• Friday, January 27, 2023

Business

Money not a problem for semiconductor business, says Vedanta’s Anil Agarwal about upcoming Gujarat plant

Anil Agarwal, group chairman of Vedanta Resources (Photo by RODGER BOSCH/AFP via Getty Images)

By: Shubham Ghosh

Anil Agarwal, chairman of Vedanta Limited has his eyes firmly set on the proposed semiconductor plant in the western Indian state of Gujarat. He feels that since the semiconductor business is in high demand in the current global economic set-up, finance is not going to be an obstacle.

Agarwal, who spoke to Moneycontrol at the World Economic Forum in Davos, Switzerland, said there is a queue of people when it comes to finances related to the semiconductor plant and the work on the plant will kick off once the government’s approval comes.

“You know, there is $3 trillion, which has been earmarked in the world for infrastructure, for semiconductor because it is a difficult industry to come in. We are already in this business. So money will never be a constraint for this kind of a project. And we have signed up with the world’s best company. We have gone to Gujarat. We had an inauguration and signed all MoUs (memorandums of understanding). As and when the government gives us the green signal, we’ll go ahead,” he was quoted as saying by the news outlet.

Vedanta signed the MoU with Gujarat to set up the plant in a joint venture with Taiwan-based Foxconn, one of the biggest names in the sector.

Vedanta and Foxconn announced plans to build the $19.5 billion (£16.9 billion) chip-making factory, one of the first in India, last year.

The tie-up came as India’s Narendra Modi government pushes to boost chip manufacturing in the country.

The Indian government announced a $10-billion (£8.1 billion) package in 2021 to attract investors.

The facility in Gujarat, the home state of Modi, has also been promised incentives.

Last year, a political controversy also broke out after the plant went to Gujarat and not its neighbouring state of Maharashtra, India’s most industrialised state, with opposition there accusing the Eknath Shinde-led government of failing to serve the state’s interests.

Related Stories