Date:13/01/2007 URL: http://www.thehindu.com/2007/01/13/stories/2007011304690600.htm

Andhra Pradesh

Work on Fab City 2nd phase to begin soon

W. Chandrakanth

Union Cabinet gives the nod for semi-conductor policy

HYDERABAD: Work on the second phase of the Fab City near the Shamshabad international airport here is all set to begin within the next four months following the in-principle nod given for the semi-conductor policy by the Union Cabinet in New Delhi on Thursday.

The State Government was sitting with fingers crossed about the Centre's policy since work on the first phase of providing infrastructure has been progressing at a brisk pace. It now expects the modalities relating to the incentive package and subsidy to be in place within a fortnight.

"We expect work on the second phase of the Fab City to begin in three months. The Government has already applied for pollution clearance certificate for the first phase and it may be sanctioned in three weeks. Thursday's announcement is very encouraging for the prestigious project for which Chief Minister Y.S. Rajasekhara Reddy has made untiring efforts," C. S. Rao, advisor to the Government on IT affairs, told The Hindu on Friday.

The Assembling, testing, mark, packaging unit, which forms part of the first phase and is expected to cost $ 150 million, will be completed within one year, he said.

Mr. Rao said the Government was "actively talking" to two more industry majors to establish units here. The Government signed an MoU with SemIndia on February 16 last for establishing the $ 3 billion Fab facility near Hyderabad. It will produce 25 million chips annually and it is expected to handle 2.40 lakh wafers every year with each wafer holding one hundred chips.