Foxconn cites Vedanta's financials as the reason for pullout: Report

The Indian government and Foxconn had concerns over the financial situation of Vedanta, which led to the Taiwanese company parting ways with Vedanta on a chipmaking joint venture, sources familiar with the information told Reuters.

Indian conglomerate Vedanta Ltd's London-based parent, Vedanta Resources, has been plagued by a rising debt pile.

In a statement to Reuters, Vedanta said its Indian unit, Vedanta Ltd, is in "a comfortable financial position" and there was "no basis" to such speculation.

India's IT ministry did not respond to requests for comment on Tuesday.

Some ratings agencies downgraded Vedanta Resources this year amid concerns about risks of a debt default.

There have been no defaults on debts from the group, Vedanta Chairman Anil Agarwal has said.