Fab project on track: SemIndia

Claiming that the proposed $3-billion fab unit and the $100-million ATMP (assembly test, mark and pack) project at Hyderabad Fab City were well on course, Vinod K Agarwal, chairman of SemIndia Corporation Private Limited on Wednesday said the company could not stick to its original project schedule mainly due to the delayed policy announcement from the Centre.

Addressing a press conference in connection with the recent reports on the company's ability in implementing the fab project, Agarwal said the ATMP plant would be ready by the second quarter of 2008 while the basic infrastructure for the $1-billion phase-I of the fab unit project would be in place by the end of next year.

"We received the authorisation for commencing operations at the proposed Fab City SEZ from the commerce ministry only last month. The state government is yet to issue formal orders on land transfer and the incentives agreed upon in the MoU entered in February 2006. How can we start work without even legally owning the land?" he questioned.

On the financial capabilities of the promoters, he said financial and technology tie ups were already in place and the company had already inducted over 30 experts to work on the project.

Further, he said, the electronic equipment project set up by the company's subsidiary SemIndia Systems in Bangalore last year had already begun the first shipment of modems, expecting a Rs 100-crore turnover in the first year itself. "This is a proof of the company's inherent strength in executing the projects," he said.

According to Agarwal, the company is planning to import semiconductor wafers from countries like Taiwan and China to manufacture chips at the ATMP project till such time its own fab unit is ready.

State industry minister J Geeta Reddy, in a separate press meet, said the government order (GO) on land and incentives for the project would be issued in a day or two.

"We firmly believe that SemIndia can execute the project," she said. Stating that the government will have a firm control on land allotment, she said the GOs would address all issues pertaining to various issues raised by the media.