(1888PressRelease)
April 21, 2007 - The Fabcity project by SemIndia, a Non Resident Indian Initiative with initial funding by Venture Fund, Sandalwood Partners, was bagged by the state of Andhra Pradesh by offering several incentives including allocation of land, subsidized power and water. The project failed to take off in the year 2006, since the policy frame-work to support Semiconductor Manufacturing was not in place, in India. Subsequently, the Union Cabinet approved the Semiconductor Policy in February 2007 and later on 22nd March 2007, the investor friendly policy designed to propel India into chip fabrication, was notified.
With the notification of the policy, decks were cleared for proposed fab projects to move forward swiftly and pull-in the required debt and equity funding. SemIndia had been pressurizing the Union Govt. throughout 2006, for early clearance of the Semiconductor Policy, claiming that they will not be able to tie up financing for the Project, without clarity on the proposed incentives. However, no perceptible activity by SemIndia was seen since the clearance of the policy.
Recent reports suggest that SemIndia is at loggerheads with Govt. of AP on various matters including land allocation and cost of power. SemIndia has not come forward to give their side of the story. State Govt. is understood to have invited SemIndia for a final discussion this week-end to decide on the future of the Project.
The historic details on progress of the Fabcity Project is available at www.exclventures.com/hotnews.asp
