Centre paves way for microprocessor fabrication players

The Government of India has paved way for private players to set up a microprocessor fabrication (FAB) plant in India. Investment in such a project is in the range of $2 billion dollars.

The government is also planning to facilitate the setting up of a car crash testing facility in India which will require an investment of around half a billion dollars.

Andhra Pradesh has shown interest ahead of others in hosting both these units. Speaking at a seminar on infrastructure, 'SUMINFRA 2004', organised by CII in Bangalore on Thursday, Rajeeva Ratna Shah, secretary, Planning Commission, said: "We have completed plans to facilitate the entry of private players to set up a microprocessor fabrication unit in the country."

The facilitation required from the Central government for this is being finalised and "it now up to a private player such as US giants Intel or AMD to take decision."

Initially, the government feels, it "will be a chip testing facility which will involve a investment of around a billion dollars and then later on, corporations are expected to step up into actual FAB."

Shah also revealed that the Centre is contemplating setting up a car crash testing facility in India. "This still in the infancy stage and logically this will be in the auto manufacturing cluster in the country." He further added that Andhra Pradesh has shown proactive interest in hosting both these units.

Confirming these plans, Andhra Pradesh chief minister Y S Rajasekhara Reddy delivering his address, said: "We have shown keen interest to have these units in our state and we are working closely with central government for this. We are giving high priority to infrastructure development and this is an indication that we are serious about developing the industrial economy of our state."

Calling upon investors in infrastructure to make southern India as a growth corridor, Reddy urged entreprenuers to adopt best practices and aid the wholesome growth of the rural economy.