This Article is From Sep 15, 2022

$20 Billion Deal Row: Eknath Shinde-PM Call And An Assurance From Vedanta

After a series of tweets by Anil Agarwal last night, Maharashtra has now thanked Vedanta for announcing a "Vedanta-Foxconn affiliate project" in the state.

Minister Uday Samant said Chief Minister Shinde had spoken to PM Modi on the issue


In a raging fight over Gujarat snagging the $20 billion Vedanta-Foxconn project, Maharashtra Chief Minister Eknath Shinde dialed Prime Minister Narendra Modi, who reportedly promised "a similar project, or a better one, to Maharashtra". A day later, Vedanta chairman Anil Agarwal said his company is "fully committed to investing in Maharashtra as well".

After a series of tweets by Anil Agarwal last night, Maharashtra has now thanked Vedanta for announcing a "Vedanta-Foxconn affiliate project" in the state.

"Thank you very much for choosing Maharashtra for the Vedanta-Foxconn affiliate project! We will always remain competitive and pro-business to attract investment to Maharashtra," tweeted Deputy Chief Minister Devendra Fadnavis.

Maharashtra Industries Minister Uday Samant also put out a 'thank you' post.

Uday Samant said Eknath Shinde conveyed his views to the Prime Minister after Vedanta-Foxconn signed the MoU (Memorandum of Understanding) with Gujarat.

"We are also feeling sad over losing the project. We are sorry. On Tuesday, the Chief Minister put forth his views before the Prime Minister on Vedanta (Foxconn semi-conductor project). The Chief Minister held a detailed discussion with the Prime Minister on this matter. The PM has assured the youth that a similar project, or a better one, will be given to Maharashtra," the minister said.

Last night, the Vedanta chief posted a thread in which he said his company would soon involve Maharashtra in "our forward integration" for the Gujarat project. The company reportedly plans to create a hub in Maharashtra to manufacture iPhones and other television equipment.

"We decided Gujarat few months ago as they met our expectations. But in July meeting with Maharashtra leadership, they made a huge effort to outbid other states with competitive offer. We have to start in one place and based on professional and independent advice we chose Gujarat," said Mr Agarwal.

"This multibillion dollar long-term investment will change the course of Indian electronics. We will create a pan-India ecosystem and are fully committed to investing in Maharashtra as well. Maharashtra will be our key to forward integration in our Gujarat JV," he tweeted.

The tussle between the two states erupted soon after Vedanta-Foxconn signed up with the Gujarat government for a $20 billion project to set up a semiconductor manufacturing and display fabrication plant. Maharashtra had been lobbying for seven years for the project.

Shiv Sena leader Aaditya Thackeray, who was a minister in the ousted Maha Vikas Aghadi government in Maharashtra, attacked Eknath Shinde - who broke away from the Sena and formed a new government with the BJP in June.

Aaditya Thackeray accused the Shinde-led government of losing the deal to Gujarat even though it was all but finalised. The deal with Maharashtra was almost 95 per cent through, he claimed.

Team Shinde, however, blamed the previous government for sitting on the project offer for seven months and not offering incentives to the companies.