Cold-shouldered by Hyderabad, Fab City looks at State

Cold-shouldered by Hyderabad, Fab City looks at State
Vijay Times

Just when it appeared that Karnataka had lost the Fab City project to Andhra Pradesh, comes the reassuring news that all may not be lost yet.

The State may get a second chance to get its act together and provide the needed infrastructure (including 1,200 acres land) for the $2 billion project. In February, AP Chief Minister Y S Rajasekhara Reddy managed to convince SemIndia, promoters of the project, to set it up near Hyderabad, by holding promotional meetings over breakfast right here in Bangalore.

He made expansive promises about providing all the land, power, water, roads and other facilities sought. And SemIndia promptly agreed to go to Andhra. But his joy may be shortlived. Recent reports suggest that the Fab City may not take off in AP, as the AP government is yet to deliver what it promised. It is said that SemIndia is disappointed because it was expecting incentives worth 25 per cent of the project cost.

So the project is up for grabs again.

If SemIndia agrees to set up Fab City in Karnataka, is the State prepared to welcome it? Is it ready to provide 1,200 acres of land and other facilities? If the attitude of Minister for Industries Katta Subramanya Naidu is any indication, the answer seems to be yes.

The Karnataka Industrial Areas Development Board has acquired 25,000 acres of land and the government is ready to allot land for industrialists.

“I have already held talks with SemIndia officials. Though they have not made any commitment, they have evinced a keen interest. Our government is ready to provide whatever facilities they want. We have extended a warm welcome to them. Now, it is up to them whether to accept our invitation or not,’’ says Naidu.

When VViij jaay y TTiimme es scontacted M N Vidyashankar, Secretary, IT & BT, who is in Bobbili, Vizianagaram district, on an election duty, he said that the State government would welcome SemIndia to set up the Fab City near Bangalore. “We held discussions with them. Now the file is with the Industry Secretary,’’ he said.

But the catch is that the announcement of a semiconductor policy is in the province of the Centre and the State has no say in it. “Bangalore was looking at the Fab City project. If SemIndia is ready to come to Bangalore, the State government has to take proactive measures. I know it can provide land and water, but I do not know how the government will provide incentives worth 25 per cent of the total cost,’’ says Venkat Kedilaya, president, Bangalore Chamber of Industry and Commerce.