Fab works to start in a month

16th Feb 2006, Hyderabad

SemIndia formalised the deal to set up its $3 billion Fab City on the city outskirts by signing a memorandum of understanding with the State government on Thursday. SemIndia chief executive officer Vinod K. Agarwal and principal secretary, industries, Lakshmi Parth-asarathy signed the MoU in the presence of Chief Minister Y.S. Rajasekhar Reddy at Secretariat. 

Mr Agarwal said the speed at which the State government processed the files - within a week of making the announcement on setting up the project - was unprecedented and could not be found even in the corporate sector. "We hope to start work within 30-45 days, once we get all the required clearances from the government, establish the special purpose vehicle (SPV), documentation of incentives offered by the government such as power and water supply and announcement of policy changes by the Central government," he said.

Mr Agarwal said SemIndia had got the site layout last week and the company was studying it to prepare the development plan. Once the company gets the land, it would entrust layout development to Singapore-based developers Jurong and Sardana. The representatives of these companies would be coming next week. Once the project layout is ready, work would commence on the first phase, he said. With regard to SPV, Mr Agarwal said SemIndia and the State government would be partners and the Centre, if it was interested, would be welcome to join

(Courtesy : Deccan Chronicle)