Vedanta Group’s USD 10 billion plan to set up a plant that will manufacture LCD screens may not see the light of day.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.
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. The ministry was not satisfied with the details on land and funding of the plant.
The Maharashtra government had reserved land near Nagpur for the project, but had not yet allotted it since the subsidies were pending. Twin Star’s Rs 9000 crore foreign direct investment (FDI) proposal had been approved by a cabinet committee in 2017.