Lok Sabha Question No. 19 (UNSTARRED), answered on 2022-12-07
Subject: Vedanta Foxconn Semiconductor Plant
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: Mohammad Jawed, Balubhau (Alias Suresh Narayan) Dhanorkar

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA

## UNSTARRED QUESTION No. 19

TO BE ANSWERED ON: 07.12.2022

## VEDANTA FOXCONN SEMICONDUCTOR  PLANT

## 19.    DR. MOHAMMAD JAWED: SHRI BALUBHAU ALIAS

## SURESH NARAYAN DHANORKAR:

Will the Minister of ELECTRONICS AND INFORMATION TECHNOLOGY be pleased to state:

- (a) whether the government is aware that Vedanta Foxconn was in an advanced stage of signing the deal for the construction of a semiconductor plant with Maharashtra Government and if so, the   details thereof;
- (b) the reasons for not selecting Maharashtra for the final deal in this regard;
- (c) whether the Government has enlisted another mega investment project for Maharashtra;
- (d) if  so,  the  details  thereof  including  the  name  of  the  companies  involved,  project  information and investment cost; and
- (e) the  details  of  incentives  offered  by  both  Gujarat  and  Maharashtra  State  Governments  to Vedanta Foxconn?

## ANSWER

## MINISTER OF STATE FOR ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI RAJEEV CHANDRASEKHAR)

(a):  Vedanta Semiconductors Ltd., a Joint Venture between Vedanta and  Foxconn is an applicant under the Scheme for setting up of semiconductor Fabs in India. As per their application, Telangana, Gujarat and Maharashtra, were proposed as possible locations. However, the applicants in their final submissions have informed that they had decided Dholera Industrial City, Gujarat as final location for  their  proposal,  and  have  submitted  definitive  agreement  and  Government  orders  from  the Government of Gujarat stating the details of support from the State.

(b): The Schemes under Programme for Development of Semiconductor and Display Ecosystem in India  are  Central  Government  Schemes.  Any  eligible  applicant  may  submit  the  application  for setting up of semiconductor Fab in any State/ UT in India. Finalization of location is between State Government  and  applicant  based  on  infrastructure  requirements  like  availability  of  land,  water, power etc., and fiscal support offered by the State Government.

(c)  and  (d):  Under Modified Electronics Manufacturing Clusters (EMC 2.0) scheme, Government has  accorded  approval  to  M/s.  Maharashtra  Industrial  Development  Corporation  (MIDC)  on 31 st October, 2022 for establishment of an Electronics Manufacturing Cluster (EMC) over an area of 297.11 acres at Ranjangaon Industrial area (Phase-III), Pune, Maharashtra with a project cost of INR 492.85  Crore  including  Central  Grant-in-aid  of  INR  207.98  Crore  to  address  the  industrial infrastructure requirement of electronics industry in the region. This EMC is projected to attract an investment  of  about  INR  2,000  Crore  and  having  potential  to  generate  over  5,000  employment opportunities in coming years after fully operationalized.

|   S.No. | Parameter                       | Subsidy                                                                                                                                                                                                                                                                                                                                                                                                               |
|---------|---------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|       1 | Capital Subsidy                 | 40% of the support provided by the Government of India                                                                                                                                                                                                                                                                                                                                                                |
|       2 | Power Tariff                    | Rupee 2/unit for 10 years from the date of start of commercial production                                                                                                                                                                                                                                                                                                                                             |
|       3 | Electric Duty                   | Exemption from paying electricity duty as per the provisions laid down under Gujarat Electricity Duty Act, 1958.                                                                                                                                                                                                                                                                                                      |
|       4 | Water Subsidy                   | Rs.12/m 3 for a period of 5 years starting from the date of start of commercial operations. The water tariff will be increased at the rate of 10% on a year-on- year basis for the subsequent 5 years. Additionally, to build a desalination plant in the initial five years, the Government will provide a capital subsidy of 50% of the plant cost, excluding the cost of land, for the captive desalination plant. |
|       5 | Land Subsidy                    | 75% subsidy on the first 200 Acres of land required for the Semiconductor fab project. Any additional land, required for the core activities of the project, will be available at 50% subsidy.                                                                                                                                                                                                                        |
|       6 | Stamp Duty and Registration Fee | One-time reimbursement of 100% stamp duty and registration fee paid to the Government for lease/sale/transfer of the land for the purpose of the project.                                                                                                                                                                                                                                                             |

The applicant has not provided any definitive agreement w.r.t the support offered by the Government of Maharashtra.

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