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NEW DELHI, Sept 13 Vedanta Ltd has signed a joint venture agreement with Taiwan's Foxconn for a semiconductor project in Gujarat, sources told Reuters. .
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.
The project will include display and semiconductor facilities near the largest city of Ahmedabad, the source added, declining to be named ahead of an official announcement.
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, Reuters reported in April.
A spokesperson for Vedanta did not respond to a request for comment while Foxconn did not immediately respond.
A senior official in Gujarat's science and technology department, and another in Chief Minister Bhupendrabhai Patel's office, declined to comment.
Other regions including Maharashtra in west and Telangana and Karnataka in the south had also been in the running to host Vedanta-Foxconn's mega project.
But in the last leg of negotiations in recent weeks, Gujarat pipped Maharashtra to the post.
India's semiconductor market is estimated to reach $63 billion by 2026 from $15 billion in 2020, the government says.
Vedanta, an oil-to-metals conglomerate, decided in February to diversify into chip manufacturing and formed the joint venture with Foxconn.
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