Two days ago, Chairman of Vedanta Group Shri Anil Agarwal announced on Twitter about the signing of MoU with Government of Gujarat to set up a US $20 bn (INR 1.54 lakh crores) semiconductor manufacturing facility in Dholera. This is a 60:40 joint venture with Foxconn. This has raked up one more controversy and war of words between the united opposition of Maharashtra - the Maha Vikas Aghadi, comprising Indian National Congress, Nationalist Congress Party and Uddhav Thackarey faction of Shiv Sena, and the ruling alliance of the Bharatiya Janata Party and the Eknath Shinde faction of the Shiv Sena. The MVA has accused the BJP of allowing Gujarat to snatch away the prestigious project and failing to close the T deal with Vedanta- Foxconn. The MVA has also accused the BJP of compromising with Maharashtra's interests to benefit Gujarat.
While this controversy and war of words between political parties continues, it would be important for all to understand the critical factors in the deal, which could have led to Vedanta- Foxconn JV preferring Gujarat over Maharashtra. It is imperative for industry and foreign investors to focus on certain issues before shortlisting a particular State or even a country.
This story is from the September 25, 2022 edition of Organiser Weekly.
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This story is from the September 25, 2022 edition of Organiser Weekly.
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