Maharashtra was set to sign Vedanta MoU

In the letter dated July 26, 2022 to Vedanta chairman Anil Agarwal, Chief Minister Eknath Shinde stated that his government remained committed to supporting Vedanta’s investment plans

The Maharashtra government has formalised all the plans and even fixed the date to sign a Memorandum of Understanding (MoU) with Vedanta-Foxconn and AvanStarte as early as July 29, 2022, for the setting up of a multibillion-dollar semiconductor plant at Talegaon near Pune, according to a letter purported to have been written by Chief Minister Eknath Shinde to Vedanta Resources Limited chairman Anil Agarwal.

In the letter dated July 26, 2022, Mr. Shinde stated that the government remained committed to supporting Vedanta’s investment plans and was heartened to see the significant progress that had been made to ensure the State’s policy, incentives, infrastructure offerings and ecosystem were aligned to the project needs.

He further referred to a previous letter by Mr. Agarwal in which the latter made two key requests – the Central Government alignment and the State cabinet approval – and said “you will be pleased to know that on both fronts, the State is already in advanced stages and is moving ahead expeditiously. A High-Powered Committee has already given in-principle approval for the requisite incentive package and the same will be moved to the cabinet for final approval.”

“In addition, we are also seeking alignment with the highest levels at Government of India to request for unfettered support in ensuring the project receives due support,” Mr. Shinde wrote. The Vedanta team held a meeting with Mr. Shinde and Deputy Chief Minister Davendra Fadnavis and top officials on July 26.

The letter further added that India will only be the fifth country to host a semiconductor and display this size “and with Vedanta as an anchor investor, we are confident of realising the goal of housing the world’s next Silicon Valley in Pune, Maharashtra.”

Mr. Shinde told the 68-year-old billionaire industrialist that the signing of the MoU would form a strong basis for the Government of India to favourably approve the project to meet the capital purchase plan as outlined during their discussion. “The event will feature the highest decision-makers from the political and the State leadership and we believe it is an essential next step in ensuring a seamless cabinet approval, he said.

However, what transpired between the government and the company, and how neighbouring Gujarat had come into the picture and lapped up the project remained perplexing questions. The ruling dispensation and the Opposition in the State have been attacking each other over the issue ever since the Vedanta-Foxconn signed an MoU with the Gujarat government a few days ago.