Vedanta sees no funding problems for Indian chip JV with Foxconn

·1-min read
FILE PHOTO: A man walks past the logo of Vedanta outside its headquarters in Mumbai

NEW DELHI (Reuters) - India's Vedanta does not see any funding problems for a $19.5 billion semiconductor venture with Taiwan's Foxconn, its chairman told CNBC-TV18 on Wednesday, adding he hoped the project would foster local electronics clusters.

Metals-to-oil conglomerate Vedanta on Tuesday signed an agreement with the western Indian state of Gujarat for the project, which it expects will start commercial production in about two years.

"Foxconn has taken equity. They will bring their own money," Vedanta's Anil Agarwal said. "With the reputation of ours and Foxconn, money will never be a constraint."

He said the chips from Gujarat would help to foster clusters of companies that could make products like iPhones, television sets, laptops and other electronic goods in India.

Vedanta shares closed up 10.1% in a wider Mumbai market that closed ended lower on Wednesday.

Apple did not respond to a Reuters request for comment.

(Reporting by Tanvi Mehta; Editing by Jason Neely and Mark Potter)