Vedanta-Foxconn Semiconductor Fabs To Be Set Up In Gujarat
13th Jan 2023 | Source by https://www.businessworld.in/
Centre on Wednesday confirmed that Vedanta and Foxconn have finalised Dholera Industrial City, Gujarat as the location for their proposal for setting up of semiconductor Fabs in India.
The Joint Venture between Vedanta and Foxconn under the Scheme for setting up of semiconductor Fabs in India had earlier proposed Telangana, Gujarat and Maharashtra 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.
The project will receive capital subsidy of 40 per cent from the Government of India. Power Tariff has been set at Rs 2/unit for 10 years from the date of start of commercial production. It will also have exemption from paying electricity duty as per the provisions laid down under Gujarat Electricity Duty Act, 1958.
Under Water Subsidy, Rs 12/m3 for a period of 5 years starting from the date of start of commercial operations is the offer. The water tariff will be increased at the rate of 10 per cent 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 per cent of the plant cost, excluding the cost of land, for the captive desalination plant.
Meanwhile in land subsidy, the JV will get 75 per cent 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 per cent subsidy.
Moreover, the project will get one-time reimbursement of 100 per cent stamp duty and registration fee to be paid to the Government for lease/sale/transfer of the land for the purpose of the project.
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. Finalisation 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.