The Hindu Business Line : Fab City on course: Reddy

HYDERABAD: Setting at rest speculation over the possibility of the multi-million dollar 'Fab City' project being shifted to Bangalore, the Andhra Pradesh Chief Minister, Mr Y S Rajasekhara Reddy, on Monday asserted that it was on course and would soon be come a reality.

"Very soon, we will sign a memorandum of understanding with SemIndia, a consortium of Non-resident Indian entrepreneurs and venture capitalists to set up the facility," Mr Reddy said here. Asked about reports in a section of the media that there was a 're-thinking' on the part of project developers on the choice of location, he replied 'I do not think so.'

After intense lobbying and hard sales pitch by the southern states, AP had finally edged out Karnataka and bagged the prestigious project to manufacture semiconductor chips and microprocessors to cater to the growing requirements of electronic industry.

It was announced last Thursday that the $3 billion Fab City, an integrated facility to manufacture silicon chips, would be built in three phases at Shamshabad near the proposed international airport on the outskirts of Hyderabad.

"There are so many factors that helped us. It is a business decision," Mr Reddy said. He, however, did not agree with a questioner that there was intense rivalry between the two-southern states. "I am not a rival to any one. I am committed to doing good to the state," the Chief Minister said and dismissed the talk of political dimension to the project.

Billed as India's first silicon chip manufacturing plant, the Fab City is expected to become operational within two years. The state government has earmarked 1,200 acres of land for the purpose and offered all infrastructure facilities. - PTI

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