According to sources, Vedanta Ltd is seeking 1,000 acres (405 hectares) of land from states along with other incentives as it prepares to sink in $20 billion to manufacture chips and displays.
In February, the oil-to-metals conglomerate had said, it will diversify into chip manufacturing and announced plans to form a joint venture with Taiwan’s Foxconn to support Indian Prime Minister Narendra Modi’s plans to make India a semiconductor manufacturing hub.
Vedanta is seeking federal incentives under a central government program which offers fiscal support, and it is also seeking 1,000 acre of land free of cost on a lease for 99 years from states, said two sources with direct knowledge of the matter.
It requires 700 acres of land for its own facility, and the balance for ancillaries.
“Vedanta has told state governments that its operations would help them generate $2.2 billion in tax revenues over 20 years and create up to 100,000 direct and indirect jobs,” said a source while adding, “The company is in advanced stages of reviewing proposals from at least three Indian states, Telangana and Karnataka in the south, and Maharashtra in west”.
Vedanta did not respond to requests for comments.
New Delhi wants to “usher in a new era in electronics manufacturing.”
As per government estimates, the Indian semiconductor industry is slated to touch $63 billion in 2026, up from $15 billion in 2020.
India aims to attract global investments in this space and from Friday, tomorrow, it will hold a three-day semiconductor conference in its southern tech hub of Bengaluru.
Singapore’s IGSS Ventures and ISMC, a joint venture between Abu Dhabi-based Next Orbit Ventures and Israel’s Tower Semiconductor, have also sought federal incentives under Modi’s program.