Vedanta in talks to raise up to $3 billion debt in semiconductor push
The Hindu
Company targeting mid-May for site selection, in ‘advanced talks’ with Gujarat, Maharashtra and Telangana
India's Vedanta is in talks with banks to raise debt of $2.5 billion-$3 billion to bolster its semiconductor and display manufacturing plans as it races to become the country's first chipmaker, a senior company official told Reuters on Saturday.
The oil-to-metals conglomerate decided in February to diversify into chip manufacturing and formed a joint venture with Taiwan's Foxconn. It has a total planned investment outlay of $20 billion.
Vedanta is seeking incentives from the central government and is also in talks with several Indian States. After getting subsidies, and once its definitive agreements are in place, the company plans to raise bank debt of as much as $3 billion.
"We have financial banking relationships across India. We are talking to them," said Akarsh Hebbar, Vedanta's Global Managing Director of Display and Semiconductor Business.
The company is also seeking a chief executive for its joint venture with Foxconn, Mr. Hebbar said, adding that Foxconn employees would be deployed for its semiconductor plant, which is likely to start operations in 2025.
Vedanta is seeking incentives such as 1,000 acres (405 hectares) of free land, and cheaper water and power from State governments as part of its foray into semiconductors and displays, Reuters reported on Thursday.
The company is targeting mid-May for site selection from a State, and is in ‘advanced talks’ with Gujarat and Maharashtra in western India and Telangana in the South, Mr. Hebbar said on the sidelines of country’s first semiconductor conference, being held in the tech hub of Bengaluru.
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