Fab city project attracts 3 more companies for $2 b investment

Written by Corporate Bureau | Hyderabad, May 30 | Updated: May 31 2008, 06:39am hrs
Having gained traction in attracting over 16 solar manufacturing companies, the much-hyped fab city project in Hyderabad, located on over 1,200 acres, will soon be adding three more companies in the next few months. The investment by these three new companies is expected to generate about $2 billion.

According to CS Rao, advisor (IT) and CEO, AP Invest, Andhra Pradesh government, the State government has almost exhausted land for new companies and is looking out for lands.

We are expecting to sign an agreement with one fab company which would be in wafer, cell and module thus completing a full cycle, he said without disclosing the name of the company.

The agreement by the state government and the company, which is believed to have committed a huge investment, is expected to be signed in next two months.

The three new companies would be located in fab city, Vishakapatnam and Nellore, he said. Out of the 16-odd companies signed, an LCD manufacturing company is expected to commence work in the fab city.

He also informed that the whole project has seen lot of demands from many new companies with committed investments and the government is forced to look out for land elsewhere. For one MW, the investment is estimated to be $1 to $1.5 million.

Meanwhile, the first tenant of fab city - Sem India, which has signed a memorandum of understanding with the Andhra Pradesh government, is expected to complete its construction of its assembly-test-mark and park (ATMP) facility by December 2008. From April 2007, it has been given 18 months time to complete the project.