The Hindu Business Line : AP pitches for mega Fab City

THE Andhra Pradesh Government has made a strong claim for the proposed mega Fab City envisaged by the Central Government. The Chief Minister, Dr Y.S. Rajasekhara Reddy, has urged the Prime Minister to select Hyderabad for the venture.

In a letter to Dr Manmohan Singh, the Chief Minister said the State Government had prepared the blueprint for the promotion of a mega Fab City in 2004.

Realising the huge opportunities in the semi-conductor industry worldwide, the State had also dedicated 1,500 acres to set up a Fab City that can house more than 10 fab units.

The first fab unit in the private sector in the country, promoted by Nano Tech Solutions Pvt Ltd (NTSI) with a capital outlay of $350 million, is already coming up at the Rajiv Gandhi Nano Technology Park, near the upcoming international airport, the Chief Minister said in his letter.

Hyderabad is among the best locations in the country for promotion of mega Fab City.

It meets every requirement— weather, water, power, availability of trained manpower and, connectivity. The city also has a large electronic manufacturing base and a host of universities, which would churn out the manpower, Dr Reddy said.

Listing his moves to support the claim, Dr Reddy said the Government has already acquired 5,000 acres of land; it commits an initial venture fund of $500 million for investment in various units coming up in the mega Fab City; it will promote an exclusive 600 MW power projectto ensure uninterrupted power supply and offer power at Rs 2.25 per unit, the lowest in the country; 50 MGD of water, setting of training institute exclusively for the facility are others, he said.

In another letter addressed to Ms Sonia Gandhi, Chairperson, United Progressive Alliance, Dr Reddy solicited her supportto locate the Fab City in Hyderabad.

He said in addition to NTSI, two more units— Hindustan Semiconductor Manufacturing Companyand India Electronics Manufacturing Corporation have zeroed in on Hyderabad for their proposed Fab units. They are in active dialogue with the State.

Mr Mike Splinter, President and CEO of Applied Materials (A major supplier of hi-tech equipment of Fabs) has pledged 100 per cent support to the Fab City initiative, the letter said.

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