Vedanta Group’s $10 billion plan to set up a plant that will manufacture LCD screens may not see the light of day, as per a report in ET.
The project may be shelved due to failure to obtain subsidies under the Modified Special Incentive Package Scheme (M-SIPS).
The electronics and IT ministry declined the subsidy as the required conditions were not met, sources told the paper.
LG Electronics was going to supply the technology for the manufacturing unit, but the agreement has now lapsed, the report added.
Twin Star Display Technologies, a subsidiary of Vedanta, was hoping for a 25 percent capital subsidy and reimbursements of duties and taxes, sources told the paper.
The ministry was not satisfied with the details on land and funding of the plant, the report said.
The Maharashtra government had reserved land near Nagpur for the project, but had not yet allotted it since the subsidies were pending.
“Twin Star had stated these facts and had provided all the necessary financial closure documents but the ministry was not convinced. The ministry said that it would not continue with further appraisal of the project since it lacks basic application documents, there by indicating subsidies won’t be available. This has impacted the project’s financial viability,” a source told the paper.
Twin Star’s Rs 9,000 crore foreign direct investment (FDI) proposal had been approved by a cabinet committee in 2017.―Money Control