The Hindu Business Line : SemIndia may complete Fab City phase 1 in a year

Hyderabad April 25 SemIndia today announced that phase one of the Fab City project, a test and assembly plant for semiconductors, will be ready within a year while work on the infrastructure project related to the larger Fab City would be taken up simultaneously.

Dr Vinod K. Agarwal, Chairman of SemIndia, said that the SemIndia project, which recently received clearance as an SEZ, is awaiting allotment of land from the State Government.

The State Industries Minister, Ms J. Geeta Reddy, said that the State was in the process of finalising the order allocating land for the project.

The order would include other terms and conditions, including supply of power, water and other infrastructure.

The entire top management of SemIndia was in town to address a news conference following reports in the media and questions raised by the opposition Telugu Desam Party on the capability of the promoter and his credentials to execute the project. Mr Agarwal said that they have achieved financial closure for the first phase and would start construction once the land is registered.

Ms Reddy clarified that the company and its promoters had sound backing and referred to communication sent by Union Minister for ICT, Mr Dayanidhi Maran. She defended the State Government signing an MoU with Mr Agarwal in 2006, stating that SemIndia was incorporated in Delaware in 2005 itself.

The SPV created for the project would have State Government nominees, who would protect the interests of State in the allocation of land to units.