Vedanta Asks State Govts for Free Land, Seeks Incentives for Chip Manufacturing
Vedanta is looking for 1,000 acres (405 hectares) of free land from state governments in India on a 99 years lease, in order to build its semiconductor and display manufacturing facility, stated Reuters. The company’s demand for concessions from the state governments is in addition to other incentives offered by the Indian Union Government for upcoming semiconductor industries under the PLI Scheme.
Semiconductor manufacturing facilities have a high electricity and water consumption. Vedanta has also asked states to supply water and electricity to its upcoming facility at fixed rates for the next 20 years. The company has stated that its semiconductor venture shall help state governments generate about $2.2 billion as tax income over a period of 20 years, and 1 lakh direct and indirect employment opportunities.
Vedanta is already in advanced stages of reviewing proposals from Telangana, Karnataka and Maharashtra.
Earlier in February, Vedanta had announced setting up a joint venture with Taiwan’s Foxconn to diversify into chip manufacturing.