A committee of directors of oil-to-metals giant Vedanta has approved funding up to Rs. Four thousand eighty-nine crores via debentures through private placement. According to a regulatory filing, a committee of directors had its meeting today, June 4, 2022, and authorised the sale of 40,890 secured, rated, listed, redeemable, non-convertible debentures (NCDs) of the face value of 10,00,000 each, aggregating up to $4,089 million. An oil and gas exploration and production company called Vedanta is one of the world’s most diverse natural resources companies. To help Prime Minister Narendra Modi’s goal of making India a semiconductor powerhouse, Vedanta stated earlier this month that it would expand into chip production and reveal plans to launch a joint venture with Taiwan’s Foxconn.
In two different semiconductor and display production plants, Vedanta plans to invest $20 billion. When questioned about the schedule for the project, the Chairman of Vedanta, Anil Agarwal, responded that it would be finished by the middle of June and that the first chip will be accessible in two years. “Foxconn is our partner in the technology realm. However, it is possible that we will not be able to purchase a share in the fab. “According to Agarwal, who was interviewed at Davos, the Apple contract manufacturer will be in charge of the operation’s technical aspects. This includes everything from supplying the technology to fabricating the chips, as stated in the interview.
Vedanta is now negotiating the facility’s location with several Indian states and is looking for financial incentives from Modi’s government. According to Agarwal, the initial phase of the Vedanta effort would require an investment of $2 billion. He disclosed this requirement when speaking at the annual World Economic Forum.
He stated that private equity firms wanted to be a part of India’s semiconductor boom and that there was no lack of finance for them, despite the fact that Vedanta has not yet had conversations with PE firms. He added that there was no shortage of capital for PE firms. The market for semiconductors in India is expected to expand from its current value of $15 billion in 2020 to $63 billion in 2026, as stated by India’s estimates. Suppose India wants to become a global powerhouse. In that case, Agarwal believes that the government should concentrate its efforts on bringing all aspects of the semiconductor ecosystem to the territory of the country. The Indian government has stated that it intends to increase incentives for companies investing in semiconductor production beyond a $10 billion first plan. It hopes to become a significant role in the global chip supply chain.
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