Hyderabad: The Special Purpose Vehicle (SPV) for the proposed SemIndia Fab City project that plans to set up a chip-making facility near the upcoming International Airport at Shamshabad near here is expected to be kick-started in November second week, ending weeks of delay.

The MoU for the facility was signed between the promoters of the facility, SemIndia, and the Government of Andhra Pradesh this February when the latter earmarked 1,200 acres of land.

Speaking to The Hindu , Adviser to the Government on Information Technology (IT) C.S. Rao said the State Government as well SemIndia were only awaiting an announcement of the semiconductor policy by the Centre. He was hopeful that the issue would be clinched in four weeks.

Impact on economy

Chief Minister Y.S. Rajasekhara Reddy, who will be in New Delhi on Wednesday, has sought an appointment with Prime Minister Manmohan Singh to impress upon him the need for early announcement of the policy. He is keen on speeding up the Fab City project in view its enormous potential to impact the State's economy.

Chairman and CEO of SemIndia Vinod K. Agarwal met the Chief Minister on Tuesday and informed him about the progress of the project.

He said the first phase for establishing assembly, test, marking and packing facility (ATMP) was underway and funding for it was finalised.

A team of international and local experts was operating in Hyderabad while Ramky Group had been engaged as consultants for applying for appropriate clearances.

Eager to begin

Investors and strategic partners lined up so far were eager to begin work, the CEO reportedly told the Chief Minister.

The Fab City had also constituted its Board of Directors out of which three would be from the Government.

Meanwhile, a semiconductor major in the global market is expected to announce its plans for Hyderabad on Wednesday.

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