- Vedanta Group’s $10 billion projects likely to be scrapped after failing to obtain subsidies under the government’s M-SIPS
- Vedanta Group company Twin Star Display Technologies was expecting a 25 per cent capital subsidy and reimbursements of duties and taxes under M-SIPS
- Twin Star had also signed a technology licensing agreement with South Korea’s LG Electronics
The Vedanta Group’s $10 billion projects to set up India’s first plant to make flat panel displays for televisions from scratch is likely to be scrapped after failing to obtain subsidies under the government’s Modified Special Incentive Package Scheme (M-SIPS).
The ministry of electronics and IT had turned down the application for subsidies because it didn’t meet conditions, two senior executives told to Economic Times.
While the government is trying to promote localisation of TV panel manufacturing under the Make in India initiative, this was the only project at an advanced stage of implementation. Some other proposals for making such displays are said to be under evaluation.
Failed efforts
Vedanta Group company Twin Star Display Technologies was expecting a 25 per cent capital subsidy and reimbursements of duties and taxes under M-SIPS, said the executives, who were earlier attached to the project. These incentives once approved were to be available for 10 years but without them, the financial viability of the country’s largest electronics manufacturing investment was called into question.
The Maharashtra government had reserved 200 acres for the project and another 150 acres was earmarked for ecosystem partners near Nagpur, they said. But the land was yet to be transferred to the company since the state’s fabrication policy does not allow allotment of land until the Centre clears any subsidies sought.
Twin Star had also signed a technology licensing agreement with South Korea’s LG Electronics and it could not provide specifics because there were non-disclosure agreements signed between both parties, the above-mentioned people said.
