Concerns over Vedanta financials led to Foxconn chip-deal pullout: report

Some ratings agencies have downgraded Vedanta Resources this year as concerns grew about a debt default.

• Shubham
• 11 July, 2023

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By: Shubham Ghosh

BOTH the Indian government and Taiwanese electronics major Foxconn were concerned over the financial situation of Indian conglomerate Vedanta, which led to the foreign company dumping a joint chipmaking venture with the Anil Agarwal-led firm, Reuters reported citing informed sources.

Vedanta Limited’s London-based parent Vedanta Resources has been hit by a rising debt pile.

Vedanta said in a statement to Reuters that Vedanta Limited is in “a comfortable financial position” and there was “no basis” to such speculation.

India’s information technology ministry didn’t comment on the matter on Tuesday (11), Reuters added.

Some ratings agencies have downgraded Vedanta Resources this year as concerns grew about a debt default.

Agarwal, Vedanta chairman, however, said there have been zero defaults on debts from the group.