After almost a 5-year gap, the Maha Vikas Aghadi government proposes to revive its MoU with the Vedanta Group for Rs 20,000 crore investment in setting up a LCD Fab plant in Maharashtra. The state run Maharashtra Industrial Development Corporation is expected to hold a meeting with the Vedanta Group in early January to take forward the project development.
The government's move came days after the Vedanta Group's announcement to invest Rs 60000 crore in the semiconductor segment.
A senior industry department officer told the Free Press Journal, ‘’ MIDC, which had inked MoU with the Vedanta Group in February 2016, has earmarked land parcels in Pune, Nagpur and Aurangabad for Vedanta Group to finalize one of them which suits the company. The MIDC will also offer physical and financial incentives as proposed in the state government's semiconductor policy.’’ He said the state government has already put in place a comprehensive policy to attract investment in semiconductor technology. The policy offers a slew of incentives including tax rebates, one window clearance.
He said Vedanta Group in its MoU had said it would need 300 acres of land. ‘’There was no development for the centre’s comprehensive program for the development of sustainable semiconductor and display ecosystems in the country. ‘’The industry has pitched for the Central scheme as semiconductors and display manufacturing is a very complex and technology-intensive sector involving huge capital investments, high risk, long gestation and payback periods, and rapid changes in technology, which require significant and sustained investments. It was recently cleared by the Union Cabinet,’’ he added.
The company had said that Sterlite Technologies, one of Volcan’s investments (Vedanta Group Chairman Anil Agarwal & his family holds majority stake in Volcan Investments), already has an optical fiber manufacturing unit in Aurangabad. It had projected that the LCD plant after its completion would provide direct and indirect employment of over 30,000 people and contribute 7-10% to Maharashtra’s industrial gross domestic product.