India Set To Deny Crucial Funding For Vedanta-Foxconn Chip Venture

India may refuse funding to billionaire Anil Agarwal’s $19 billion chip venture, hindering their efforts to produce semiconductors in the country, Bloomberg News has reported.

Citing sources, the report said Agarwal’s Vedanta Resources Ltd and Taiwan’s Hon Hai Precision Industry Co ("Foxconn") are unlikely to receive incentives from the government for their joint venture to make 28-nanometre (nm) chips.

The venture applied for billions of dollars in assistance; however, it failed to meet the government's criteria.

The project needs a technology partner and manufacturing-grade technology licence to build 28 nm chips, according to the report.

Agarwal's conglomerate faces this setback amid efforts to reduce significant debt.

In September of last year, Vedanta and Foxconn decided to invest $19.5 billion in building semiconductor and display production plants in Gujarat, which would potentially create over 100,000 jobs.