eligible projects will receive good quality water at the rate of Rs 12 per cubic meter for the first five years.
If the investor decides to build his own captive-use desalination plant within the first five years, the government will provide a capital grant of 50 percent of the project cost, according to the policy document.
Eligible manufacturing units would also benefit from a tariff subsidy of Rs. electricity.
To encourage investors under this policy, the state government also announced the 100% refund of stamp duty that investors would pay for the first time to take land for lease, sale or transfer of lands.
In order to eliminate bottlenecks and provide quick approvals to investors, the state government will establish a one-stop-shop mechanism to provide all necessary approvals from one place, the policy document said.
Since an uninterrupted power supply is crucial for such projects, the government will provide or facilitate “adequate redundancy in the electrical network ensure a quality power supply for proper operation”.
The policy also gives assurance that the government will “develop appropriate water distribution to ensure that treated water is delivered to the eligible project”.