As per industry sources, the Vedanta Group will invest up to Rs 600 billion to set up a sophisticated chip and glass manufacturing ecosystem in India over the next three years.
The initiative will be led through AvanStrate, a Japanese glass substrate manufacturer that Vedanta Group had acquired in December 2017 from the Carlyle Group. The company is in the last stages of negotiations with various state governments for setting up a factory that would require between 250 acres and 400 acres of land. Overall investments into the project will range between $6 billion (approximately Rs 450 billion) and $8 billion (approximately Rs 600 billion) in the first two phases, following which we will carry out further assessment of the market for expansion.
Currently, AvanStrate is in discussions with governments of Haryana, Gujarat, Maharashtra, Telangana, Tamil Nadu and Karnataka for setting up its factory and for incentives. It aims at getting an additional 10-15 per cent capital investment support from the state where the company invests, apart from the central government’s subsidy.
