SemIndia and the Andhra Pradesh government would soon set up a special purpose vehicle (SPV) for the proposed Fab City project.SemIndia CEO Vinod K Agarwal today said the company would rope in other players in due course.Agarwal today signed a formal MoU with the state government on land allotment and other packages of incentives for the $3 billion project proposed to be set up in Hyderabad.Agarwal said that the financial closure for the Phase-I project, which includes assembly and testing facilities, is already in place. "As far as the second phase, which comprises the actual fab facility, is concerned, we are awaiting the decision of the central government on the proposed investment on its part in the project as well as the policy issues with regard to fab industry," he said.Of the $3 billion investment projected for Fab City, equity component would be about $1 billion, he said. The preliminary exercise, including the formation of SPV, land transfer and necessary clearances, would take about 45 days before the actual work begins, he added.
