Agarwal says Gujarat chosen for Rs 1.52 lakh cr project based on independent advice

New Delhi: As a political storm brewed over his group shifting a multi-billion dollar semiconductor factory from Maharashtra to Gujarat, mining baron Anil Agarwal said the site was chosen based on professional and independent advice.

Seeking to soothe flared political nerves, he said his mining group Vedanta is committed to investing in Maharashtra as well.

Originally, Vedanta and its partner Foxconn were looking at Maharashtra for setting up the chip factory but on September 13 signed a memorandum of understanding (MoU) with the Gujarat government for investing Rs 1.52 lakh crore in the unit.

"Vedanta-Foxconn has been professionally assessing the site for a multi-billion dollar investment. This is a scientific and financial process which takes several years. We started this about two years ago," Agarwal said in a series of tweets.

Vedanta-Foxconn has been professionally assessing site for a multi-billion dollar investment. This is a scientific and financial process which takes several years. We started this about 2 years ago. (1/4)

— Anil Agarwal (@AnilAgarwal_Ved) September 14, 2022

A third party was engaged to assist in selecting the site for the project.

"Our team of internal & external professional agencies shortlisted few states viz., Gujarat, Karnataka, Maharashtra, TN etc to help achieve our purpose. For last two years we have been engaging with each of these govts as well as central govt & have received fantastic support," he said.

Gujarat, he said, was chosen as it met the company's expectations.

While he did not elaborate on the expectations, the group had wanted 1,000 acres of land free of cost, and water and power at concessionary and fixed prices for 20 years.

"We decided Gujarat few months ago as they met our expectations. But in July meeting with Maharashtra leadership, they made a huge effort to outbid other states with competitive offer. We have to start in one place & based on professional & independent advice we chose Gujarat," Agarwal said.

This multibillion-dollar long-term investment, he said, will change the course of Indian electronics.

"We will create a pan-India ecosystem & are fully committed to investing in Maharashtra as well. Maharashtra will be our key to forward integration in our Gujarat JV," he added.

Rajya Sabha MP Priyanka Chaturvedi, whose party Shiv Sena has criticised the Maharashtra government for allowing the project to go to Prime Minister Narendra Modi's state, said industrialists are being arm twisted to defend the move.

"Shame that industrialists are now being asked to defend the centre's arm twisting to get them to invest in an election-going state over the one already finalised and established for setting up the project as well as provide a face saver to the illegitimate government. #FoxconnVedanta," she tweeted.

Shame that industrialists are now being asked to defend the centre’s arm twisting to get them to invest in an election going state over the one already finalised&established for setting up the project as well as provide a face saver to the illegitimate government. #FoxconnVedanta

— Priyanka Chaturvedi