Why might Foxconn not be the fitting Counterpart for Vedanta?

#vedantaLtd and Taiwanese Giant #foxconn announced a hefty investment of $19.53 Billion in the State of #gujarat. The project skims forward to installing the semiconductor and display production plant near Ahmedabad. The Venture vows to create more than 100,000 jobs in Gujarat and establish India as a hotspot in the global #semiconductor #industry . The Venture aims to start the unit in the next two years. It will set up a display #manufacturing unit with an investment of $11.95 Billion and a chip Production Unit by investing $ 7.58 Billion. The joint Venture between Vedanta and Foxconn is in a 60:40 ratio, implying Vedanta will be in the driving seat throughout the undertaking. With this announcement, it's going to be the third project in the semiconductor industry. IGSS Ventures (Singapore) and international consortium ISMC are also setting up plants in #tamilnadu and #karnataka , respectively. It's a dream deal for any State to grab, but what is the issue? The bone of contention is not the deal but the partner, i.e., Foxconn.?

Foxconn also made a prominent promise in 2017 to the #unitedstatesofamerica. It was a notion for an expensive #WisconsinValleyScienceandTechnologyPark in #mountpleasant. In 2018, President Mr. Trump dubbed the project " Eight wonders of the world." In 2017 Foxconn agreed to invest $10 billion in a flat-screen manufacturing complex. The deal included $2.85 billion in tax credits in return for creating 13,000 jobs and yielding $1.4 billion in property improvements.

In reality, they have hired only 579 people and generated $520 million in property improvements. That is only 37% of its initial projections. So, the biggest question is, will the people of Gujarat meet the same fate? Well, only time can answer that. I firmly think that Vedanta cannot rely on its counterpart with its eyes closed. Irrespective of the political rants around the project, a proper inquiry should take place to comprehend why the accord shifted in the final minute from the State of Maharashtra to the State of Gujarat. Whatever the truth is, it should be shared with the people of India, and Vedanta should clarify on what basis the deal got shifted. Until then, let's hope commitments will be furnished.?

Let me know your opinion about the venture via comment box.

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#Credits:?

• Bloomberg?
• Reuters
• The Indian Express?
• The Economic Times?
• CNN Business?