<p>Vedanta Ltd has selected Prime Minister Narendra Modi's home state of Gujarat for its semiconductor project, two sources told <em>Reuters</em>, the first major step in its $20 billion (Rs 1.6 lakh crore) joint venture with Taiwan's Foxconn.</p>.<p>Vedanta obtained financial and non-financial subsidies including on capital expenditure and cheap electricity from Gujarat to build the semiconductor plants, the first source with knowledge of the matter said.</p>.<p>The project will include display and semiconductor facilities near the largest city of Ahmedabad in the western state, the source added, declining to be named ahead of an official announcement.</p>.<p>While lobbying for incentives, Vedanta had sought 1,000 acres (405 hectares) of land free of cost on a 99-year lease, and water and power at concessionary and fixed prices for 20 years, <em>Reuters</em> reported in April.</p>.<p>A spokesperson for Vedanta did not respond to a request for comment while Foxconn did not immediately respond.</p>.<p>A senior official in Gujarat's science and technology department, and another in Chief Minister Bhupendrabhai Patel's office, declined to comment.</p>.<p>An announcement is expected this week with a formal signing of a memorandum of understanding between the two sides, which is likely to be attended by Patel and Vedanta officials, the source added.</p>.<p>Other regions including India's richest state of Maharashtra in west and Telangana and Karnataka in the south had also been in the running to host Vedanta-Foxconn's mega project.</p>.<p>But in the last leg of negotiations in recent weeks, Gujarat pipped Maharashtra to the post.</p>.<p>India's semiconductor market is estimated to reach $63 billion (Rs 5 lakh crore) by 2026 from $15 billion (Rs 1.19 lakh crore) in 2020, the government says.</p>.<p>Most of the world's chip output is limited to a few countries like Taiwan and late entrant India is now actively luring companies to "usher in a new era in electronics manufacturing" as it seeks for ways to have seamless access to chips.</p>.<p>Vedanta, an oil-to-metals conglomerate, decided in February to diversify into chip manufacturing and formed the joint venture with Foxconn.</p>
<p>Vedanta Ltd has selected Prime Minister Narendra Modi's home state of Gujarat for its semiconductor project, two sources told <em>Reuters</em>, the first major step in its $20 billion (Rs 1.6 lakh crore) joint venture with Taiwan's Foxconn.</p>.<p>Vedanta obtained financial and non-financial subsidies including on capital expenditure and cheap electricity from Gujarat to build the semiconductor plants, the first source with knowledge of the matter said.</p>.<p>The project will include display and semiconductor facilities near the largest city of Ahmedabad in the western state, the source added, declining to be named ahead of an official announcement.</p>.<p>While lobbying for incentives, Vedanta had sought 1,000 acres (405 hectares) of land free of cost on a 99-year lease, and water and power at concessionary and fixed prices for 20 years, <em>Reuters</em> reported in April.</p>.<p>A spokesperson for Vedanta did not respond to a request for comment while Foxconn did not immediately respond.</p>.<p>A senior official in Gujarat's science and technology department, and another in Chief Minister Bhupendrabhai Patel's office, declined to comment.</p>.<p>An announcement is expected this week with a formal signing of a memorandum of understanding between the two sides, which is likely to be attended by Patel and Vedanta officials, the source added.</p>.<p>Other regions including India's richest state of Maharashtra in west and Telangana and Karnataka in the south had also been in the running to host Vedanta-Foxconn's mega project.</p>.<p>But in the last leg of negotiations in recent weeks, Gujarat pipped Maharashtra to the post.</p>.<p>India's semiconductor market is estimated to reach $63 billion (Rs 5 lakh crore) by 2026 from $15 billion (Rs 1.19 lakh crore) in 2020, the government says.</p>.<p>Most of the world's chip output is limited to a few countries like Taiwan and late entrant India is now actively luring companies to "usher in a new era in electronics manufacturing" as it seeks for ways to have seamless access to chips.</p>.<p>Vedanta, an oil-to-metals conglomerate, decided in February to diversify into chip manufacturing and formed the joint venture with Foxconn.</p>